Arcos Dorados Holdings Inc. (ARCO) 10-Year Financial Performance & Capital Metrics

ARCO • • Industrial / General

Consumer CyclicalRestaurantsQuick Service Restaurants (QSR)Global Burger Chains

AboutArcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. The company has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. As of December 31, 2021, it operated or franchised 2,261 restaurants. The company was founded in 2007 and is based in Montevideo, Uruguay.Show more

Revenue $4.47B +3.2%
EBITDA $502M +8.3%
Net Income $149M -17.9%
EPS (Diluted) 0.71 -17.4%
Gross Margin 13.12% -4.8%
EBITDA Margin 11.23% +5.0%
Operating Margin 7.26% +0.1%
Net Margin 3.33% -20.5%
ROE 28.99% -32.7%
ROIC 11.86% -8.6%
Debt/Equity 3.38 +3.2%
Interest Coverage 6.87 -29.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 41.2%
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 3.2%
✓Efficient asset utilization: 1.5x turnover

✗Weaknesses

✗High debt to equity ratio of 3.4x
✗Negative free cash flow
✗Thin 5Y average net margin of 1.1%

Price & Volume

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Growth Metrics

Revenue CAGR

10Y2.04%

5Y8.6%

3Y18.89%

TTM1.21%

Profit (Net Income) CAGR

10Y-

5Y13.24%

3Y48.43%

TTM67.9%

EPS CAGR

10Y-

5Y13.32%

3Y47.78%

TTM66.59%

ROCE

10Y Avg12.51%

5Y Avg9.9%

3Y Avg15.06%

Latest15.08%

Peer Comparison

Global Burger Chains

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MCDMcDonald's Corporation	219.79B	308.62	27.10	1.67%	32.04%		3.04%
ARCOArcos Dorados Holdings Inc.	991.73M	7.59	10.69	3.19%	5.39%	32.88%		3.38

