Short Interest in Arcos Dorados Holdings Surges in June
July 18, 2023
☀️Trending News
Recently, the company experienced a significant surge in short interest during June. Short interest is the number of shares of a stock that have been sold short but have not yet been repurchased and returned to the lender. The surge in short interest is a sign that investors have gone bearish on Arcos Dorados ($NYSE:ARCO) Holdings Inc. stock. The rise in short interest may be a sign that investors are concerned about Arcos Dorados Holdings Inc.’s future prospects, given the challenging economic conditions that it is currently facing due to the coronavirus pandemic.
The company has had to implement several cost-cutting measures in order to remain competitive, including furloughing employees and suspending investments. It remains to be seen whether these steps will be enough to help Arcos Dorados turn around its fortunes and appease investors in the long term.
Market Price
On Monday, the stock opened at $10.3 and closed at $10.4, up by 0.5% from prior closing price of 10.4. Despite the surge in short interest, the stock price of Arcos Dorados Holdings Inc. has been relatively stable during the month of June, showing no major swings in market sentiment. 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 |
| 3.82k | 153.25 | 3.9% |
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 |
| 2.7k | 2.35k | 1.68 |
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 |
| 10.3% | 32.5% | 7.5% |
| FCF Margin | ROE | ROA |
| 3.4% | 52.8% | 6.6% |
Analysis
At GoodWhale, we have conducted an analysis of the fundamentals of ARCOS DORADOS. After our assessment, we have concluded that ARCOS DORADOS is a low risk investment when it comes to financial and business aspects. We have identified two risk warnings in the income sheet and balance sheet when conducting our analysis. If you are interested in learning more about these warnings, we invite you to become a registered user with GoodWhale. We provide full access to our findings and can further assist you with any questions or queries you may have. 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 a well-known Latin American fast-food restaurant chain that operates the largest McDonald’s franchise in the world. To gauge this investment opportunity, it is important to analyze the company’s financials, competitive advantages, management strategies, and industry dynamics. Financial analysis involves an examination of the company’s income statements, balance sheets, cash flow statements, and other financial metrics.
Additionally, an evaluation of the company’s competitive advantages in terms of market share, competitive pricing strategies, and product offerings will help determine the degree to which Arcos Dorados can sustain its business operations. Additionally, an analysis of management strategies and industry dynamics should be conducted to assess the company’s long-term outlook. Through this comprehensive analysis, investors can gain a better understanding of Arcos Dorados’ current situation and make informed decisions on their investments.
