Arcos Dorados Stock Fair Value Calculation – Arcos Dorados Holdings Surges 59.75% This Year, Leads Restaurants Industry with 81 Overall Score

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ARCOS ($NYSE:ARCO): This surge has enabled ARCO to lead the Restaurants industry with an overall score of 81, according to a recent report by Financial Times. It operates a variety of restaurants, including McDonald’s, KFC, Pizza Hut, and Taco Bell. In addition to restaurant operations, ARCO also offers a variety of services such as delivery, catering, and mobile ordering. ARCO has been on a positive trajectory since the COVID-19 pandemic struck.

Despite the challenges posed by the pandemic, ARCO is continuing to increase its market presence and has achieved a record high in its overall score this year. This success is attributed to its ability to rapidly adapt to the changing market conditions and effectively manage its operations. As such, it has emerged as a leader in the Restaurants industry and is set to continue its success in the coming years.

Analysis – Arcos Dorados Stock Fair Value Calculation

At GoodWhale, we have conducted an extensive analysis of ARCOS DORADOS‘s wellbeing and we are delighted to share our results. The intrinsic value of ARCOS DORADOS share is around $8.7, calculated by our proprietary Valuation Line. This value is significantly lower than the current traded price of $10.3. Therefore, we can conclude that the stock of ARCOS DORADOS is fairly priced, however, it is slightly overvalued by 19.0%. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Arcos Dorados. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Arcos Dorados. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Arcos Dorados. More…

Key Ratios Snapshot

Some of the financial key ratios for Arcos Dorados are shown below. 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

Arcos Dorados Holdings Inc is one of the top performers in the restaurant industry, having seen a growth of 59.75% this year. An analysis of its stock indicates that the company is well-positioned for continued success in the near future. Investors should note that ARCO has strong financials and strong fundamentals, with a healthy balance sheet and positive cash flow.

Additionally, ARCO has expanded its presence in numerous countries such as Argentina, Mexico, and Brazil, which helps to provide a diversified and resilient portfolio. With a healthy outlook from analysts, investors looking for a long-term investment should consider Arcos Dorados as a viable option.