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	3.05B	2.93B	3.32B	3.08B	2.96B	1.98B	2.66B	3.62B	4.33B	4.47B
Revenue Growth %	-0.16%	-0.04%	0.13%	-0.07%	-0.04%	-0.33%	0.34%	0.36%	0.2%	0.03%
Cost of Goods Sold+	2.7B	2.57B	2.87B	2.67B	2.59B	1.87B	2.34B	3.13B	3.73B	3.88B
COGS % of Revenue	0.88%	0.88%	0.86%	0.87%	0.88%	0.94%	0.88%	0.86%	0.86%	0.87%
Gross Profit+	357.53M	358.27M	449.02M	413.93M	367.54M	115.44M	324.06M	492.61M	597.14M	586.42M
Gross Margin %	0.12%	0.12%	0.14%	0.13%	0.12%	0.06%	0.12%	0.14%	0.14%	0.13%
Gross Profit Growth %	-0.18%	0%	0.25%	-0.08%	-0.11%	-0.69%	1.81%	0.52%	0.21%	-0.02%
Operating Expenses+	264.12M	179.69M	176.09M	290.47M	207.6M	182.19M	184.54M	228.18M	283.11M	261.91M
OpEx % of Revenue	0.09%	0.06%	0.05%	0.09%	0.07%	0.09%	0.07%	0.06%	0.07%	0.06%
Selling, General & Admin	270.68M	221.07M	244.66M	229.32M	212.51M	171.38M	210.91M	239.26M	285M	279.86M
SG&A % of Revenue	0.09%	0.08%	0.07%	0.07%	0.07%	0.09%	0.08%	0.07%	0.07%	0.06%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-627K	-2.36M	-435K	270K	-4.91M	10.81M	-26.37M	-11.08M	-1.89M	-17.95M
Operating Income+	93.41M	178.58M	272.94M	123.46M	159.94M	-66.75M	139.52M	264.42M	314.04M	324.51M
Operating Margin %	0.03%	0.06%	0.08%	0.04%	0.05%	-0.03%	0.05%	0.07%	0.07%	0.07%
Operating Income Growth %	0.32%	0.91%	0.53%	-0.55%	0.3%	-1.42%	3.09%	0.9%	0.19%	0.03%
EBITDA+	204.12M	271.55M	372.32M	229.26M	283.15M	60.1M	259.91M	384.2M	463.31M	501.87M
EBITDA Margin %	0.07%	0.09%	0.11%	0.07%	0.1%	0.03%	0.1%	0.11%	0.11%	0.11%
EBITDA Growth %	0.09%	0.33%	0.37%	-0.38%	0.24%	-0.79%	3.32%	0.48%	0.21%	0.08%
D&A (Non-Cash Add-back)	110.72M	92.97M	99.38M	105.8M	123.22M	126.85M	120.39M	119.78M	149.27M	177.35M
EBIT	35.85M	205.51M	251.17M	138.04M	171.03M	-98.46M	127.33M	264.46M	315.17M	325.53M
Net Interest Income+	-64.41M	-66.88M	-68.36M	-52.87M	-52.08M	-33.39M	-49.55M	-43.75M	-32.27M	-47.24M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	64.41M	66.88M	68.36M	52.87M	52.08M	33.39M	49.55M	43.75M	32.27M	47.24M
Other Income/Expense	-121.96M	-39.95M	-90.12M	-38.29M	-40.98M	-65.1M	-61.73M	-38.03M	-35.92M	-65.23M
Pretax Income+	-28.55M	138.63M	182.81M	85.17M	118.95M	-131.85M	77.79M	226.4M	278.12M	259.28M
Pretax Margin %	-0.01%	0.05%	0.06%	0.03%	0.04%	-0.07%	0.03%	0.06%	0.06%	0.06%
Income Tax+	22.82M	59.64M	53.31M	48.14M	38.84M	17.53M	31.93M	85.48M	95.7M	109.9M
Effective Tax Rate %	1.81%	0.57%	0.71%	0.43%	0.67%	1.13%	0.58%	0.62%	0.65%	0.57%
Net Income+	-51.63M	78.81M	129.17M	36.85M	79.9M	-149.45M	45.49M	140.34M	181.27M	148.76M
Net Margin %	-0.02%	0.03%	0.04%	0.01%	0.03%	-0.08%	0.02%	0.04%	0.04%	0.03%
Net Income Growth %	0.53%	2.53%	0.64%	-0.71%	1.17%	-2.87%	1.3%	2.09%	0.29%	-0.18%
Net Income (Continuing)	-51.37M	78.99M	129.5M	37.03M	80.12M	-149.39M	45.85M	140.92M	182.41M	149.38M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	617K	585K	492K	376K	428K	470K	732K	804K	1.56M	1.35M
EPS (Diluted)+	-0.24	0.36	0.59	0.17	0.38	-0.72	0.22	0.67	0.86	0.71
EPS Growth %	0.53%	2.5%	0.64%	-0.71%	1.24%	-2.89%	1.31%	2.05%	0.28%	-0.17%
EPS (Basic)	-0.24	0.36	0.59	0.17	0.38	-0.73	0.22	0.67	0.86	0.71
Diluted Shares Outstanding	216.45M	216.89M	217.89M	215.96M	210.36M	208.35M	210.54M	210.63M	210.63M	210.66M
Basic Shares Outstanding	216.29M	216.5M	216.8M	212.12M	206.96M	205.42M	210.39M	210.55M	210.63M	210.66M
Dividend Payout Ratio	-	-	-	0.57%	0.28%	-	0%	0.23%	0.22%	0.34%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	379M	445.19M	653.04M	464.56M	405.37M	415.53M	540.12M	684.36M	605.28M	468.4M
Cash & Short-Term Investments	112.52M	194.8M	328.08M	197.28M	121.91M	165.99M	278.83M	304.4M	246.77M	138.59M
Cash Only	112.52M	194.8M	308.49M	197.28M	121.88M	165.99M	278.83M	266.94M	196.66M	135.06M
Short-Term Investments	0	0	19.59M	0	25K	0	0	37.46M	50.11M	3.53M
Accounts Receivable	98.98M	112.08M	147.61M	109.64M	128.04M	114.19M	104.21M	151.06M	186.7M	161.91M
Days Sales Outstanding	11.83	13.97	16.23	12.99	15.79	21.01	14.3	15.24	15.73	13.22
Inventory	44.64M	48.91M	82.73M	46.09M	37.81M	33.6M	37.8M	50.09M	52.83M	51.65M
Days Inventory Outstanding	6.05	6.95	10.52	6.31	5.33	6.56	5.91	5.85	5.16	4.85
