5-Star Stocks Poised to Pop: Arcos Dorados

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Arcos Dorados Holdings (NYS: ARCO) , which operates McDonald's (NYS: 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' business and see what CAPS investors are saying about the stock right now.

Arcos Dorados facts

Headquarters (founded)

Buenos Aires, Argentina (2007)

Market Cap

$4.2 billion

Industry

Restaurants

Trailing-12-Month Revenue

$3.7 billion

Management

Chairman/CEO Woods Staton
CFO German Lemonnier

Trailing-12-Month Return on Equity

18.8%

Cash/Debt

$176.3 million / $532.3 million

Dividend Yield

1.2%

Competitors

Brazil Fast Food
Burger King Holdings
Doctor's Associates

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

On CAPS, 99% of the 317 members who have rated Arcos Dorados believe the stock will outperform the S&P 500 going forward.

Late last year, one of those Fools, All-Star griderX, tapped the stock as a tasty global growth opportunity:

Bright future in Brazil: Currently Brazil accounts for roughly 55% of the sales and one of the highest growing regions for [Arcos Dorados]. With the upcoming World Cup and Olympics to follow the next 5-10 years could be a boom for the company if management can manage the growth without allowing expenses to overrun sales.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Arcos Dorados. Motley Fool newsletter services have recommended buying shares of Arcos Dorados. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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