Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Arcos Dorados Holdings (ARCO 1.12%), which operates McDonald's (MCD -0.02%) 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
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Headquarters (founded) |
Buenos Aires, Argentina (2007) |
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Market Cap |
$2.5 billion |
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Industry |
Restaurants |
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Trailing-12-Month Revenue |
$3.9 billion |
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Management |
Chairman/CEO Woods Staton CFO German Lemonnier |
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Trailing-12-Month Return on Equity |
11.5% |
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Cash / Debt |
$146.6 million / $683.6 million |
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Dividend Yield |
0.4% |
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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.