Other Current Assets	23.19M	18.23M	19.06M	15.15M	19.41M	22.79M	1.21M	78.22M	1.2M	1.13M
Total Non-Current Assets+	1.03B	1.06B	1.15B	1.11B	2.15B	1.88B	1.82B	1.95B	2.41B	2.42B
Property, Plant & Equipment	833.36M	861.25M	901.05M	865.97M	1.89B	1.59B	1.51B	1.68B	2.08B	2.08B
Fixed Asset Turnover	3.66x	3.40x	3.68x	3.56x	1.56x	1.25x	1.76x	2.15x	2.09x	2.15x
Goodwill	12.25M	7.12M	7.08M	5.94M	6.78M	5.6M	5.21M	7.23M	11.9M	13.34M
Intangible Assets	37.24M	35.92M	40.65M	35.08M	36.26M	31.45M	33.6M	47.34M	58.13M	53.3M
Long-Term Investments	6.74M	65.69M	110M	132.62M	134.12M	121.9M	13.11M	14.71M	18.11M	14.35M
Other Non-Current Assets	75.08M	19.44M	17.62M	15.54M	15.87M	76.41M	188.38M	114.05M	152.2M	175.44M
Total Assets+	1.41B	1.51B	1.8B	1.58B	2.56B	2.29B	2.36B	2.64B	3.02B	2.89B
Asset Turnover	2.17x	1.95x	1.84x	1.95x	1.16x	0.86x	1.13x	1.37x	1.43x	1.55x
Asset Growth %	-0.22%	0.07%	0.2%	-0.13%	0.62%	-0.1%	0.03%	0.12%	0.15%	-0.04%
Total Current Liabilities+	577.67M	548.31M	605.58M	493.31M	595.45M	503.47M	617.86M	759.41M	841.67M	765.92M
Accounts Payable	187.69M	217.91M	303.45M	242.46M	259.58M	209.53M	269.21M	353.47M	374.99M	347.89M
Days Payables Outstanding	25.42	30.94	38.59	33.17	36.56	40.93	42.07	41.27	36.65	32.7
Short-Term Debt	163.74M	28.1M	4.36M	4.19M	16.53M	3.13M	4.74M	19.35M	31.34M	62.88M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	0	0	1000K	1000K
Other Current Liabilities	121.02M	167.63M	145.19M	115.54M	110.13M	94.98M	16.88M	116.9M	33.76M	14.71M
Current Ratio	0.66x	0.81x	1.08x	0.94x	0.68x	0.83x	0.87x	0.90x	0.72x	0.61x
Quick Ratio	0.58x	0.72x	0.94x	0.85x	0.62x	0.76x	0.81x	0.84x	0.66x	0.54x
Cash Conversion Cycle	-7.54	-10.03	-11.83	-13.88	-15.44	-13.36	-21.86	-20.18	-15.75	-14.62
Total Non-Current Liabilities+	542.41M	605.17M	702.02M	691.97M	1.54B	1.59B	1.52B	1.55B	1.66B	1.62B
Long-Term Debt	491.33M	551.58M	629.14M	626.42M	623.58M	773.45M	739.22M	711.67M	713.04M	715.97M
Capital Lease Obligations	0	0	0	0	861.58M	752.61M	707.12M	747.67M	853.11M	849.16M
Deferred Tax Liabilities	8.22M	1.87M	10.58M	957K	4.3M	5.07M	7.17M	3.93M	1.17M	2.08M
Other Non-Current Liabilities	19.38M	37.94M	47.1M	42.36M	39.02M	61.34M	58.34M	78.46M	80.78M	39.86M
Total Liabilities	1.12B	1.15B	1.31B	1.19B	2.14B	2.1B	2.14B	2.31B	2.5B	2.38B
Total Debt+	658.84M	579.68M	633.5M	630.62M	1.57B	1.61B	1.53B	1.56B	1.69B	1.72B
Net Debt	546.32M	384.88M	325.01M	433.33M	1.45B	1.44B	1.25B	1.29B	1.49B	1.59B
Debt / Equity	2.30x	1.65x	1.28x	1.61x	3.73x	8.11x	6.92x	4.81x	3.27x	3.38x
Debt / EBITDA	3.23x	2.13x	1.70x	2.75x	5.55x	26.71x	5.89x	4.06x	3.65x	3.43x
Net Debt / EBITDA	2.68x	1.42x	0.87x	1.89x	5.12x	23.95x	4.81x	3.37x	3.23x	3.16x
Interest Coverage	1.45x	2.67x	3.99x	2.34x	3.07x	-2.00x	2.82x	6.04x	9.73x	6.87x
Total Equity+	286.89M	351.58M	496.14M	392.76M	421.57M	198.02M	221.16M	324.43M	516.84M	509.43M
Equity Growth %	-0.37%	0.23%	0.41%	-0.21%	0.07%	-0.53%	0.12%	0.47%	0.59%	-0.01%
Book Value per Share	1.33	1.62	2.28	1.82	2.00	0.95	1.05	1.54	2.45	2.42
Total Shareholders' Equity	286.27M	350.99M	495.65M	392.38M	421.14M	197.55M	220.43M	323.62M	515.28M	508.08M
Common Stock	504.77M	506.88M	509.65M	512.76M	516.12M	519.52M	521.28M	522.31M	522.82M	522.88M
Retained Earnings	193.16M	271.97M	401.13M	413.07M	471.15M	290.89M	316.18M	424.94M	566.19M	664.39M
Treasury Stock	0	0	0	-46.03M	-60M	-39.55M	-19.37M	-19.37M	-19.37M	-19.37M
Accumulated OCI	-424.26M	-441.65M	-429.35M	-502.27M	-519.5M	-584.86M	-607.77M	-613.46M	-563.08M	-668.48M
Minority Interest	617K	585K	492K	376K	428K	470K	732K	804K	1.56M	1.35M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	112.69M	164.19M	255.17M	179.73M	223.48M	15.97M	258.04M	345.44M	381.96M	266.85M
Operating CF Margin %	0.04%	0.06%	0.08%	0.06%	0.08%	0.01%	0.1%	0.1%	0.09%	0.06%
Operating CF Growth %	-0.42%	0.46%	0.55%	-0.3%	0.24%	-0.93%	15.16%	0.34%	0.11%	-0.3%
Net Income	-51.63M	78.81M	129.17M	36.85M	79.9M	-149.45M	45.49M	140.34M	181.27M	148.76M
Depreciation & Amortization	110.72M	92.97M	99.38M	105.8M	123.22M	126.85M	120.39M	119.78M	149.27M	177.35M
Stock-Based Compensation	4.08M	3.56M	4.22M	2.64M	4.06M	1.36M	758K	6.09M	14.34M	953K
Deferred Taxes	-9.06M	5.5M	1.73M	648K	-7.97M	471K	-16.07M	-15.45M	-4.31M	-11.39M
