Arcos Dorados Holdings Inc. (ARCO) Financial Ratios
18 years of historical data (2008–2025) · Consumer Cyclical · Restaurants
EV/EBITDA
↓
6.71
↓-14% vs avg
5yr avg: 7.79
30Y Low5.7·High41.1
P/FCF
↑
120.13
↑+94% vs avg
5yr avg: 61.91
30Y Low8.6·High122.2
P/B Ratio
↓
2.33
↓-45% vs avg
5yr avg: 4.23
30Y Low2.0·High6.6
ROE
↑
33.1%
-7% vs avg
5yr avg: 35.7%
30Y Low-48%·High51%
Debt/EBITDA
↓
4.10
↓-3% vs avg
5yr avg: 4.23
30Y Low1.4·High26.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ARCO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Arcos Dorados Holdings Inc. trades at 8.5x earnings, 41% below its 5-year average of 14.3x, sitting at the 8th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 21.2x, the stock trades at a discount of 60%. On a free-cash-flow basis, the stock trades at 120.1x P/FCF, 94% above the 5-year average of 61.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.8B | $1.5B | $1.5B | $2.7B | $1.8B | $1.2B | $1.0B | $1.7B | $1.7B | $2.2B | $1.2B |
| Enterprise Value | $3.7B | $3.4B | $3.1B | $4.2B | $3.1B | $2.5B | $2.5B | $3.1B | $2.1B | $2.5B | $1.5B |
| P/E Ratio → | 8.47 | 7.27 | 10.25 | 14.76 | 12.48 | 26.50 | — | 21.03 | 45.82 | 17.29 | 14.78 |
| P/S Ratio | 0.39 | 0.33 | 0.34 | 0.62 | 0.49 | 0.46 | 0.52 | 0.57 | 0.55 | 0.67 | 0.39 |
| P/B Ratio | 2.33 | 2.00 | 3.01 | 5.17 | 5.43 | 5.55 | 5.22 | 3.99 | 4.28 | 4.48 | 3.28 |
| P/FCF | 120.13 | 103.11 | — | 122.23 | 13.72 | 8.58 | — | — | — | 27.64 | 16.05 |
| P/OCF | 6.08 | 5.22 | 5.75 | 7.00 | 5.10 | 4.76 | 64.73 | 7.52 | 9.36 | 8.71 | 7.03 |
P/E links to full P/E history page with 30-year chart
ARCO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Arcos Dorados Holdings Inc.'s enterprise value stands at 6.7x EBITDA, 14% below its 5-year average of 7.8x. The Consumer Cyclical sector median is 12.2x, placing the stock at a 45% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.73 | 0.70 | 0.96 | 0.84 | 0.93 | 1.25 | 1.06 | 0.69 | 0.77 | 0.53 |
| EV / EBITDA | 6.71 | 6.24 | 6.21 | 8.99 | 7.95 | 9.54 | 41.14 | 11.06 | 9.23 | 6.84 | 5.67 |
| EV / EBIT | 10.49 | 9.13 | 9.58 | 13.22 | 11.55 | 19.47 | — | 18.30 | 15.33 | 10.14 | 7.49 |
| EV / FCF | — | 227.96 | — | 190.56 | 23.81 | 17.33 | — | — | — | 31.68 | 21.40 |
ARCO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Arcos Dorados Holdings Inc. earns an operating margin of 7.5%, above the Consumer Cyclical sector average of 2.0%. Return on equity of 33.1% is exceptionally high — well above the sector median of 5.3%. ROIC of 11.1% represents solid returns on invested capital versus a sector median of 5.2%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 12.3% | 12.3% | 13.1% | 13.8% | 13.6% | 12.2% | 5.8% | 12.4% | 13.4% | 13.5% | 12.2% |
| Operating Margin | 7.5% | 7.5% | 7.3% | 7.2% | 7.3% | 5.2% | -3.4% | 5.4% | 4.0% | 8.2% | 6.1% |
| Net Profit Margin | 4.5% | 4.5% | 3.3% | 4.2% | 3.9% | 1.7% | -7.5% | 2.7% | 1.2% | 3.9% | 2.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 33.1% | 33.1% | 29.0% | 43.1% | 51.4% | 21.7% | -48.2% | 19.6% | 8.3% | 30.5% | 24.7% |
| ROA | 6.3% | 6.3% | 5.0% | 6.4% | 5.6% | 2.0% | -6.2% | 3.9% | 2.2% | 7.8% | 5.4% |
| ROIC | 11.1% | 11.1% | 11.9% | 13.0% | 12.8% | 6.7% | -2.9% | 8.9% | 11.2% | 26.3% | 17.1% |
| ROCE | 13.5% | 13.5% | 15.1% | 15.5% | 14.6% | 7.9% | -3.6% | 10.5% | 10.8% | 25.3% | 20.0% |
ARCO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Arcos Dorados Holdings Inc. carries a Debt/EBITDA ratio of 4.1x, which is highly leveraged (14% below the sector average of 4.8x). Net debt stands at $1.9B ($2.2B total debt minus $373M cash). Interest coverage of 8.6x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.91 | 2.91 | 3.38 | 3.27 | 4.81 | 6.92 | 8.11 | 3.73 | 1.61 | 1.28 | 1.65 |
| Debt / EBITDA | 4.10 | 4.10 | 3.43 | 3.65 | 4.06 | 5.89 | 26.71 | 5.55 | 2.75 | 1.70 | 2.13 |
| Net Debt / Equity | — | 2.42 | 3.11 | 2.89 | 3.99 | 5.66 | 7.27 | 3.44 | 1.10 | 0.66 | 1.09 |
| Net Debt / EBITDA | 3.42 | 3.42 | 3.16 | 3.23 | 3.37 | 4.81 | 23.95 | 5.12 | 1.89 | 0.87 | 1.42 |
| Debt / FCF | — | 124.85 | — | 68.33 | 10.09 | 8.75 | — | — | — | 4.04 | 5.35 |
