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Should Investors Be Worried About Arcos Dorados?

By Chris Hill - Mar 7, 2014 at 9:21PM

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NYSE: ARCO

Arcos Dorados Holdings Inc.

Market Cap

$1B

Today’s Change

Current Price

(2.03%) $0.10

$5.02

Arcos Dorados, franchiser of McDonald's in Latin America and the Caribbean, may be showing some signs that investors should be worried about.

In this segment of Friday's Investor Beat, Motley Fool analyst Ron Gross gives investors one stock that he'll be watching closely this week. He takes a look at Arcos Dorados ( ARCO 2.03% ), which holds the franchise rights to McDonald's ( MCD 2.05% ) in Latin America and the Caribbean. The company reports earnings next week, and while it has been a long-time holding for Ron in the Motley Fool's Million-Dollar Portfolio service, he sees reasons to be concerned here. The company's store growth is slowing, so he'll be watching closely to see what the company has to say next week.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Arcos Dorados Holdings Inc.

ARCO

$5.02 (2.03%) $0.10

McDonald's Corporation

MCD

$249.61 (2.05%) $5.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Arcos Dorados Holdings inc (ARCO) Q3 2021 Earnings Call Transcript

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