Other Non-Cash Items	42M	-72.87M	-44.4M	12.36M	-1.81M	43.52M	14.91M	10.36M	18.78M	11.48M
Working Capital Changes	16.58M	56.22M	65.08M	21.44M	26.09M	-6.78M	92.56M	84.32M	22.62M	-60.31M
Change in Receivables	36.04M	-9.06M	19.42M	12.53M	5.14M	-13.21M	-4.69M	-56.79M	-61.24M	-11.34M
Change in Inventory	-45.9M	26.76M	-53.47M	-12.07M	-21.8M	-25.03M	-38.66M	-33.17M	4.83M	-4.25M
Change in Payables	25.02M	35.81M	102.66M	16.56M	39.43M	-23.99M	78.2M	111.96M	70M	24.46M
Cash from Investing+	-60.12M	23.02M	-124.48M	-163.78M	-260.99M	-88.71M	-108.28M	-259.65M	-380.35M	-280.33M
Capital Expenditures	-90.96M	-92.28M	-174.77M	-197.04M	-265.24M	-86.31M	-115M	-217.12M	-360.1M	-327.64M
CapEx % of Revenue	0.03%	0.03%	0.05%	0.06%	0.09%	0.04%	0.04%	0.06%	0.08%	0.07%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	28.08M	90.21M	-1.65M	620K	2.08M	1.44M	6.91M	3.35M	1.81M	7.27M
Cash from Financing+	-42.26M	-113M	-3.35M	-73.44M	-29.63M	126.01M	-17.93M	-59.98M	-11.82M	-37.16M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-12.51M	0	0	-20.94M	-22.43M	-10.22M	-21K	-31.59M	-40.02M	-50.56M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	11M	-18.3M	-49.96M	-6.47M	-6.4M	-4.38M	19.26M	-344.92M	22.56M	-20.27M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	21.73M	71.91M	80.4M	-17.31M	-41.75M	-70.34M	143.04M	128.32M	21.87M	-60.79M
FCF Margin %	0.01%	0.02%	0.02%	-0.01%	-0.01%	-0.04%	0.05%	0.04%	0.01%	-0.01%
FCF Growth %	-0.07%	2.31%	0.12%	-1.22%	-1.41%	-0.68%	3.03%	-0.1%	-0.83%	-3.78%
FCF per Share	0.10	0.33	0.37	-0.08	-0.20	-0.34	0.68	0.61	0.10	-0.29
FCF Conversion (FCF/Net Income)	-2.18x	2.08x	1.98x	4.88x	2.80x	-0.11x	5.67x	2.46x	2.11x	1.79x
Interest Paid	64.23M	76.61M	53.21M	55.4M	52.46M	57.07M	52.58M	56.37M	47.51M	52M
Taxes Paid	11.19M	39.13M	24.11M	32.19M	34.09M	22.5M	34.54M	78.94M	72.77M	120.85M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-13.87%	24.69%	30.47%	8.29%	19.62%	-48.24%	21.7%	51.45%	43.1%	28.99%
Return on Invested Capital (ROIC)	7.18%	17.07%	26.28%	11.24%	8.89%	-2.85%	6.73%	12.83%	12.98%	11.86%
Gross Margin	11.71%	12.23%	13.53%	13.43%	12.42%	5.82%	12.18%	13.61%	13.78%	13.12%
Net Margin	-1.69%	2.69%	3.89%	1.2%	2.7%	-7.53%	1.71%	3.88%	4.18%	3.33%
Debt / Equity	2.30x	1.65x	1.28x	1.61x	3.73x	8.11x	6.92x	4.81x	3.27x	3.38x
Interest Coverage	1.45x	2.67x	3.99x	2.34x	3.07x	-2.00x	2.82x	6.04x	9.73x	6.87x
FCF Conversion	-2.18x	2.08x	1.98x	4.88x	2.80x	-0.11x	5.67x	2.46x	2.11x	1.79x
Revenue Growth	-16.39%	-4.07%	13.35%	-7.17%	-3.98%	-32.94%	34.05%	36.05%	19.7%	3.19%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Franchise	-	-	-	148.96M	146.79M	89.6M	116.03M	161.41M	194.2M	203.41M
Franchise Growth	-	-	-	-	-1.46%	-38.96%	29.50%	39.11%	20.32%	4.74%
Franchise, Rental Income	-	-	-	-	-	-	-	160.79M	193.52M	202.78M
Franchise, Rental Income Growth	-	-	-	-	-	-	-	-	20.35%	4.79%
Franchise, Initial Fees	-	-	-	-	-	-	-	401K	417K	380K
Franchise, Initial Fees Growth	-	-	-	-	-	-	-	-	3.99%	-8.87%
Franchise, Royalty Fees	-	-	-	-	-	-	-	215K	268K	255K
Franchise, Royalty Fees Growth	-	-	-	-	-	-	-	-	24.65%	-4.85%
Product	-	-	-	2.93B	-	-	2.54B	-	-	-
Product Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
BRAZIL	1.36B	1.33B	1.5B	1.35B	-	-	-	1.43B	1.7B	1.77B
BRAZIL Growth	-	-2.11%	12.25%	-10.10%	-	-	-	-	19.06%	3.92%
Other Countries	-	-	-	-	-	-	-	-	-	1.65B
Other Countries Growth	-	-	-	-	-	-	-	-	-	-
ARGENTINA	-	-	-	-	-	-	-	-	-	600.3M
ARGENTINA Growth	-	-	-	-	-	-	-	-	-	-
MEXICO	-	-	-	-	-	-	-	-	-	447.39M
MEXICO Growth	-	-	-	-	-	-	-	-	-	-
South Latin America Division	925.24M	821.76M	961.26M	845.53M	742.99M	428.49M	876.29M	1.27B	1.5B	-
South Latin America Division Growth	-	-11.18%	16.98%	-12.04%	-12.13%	-42.33%	104.51%	44.88%	17.94%	-
North Latin America Division	367.36M	363.96M	386.87M	406.85M	431.27M	311.89M	780.87M	920.19M	1.13B	-
North Latin America Division Growth	-	-0.93%	6.29%	5.16%	6.00%	-27.68%	150.37%	17.84%	23.12%	-
Brazil	-	-	-	-	-	862.75M	1B	-	-	-
Brazil Growth	-	-	-	-	-	-	16.23%	-	-	-
Caribbean Division	398.14M	409.67M	474.82M	483.74M	399.25M	381.09M	-	-	-	-
Caribbean Division Growth	-	2.90%	15.90%	1.88%	-17.47%	-4.55%	-	-	-	-

