Arcos Dorados Holdings (NYSE: ARCO) is one of 22 public companies in the “Quick Service Restaurants” industry, but how does it compare to its competitors? We will compare Arcos Dorados Holdings to similar businesses based on the strength of its dividends, earnings, institutional ownership, analyst recommendations, risk, profitability and valuation.
This table compares Arcos Dorados Holdings and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arcos Dorados Holdings||1.76%||14.68%||3.69%|
|Arcos Dorados Holdings Competitors||6.90%||12.59%||9.54%|
Volatility & Risk
Arcos Dorados Holdings has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500. Comparatively, Arcos Dorados Holdings’ competitors have a beta of 0.53, indicating that their average stock price is 47% less volatile than the S&P 500.
Insider & Institutional Ownership
36.7% of Arcos Dorados Holdings shares are held by institutional investors. Comparatively, 80.0% of shares of all “Quick Service Restaurants” companies are held by institutional investors. 16.8% of shares of all “Quick Service Restaurants” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Arcos Dorados Holdings and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Arcos Dorados Holdings||$3.16 billion||$249.87 million||37.31|
|Arcos Dorados Holdings Competitors||$3.06 billion||$846.52 million||29.49|
Arcos Dorados Holdings has higher revenue, but lower earnings than its competitors. Arcos Dorados Holdings is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent ratings and recommmendations for Arcos Dorados Holdings and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arcos Dorados Holdings||0||0||3||0||3.00|
|Arcos Dorados Holdings Competitors||326||1455||1659||85||2.43|
Arcos Dorados Holdings presently has a consensus target price of $9.53, suggesting a potential downside of 1.72%. As a group, “Quick Service Restaurants” companies have a potential upside of 13.63%. Given Arcos Dorados Holdings’ competitors higher probable upside, analysts plainly believe Arcos Dorados Holdings has less favorable growth aspects than its competitors.
Arcos Dorados Holdings competitors beat Arcos Dorados Holdings on 7 of the 13 factors compared.
Arcos Dorados Holdings Company Profile
Arcos Dorados Holdings Inc. is a McDonald’s franchisee. The Company operates or franchises over 2,140 McDonald’s-branded restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the United States Virgin Islands of Saint Croix and Saint Thomas, and Venezuela; the North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and the South Latin America division (SLAD), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Its menus feature over three tiers of products: entry-level options, such as its Big Pleasures, Small Prices offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products.
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