Arcos Dorados Holdings Inc.
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Range $9.05 – $14
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About the company
Arcos Dorados Holdings Inc. serves as the premier franchisee for McDonald's, holding exclusive rights to operate, own, and sub-franchise the fast-food chain's eateries. Its extensive domain covers 20 countries and territories throughout Latin America and the Caribbean, specifically encompassing nations like Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay, Panama, Ecuador, Costa Rica, and Venezuela, alongside island territories such as Aruba, Curacao, Guadeloupe, Martinique, French Guiana, Puerto Rico, Trinidad and Tobago, and the U.
- CEO
- Luis Raganato
- IPO
- 2011
- Employees
- 100,000
- HQ
- Montevideo, MO, UY
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $1.64B
- P/E
- 6.45
- Fwd P/E
- 10.13
- PEG
- 0.07
- P/S
- 0.33
- P/B
- 1.98
- EV/EBITDA
- 5.56
- Div Yield
- 3.34%
- Gross Margin
- 12.31%
- Op Margin
- 7.56%
- Net Margin
- 5.15%
- ROE
- 32.90%
- ROIC
- 7.49%
Latest fiscal year · YoY change
- Revenue
- $4.68B+4.7%
- Gross Profit
- $574.12M-2.1%
- Op Income
- $350.19M
- Net Income
- $212.12M+42.6%
- EPS
- $1.01+42.3%
- OCF Growth
- +11.1%
- FCF Growth
- +124.7%
- 52W High
- $9.75
- 52W Low
- $6.54
- 50D MA
- $8.25
- 200D MA
- $8.12
- Beta
- 0.50
- RSI (14)
- 40
- Avg Volume
- 1.32M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Arcos Dorados reported record second-quarter revenue, EBITDA, and net income, with Brazil leading margin expansion and management saying traffic and market share gains look sustainable into the second half.· August 13, 2026
- Total revenue reached $1.3 billion, the highest quarterly revenue ever, and was up more than 14% in USD terms.
- Adjusted EBITDA was $126.8 million, more than 20% above last year, with 70 bps margin expansion excluding a prior-year transaction.
- EPS doubled year over year, supported by stronger operating results, lower net interest expense, and a lower effective tax rate.
- Digital sales grew more than 25% and represented about 66% of total sales; identified sales exceeded 28% of total sales.
- Brazil was the standout market, with EBITDA margin up 180 bps to 14.6% and USD sales up more than 25%; management said early-third-quarter trends are positive.
Second-quarter 2026 revenue was $1.3 billion, the highest ever quarterly revenue, up more than 14% year over year in USD. Adjusted EBITDA totaled $126.8 million, more than 20% above last year, and adjusted EBITDA margin expanded 70 bps excluding last year’s Mexican sub-franchisee transaction. EPS doubled versus last year, while net income set a second-quarter record. Brazil’s EBITDA margin improved 180 bps to 14.6% and EBITDA grew $23 million, or 43%; SLAD EBITDA grew about $3 million, or 6.6%, and SLAD weighted average inflation was around 46%-47%. In the quarter, the company opened 16 restaurants, bringing first-half openings to 35, and spent $49.1 million in capex; year to date capex was almost $86 million. Management did not provide formal next-quarter or full-year financial guidance, but said second-half 2026 conditions should remain dynamic and that it is confident in full-year execution and results.
Luis Raganato framed the quarter as evidence of resilience in a tough consumer backdrop, emphasizing that the company is monetizing its market-share advantage through value, digital, loyalty, and brand campaigns. He said the World Cup sponsorship, launched with pre-campaigns months in advance, helped drive traffic, premium sandwich sales, and all-time-high brand favorability across the region. In Q&A, he repeatedly said Brazil’s rebound is sustainable in the near future and that early third-quarter trends are in line with expectations.
Mariano Tannenbaum said profitability was resilient, with adjusted EBITDA of $126.8 million and 70 bps margin expansion excluding last year’s one-off transaction. He pointed to continued improvement in food and paper, better G&A after last year’s restructuring, and a lower effective tax rate; he also said net interest expense fell thanks to capital structure optimization and income tied to last year’s Brazil tax credit. He highlighted a strong balance sheet, net leverage of 1.1x at quarter-end, completion in July of the second liability-management transaction of the year, and full repayment of the 2029 senior notes. He also said Q2 capex was $49.1 million, bringing the modernized restaurant experience to more than 77% of the portfolio, and estimated average CapEx per store improved by 15%-20%.
