# Arcos Dorados Holdings Inc. Class A Shares (ARCO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Hotels, Restaurants & Leisure. Price $8.17, market value $1.7 billion.

## Valuation
- **P/E (trailing): 6.6×** (5-yr avg 13.1×, 3-yr avg 10.2×). Arcos Dorados Holdings Inc. Class A Shares trades at 6.6× trailing earnings, well below its own five-year average of 13.1×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 9.5×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.22**. A PEG of 0.22 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.1×**. The shares trade at 2.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.0×**. Enterprise value is 5.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 5.8%** (5-yr avg 3.8%). Free cash flow equals 5.8% of the market value, above its five-year average of 3.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 15.1%**. The inverse of the P/E: 15.1% of the price is earned each year.

## Profitability
- **Gross margin: 12.3%**. Arcos Dorados Holdings Inc. Class A Shares keeps 12.3% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 7.9%**. 7.9% of revenue is left after running the business.
- **Net margin: 4.5%**. 4.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 27.5%**. 27.5% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 16.2%**. Return on all capital, debt included, is 16.2%: comfortably above what that capital costs.
- **Return on assets: 6.6%**. Each dollar of assets produces 6.6% of profit.

## Growth
- **Revenue growth (1 yr): 4.7%** (3-yr 8.9%/yr, 5-yr 18.7%/yr). Revenue grew 4.7% over the last year, against 18.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 42.3%** (3-yr 14.7%/yr). Earnings per share rose 42.3%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -51.1%/yr**. Free cash flow has compounded at -51.1% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.48**. Debt is 1.48 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.5×**. It would take 1.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 2.12**. A Z-score of 2.12 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.43%** ($0.28 per share, trailing). Arcos Dorados Holdings Inc. Class A Shares yields 3.43%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 24%**. 24% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Dividend growth (5 yr): 16.9%/yr** (1-yr 0.0%). The dividend has compounded at 16.9% a year over five years, doubling roughly every 4 years at that pace.

## Analyst view
- **Analyst consensus: buy** (9 analysts). 9 analysts cover Arcos Dorados Holdings Inc. Class A Shares; the consensus is buy, with an average price target of $11.29 (+38% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 22.1%** (YTD 13.2%, 3-mo 0.5%). The shares are up 22.1% over twelve months including dividends.
- **From 52-week high: -16.2%** (24.9% above the low). Trading 16% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 1.02** (volatility 33%). Beta of 1.02 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ARCO · Page: https://foliofundamentals.com/stocks/arco

Not investment advice.