Is Arcos Dorados Stock a Good Investment?
Arcos Dorados Investment Advice | ARCO |
- Examine Arcos Dorados' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Arcos Dorados' leadership team and their track record. Good management can help Arcos Dorados navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Arcos Dorados' business and its evolving consumer preferences.
- Compare Arcos Dorados' performance and market position to its competitors. Analyze how Arcos Dorados is positioned in terms of product offerings, innovation, and market share.
- Check if Arcos Dorados pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Arcos Dorados' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Arcos Dorados Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Arcos Dorados Holdings is a good investment.
Sell | Buy |
Sell
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Arcos Dorados Stock
Researching Arcos Dorados' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 45.0% of the company shares are held by institutions such as insurance companies. The book value of Arcos Dorados was presently reported as 2.45. The company has Price/Earnings To Growth (PEG) ratio of 2.15. Arcos Dorados Holdings last dividend was issued on the 20th of December 2024. The entity had 993:979 split on the 13th of July 2021.
To determine if Arcos Dorados is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Arcos Dorados' research are outlined below:
| Arcos Dorados generated a negative expected return over the last 90 days | |
| Arcos Dorados Holdings currently holds 1.69 B in liabilities with Debt to Equity (D/E) ratio of 7.4, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Arcos Dorados Holdings has a current ratio of 0.84, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Arcos Dorados' use of debt, we should always consider it together with its cash and equity. | |
| Arcos Dorados has a strong financial position based on the latest SEC filings | |
| On 27th of December 2024 Arcos Dorados paid $ 0.06 per share dividend to its current shareholders | |
| Latest headline from news.google.com: Hunter Perkins Capital Management LLC Makes New 291,000 Investment in Arcos Dorados Holdings Inc. - MarketBeat |
Arcos Dorados Quarterly Liabilities And Stockholders Equity |
|
Arcos Dorados uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Arcos Dorados Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Arcos Dorados' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of March 2024 Upcoming Quarterly Report | View | |
| 15th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Arcos Dorados' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Arcos Dorados' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-05-15 | 2019-03-31 | 0.08 | 0.07 | -0.01 | 12 | ||
2018-08-08 | 2018-06-30 | 0.04 | 0.05 | 0.01 | 25 | ||
2013-08-06 | 2013-06-30 | 0.06 | 0.05 | -0.01 | 16 | ||
2013-04-30 | 2013-03-31 | 0.05 | 0.04 | -0.01 | 20 | ||
2012-08-07 | 2012-06-30 | 0.07 | 0.06 | -0.01 | 14 | ||
2018-05-09 | 2018-03-31 | 0.08 | 0.06 | -0.02 | 25 | ||
2013-11-05 | 2013-09-30 | 0.13 | 0.15 | 0.02 | 15 | ||
2024-05-15 | 2024-03-31 | 0.17 | 0.14 | -0.03 | 17 |
Know Arcos Dorados' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Arcos Dorados is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Arcos Dorados Holdings backward and forwards among themselves. Arcos Dorados' institutional investor refers to the entity that pools money to purchase Arcos Dorados' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Franklin Resources Inc | 2024-09-30 | 1.4 M | Qube Research & Technologies | 2024-09-30 | 1.3 M | Inca Investments, Llc | 2024-09-30 | 1.3 M | Medina Singh Partners, Llc | 2024-09-30 | 1.2 M | Timessquare Capital Management, Llc | 2024-09-30 | 1.1 M | Banco Btg Pactual S.a. | 2024-09-30 | 996.3 K | Clearbridge Advisors, Llc | 2024-09-30 | 951.8 K | Van Eck Associates Corporation | 2024-09-30 | 876.3 K | Voloridge Investment Management, Llc | 2024-09-30 | 869.1 K | Nuveen Asset Management, Llc | 2024-09-30 | 14.7 M | T. Rowe Price Associates, Inc. | 2024-09-30 | 9.6 M |
Arcos Dorados' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.65 B.Market Cap |
|
Arcos Dorados' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.07 | |
| Return On Capital Employed | 0.16 | 0.14 | |
| Return On Assets | 0.07 | 0.07 | |
| Return On Equity | 0.32 | 0.33 |
Determining Arcos Dorados' profitability involves analyzing its financial statements and using various financial metrics to determine if Arcos Dorados is a good buy. For example, gross profit margin measures Arcos Dorados' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Arcos Dorados' profitability and make more informed investment decisions.