Frequently Asked Questions

Valuation & Price

Arcos Dorados Holdings Inc. (ARCO) has a price-to-earnings (P/E) ratio of 10.7x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Arcos Dorados Holdings Inc. (ARCO) reported $4.56B in revenue for fiscal year 2024. This represents a 25% increase from $3.66B in 2011.

Arcos Dorados Holdings Inc. (ARCO) grew revenue by 3.2% over the past year. Growth has been modest.

Yes, Arcos Dorados Holdings Inc. (ARCO) is profitable, generating $245.3M in net income for fiscal year 2024 (3.3% net margin).

Dividend & Returns

Yes, Arcos Dorados Holdings Inc. (ARCO) pays a dividend with a yield of 3.16%. This makes it attractive for income-focused investors.

Arcos Dorados Holdings Inc. (ARCO) has a return on equity (ROE) of 29.0%. This is excellent, indicating efficient use of shareholder capital.

Arcos Dorados Holdings Inc. (ARCO) generated $2.6M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

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Arcos Dorados Holdings Inc. (ARCO) 10-Year Financial Performance & Capital Metrics

ARCO • • Industrial / General

Consumer CyclicalRestaurantsQuick Service Restaurants (QSR)Global Burger Chains

Revenue $4.47B +3.2%
EBITDA $502M +8.3%
Net Income $149M -17.9%
EPS (Diluted) 0.71 -17.4%
Gross Margin 13.12% -4.8%
EBITDA Margin 11.23% +5.0%
Operating Margin 7.26% +0.1%
Net Margin 3.33% -20.5%
ROE 28.99% -32.7%
ROIC 11.86% -8.6%
Debt/Equity 3.38 +3.2%
Interest Coverage 6.87 -29.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 41.2%
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 3.2%
✓Efficient asset utilization: 1.5x turnover

✗Weaknesses

✗High debt to equity ratio of 3.4x
✗Negative free cash flow
✗Thin 5Y average net margin of 1.1%

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y2.04%

5Y8.6%

3Y18.89%

TTM1.21%

Profit (Net Income) CAGR

10Y-

5Y13.24%

3Y48.43%

TTM67.9%

EPS CAGR

10Y-

5Y13.32%

3Y47.78%

TTM66.59%

ROCE

10Y Avg12.51%

5Y Avg9.9%

3Y Avg15.06%

Latest15.08%

Peer Comparison

Global Burger Chains

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MCDMcDonald's Corporation	219.79B	308.62	27.10	1.67%	32.04%		3.04%
ARCOArcos Dorados Holdings Inc.	991.73M	7.59	10.69	3.19%	5.39%	32.88%		3.38

