Arcos Dorados: Growth at a Discount

Arcos Dorados' (NYSE: ARCO  ) stock has remained basically flat this year, as a strong U.S. dollar has weakened the company's earnings, which are derived almost entirely from Latin America. As an example, the company's Brazilian division sales were up almost 11% in 2012 versus the prior year on an organic basis, from $1.8 billion to more than $2.0 billion. However, due to the depreciation of the Brazilian real, the division's revenues actually decreased by $93 million in dollar terms. In the accompanying video, Fool contributor Asit Sharma discusses Arcos' recent results, and why he sees a buying opportunity in Arcos Dorados stock.

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  • Report this Comment On June 13, 2013, at 11:07 AM, EmmyKaye wrote:

    How do you expect the upcoming World Cup and Olympics will affect the price of ARCO?

  • Report this Comment On June 13, 2013, at 11:28 PM, TMFfinosus wrote:

    Wow. Great question. I think personally both events will be positive, increasing both traffic and exposure for Arcos Dorados. If the Brazilian economy speeds up a little by then, the effect should be positive on Arco's stock price. Thanks for commenting EmmyKaye.

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Related Tickers

10/30/2014 4:00 PM
ARCO $6.06 Up +0.04 +0.66%
Arcos Dorados CAPS Rating: ****
MCD $93.38 Up +0.65 +0.70%
McDonald's CAPS Rating: ***

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