Added to YB: 2025-05-23
Pitch date: 2025-04-07
ARCO [bullish]
Arcos Dorados Holdings Inc.
+3.78%
current return
Author Info
No bio for this author
Company Info
Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants. The company has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.
Market Cap
$1.6B
Pitch Price
$7.13
Price Target
N/A
Dividend
3.13%
EV/EBITDA
5.10
P/E
6.58
EV/Sales
0.75
Sector
Hotels, Restaurants and Leisure
Category
value
Arcos Dorados Holdings Inc. - $ARCO
ARCO: McDonald's LatAm franchisee trading at 4x EBITDA, <9x fwd P/E despite 20-yr master agreement renewal. Strong digital (70% Brazil sales), growing loyalty program (16M members). Mexican biz unaffected by trade tensions. Debt at lowest point with Ba1 rating. Accelerating unit growth to 90-100 in 2025. LatAm may benefit from US trade realignment.
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