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	3.05B	2.93B	3.32B	3.08B	2.96B	1.98B	2.66B	3.62B	4.33B	4.47B
Revenue Growth %	-0.16%	-0.04%	0.13%	-0.07%	-0.04%	-0.33%	0.34%	0.36%	0.2%	0.03%
Cost of Goods Sold+	2.7B	2.57B	2.87B	2.67B	2.59B	1.87B	2.34B	3.13B	3.73B	3.88B
COGS % of Revenue	0.88%	0.88%	0.86%	0.87%	0.88%	0.94%	0.88%	0.86%	0.86%	0.87%
Gross Profit+	357.53M	358.27M	449.02M	413.93M	367.54M	115.44M	324.06M	492.61M	597.14M	586.42M
Gross Margin %	0.12%	0.12%	0.14%	0.13%	0.12%	0.06%	0.12%	0.14%	0.14%	0.13%
Gross Profit Growth %	-0.18%	0%	0.25%	-0.08%	-0.11%	-0.69%	1.81%	0.52%	0.21%	-0.02%
Operating Expenses+	264.12M	179.69M	176.09M	290.47M	207.6M	182.19M	184.54M	228.18M	283.11M	261.91M
OpEx % of Revenue	0.09%	0.06%	0.05%	0.09%	0.07%	0.09%	0.07%	0.06%	0.07%	0.06%
Selling, General & Admin	270.68M	221.07M	244.66M	229.32M	212.51M	171.38M	210.91M	239.26M	285M	279.86M
SG&A % of Revenue	0.09%	0.08%	0.07%	0.07%	0.07%	0.09%	0.08%	0.07%	0.07%	0.06%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-627K	-2.36M	-435K	270K	-4.91M	10.81M	-26.37M	-11.08M	-1.89M	-17.95M
Operating Income+	93.41M	178.58M	272.94M	123.46M	159.94M	-66.75M	139.52M	264.42M	314.04M	324.51M
Operating Margin %	0.03%	0.06%	0.08%	0.04%	0.05%	-0.03%	0.05%	0.07%	0.07%	0.07%
Operating Income Growth %	0.32%	0.91%	0.53%	-0.55%	0.3%	-1.42%	3.09%	0.9%	0.19%	0.03%
EBITDA+	204.12M	271.55M	372.32M	229.26M	283.15M	60.1M	259.91M	384.2M	463.31M	501.87M
EBITDA Margin %	0.07%	0.09%	0.11%	0.07%	0.1%	0.03%	0.1%	0.11%	0.11%	0.11%
EBITDA Growth %	0.09%	0.33%	0.37%	-0.38%	0.24%	-0.79%	3.32%	0.48%	0.21%	0.08%
D&A (Non-Cash Add-back)	110.72M	92.97M	99.38M	105.8M	123.22M	126.85M	120.39M	119.78M	149.27M	177.35M
EBIT	35.85M	205.51M	251.17M	138.04M	171.03M	-98.46M	127.33M	264.46M	315.17M	325.53M
Net Interest Income+	-64.41M	-66.88M	-68.36M	-52.87M	-52.08M	-33.39M	-49.55M	-43.75M	-32.27M	-47.24M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	64.41M	66.88M	68.36M	52.87M	52.08M	33.39M	49.55M	43.75M	32.27M	47.24M
Other Income/Expense	-121.96M	-39.95M	-90.12M	-38.29M	-40.98M	-65.1M	-61.73M	-38.03M	-35.92M	-65.23M
Pretax Income+	-28.55M	138.63M	182.81M	85.17M	118.95M	-131.85M	77.79M	226.4M	278.12M	259.28M
Pretax Margin %	-0.01%	0.05%	0.06%	0.03%	0.04%	-0.07%	0.03%	0.06%	0.06%	0.06%
Income Tax+	22.82M	59.64M	53.31M	48.14M	38.84M	17.53M	31.93M	85.48M	95.7M	109.9M
Effective Tax Rate %	1.81%	0.57%	0.71%	0.43%	0.67%	1.13%	0.58%	0.62%	0.65%	0.57%
Net Income+	-51.63M	78.81M	129.17M	36.85M	79.9M	-149.45M	45.49M	140.34M	181.27M	148.76M
Net Margin %	-0.02%	0.03%	0.04%	0.01%	0.03%	-0.08%	0.02%	0.04%	0.04%	0.03%
Net Income Growth %	0.53%	2.53%	0.64%	-0.71%	1.17%	-2.87%	1.3%	2.09%	0.29%	-0.18%
Net Income (Continuing)	-51.37M	78.99M	129.5M	37.03M	80.12M	-149.39M	45.85M	140.92M	182.41M	149.38M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	617K	585K	492K	376K	428K	470K	732K	804K	1.56M	1.35M
EPS (Diluted)+	-0.24	0.36	0.59	0.17	0.38	-0.72	0.22	0.67	0.86	0.71
EPS Growth %	0.53%	2.5%	0.64%	-0.71%	1.24%	-2.89%	1.31%	2.05%	0.28%	-0.17%
EPS (Basic)	-0.24	0.36	0.59	0.17	0.38	-0.73	0.22	0.67	0.86	0.71
Diluted Shares Outstanding	216.45M	216.89M	217.89M	215.96M	210.36M	208.35M	210.54M	210.63M	210.63M	210.66M
Basic Shares Outstanding	216.29M	216.5M	216.8M	212.12M	206.96M	205.42M	210.39M	210.55M	210.63M	210.66M
Dividend Payout Ratio	-	-	-	0.57%	0.28%	-	0%	0.23%	0.22%	0.34%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	379M	445.19M	653.04M	464.56M	405.37M	415.53M	540.12M	684.36M	605.28M	468.4M
Cash & Short-Term Investments	112.52M	194.8M	328.08M	197.28M	121.91M	165.99M	278.83M	304.4M	246.77M	138.59M
Cash Only	112.52M	194.8M	308.49M	197.28M	121.88M	165.99M	278.83M	266.94M	196.66M	135.06M
Short-Term Investments	0	0	19.59M	0	25K	0	0	37.46M	50.11M	3.53M
Accounts Receivable	98.98M	112.08M	147.61M	109.64M	128.04M	114.19M	104.21M	151.06M	186.7M	161.91M
Days Sales Outstanding	11.83	13.97	16.23	12.99	15.79	21.01	14.3	15.24	15.73	13.22
Inventory	44.64M	48.91M	82.73M	46.09M	37.81M	33.6M	37.8M	50.09M	52.83M	51.65M
Days Inventory Outstanding	6.05	6.95	10.52	6.31	5.33	6.56	5.91	5.85	5.16	4.85
Other Current Assets	23.19M	18.23M	19.06M	15.15M	19.41M	22.79M	1.21M	78.22M	1.2M	1.13M
Total Non-Current Assets+	1.03B	1.06B	1.15B	1.11B	2.15B	1.88B	1.82B	1.95B	2.41B	2.42B
Property, Plant & Equipment	833.36M	861.25M	901.05M	865.97M	1.89B	1.59B	1.51B	1.68B	2.08B	2.08B
Fixed Asset Turnover	3.66x	3.40x	3.68x	3.56x	1.56x	1.25x	1.76x	2.15x	2.09x	2.15x
