Arcos Dorados Stock Fair Value Calculator – ARCOS DORADOS Reports Total Revenue Increase of 22.1% in Q3 FY2023
December 9, 2023
☀️Earnings Overview
On September 30, 2023, ARCOS DORADOS ($NYSE:ARCO) reported their third quarter of FY2023 earnings results, showing a 22.1% year-over-year increase in total revenue to USD 1125.1 million and a 27.4% year-over-year increase in net income to USD 59.7 million.
Analysis – Arcos Dorados Stock Fair Value Calculator
GoodWhale recently conducted an analysis of the fundamentals of ARCOS DORADOS. According to the results, they determined the fair value of ARCOS DORADOS share to be around $9.6, calculated by their proprietary Valuation Line. However, right now ARCOS DORADOS stock is being traded at $11.4, making the share overvalued by 18.8%. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arcos Dorados. More…
| Total Revenues | Net Income | Net Margin |
| 4.18k | 179.99 | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arcos Dorados. More…
| Operations | Investing | Financing |
| 342.36 | -377.89 | -51.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arcos Dorados. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.85k | 2.4k | 2.1 |
Key Ratios Snapshot
Some of the financial key ratios for Arcos Dorados are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.1% | 18.2% | 7.6% |
| FCF Margin | ROE | ROA |
| 0.5% | 46.9% | 7.0% |
Peers
Arcos Dorados Holdings Inc is the world’s largest franchisor of McDonald’s restaurants. The company operates or franchises over 1,700 McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean. Arcos Dorados is headquartered in Buenos Aires, Argentina. The company’s primary competitors are Del Taco Restaurants Inc, Amrest Holdings SE, and Alsea SAB de CV.
– Del Taco Restaurants Inc ($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
ARCOS DORADOS released their third quarter earnings for FY2023, reporting total revenue of USD 1125.1 million with a 22.1% increase year over year and a 27.4% increase in net income to USD 59.7 million. This news caused the stock price to move up that day. Investors should consider this a positive sign as it implies that the company is performing well and may be a good investment. Future performance should be monitored to determine if the company is well-positioned to continue this trend of growth.
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