ARCO
Arcos Dorados Holdings Inc.
ARCO's fundamentals are strong and it looks cheap: trading at 5.8x earnings, about half its usual 11x.
ARCO Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Stable | |
| Under pressure |
ARCO's revenue and profitability are currently healthy, and its cash flow is stable, but its balance sheet is under pressure.
ARCO PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 5.8x | $7.00 | — |
| Cheap | 7.8x | $9.45 | +35% |
| Fair | 11x | $13.88 | +98% |
| Expensive | 19x | $23.55 | +236% |
Historical ranges are pointers, not guarantees.
ARCO's PE is in its cheap range at 5.8x.
ARCO Forward outlook
There aren't enough analyst estimates for ARCO to show an outlook.
ARCO Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q2 2026 | $1.21 | +92% |
| Q1 2026 | $1.11 | +71% |
| Q4 2025 | $1.01 | +40% |
| Q3 2025 | $1.17 | +67% |
| Q2 2025 | $0.63 | -44% |
| Q1 2025 | $0.65 | -42% |
| Q4 2024 | $0.72 | -38% |
| Q3 2024 | $0.70 | -40% |
ARCO earned $1.21 per share over the past year, up 92% from the year before.
ARCO Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $1.3B | +14% |
| Q1 2026 | $1.2B | +13% |
| Q4 2025 | $1.3B | +11% |
| Q3 2025 | $1.2B | +5.2% |
| Q2 2025 | $1.1B | +2.8% |
| Q1 2025 | $1.1B | -0.4% |
| Q4 2024 | $1.1B | -2.7% |
| Q3 2024 | $1.1B | +0.8% |
ARCO's revenue has grown year over year for five quarters in a row: $1.3B last quarter, up 14% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 5.9% | +0.4 points |
| Q1 2026 | 4.7% | +0.5 points |
| Q4 2025 | 7.5% | -1.5 points |
| Q3 2025 | 12% | +5.3 points |
| Q2 2025 | 5.5% | -1.2 points |
| Q1 2025 | 4.2% | -2.1 points |
| Q4 2024 | 9% | +2 points |
| Q3 2024 | 7% | -1 points |
ARCO's operating margin was 5.9% last quarter, about level with the same quarter a year ago.
ARCO Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $56.4M | +257% |
| Q1 2026 | -$18.7M | +$43.5M |
| Q4 2025 | $27.2M | +46% |
| Q3 2025 | $30.4M | +421% |
| Q2 2025 | $15.8M | +$30.4M |
| Q1 2025 | -$62.2M | +$8.4M |
| Q4 2024 | $18.6M | +65% |
| Q3 2024 | $5.8M | -87% |
ARCO's free cash flow has turned positive again: $95M over the past year, against −$22M the year before.
ARCO Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | -- |
| 1 year | 0% | -- |
| 3 years | 0% | +37.2K shares |
| 5 years | +0.1% | +303K shares |
| Available history | +0.4% | +919K shares |
ARCO has 211M diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
| Q3 2024 | — |
ARCO hasn't bought back shares in the past year.
ARCO Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | 3.0x | Elevated |
| Q1 2026 | 3.1x | Elevated |
| Q4 2025 | 3.2x | Elevated |
| Q3 2025 | 3.3x | Elevated |
| Q2 2025 | 4.0x | Elevated |
| Q1 2025 | 3.8x | Elevated |
| Q4 2024 | 3.3x | Elevated |
| Q3 2024 | 3.4x | Elevated |
ARCO's net debt is about 3.0 years of its operating earnings (EBITDA), down from 4.0 years a year ago.
ARCO Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 40.2 | Neutral |
| Stochastic | 12.7 | Oversold |
ARCO's weekly RSI is 40 (neutral) and its Stochastic is 13 (oversold).
ARCO PE vs Consumer Cyclical Sector
| Metric | ARCO | Sector median | Relative |
|---|---|---|---|
| PE | 5.8x | 18x | 68% below |
| PE % | 1 | 47 | 46 pts below |
ARCO is trading at 5.8x earnings, a 68% discount to the Consumer Cyclical sector's median of 18x.
ARCO Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $7.36 | 4.9% below |
| 20 week MA | $7.80 | 10% below |
| 50 week MA | $8.05 | 13% below |
| 100 week MA | $7.74 | 9.6% below |
| 200 week MA | $8.75 | 20% below |
ARCO is in a downtrend: it's below all five of its weekly moving averages, and 20% below its 200-week average.
ARCO Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $8.18 | $4.93 | -40% |
| 2021 | $4.93 | $5.33 | +8.1% |
| 2022 | $5.33 | $8.32 | +56% |
| 2023 | $8.32 | $12.7 | +53% |
| 2024 | $12.7 | $7.29 | -43% |
| 2025 | $7.29 | $7.37 | +1.1% |
| 2026 YTD | $7.37 | $7.00 | -5% |
ARCO has finished higher in four of the last six years, two of them by more than 50%. It's down 5% so far in 2026.