Evaluate Arcos Dorados' management efficiency
Arcos Dorados Holdings has return on total asset (ROA) of 0.0693 % which means that it generated a profit of $0.0693 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3928 %, meaning that it created $0.3928 on every $100 dollars invested by stockholders. Arcos Dorados' management efficiency ratios could be used to measure how well Arcos Dorados manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Arcos Dorados' Return On Tangible Assets are very stable compared to the past year. As of the 31st of January 2025, Return On Assets is likely to grow to 0.07, while Return On Capital Employed is likely to drop 0.14. At this time, Arcos Dorados' Asset Turnover is very stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.82 | 2.48 | |
| Tangible Book Value Per Share | 2.44 | 2.26 | |
| Enterprise Value Over EBITDA | 10.43 | 9.90 | |
| Price Book Value Ratio | 5.97 | 6.22 | |
| Enterprise Value Multiple | 10.43 | 9.90 | |
| Price Fair Value | 5.97 | 6.22 | |
| Enterprise Value | 4.8 B | 3.5 B |
Arcos Dorados showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Basic technical analysis of Arcos Stock
As of the 31st of January, Arcos Dorados shows the mean deviation of 1.56, and Risk Adjusted Performance of (0.07). Arcos Dorados Holdings technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Arcos Dorados' Outstanding Corporate Bonds
Arcos Dorados issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Arcos Dorados Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Arcos bonds can be classified according to their maturity, which is the date when Arcos Dorados Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Arcos Dorados' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Arcos Dorados' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.07) | |||
| Market Risk Adjusted Performance | (1.72) | |||
| Mean Deviation | 1.56 | |||
| Coefficient Of Variation | (1,076) | |||
| Standard Deviation | 2.06 | |||
| Variance | 4.23 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.42) | |||
| Treynor Ratio | (1.73) | |||
| Maximum Drawdown | 10.84 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 2.48 | |||
| Skewness | (0.50) | |||
| Kurtosis | 1.63 |
| Risk Adjusted Performance | (0.07) | |||
| Market Risk Adjusted Performance | (1.72) | |||
| Mean Deviation | 1.56 | |||
| Coefficient Of Variation | (1,076) | |||
| Standard Deviation | 2.06 | |||
| Variance | 4.23 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.42) | |||
| Treynor Ratio | (1.73) | |||
| Maximum Drawdown | 10.84 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 2.48 | |||
| Skewness | (0.50) | |||
| Kurtosis | 1.63 |
Consider Arcos Dorados' intraday indicators
Arcos Dorados intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Arcos Dorados stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 46348.69 | |||
| Daily Balance Of Power | 0.0833 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 7.87 | |||
| Day Typical Price | 7.86 | |||
| Price Action Indicator | (0.02) | |||
| Period Momentum Indicator | 0.02 |
Arcos Dorados Corporate Filings
6K | 24th of January 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 8th of January 2025 Other Reports | ViewVerify | |
13A | 14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
| 10th of May 2024 Other Reports | ViewVerify |
Arcos Stock media impact
Far too much social signal, news, headlines, and media speculation about Arcos Dorados that are available to investors today. That information is available publicly through Arcos media outlets and privately through word of mouth or via Arcos internal channels. However, regardless of the origin, that massive amount of Arcos data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Arcos Dorados news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Arcos Dorados relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Arcos Dorados' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Arcos Dorados alpha.
Arcos Dorados Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Arcos Dorados can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Arcos Dorados Holdings Historical Investor Sentiment
Investor biases related to Arcos Dorados' public news can be used to forecast risks associated with an investment in Arcos. The trend in average sentiment can be used to explain how an investor holding Arcos can time the market purely based on public headlines and social activities around Arcos Dorados Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Arcos Dorados' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Arcos Dorados and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Arcos Dorados news discussions. The higher the estimate score, the more favorable the investor's outlook on Arcos Dorados.
Arcos Dorados Corporate Directors
| Michael Chu | independent Director | Profile | |
| Jose Cadavid | independent Director | Profile | |
| Carlos HernandezArtigas | Director | Profile | |
| Jose Fernandez | Director | Profile |
Already Invested in Arcos Dorados Holdings?
The danger of trading Arcos Dorados Holdings is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Arcos Dorados is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Arcos Dorados. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Arcos Dorados Holdings is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Arcos Dorados Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Arcos Dorados' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Arcos Dorados Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Arcos Dorados Holdings Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arcos Dorados Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arcos Dorados. If investors know Arcos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arcos Dorados listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.08) | Earnings Share 0.69 | Revenue Per Share | Quarterly Revenue Growth 0.068 | Return On Assets |
The market value of Arcos Dorados Holdings is measured differently than its book value, which is the value of Arcos that is recorded on the company's balance sheet. Investors also form their own opinion of Arcos Dorados' value that differs from its market value or its book value, called intrinsic value, which is Arcos Dorados' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arcos Dorados' market value can be influenced by many factors that don't directly affect Arcos Dorados' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Arcos Dorados' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Arcos Dorados is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arcos Dorados' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.