Zacks Investment Research·2d ago
3 Reasons Why Growth Investors Shouldn't Overlook Arcos Dorados (ARCO)Arcos Dorados (ARCO) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Arcos Dorados is experiencing a reacceleration in top-line growth, with revenue expanding 14.3% year-over-year in 2026Q2, suggesting its pricing and digital initiatives are gaining traction.
Price trend, volume and key moving averages
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 13, 2026 | $0.22+49.2% vs $0.15 | $1.3B+2.1% vs $1.3B |
Q2 2026 May 20, 2026 | $0.17+54.5% vs $0.11 | $1.2B+0.5% vs $1.2B |
Q2 2026 Mar 19, 2026 | -$0.04-119.7% vs $0.20 | $1.3B+0.3% vs $1.3B |
Q4 2025 Nov 12, 2025 | $0.71+610.0% vs $0.10 | $1.2B-1.7% vs $1.2B |
Arcos Dorados (ARCO) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Arcos Dorados upgraded from Hold to Buy with a 2027 price target of $11.30, reflecting renewed operational growth and undervaluation post-Brazil election selloff. Q2 marked a return to visit-driven EBITDA growth, with currency translation accounting for less than one-tenth of group EBITDA gains. Key risks remain: Brazilian real volatility, rising beef costs, and potential margin pressure, especially if customer traffic falters or price hikes outpace sector peers.
Many market players weren't expecting the left-leaning Luiz Inácio Lula da Silva to win in the final round. That's one reason the country's currency was hit hard, as were the stocks of its major companies.
Benchmark ARCO against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Arcos Dorados Holdings Inc. (ARCO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $6.98 | $1.47B | 5.73 | 4.66% | 5.15% | 32.83% | 3.44% | |
| $77.69 | $26.96B | 23.67 | 12.23% | 15.35% | 28.07% | 3.12% | |
| $161.14 | $44.41B | 12.82 | 8.81% | 39.14% | — | 1.76% | |
| $14.09 | $268.75M | 8.13 | -6.75% | 2.84% | — | 6.16% | |
| $276.52 | $196.47B | 21.77 | 3.72% | 32.38% | — | 2.58% | |
| $8.15 | $1.55B | 16.13 | -3.1% | 4.4% | 81.11% | 8.19% |
Arcos Dorados Holdings Inc. (ARCO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Arcos Dorados Holdings Inc. (ARCO) stock FAQ — growth, dividends, profitability & financials explained
Arcos Dorados Holdings Inc. (ARCO) reported $4.98B in revenue over the trailing twelve months. Revenue was $4.68B in fiscal year 2025. That is 79% more than the $2.61B of fiscal year 2008.
Arcos Dorados Holdings Inc. (ARCO) grew revenue by 10.8% over the trailing twelve months, compared with the twelve months before.
Yes. Arcos Dorados Holdings Inc. (ARCO) earned $256.7M in net income over the trailing twelve months (a 5.2% net margin).
Yes. Arcos Dorados Holdings Inc. (ARCO) pays a dividend that yields 3.44% at the current price, a moderate yield.
Arcos Dorados Holdings Inc. (ARCO) had a return on equity (ROE) of 32.8% over the trailing twelve months. That is well above the market's typical 10-15%.
Arcos Dorados Holdings Inc. (ARCO) generated $95.4M in free cash flow over the trailing twelve months.
