Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Arcos Dorados Holdings
With that in mind, let's take a closer look at Arcos Dorados' business and see what CAPS investors are saying about the stock right now.
Arcos Dorados facts
Headquarters (Founded) | Buenos Aires, Argentina (2007) |
Market Cap | $4.56 billion |
Industry | Restaurants |
Trailing-12-Month Revenue | $3.57 billion |
Management | Chairman/CEO Woods Staton CFO German Lemonnier |
Trailing-12-Month Operating Margin | 6.3% |
Cash/Debt | $251.1 million / $544.8 million |
Dividend Yield | 1.1% |
Competitors |
Yum! Brands |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 242 members who have rated Arcos Dorados believe the stock will outperform the S&P 500 going forward. These bulls include Clint35 and danablanca.
This past summer, Clint35 succinctly summed up the opportunity: "Very similar to buying [McDonald's] except this one is cheaper and has more growth ahead of it."
Over the next five years, in fact, Arcos Dorados is expected to grow its bottom line at a brisk rate of 21% annually. That's faster than other restaurant stocks like Yum! Brands (13%) and Starbucks
CAPS member danablanca elaborates on the Arcos Dorados bull case:
I love McDonald's. ... Smart, still cheap food for the kids, premium choices for adults = more profit. Also now have free Internet. I believe their system of delivery remains unsurpassed and this is the opportunity to access the company at a reduced entry point. [Arcos Dorados] being the largest franchisee only based in Latin America. I have not yet made the real money leap however would consider it around the $20 mark.
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