Is Arcos Dorados Holdings, Inc. overvalued or undervalued?

Sep 20 2025 06:12 PM IST
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As of August 11, 2025, Arcos Dorados Holdings, Inc. is fairly valued with a P/E ratio of 12, but has underperformed the S&P 500 with a 1-year return of -20.40% compared to the index's 17.14%.
As of 11 August 2025, the valuation grade for Arcos Dorados Holdings, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 12, an EV to EBITDA of 4.97, and a Price to Book Value of 3.11. In comparison to peers, Cava Group, Inc. is very expensive with a P/E of 54.26, while Brinker International, Inc. is attractive with a P/E of 26.05.

Despite a fair valuation, Arcos Dorados has underperformed against the S&P 500 across multiple periods, with a 1-year return of -20.40% compared to the S&P 500's 17.14%, indicating a significant lag in performance.
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