Why Arcos Dorados Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Arcos Dorados Holdings (NYSE: ARCO  ) , which operates McDonald's (NYSE: MCD  ) franchises in Latin America, has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Arcos Dorados and see what CAPS investors are saying about the stock right now.

Arcos Dorados facts

 

 

Headquarters (founded)

Buenos Aires, Argentina (2007)

Market Cap

$2.5 billion

Industry

Restaurants

Trailing-12-Month Revenue

$3.9 billion

Management

Chairman/CEO Woods Staton

CFO German Lemonnier

Trailing-12-Month Return on Equity

11.5%

Cash / Debt

$146.6 million / $683.6 million

Dividend Yield

0.4%

Competitors

Burger King Worldwide 

Wendy's 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 647 members who have rated Arcos Dorados believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, All-Star RSue, tapped the stock as a particularly tasty bargain opportunity:

[S]ubstantial multi-year growth opportunities benefiting from the strong trend of a surging aspirational middle class. Arcos Dorados is also the leading quick-serve restaurant company in Latin America, and has an experienced management team with a solid long-term track record. The company stock is currently trading slightly above all-time lows despite mid-teens revenue growth due to depreciating Latin American currencies. For these reasons, it appears to be an advantageous time to open a position at this level -- which will most likely prove to be a bargain-basement price in the years to come.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Arcos Dorados may not be your top choice.

In fact, we've found incredible tech stock that is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!


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  • Report this Comment On July 24, 2013, at 3:01 PM, jspatel wrote:

    Brian, how are you getting your dividend yield? I calculate a gross yield (before any foreign taxes) of $0.0596 cents per quarter, x 4 quarters is a yield of $0.2384. As of this moment, shares are trading at $11.63. I calculate that to be a yield of 2.05% per annum. Did I miss something?

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