ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Arcos Dorados Holdings, Inc. ?
1
High Management Efficiency with a high ROCE of 21.24%
2
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 21.24%
3
Positive results in Jun 25
- CASH AND EQV(HY) Highest at USD 728.65 MM
4
With ROCE of 23.04%, it has a fair valuation with a 1.82 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.28%, its profits have fallen by -25.4%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Arcos Dorados Holdings, Inc. should be less than 10%
- Overall Portfolio exposure to Leisure Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arcos Dorados Holdings, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arcos Dorados Holdings, Inc.
6.16%
-0.55
34.26%
S&P 500
15.76%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.71%
EBIT Growth (5y)
42.29%
EBIT to Interest (avg)
6.08
Debt to EBITDA (avg)
3.74
Net Debt to Equity (avg)
1.58
Sales to Capital Employed (avg)
2.98
Tax Ratio
43.44%
Dividend Payout Ratio
23.84%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
21.24%
ROE (avg)
30.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
2.23
EV to EBIT
9.67
EV to EBITDA
5.52
EV to Capital Employed
1.60
EV to Sales
0.54
PEG Ratio
0.19
Dividend Yield
NA
ROCE (Latest)
16.49%
ROE (Latest)
27.55%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 325.33 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 232.18 %
RAW MATERIAL COST(Y)
Fallen by -4.34% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 74.85 times
DIVIDEND PER SHARE(HY)
Highest at USD 21.37
NET SALES(Q)
Highest at USD 1,305.63 MM
PRE-TAX PROFIT(Q)
At USD 68.02 MM has Grown at 70.78%
NET PROFIT(Q)
At USD 43.09 MM has Grown at 97.22%
-4What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 21.37 times
DIVIDEND PAYOUT RATIO(Y)
Lowest at 32.77%
Here's what is working for Arcos Dorados Holdings, Inc.
Debt-Equity Ratio
Lowest at 232.18 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow
Highest at USD 325.33 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 1,305.63 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
At USD 68.02 MM has Grown at 70.78%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 43.09 MM has Grown at 97.22%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Inventory Turnover Ratio
Highest at 74.85 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 21.37
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -4.34% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 54.42 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Arcos Dorados Holdings, Inc.
Debtors Turnover Ratio
Lowest at 21.37 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 32.77%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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