Arcos Dorados Holdings Inc. (ARCO)

Consumer · NYQ

$7.13+0.14% today

Price as at 30 Sept 2026, 16:05 UTC. Quotes are delayed.

Fundamentals

Market cap$1.74B
P/E ratio7.6
Dividend yield3.31%
Revenue growth (YoY)+12.9%
Profit margin4.9%
Return on equity36.3%
52-week range$6.54 to $9.75

Valuation and ratings

Fair value estimate$18.22
Upside to fair value+155.5%
Analyst target (mean)$11.32
Analyst range$9.35 to $14.00
Analysts with price targets9
Consensus viewstrong buy
Moat score37/100
Overall rating67/100, good quality

Fair value: $18.22 (+155.5%), see how we got there

Arcos Dorados Holdings Inc. trades at $7.13, which is 156% below the $18.22 our fair value estimate puts on the business. On that measure alone it screens as undervalued, though a valuation model is an argument rather than a measurement, and the market is frequently right about why something is cheap.

Our moat model scores it 37 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 7.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

ARCO dividend history

Dividend yield3.31%
Paid, trailing 12 months$0.270 per share
Most recent payment$0.070, ex 21 Sept 2026
Next payment date29 Dec 2026
5-year growth (p.a.)+36.9%
Consecutive years paid4

Dividends per share by year

YearTotal per sharePayments
2026 (year to date)$0.2103
2025$0.2404
2024$0.2404
2023$0.1904
2022$0.1504
2020$0.0501
2019$0.1103
2018$0.1002
2014$0.2404
2013$0.2404
2012$0.2404

Split-adjusted amounts in the listing currency, grouped by the calendar year of the ex-dividend date, from the filed record. Growth and streak figures compare complete years only.

ARCO earnings and analyst estimates

EPS estimate, next year$0.85
Expected EPS growth+10.1%
Expected revenue growth+6.6%

Recommendation mix, 9 published ratings

9 buy0 hold0 sell

Estimates are the published analyst consensus and move often. An earnings date is scheduled, not certain, and a share tends to reprice most violently on the day itself.

About Arcos Dorados Holdings Inc.

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 21 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. Arcos Dorados Holdings Inc. was founded in 2007 and is based in Montevideo, Uruguay.

Industry: RestaurantsHQ: Uruguay

Company profile, industry and headcount are as reported by our data provider and can lag a company's own filings by a reporting period. The annual report is the authority.

ARCO passes 4 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

ARCO peers

The largest companies in the same industry (Restaurants), then in the same sector.

Every consumer company we cover is on the Consumer hub.

Common questions

Is Arcos Dorados Holdings Inc. (ARCO) undervalued?

Against our fair value estimate of $18.22, ARCO at $7.13 is 156% below fair value. That is one model's answer, not a recommendation. It is built from normalized earning power with growth capped deliberately low, which understates companies whose value is mostly future growth.

What is ARCO's P/E ratio?

ARCO trades at 7.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

Does Arcos Dorados Holdings Inc. (ARCO) pay a dividend?

Yes. Arcos Dorados Holdings Inc. yields 3.31% at the current share price. It has paid $0.270 per share over the trailing twelve months. It has paid a dividend in each of the last 4 complete calendar years. A dividend is declared by the board and can be cut at any time; a yield is a fact about the current price, not a promise.

Where does SteadyShares get its ARCO data?

Fundamentals for ARCO come from company filings and exchange data, as listed on NYQ; institutional ownership comes from SEC 13F filings. The share price shown was last refreshed on 30 Sept 2026, 16:05 UTC and is delayed. Our data quality score for this company is 100/100, which is the share of the inputs behind our scores that were actually available rather than assumed. Metrics we do not hold are left out of the page rather than estimated.

The full research page for ARCO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.