Stock AnalizArcos Dorados Holdings Inc. ARCO
Restaurants · IPO 2011 · data as of November 13, 2026
Arcos Dorados Holdings Inc. (ARCO) is a consumer discretionary company listed in the US with a market value of about $1.5B. In the twelve months to September 30, 2026 it had revenue of $5.1B and net income of $138M, a net margin of 2.7%.
Its overall Stock Analiz score is 2.6 out of 5 (average). The strongest part is value (4/5); the weakest is future growth (1/5).
Key numbers: a P/E of 11.0, a price to free cash flow of 14.4, 5-year revenue growth of 19% a year, a 5-year average ROIC of 8%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 10% above the current price.
Score: 2.6 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- Profit margin improving
- 5-year revenue growth above 8% a year
- Profitable 5 years in a row
- ROE above 15%
Checks not passed
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- 5-year average ROIC above 12%
- More cash than debt, or low debt to equity
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.1B | $4.7B | $4.5B | $4.3B | $3.6B | $2.7B | $2.0B | $3.0B | $3.1B | $3.3B | $2.9B |
| Net income | $138M | $212M | $149M | $181M | $140M | $45M | -$149M | $80M | $37M | $129M | $79M |
| Free cash flow | $105M | $15M | -$61M | $22M | $128M | $143M | -$70M | -$42M | -$17M | $80M | $72M |
| EPS (diluted) | $0.65 | $1.01 | $0.71 | $0.86 | $0.67 | $0.22 | $-0.71 | $0.38 | $0.17 | $0.61 | $0.37 |
| Net margin | 2.7% | 4.5% | 3.3% | 4.2% | 3.9% | 1.7% | -7.5% | 2.7% | 1.2% | 3.9% | 2.7% |
| ROIC | — | 7.5% | 8.6% | 9.5% | 8.7% | 4.7% | -3.0% | 5.4% | 8.8% | 16.9% | 10.9% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 9 analysts is $10.73, 49% above the current price; targets range from $8.55 to $14.00; the consensus rating is “Buy”; expected EPS is $0.81 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Arcos Dorados’s P/E ratio?
About 11.0, based on the last twelve months of diluted earnings per share (forward P/E about 8.1).
Is Arcos Dorados stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 10% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Arcos Dorados pay a dividend?
Yes. The dividend yield is about 3.88%, and it has paid dividends for 8 years in our data.
Is Arcos Dorados a good stock to buy?
We do not give buy or sell advice. Arcos Dorados scores 2.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.