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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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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • 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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Asit Sharma
TMFfinosus

Midnight oil burners, unite! A CPA and CMA with a deep interest in business strategy, I also hold a Master's degree in English Literature from NYU -- my left brain and right brain spend their days locked in epic spitball battles. Follow me on Twitter for finance & a broad range of odds & ends.

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Related Tickers

8/28/2015 4:00 PM
ARCO $3.90 Up +0.22 +5.98%
Arcos Dorados CAPS Rating: ****
MCD $96.25 Down -0.23 -0.24%
McDonald's CAPS Rating: ***