Stocktoria
Arcos Dorados Holdings Inc. ARCO
Arcos Dorados Holdings Inc. (ARCO) earns a Piotroski F-score of 6/9 (mixed financial health), with an Altman Z″ in the grey zone. It pays a dividend yielding 2.91% (safety: safe). FY2025 revenue was $4.7B at a 4.5% net margin.
Quality score trend · recomputed for each fiscal year
Each year's score is computed from that year's filing — a rising Piotroski F or Altman Z″ means improving financial health, a fall is worth a look.
Analyst price target
Wall Street analyst consensus — a sentiment gauge, not our scoring.
Smart money · insiders, last 12 months
Open-market insider purchases minus sells (SEC Form 4) — real buying with their own money is a bullish “smart money” signal; grants and option exercises are excluded.
How it ranks in Retail Trade · percentile among 238 companies
Percentile vs other Retail Trade companies we cover — e.g. “stronger than 90%” means only 10% score higher on that measure.
Piotroski F breakdown · 6/9 tests passed
- Positive return on assets
- Positive operating cash flow
- Rising ROA
- Cash flow exceeds net income
- Lower long-term debt
- Rising current ratio
- No share dilution
- Rising gross margin
- Rising asset turnover
Altman Z″ components · grey zone
| Component | Value |
|---|---|
| Working capital / assets | 0.006 |
| Retained earnings / assets | 0.213 |
| EBIT / assets | 0.094 |
| Equity / liabilities | 0.248 |
Sector peers · similar-size Retail Trade companies compare side by side →
| Ticker | Company | Piotroski F | Altman Z″ | P / E | Revenue growth |
|---|---|---|---|---|---|
| ARCO | Arcos Dorados Holdings Inc. | 6/9 | 1.62 | 8.2 | +4.7% |
| EAT | BRINKER INTERNATIONAL, INC | 5/9 | 0.53 | 19.2 | +21.9% |
| BLMN | Bloomin' Brands, Inc. | 7/9 | -2 | 93.2 | +0.1% |
| CAKE | CHEESECAKE FACTORY INC | 5/9 | 1.31 | 26.9 | +4.7% |
| CBRL | CRACKER BARREL OLD COUNTRY STORE, INC | 6/9 | 0.19 | 25.5 | +0.4% |
| TXRH | Texas Roadhouse, Inc. | 2/9 | 2.15 | — | +9.4% |
| PLAY | Dave & Buster's Entertainment, Inc. | 5/9 | 0.15 | — | -1.4% |
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.
FAQ
Is ARCO financially healthy?
Arcos Dorados Holdings Inc.'s Piotroski F-score is 6/9 (8–9 is excellent, 0–3 weak), and its Altman Z″ distress score is in the grey zone.
Does ARCO pay a dividend, and is it safe?
Yes. Arcos Dorados Holdings Inc. pays a dividend yielding about 2.91% with a 23.8% payout ratio, rated “safe” for safety.
How profitable is ARCO?
In FY2025, Arcos Dorados Holdings Inc. had a net margin of 4.5% and a return on equity of 27.5%.
Is ARCO overvalued or undervalued?
Arcos Dorados Holdings Inc. trades at about 7.8× trailing earnings — below its 10-year norm (10-year range 8.1×–50.9×, median 16.8×). Stocktoria reports the data, not buy/sell advice.
What is the analyst price target for ARCO?
The average Wall-Street price target for Arcos Dorados Holdings Inc. is $11.15, about 41.1% above the recent price, from 9 analysts (consensus: buy).
Is ARCO a good stock to buy?
Stocktoria doesn't give buy or sell advice, but here is the data on Arcos Dorados Holdings Inc.: a Piotroski F-score of 6/9, an Altman Z″ in the grey zone, a P/E of about 8.2×, a dividend yield of 2.91%. Weigh these quality and valuation signals against your own goals.
Computed from company filings · US · as of 2025-12-31. Facts plus Stocktoria's own computed scores — not investment advice.