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 , which operates McDonald's 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.
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The article Why Arcos Dorados Is Poised to Bounce Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide and McDonald's and owns shares of Arcos Dorados and McDonald's. 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 Motley Fool has a disclosure policy.
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