| Interest Coverage | 8.64 | 8.64 | 6.89 | 9.77 | 6.04 | 2.57 | -2.95 | 3.28 | 2.61 | 3.67 | 3.07 |
ARCO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.03x means Arcos Dorados Holdings Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 0.72x to 1.03x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.03 | 1.03 | 0.61 | 0.72 | 0.90 | 0.87 | 0.83 | 0.68 | 0.94 | 1.08 | 0.81 |
| Quick Ratio | 0.95 | 0.95 | 0.54 | 0.66 | 0.84 | 0.81 | 0.76 | 0.62 | 0.85 | 0.94 | 0.72 |
| Cash Ratio | 0.51 | 0.51 | 0.18 | 0.29 | 0.40 | 0.45 | 0.33 | 0.20 | 0.40 | 0.54 | 0.36 |
| Asset Turnover | — | 1.20 | 1.55 | 1.43 | 1.37 | 1.13 | 0.86 | 1.16 | 1.95 | 1.84 | 1.95 |
| Inventory Turnover | 61.82 | 61.82 | 75.19 | 70.69 | 62.42 | 61.80 | 55.62 | 68.53 | 57.88 | 34.70 | 52.55 |
| Days Sales Outstanding | — | 19.42 | 13.22 | 15.73 | 15.24 | 14.30 | 21.01 | 15.79 | 12.99 | 16.23 | 13.97 |
ARCO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Arcos Dorados Holdings Inc. returns 2.8% to shareholders annually primarily through dividends. The payout ratio of 23.8% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 11.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.8% | 3.3% | 3.3% | 1.5% | 1.8% | 0.0% | 1.0% | 1.3% | 1.2% | — | — |
| Payout Ratio | 23.8% | 23.8% | 34.0% | 22.1% | 22.5% | 0.0% | — | 28.1% | 56.8% | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.8% | 13.8% | 9.8% | 6.8% | 8.0% | 3.8% | — | 4.8% | 2.2% | 5.8% | 6.8% |
| FCF Yield | 0.8% | 1.0% | — | 0.8% | 7.3% | 11.7% | — | — | — | 3.6% | 6.2% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.7% | 0.0% | 0.0% | 0.8% | 2.7% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.8% | 3.3% | 3.3% | 1.5% | 2.5% | 0.0% | 1.0% | 2.2% | 4.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $211M | $211M | $211M | $211M | $211M | $208M | $210M | $216M | $218M | $217M |
Peer Comparison
Compare ARCO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ARCOYou | $2B | 8.5 | 6.7 | 120.1 | 12.3% | 7.5% | 33.1% | 11.1% | 4.1 |
 QSR | $25B | 31.3 | 17.0 | 17.6 | 41.1% | 23.7% | 15.5% | 8.2% | 7.1 |
 YUM | $42B | 27.3 | 19.5 | 25.6 | 46.2% | 30.8% | — | 48.1% | 4.4 |
 JACK | $244M | -3.0 | 82.4 | 3.3 | 28.7% | -1.2% | — | -0.6% | 77.6 |
 DENN | $322M | 15.2 | 12.1 | 350.6 | 73.4% | 10.0% | — | 9.7% | 6.8 |
 FAT | $3M | -0.0 | — | — | 25.4% | -8.8% | — | -3.8% | — |
 MCD | $198B | 23.3 | 17.3 | 27.5 | 57.4% | 46.1% | — | 18.7% | 3.8 |
 WEN | $1B | 8.0 | 10.2 | 5.3 | 26.9% | 15.3% | 87.6% | 6.3% | 8.2 |
 RRGB | $116M | -4.8 | 11.3 | 18.6 | 68.0% | 0.2% | — | 0.5% | 9.5 |
 SHAK | $2B | 54.2 | 15.2 | 42.1 | 18.0% | 5.9% | 8.7% | 6.0% | 4.7 |
 SBUX | $115B | 61.7 | 26.2 | 47.0 | 24.2% | 9.6% | — | 17.7% | 5.1 |
| Consumer Cyclical Median | — | 21.2 | 12.2 | 15.6 | 36.2% | 2.0% | 5.3% | 5.2% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 18 years · Updated daily
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ARCO — Frequently Asked Questions
Quick answers to the most common questions about buying ARCO stock.
What is Arcos Dorados Holdings Inc.'s P/E ratio?
Arcos Dorados Holdings Inc.'s current P/E ratio is 8.5x. The historical average is 23.2x. This places it at the 8th percentile of its historical range.
What is Arcos Dorados Holdings Inc.'s EV/EBITDA?
Arcos Dorados Holdings Inc.'s current EV/EBITDA is 6.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
What is Arcos Dorados Holdings Inc.'s ROE?
Arcos Dorados Holdings Inc.'s return on equity (ROE) is 33.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 15.8%.
Is ARCO stock overvalued?
Based on historical data, Arcos Dorados Holdings Inc. is trading at a P/E of 8.5x. This is at the 8th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Arcos Dorados Holdings Inc.'s dividend yield?
Arcos Dorados Holdings Inc.'s current dividend yield is 2.81% with a payout ratio of 23.8%.
What are Arcos Dorados Holdings Inc.'s profit margins?
Arcos Dorados Holdings Inc. has 12.3% gross margin and 7.5% operating margin.
How much debt does Arcos Dorados Holdings Inc. have?
Arcos Dorados Holdings Inc.'s Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.