Arcos Dorados Stock Fair Value – ARCOS DORADOS Reports Record-Breaking Revenue of USD 1125.1 Million at End of FY2023 Q3
November 30, 2023
🌥️Earnings Overview
At the end of September 30 2023, ARCOS DORADOS ($NYSE:ARCO) reported total revenue of USD 1125.1 million – a 22.1% rise compared to the same quarter of the prior year. For the same period, its net income also grew 27.4%, amounting to USD 59.7 million.
Share Price
On Thursday, ARCOS DORADOS stock opened at $11.0 and closed at $11.4, a rise of 8.5% from the prior closing price of 10.5. The impressive results were driven by the company’s strong focus on improvement initiatives and cost optimization strategies. These strategies have allowed ARCOS DORADOS to increase its scale of operations and expand operations in both existing and new markets. Moreover, the company also reported higher same-store sales growth compared to the previous year, which has helped boost revenue. These strong results have resulted in increased confidence in the company, which has encouraged investors to invest in the stock.
Furthermore, the company’s improved financial performance has helped it secure long-term debt financing and attract new equity investors. In conclusion, ARCOS DORADOS’ record-breaking revenue is yet another indication of its strong performance and future potential. The company’s successful initiatives and cost optimization strategies will continue to drive its growth in the years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arcos Dorados. More…
| Total Revenues | Net Income | Net Margin |
| 4.18k | 179.99 | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arcos Dorados. More…
| Operations | Investing | Financing |
| 342.36 | -377.89 | -51.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arcos Dorados. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.85k | 2.4k | 2.1 |
Key Ratios Snapshot
Some of the financial key ratios for Arcos Dorados are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.1% | 18.2% | 7.6% |
| FCF Margin | ROE | ROA |
| 0.5% | 46.9% | 7.0% |
Analysis – Arcos Dorados Stock Fair Value
At GoodWhale, we have conducted an in-depth analysis of the fundamentals of ARCOS DORADOS. Our proprietary Valuation Line has estimated the intrinsic value of ARCOS DORADOS’s stock to be around $9.6. Currently, the stock is trading at $11.4, indicating a fair price that is overvalued by 18.8%. More…
Peers
Arcos Dorados Holdings Inc is the world’s largest franchisor of McDonald’s restaurants. The company operates or franchises over 1,700 McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean. Arcos Dorados is headquartered in Buenos Aires, Argentina. The company’s primary competitors are Del Taco Restaurants Inc, Amrest Holdings SE, and Alsea SAB de CV.
– Del Taco Restaurants Inc ($LTS:0OGQ)
Amrest Holdings SE is a holding company that operates in the restaurant and retail industry. It has a market cap of 4B as of 2022 and a return on equity of 14.44%. The company operates in Europe, the Middle East, Africa, Asia, and the United States. It operates through its subsidiaries, including Pizza Hut, KFC, Burger King, and Starbucks. The company was founded in 1993 and is headquartered in Warsaw, Poland.
– Amrest Holdings SE ($OTCPK:ALSSF)
Alsea SAB de CV is a Mexican holding company that operates in the food and beverage industry. Through its subsidiaries, Alsea SAB de CV engages in the development, operation, and franchising of restaurant brands in Mexico, Argentina, Chile, Colombia, and Brazil. As of 2022, Alsea SAB de CV had a market capitalization of 1.59 billion and a return on equity of 52.23%. The company’s subsidiaries include Alsea Ventures, Alsea Restaurants, Alsea Brands, and Alsea Food Service.
Summary
Investors in ARCOS DORADOS are likely to be encouraged by the company’s financial results for the third quarter of fiscal year 2023. Total revenue increased by 22.1% year-over-year to USD 1125.1 million, while net income also grew 27.4% compared to the previous year to USD 59.7 million. This positive performance was reflected in the stock price, which moved up on the same day. Given the strong financial results, investors may expect further growth for the company going forward.