Analysts focused on whether Brazil’s same-store sales and margin gains were sustainable, what was driving market share, and how promotional pricing was being managed. Management said Brazil’s rebound came from three levers—value platform Economia, targeted digital campaigns, and World Cup marketing—and that they are already seeing positive trends in early third-quarter weeks. On Mexico and NOLAD, management said the quarter was pressured by a difficult comparison base, a still-challenging macro environment, and heavy prior-year promo comparisons, but that positive traffic, strong value offers, and loyalty helped the business outperform the sector. On Argentina and SLAD, management said consumer spending stayed weak, but the company held guest counts nearly flat and expects the quarter’s food-and-paper headwinds to be tactical rather than persistent.
The bull case from this call is that Arcos Dorados is proving it can grow revenue, traffic, and margins even in weak consumer conditions. Management sees structural support from market-share gains, digital penetration at about 66% of sales, and loyalty/identified sales momentum, while Brazil’s rebound and the company’s strong balance sheet add confidence.
The bear case is that demand remains fragile in several markets, especially Mexico and Argentina, where management repeatedly cited pressured disposable income and difficult comparisons. Margin gains may also face pressure if promotional intensity stays high or if commodity and FX tailwinds fade, and management said the second half of 2026 should remain dynamic rather than easy.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 92.7%
- Shares Outstanding
- 210.66M
- Float Shares
- 195.20M
of shares held by institutions
165 13F filers
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Lazard Asset Management LLC | 24.69M | ▲ 1.51M |
| Pzena Investment Management LLC | 10.80M | ▲ 63.19K |
| Spx Gestao De Recursos Ltda | 4.50M | ▼ 1.45M |
| Moerus Capital Management LLC | 4.28M | ▲ 11.69K |
| Morgan Stanley | 4.00M | ▼ 180.94K |
| Brightlight Capital Management LP | 3.33M | ▼ 132.04K |
| Private Management Group Inc | 3.32M | ▼ 37.79K |
| Mirae Asset Global Etfs Holdings Ltd. | 3.01M | ▲ 199.39K |
| American Century Companies Inc | 2.68M | ▲ 2.68M |
| Invesco Ltd. | 2.06M | ▲ 7.18K |
| Causeway Capital Management LLC | 1.96M | ▲ 1.96M |
| Sei Investments Co | 1.85M | ▼ 1.64M |
Held by 20 ETFs
Biggest fund positions in ARCO by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| May 28, 26 | Hernandez Artigas Carlos | sell | 20,000 |
| May 10, 26 | Alonso Sergio Daniel | other | 4,435 |
| May 10, 26 | Berman Martin Karla Paola | other | 4,435 |
| May 10, 26 | CHU MICHAEL | other | 4,435 |
| May 10, 26 | Fernandez Jose Raul | other | 4,435 |
| May 10, 26 | FRANQUI ANNETTE | other | 4,435 |
| May 10, 26 | Gonzalez Avila Carlos Eduardo | other | 22,610 |
| May 10, 26 | Gonzalez Avila Carlos Eduardo | other | 7,522 |
| May 10, 26 | Gonzalez Avila Carlos Eduardo | other | 7,522 |
| May 10, 26 | Gonzalez Avila Carlos Eduardo | sell | 7,522 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our ARCO coverage
Recent articles, reports, and earnings notes.
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Generate ARCO report →Arcos Dorados Holdings Inc. (ARCO) Q2 2026 Earnings Call Transcript
seekingalpha.com · Aug 14
Arcos Dorados Q2 Earnings Call Highlights
marketbeat.com · Aug 13
Arcos Dorados (ARCO) Surpasses Q2 Earnings and Revenue Estimates
zacks.com · Aug 13
Arcos Dorados Reports Second Quarter 2026 Financial Results
businesswire.com · Aug 13
Arcos Dorados (ARCO) Reports Next Week: Wall Street Expects Earnings Growth
zacks.com · Aug 6
Arcos Dorados to Host Investor Day on October 1, 2026
businesswire.com · Jul 23
Arcos Dorados (ARCO) is an Incredible Growth Stock: 3 Reasons Why
zacks.com · Jul 21
4 Restaurant Stocks to Grab as Sales Soar Amid Higher Gasoline Prices
zacks.com · Jul 21
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