Friday, July 22, 2011 11:16:18 AM
Brian D. Pacampara - July 13, 2011
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Arcos Dorados Holdings (NYSE: ARCO), which operates McDonald's (NYSE: MCD) franchises in South America, has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Arcos Dorados' business and see what CAPS investors are saying about the stock right now.
Arcos Dorados facts
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Headquarters (Founded) Buenos Aires, Argentina (2007)
Market Cap $2.8 billion
Industry Restaurants
Trailing-12-Month Revenue $3.17 billion
Management Chairman/CEO Woods Staton CFO German Lemonnier
Trailing-12-Month Operating Margin 6.8%
Cash/Debt $141.2 million / $471.5 million
Competitors Yum! Brands (NYSE: YUM)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 152 members who have rated Arcos Dorados believe the stock will outperform the S&P 500 going forward. These bulls include TMFTypeoh and All-Star TMFBreakerForce.
Late last month, TMFTypeoh succinctly summed up the Arcos Dorados bull case: "Risky, but it's like investing in [McDonald's] 30 years ago. If it holds true, we've got a multibagger!"
Over the next five years, in fact, Arcos Dorados is expected to grow its bottom line at a brisk rate of 27% annually. That's much faster than other restaurant stocks like Yum! Brands (13%) and Starbucks (Nasdaq: SBUX) (18%).
CAPS All-Star TMFBreakerForce expands on the outperform argument:
Arcos Dorados (Golden Arches) is the world's largest McDonald's Franchisee. They operate in all of South America, Parts of Central America, and the Caribbean.
The bought all of MCD's South American franchises for less than book value back in 2007. The company has turned around the underperforming business, and is improving margins. They currently operate over 1,700 chains. According to the prospectus, the company intends to open at least 250 new locations by 2013.
It is estimated that the company could open at least 5,000 chains in the next decade, as the economies in the major countries in South America (Brazil, Argentina, Chile) continue to improve.
They have some debt outstanding but generated almost $264 Million in Cash Flow from Operations in 2010, so meeting debt obligations will not be an issue.
Recent ARCO News
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/30/2024 07:49:18 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/14/2024 11:37:12 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/14/2024 11:33:12 AM
- Arcos Dorados Reports Second Quarter Financial Results • Business Wire • 08/14/2024 11:30:00 AM
- U.S. Futures Steady After Tuesday’s Strong Recovery; CPI in Focus • IH Market News • 08/14/2024 09:58:49 AM
- Arcos Dorados Holdings Inc. Second Quarter 2024 Results Webcast Date and Time • Business Wire • 07/15/2024 11:40:00 AM
- Arcos Dorados to Participate in Upcoming Investor Event • Business Wire • 06/03/2024 11:30:00 AM
- J&J GREEN PAPER, A MIAMI-BASED COMPANY, ANNOUNCES THE IMPLEMENTATION OF ITS GAMECHANGING SUSTAINABLE PACKAGING INITIATIVE JANUS® IN PARTNERSHIP WITH ARCOS DORADOS, THE LARGEST MC DONALD'S INDEPENDENT FRANCHISEE IN THE WORLD • PR Newswire (US) • 05/23/2024 08:00:00 PM
- U.S. Index Futures Flat Ahead of April CPI Data Release, Oil Prices Drop • IH Market News • 05/15/2024 11:50:05 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/15/2024 11:39:59 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/15/2024 11:33:59 AM
- Arcos Dorados Reports Strong First Quarter Financial Results • Business Wire • 05/15/2024 11:25:00 AM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/10/2024 10:30:59 AM
- Arcos Dorados Holdings Inc. Announces the Filing of Its Annual Report on Form 20-F for Fiscal Year 2023 • Business Wire • 04/29/2024 09:13:00 PM
- Arcos Dorados Holdings Inc. First Quarter 2024 Results Webcast Date and Time • Business Wire • 04/17/2024 12:00:00 PM
- Arcos Dorados Reports Strong Fourth Quarter and Full Year 2023 Financial Results • Business Wire • 03/13/2024 11:30:00 AM
- Mixed Futures Amidst Quiet Economic Schedule; Oil Prices Climb • IH Market News • 03/13/2024 11:03:39 AM
- Arcos Dorados to Host Its 2024 Annual General Shareholders’ Meeting • Business Wire • 03/08/2024 10:27:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/08/2024 10:15:25 PM
- Arcos Dorados to Host Its 2024 Annual General Shareholders’ Meeting • Business Wire • 03/08/2024 12:22:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/08/2024 12:11:39 PM
- Arcos Dorados Holdings Inc. (NYSE:ARCO) Fourth Quarter 2023 Results Webcast Date and Time • Business Wire • 02/19/2024 12:30:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/17/2024 12:56:04 AM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 04:51:15 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/29/2024 09:38:06 PM
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