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Arcos Dorados Holdings Inc. ARCO NYSE

NYSE • Consumer Cyclical • Restaurants • UY • USD

SharesGrow Score
65/100
4/7 Pass
SharesGrow Intrinsic Value
$21.48
+146.3%
Analyst Price Target
$12.15
+39.3%
SharesGrow 7-Criteria Score All 7 criteria scored · valuation-related highlighted on this page

Arcos Dorados Holdings Inc. (ARCO) trades at a trailing P/E of 8.4, forward P/E of 12.6. Trailing earnings yield is 11.87%, forward earnings yield 7.96%. PEG 0.20 (Peter Lynch undervalued ≤1.0). Graham Number is $9.11.

Criteria proven by this page:

  • VALUE (97/100, Pass) — P/E is below market average (8.4); PEG ≤ 1.0 — Peter Lynch undervalued (0.20); analyst target implies upside (+39.3%); earnings yield beats bond yields (11.87%).
  • PEG Ratio 0.20 — below 1.0 suggests the stock is undervalued relative to its earnings growth rate (Peter Lynch criterion).
  • Trailing Earnings Yield 11.87% — exceeds typical bond yields (~4.3%), making equity attractive vs fixed income.
  • Analyst consensus target $12.15 (+39.3% upside) — significant upside potential according to Wall Street analysts.

Overall SharesGrow Score: 65/100 with 4/7 criteria passed.

SharesGrow 7-Criteria Score
65/100
SG Score
View full scorecard →
VALUE
97/100
Price-to-Earnings & upside
Proven by this page
FUTURE
73/100
Analyst consensus
→ Forecast
PAST
100/100
→ Income
~
HEALTH
50/100
Debt-to-Equity & liquidity
→ Health
MOAT
31/100
→ Income
GROWTH
73/100
→ Income
INCOME
30/100
→ Income

Valuation Snapshot — ARCO

Valuation Multiples
P/E (TTM)8.4
Forward P/E12.6
PEG Ratio0.20
Forward PEG0.74
P/B Ratio2.32
P/S Ratio0.38
EV/EBITDA6.4
Per Share Data
EPS (TTM)$1.01
Forward EPS (Est.)$0.69
Book Value / Share$3.67
Revenue / Share$22.21
FCF / Share$0.05
Yields & Fair Value
Earnings Yield11.87%
Forward Earnings Yield7.96%
Dividend Yield2.95%
Graham Number$9.11
SharesGrow IV$21.48 (+146.3%)
Analyst Target$12.15 (+39.3%)

Historical Valuation

Year P/E (TTM) PEG Ratio P/B Ratio P/S Ratio Dividend Yield
2016 14.6 -0.06 3.28 0.39 -
2017 16.9 0.26 4.40 0.66 -
2018 44.8 -0.63 4.21 0.54 1.27%
2019 20.7 0.17 3.93 0.56 1.36%
2020 -6.8 0.02 5.16 0.51 1.00%
2021 27.0 -0.21 5.56 0.46 0.00%
2022 12.5 0.06 5.44 0.49 1.79%
2023 14.2 0.50 5.00 0.59 1.55%
2024 10.3 -0.59 3.02 0.34 3.30%
2025 7.3 0.17 2.01 0.33 3.27%

EPS: Actual vs Estimates

P/E Ratio & Earnings Yield

Earnings Per Share (EPS) History

Year EPS (Diluted) Revenue Net Income Net Margin
2016 $0.36 $2.93B $78.81M 2.7%
2017 $0.59 $3.32B $129.17M 3.9%
2018 $0.17 $3.08B $36.85M 1.2%
2019 $0.38 $2.96B $79.9M 2.7%
2020 $-0.72 $1.98B $-149.39M -7.5%
2021 $0.22 $2.66B $45.49M 1.7%
2022 $0.67 $3.62B $140.34M 3.9%
2023 $0.86 $4.33B $181.27M 4.2%
2024 $0.71 $4.47B $148.76M 3.3%
2025 $1.01 $4.68B $212.12M 4.5%

Analyst Estimates

Year EPS (Avg) EPS Range Revenue (Avg) Revenue Range Analysts
2026 $0.70 $0.65 – $0.76 $5.16B $5.11B – $5.21B 5
2027 $0.83 $0.79 – $0.88 $5.51B $5.27B – $5.75B 4
2028 $0.95 $0.90 – $1.00 $5.95B $5.83B – $6.08B 1
2029 $1.11 $1.06 – $1.18 $6.07B $5.84B – $6.36B 1
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