ARCO vs DENN

For growth investors, Arcos Dorados Holdings Inc.

(ARCO) is the stronger pick with 4. 7% revenue growth year-over-year, versus -2. 5% for Denny's Corporation (DENN). Arcos Dorados Holdings Inc. (ARCO) offers the better valuation at 8. 9x trailing P/E (13. 0x forward), making it the more compelling value choice. Analysts rate Arcos Dorados Holdings Inc. (ARCO) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Arcos Dorados Holdings Inc.

(ARCO) is the cheapest at 8. 9x versus Denny's Corporation at 15. 2x. On forward P/E, Arcos Dorados Holdings Inc. is actually cheaper at 13. 0x.

Over the past 5 years, Arcos Dorados Holdings Inc.

(ARCO) delivered a total return of +58. 1%, compared to -64. 9% for Denny's Corporation (DENN). Over 10 years, the gap is even starker: ARCO returned +131. 8% versus DENN's -42. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Denny's Corporation (DENN) is the lower-risk stock at 0.

65β versus Arcos Dorados Holdings Inc. 's 1. 02β — meaning ARCO is approximately 56% more volatile than DENN relative to the S&P 500.

By revenue growth (latest reported year), Arcos Dorados Holdings Inc.

(ARCO) is pulling ahead at 4. 7% versus -2. 5% for Denny's Corporation (DENN). On earnings-per-share growth, the picture is similar: Arcos Dorados Holdings Inc. grew EPS 42. 3% year-over-year, compared to 17. 1% for Denny's Corporation. Over a 3-year CAGR, ARCO leads at 8. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Denny's Corporation (DENN) is the more profitable company, earning 4.

8% net margin versus 4. 5% for Arcos Dorados Holdings Inc. — meaning it keeps 4. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DENN leads at 10. 0% versus 7. 5% for ARCO. At the gross margin level — before operating expenses — DENN leads at 73. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Arcos Dorados Holdings Inc.

(ARCO) trades at 13. 0x forward P/E versus 15. 0x for Denny's Corporation — 2. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARCO: 28. 7% to $11. 53.

In this comparison, ARCO (2.

7% yield) pays a dividend. DENN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Arcos Dorados Holdings Inc.

(ARCO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 02), 2. 7% yield, +131. 8% 10Y return). Both have compounded well over 10 years (ARCO: +131. 8%, DENN: -42. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

ARCO pays a dividend while DENN does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.