Arcos Dorados Stock Fair Value Calculation – ARCOS DORADOS Reports 19.6% Year-Over-Year Growth in Fourth Quarter of FY2022 with USD 54.5 Million in Total Revenue.
March 31, 2023
Earnings Overview
ARCOS DORADOS ($BER:AD8) reported total revenue of USD 54.5 million for the fourth quarter of FY2022 ending December 31, 2022, revealing a 19.6% year-over-year growth. Additionally, reported net income for the quarter was USD 1018.6 million, a 30.5% increase when compared to the same quarter in the prior year. The earnings report was issued on March 15, 2023.
Stock Price
CEO Sergio Alonso attributed this success to their strong performance in Mexico, Brazil and Argentina, three of their major markets. These impressive results further demonstrate the company’s commitment to delivering the highest quality food products and services to its customers around the world. As the company continues to expand its presence in new markets and explore new opportunities, it is well-positioned to maintain this level of growth in the future. 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 |
| 3.38k | 45.49 | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arcos Dorados. More…
| Operations | Investing | Financing |
| 345.44 | -259.65 | -59.98 |
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 |
| 2.64k | 2.31k | 1.54 |
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 |
| 4.5% | 17.7% | 4.8% |
| FCF Margin | ROE | ROA |
| 3.8% | 38.1% | 3.4% |
Analysis – Arcos Dorados Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of ARCOS DORADOS‘s financials and our proprietary Valuation Line has determined the fair value of its share to be around €7.5. Currently, ARCOS DORADOS stock is traded at €7.4, which is a fair price that is slightly undervalued by 1.9%. Thus, we believe that this could be a good time to invest in the company and take advantage of this lower-than-expected price. More…
Summary
ARCOS DORADOS, the largest McDonald’s franchisee in the world, reported impressive financials for the fourth quarter of Fiscal Year 2022. Total revenue increased by 19.6%, while net income rose by 30.5% on a year-over-year basis. This strong growth indicates a strong performance for the company and is a great sign for investors. It further highlights the stability and profitability of ARCOS DORADOS and suggests that the company is well-positioned to continue to grow and generate attractive returns in the years ahead.