Goodwill	12.25M	7.12M	7.08M	5.94M	6.78M	5.6M	5.21M	7.23M	11.9M	13.34M
Intangible Assets	37.24M	35.92M	40.65M	35.08M	36.26M	31.45M	33.6M	47.34M	58.13M	53.3M
Long-Term Investments	6.74M	65.69M	110M	132.62M	134.12M	121.9M	13.11M	14.71M	18.11M	14.35M
Other Non-Current Assets	75.08M	19.44M	17.62M	15.54M	15.87M	76.41M	188.38M	114.05M	152.2M	175.44M
Total Assets+	1.41B	1.51B	1.8B	1.58B	2.56B	2.29B	2.36B	2.64B	3.02B	2.89B
Asset Turnover	2.17x	1.95x	1.84x	1.95x	1.16x	0.86x	1.13x	1.37x	1.43x	1.55x
Asset Growth %	-0.22%	0.07%	0.2%	-0.13%	0.62%	-0.1%	0.03%	0.12%	0.15%	-0.04%
Total Current Liabilities+	577.67M	548.31M	605.58M	493.31M	595.45M	503.47M	617.86M	759.41M	841.67M	765.92M
Accounts Payable	187.69M	217.91M	303.45M	242.46M	259.58M	209.53M	269.21M	353.47M	374.99M	347.89M
Days Payables Outstanding	25.42	30.94	38.59	33.17	36.56	40.93	42.07	41.27	36.65	32.7
Short-Term Debt	163.74M	28.1M	4.36M	4.19M	16.53M	3.13M	4.74M	19.35M	31.34M	62.88M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	0	0	1000K	1000K
Other Current Liabilities	121.02M	167.63M	145.19M	115.54M	110.13M	94.98M	16.88M	116.9M	33.76M	14.71M
Current Ratio	0.66x	0.81x	1.08x	0.94x	0.68x	0.83x	0.87x	0.90x	0.72x	0.61x
Quick Ratio	0.58x	0.72x	0.94x	0.85x	0.62x	0.76x	0.81x	0.84x	0.66x	0.54x
Cash Conversion Cycle	-7.54	-10.03	-11.83	-13.88	-15.44	-13.36	-21.86	-20.18	-15.75	-14.62
Total Non-Current Liabilities+	542.41M	605.17M	702.02M	691.97M	1.54B	1.59B	1.52B	1.55B	1.66B	1.62B
Long-Term Debt	491.33M	551.58M	629.14M	626.42M	623.58M	773.45M	739.22M	711.67M	713.04M	715.97M
Capital Lease Obligations	0	0	0	0	861.58M	752.61M	707.12M	747.67M	853.11M	849.16M
Deferred Tax Liabilities	8.22M	1.87M	10.58M	957K	4.3M	5.07M	7.17M	3.93M	1.17M	2.08M
Other Non-Current Liabilities	19.38M	37.94M	47.1M	42.36M	39.02M	61.34M	58.34M	78.46M	80.78M	39.86M
Total Liabilities	1.12B	1.15B	1.31B	1.19B	2.14B	2.1B	2.14B	2.31B	2.5B	2.38B
Total Debt+	658.84M	579.68M	633.5M	630.62M	1.57B	1.61B	1.53B	1.56B	1.69B	1.72B
Net Debt	546.32M	384.88M	325.01M	433.33M	1.45B	1.44B	1.25B	1.29B	1.49B	1.59B
Debt / Equity	2.30x	1.65x	1.28x	1.61x	3.73x	8.11x	6.92x	4.81x	3.27x	3.38x
Debt / EBITDA	3.23x	2.13x	1.70x	2.75x	5.55x	26.71x	5.89x	4.06x	3.65x	3.43x
Net Debt / EBITDA	2.68x	1.42x	0.87x	1.89x	5.12x	23.95x	4.81x	3.37x	3.23x	3.16x
Interest Coverage	1.45x	2.67x	3.99x	2.34x	3.07x	-2.00x	2.82x	6.04x	9.73x	6.87x
Total Equity+	286.89M	351.58M	496.14M	392.76M	421.57M	198.02M	221.16M	324.43M	516.84M	509.43M
Equity Growth %	-0.37%	0.23%	0.41%	-0.21%	0.07%	-0.53%	0.12%	0.47%	0.59%	-0.01%
Book Value per Share	1.33	1.62	2.28	1.82	2.00	0.95	1.05	1.54	2.45	2.42
Total Shareholders' Equity	286.27M	350.99M	495.65M	392.38M	421.14M	197.55M	220.43M	323.62M	515.28M	508.08M
Common Stock	504.77M	506.88M	509.65M	512.76M	516.12M	519.52M	521.28M	522.31M	522.82M	522.88M
Retained Earnings	193.16M	271.97M	401.13M	413.07M	471.15M	290.89M	316.18M	424.94M	566.19M	664.39M
Treasury Stock	0	0	0	-46.03M	-60M	-39.55M	-19.37M	-19.37M	-19.37M	-19.37M
Accumulated OCI	-424.26M	-441.65M	-429.35M	-502.27M	-519.5M	-584.86M	-607.77M	-613.46M	-563.08M	-668.48M
Minority Interest	617K	585K	492K	376K	428K	470K	732K	804K	1.56M	1.35M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	112.69M	164.19M	255.17M	179.73M	223.48M	15.97M	258.04M	345.44M	381.96M	266.85M
Operating CF Margin %	0.04%	0.06%	0.08%	0.06%	0.08%	0.01%	0.1%	0.1%	0.09%	0.06%
Operating CF Growth %	-0.42%	0.46%	0.55%	-0.3%	0.24%	-0.93%	15.16%	0.34%	0.11%	-0.3%
Net Income	-51.63M	78.81M	129.17M	36.85M	79.9M	-149.45M	45.49M	140.34M	181.27M	148.76M
Depreciation & Amortization	110.72M	92.97M	99.38M	105.8M	123.22M	126.85M	120.39M	119.78M	149.27M	177.35M
Stock-Based Compensation	4.08M	3.56M	4.22M	2.64M	4.06M	1.36M	758K	6.09M	14.34M	953K
Deferred Taxes	-9.06M	5.5M	1.73M	648K	-7.97M	471K	-16.07M	-15.45M	-4.31M	-11.39M
Other Non-Cash Items	42M	-72.87M	-44.4M	12.36M	-1.81M	43.52M	14.91M	10.36M	18.78M	11.48M
Working Capital Changes	16.58M	56.22M	65.08M	21.44M	26.09M	-6.78M	92.56M	84.32M	22.62M	-60.31M
Change in Receivables	36.04M	-9.06M	19.42M	12.53M	5.14M	-13.21M	-4.69M	-56.79M	-61.24M	-11.34M
Change in Inventory	-45.9M	26.76M	-53.47M	-12.07M	-21.8M	-25.03M	-38.66M	-33.17M	4.83M	-4.25M
Change in Payables	25.02M	35.81M	102.66M	16.56M	39.43M	-23.99M	78.2M	111.96M	70M	24.46M
Cash from Investing+	-60.12M	23.02M	-124.48M	-163.78M	-260.99M	-88.71M	-108.28M	-259.65M	-380.35M	-280.33M
