$ARCO Trading Report: Arcos Dorados Holdings Class A Shares on the Rise
December 10, 2023
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This trading report is for Arcos Dorados ($NYSE:ARCO) Holdings Inc. Class A Shares ($ARCO). Arcos Dorados is the world’s largest McDonald’s franchisee, with operations in Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Puerto Rico, Uruguay, and Venezuela. Arcos Dorados’ strategy centers around providing its customers with the highest quality products and services in an innovative and sustainable way. The company has increased access to its products through digital channels such as online ordering, delivery, and mobile payments.
Additionally, it is actively pursuing new growth opportunities including expanding its presence in Latin America and investing in new technologies and digital capabilities. The company’s impressive performance combined with its strategic focus on innovation and sustainability has led to strong investor interest and an increase in its share price.
Market Price
Wednesday was a good day for Arcos Dorados Holdings Inc. Class A Shares (ARCO) as the stock opened trading at $11.6 and closed at $11.5, up 0.2% from the previous closing price of $11.4. This marked the third consecutive day of gains for the company’s stock, signaling a positive trend in the market for Arcos Dorados. The increase can be attributed to investor confidence in the sustainability of the company’s operations despite the current macroeconomic conditions, and an optimistic outlook for the future performance of ARCO.
All in all, the performance of Arcos Dorados on Wednesday is an indication that the company’s stock is on the rise and could continue to make gains in the near future. Investors interested in taking part in this trend should keep a close eye on ARCO and consider adding it to their portfolios as soon as possible. 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
GoodWhale recently conducted an analysis of ARCOS DORADOS‘s wellbeing. After exploring our Star Chart results, we found that ARCOS DORADOS is strong in dividend, medium in growth, profitability and weak in asset. In addition, ARCOS DORADOS has an intermediate health score of 6/10 considering its cashflows and debt, indicating that the company might be able to pay off debt and fund future operations. Our analysis also classified ARCOS DORADOS as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. We believe that this type of company may be of interest to investors looking to invest in a higher-risk, higher-reward situation, as well as those looking for capital appreciation. 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. (ARCO) is a fast food restaurant operator in Latin America and the Caribbean. The company is listed on the New York Stock Exchange and offers a range of products, including hamburgers, chicken, salads, desserts, drinks, breakfast items, and more. Analysts are bullish on the company’s prospects due to its strong presence in Latin America and the Caribbean, as well as its continued focus on expanding product offerings and developing digital initiatives.
Additionally, the company’s recent dividend increase indicates a commitment to creating shareholder value. While there is always risk associated with any stock, the potential for long-term success seems to be quite high for ARCO.
