Arcos Dorados Holdings Inc. (ARCO) — Stock Score Summary

Arcos Dorados Holdings Inc. (ARCO) has a MoatMap StockRank of 93/100 based on Quality (46/100), Value (69/100), and Momentum (64/100) factor scores. The current signal is STRONG BUY. Arcos Dorados is the largest McDonald's franchisee in Latin America. Despite the strong brand, the franchisee model is highly capital-intensive (remodeling requirements) and exposed to severe macroeconomic and currency volatility across Latin America.

Arcos Dorados Holdings Inc. is the world's largest McDonald's franchisee, holding exclusive rights to operate and franchise McDonald's restaurants across 20 countries in Latin America and the Caribbean. Its competitive moat is built upon leveraging a globally recognized brand, a proven operating model, and an extensive regional footprint that dominates the quick-service restaurant market. This unique franchise agreement provides significant market penetration and brand strength.

Key Financial Metrics

Price$8.26
Market Cap$1.9B
P/E (TTM)7.44
P/E (Forward)9.60
Price/Book2.24
Return on Equity36.3%
Return on Invested Capital11.9%
Debt/Equity278.65
Gross Margin12.2%
Operating Margin5.2%
Revenue Growth12.9%
Dividend Yield3.4%
Free Cash Flow$182M

Arcos Dorados Holdings Inc. operates in the Restaurants industry, part of the Consumer Cyclical sector (Uruguay).

Frequently Asked Questions

What is Arcos Dorados Holdings Inc.’s (ARCO) StockRank?
MoatMap’s StockRank for Arcos Dorados Holdings Inc. (ARCO) is 93/100, with a Strong Buy signal. It is a composite of Quality (46), Value (69), and Momentum (64) factor ranks across MoatMap’s 19,000+ stock universe.
Does Arcos Dorados Holdings Inc. have an economic moat?
Arcos Dorados Holdings Inc. (ARCO) has a Quality factor score of 46/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Arcos Dorados Holdings Inc. a buy, hold, or sell?
MoatMap’s current signal for Arcos Dorados Holdings Inc. (ARCO) is Strong Buy, based on a StockRank of 93/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Arcos Dorados Holdings Inc. in?
Arcos Dorados Holdings Inc. (ARCO) operates in the Consumer Cyclical sector, specifically the Restaurants industry (Uruguay).
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