Capital Expenditures	-90.96M	-92.28M	-174.77M	-197.04M	-265.24M	-86.31M	-115M	-217.12M	-360.1M	-327.64M
CapEx % of Revenue	0.03%	0.03%	0.05%	0.06%	0.09%	0.04%	0.04%	0.06%	0.08%	0.07%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	28.08M	90.21M	-1.65M	620K	2.08M	1.44M	6.91M	3.35M	1.81M	7.27M
Cash from Financing+	-42.26M	-113M	-3.35M	-73.44M	-29.63M	126.01M	-17.93M	-59.98M	-11.82M	-37.16M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-12.51M	0	0	-20.94M	-22.43M	-10.22M	-21K	-31.59M	-40.02M	-50.56M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	11M	-18.3M	-49.96M	-6.47M	-6.4M	-4.38M	19.26M	-344.92M	22.56M	-20.27M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	21.73M	71.91M	80.4M	-17.31M	-41.75M	-70.34M	143.04M	128.32M	21.87M	-60.79M
FCF Margin %	0.01%	0.02%	0.02%	-0.01%	-0.01%	-0.04%	0.05%	0.04%	0.01%	-0.01%
FCF Growth %	-0.07%	2.31%	0.12%	-1.22%	-1.41%	-0.68%	3.03%	-0.1%	-0.83%	-3.78%
FCF per Share	0.10	0.33	0.37	-0.08	-0.20	-0.34	0.68	0.61	0.10	-0.29
FCF Conversion (FCF/Net Income)	-2.18x	2.08x	1.98x	4.88x	2.80x	-0.11x	5.67x	2.46x	2.11x	1.79x
Interest Paid	64.23M	76.61M	53.21M	55.4M	52.46M	57.07M	52.58M	56.37M	47.51M	52M
Taxes Paid	11.19M	39.13M	24.11M	32.19M	34.09M	22.5M	34.54M	78.94M	72.77M	120.85M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-13.87%	24.69%	30.47%	8.29%	19.62%	-48.24%	21.7%	51.45%	43.1%	28.99%
Return on Invested Capital (ROIC)	7.18%	17.07%	26.28%	11.24%	8.89%	-2.85%	6.73%	12.83%	12.98%	11.86%
Gross Margin	11.71%	12.23%	13.53%	13.43%	12.42%	5.82%	12.18%	13.61%	13.78%	13.12%
Net Margin	-1.69%	2.69%	3.89%	1.2%	2.7%	-7.53%	1.71%	3.88%	4.18%	3.33%
Debt / Equity	2.30x	1.65x	1.28x	1.61x	3.73x	8.11x	6.92x	4.81x	3.27x	3.38x
Interest Coverage	1.45x	2.67x	3.99x	2.34x	3.07x	-2.00x	2.82x	6.04x	9.73x	6.87x
FCF Conversion	-2.18x	2.08x	1.98x	4.88x	2.80x	-0.11x	5.67x	2.46x	2.11x	1.79x
Revenue Growth	-16.39%	-4.07%	13.35%	-7.17%	-3.98%	-32.94%	34.05%	36.05%	19.7%	3.19%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Franchise	-	-	-	148.96M	146.79M	89.6M	116.03M	161.41M	194.2M	203.41M
Franchise Growth	-	-	-	-	-1.46%	-38.96%	29.50%	39.11%	20.32%	4.74%
Franchise, Rental Income	-	-	-	-	-	-	-	160.79M	193.52M	202.78M
Franchise, Rental Income Growth	-	-	-	-	-	-	-	-	20.35%	4.79%
Franchise, Initial Fees	-	-	-	-	-	-	-	401K	417K	380K
Franchise, Initial Fees Growth	-	-	-	-	-	-	-	-	3.99%	-8.87%
Franchise, Royalty Fees	-	-	-	-	-	-	-	215K	268K	255K
Franchise, Royalty Fees Growth	-	-	-	-	-	-	-	-	24.65%	-4.85%
Product	-	-	-	2.93B	-	-	2.54B	-	-	-
Product Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
BRAZIL	1.36B	1.33B	1.5B	1.35B	-	-	-	1.43B	1.7B	1.77B
BRAZIL Growth	-	-2.11%	12.25%	-10.10%	-	-	-	-	19.06%	3.92%
Other Countries	-	-	-	-	-	-	-	-	-	1.65B
Other Countries Growth	-	-	-	-	-	-	-	-	-	-
ARGENTINA	-	-	-	-	-	-	-	-	-	600.3M
ARGENTINA Growth	-	-	-	-	-	-	-	-	-	-
MEXICO	-	-	-	-	-	-	-	-	-	447.39M
MEXICO Growth	-	-	-	-	-	-	-	-	-	-
South Latin America Division	925.24M	821.76M	961.26M	845.53M	742.99M	428.49M	876.29M	1.27B	1.5B	-
South Latin America Division Growth	-	-11.18%	16.98%	-12.04%	-12.13%	-42.33%	104.51%	44.88%	17.94%	-
North Latin America Division	367.36M	363.96M	386.87M	406.85M	431.27M	311.89M	780.87M	920.19M	1.13B	-
North Latin America Division Growth	-	-0.93%	6.29%	5.16%	6.00%	-27.68%	150.37%	17.84%	23.12%	-
Brazil	-	-	-	-	-	862.75M	1B	-	-	-
Brazil Growth	-	-	-	-	-	-	16.23%	-	-	-
Caribbean Division	398.14M	409.67M	474.82M	483.74M	399.25M	381.09M	-	-	-	-
Caribbean Division Growth	-	2.90%	15.90%	1.88%	-17.47%	-4.55%	-	-	-	-

Frequently Asked Questions

Valuation & Price

Arcos Dorados Holdings Inc. (ARCO) has a price-to-earnings (P/E) ratio of 10.7x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Arcos Dorados Holdings Inc. (ARCO) reported $4.56B in revenue for fiscal year 2024. This represents a 25% increase from $3.66B in 2011.

Arcos Dorados Holdings Inc. (ARCO) grew revenue by 3.2% over the past year. Growth has been modest.

Yes, Arcos Dorados Holdings Inc. (ARCO) is profitable, generating $245.3M in net income for fiscal year 2024 (3.3% net margin).

Dividend & Returns

Yes, Arcos Dorados Holdings Inc. (ARCO) pays a dividend with a yield of 3.16%. This makes it attractive for income-focused investors.

Arcos Dorados Holdings Inc. (ARCO) has a return on equity (ROE) of 29.0%. This is excellent, indicating efficient use of shareholder capital.

Arcos Dorados Holdings Inc. (ARCO) generated $2.6M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.