Nama Insights

Arcos Dorados (ARCO)

Consumer Cyclical · Restaurants · NYSE

Arcos Dorados (ARCO) is a Consumer Cyclical company in the Restaurants industry. It has a market capitalization of $1.47B, a trailing price-to-earnings ratio of 5.7 and a free-cash-flow yield of 1.0%. Over the most recent reported fiscal year, revenue grew 4.7%. Nama's AI scorecard rates it Sell, 4.0 out of 10. On 12-month momentum it ranks in the rising band of its market.
AI scorecard
Sell · 4.0/10
Negative, at the mild end of Sell. As of Nov 7, 2026.
Momentum
Rising · +12.9% over 12 months ex. last
Second-best fifth of its market on the past year's move.
Shariah screen
Not Shariah Compliant
At least one of the three ratios or the industry test failed.
Off its high
-47.1%
How far the last close sits under the highest price of the past five years.
Market cap$1.47B
Trailing P/E5.7
Price / book1.8
Price / sales0.3
FCF yield1.0%
Dividend yield4.0%
Gross margin12.2%
Operating margin7.9%
Net margin5.2%
Revenue growth (YoY)+4.7%
Revenue growth (3-yr annual)+8.9%
EPS growth (YoY)+41.7%
FCF/share growth (YoY)—
Beta0.5
ExchangeNYSE
SectorConsumer Cyclical
IndustryRestaurants

ARCO earnings

Next report: Nov 12, 2026 (Q3 2026, EPS estimate $0.16). Beat the EPS estimate in 3 of 4 recent quarters.

QuarterReportedEPSEstimateSurpriseRevenue
Q2 2026 Aug 13, 2026 $0.22 $0.15 +46.7% $1.31B
Q1 2026 May 20, 2026 $0.17 $0.10 +70.0% $1.22B
Q4 2025 Mar 19, 2026 $0.13 $0.20 -35.0% $1.27B
Q3 2025 Nov 12, 2025 $0.71 $0.13 +446.1% $1.19B

ARCO analyst price target

Median target $11.00 from 9 analysts, ranging $8.55 – $14.00.

Restaurants peers

TickerCompanyMarket capP/E
MCD McDonald's $195.68B 21.4
SBUX Starbucks $120.18B 38.9
CMG Chipotle Mexican Grill $43.55B 31.6
YUM Yum! Brands $43.35B 25.1
QSR Restaurant Brands International $35.56B 19.5
DRI Darden Restaurants $25.61B 21.1
YUMC Yum China $16.79B 17.3
TXRH Texas Roadhouse $12.07B 28.9
Explore live ARCO data on Nama Insights →

ARCO FAQ

Is ARCO a buy?
Nama's AI scorecard currently rates Arcos Dorados Sell (4.0 out of 10), a call computed from its profitability, cash generation, growth, valuation and balance sheet. It is a research reading, not investment advice.
What is ARCO's P/E ratio?
Arcos Dorados trades at a trailing price-to-earnings ratio of 5.7.
When does ARCO report earnings?
Arcos Dorados's next scheduled report is on Nov 12, 2026. Analysts expect EPS of $0.16.
What is the ARCO price target?
The median analyst price target from 9 analysts is $11.00, with a range of $8.55 – $14.00.
Is ARCO Shariah compliant?
Nama's AAOIFI-style screen reads Arcos Dorados as Not Shariah Compliant. At least one of the three ratios or the industry test failed.
Does ARCO pay a dividend?
Yes — Arcos Dorados's dividend yield is 4.0%.