Core Viewpoint - Arcos Dorados stock is considered a bargain due to fast growth, a low valuation, and an unchanged royalty rate following the renewal of its master franchise agreement with McDonald's [1][2]. Group 1: Master Franchise Agreement Renewal - Arcos Dorados has replaced its existing master franchise agreement with a new 20-year agreement effective January 1, 2025 [2]. - The new agreement stipulates a royalty payment of 6% of gross sales for the first 10 years, increasing to 6.25% for years 11-15, and 6.5% for years 16-20 [2][3]. - The royalty rate will remain unchanged at 6% until 2034, providing stability for the company's profit margins despite potential sales growth [2]. Group 2: Growth Potential - Management believes there are significant growth opportunities in the 20 countries and territories where Arcos Dorados operates, including plans to open approximately 90 to 100 new restaurants in 2025 [3]. - Analysts project a 16% annualized earnings growth for Arcos Dorados over the next five years, supported by the new master franchise agreement [4]. Group 3: Valuation Metrics - The stock is currently valued at less than 11 times its trailing-12-month earnings, indicating a cheap valuation [4]. - The company has a PEG ratio of only 0.7, suggesting that the stock is undervalued relative to its expected growth [4].

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions [1] Company Summaries - **Arcos Dorados Holdings Inc. (ARCO)**: This company, a franchisee of McDonald's, has seen its current year earnings estimate revised downward by 10% over the last 60 days [1] - **BM Technologies, Inc. (BMTX)**: A financial technology firm, BM Technologies has experienced a significant downward revision of 132.1% in its current year earnings estimate over the past 60 days [1] - **Bio-Techne Corporation (TECH)**: This life sciences and diagnostics company has had its current year earnings estimate revised downward by 9.2% in the last 60 days [1]

Arcos Dorados Holdings Inc. (ARCO) reported second-quarter 2024 results, wherein earnings came in line with the Zacks Consensus Estimate while revenues surpassed the same. The top line beat the estimate for the fourth straight quarter. The company’s shares declined 4.7% on Aug 15 following the results.Delving DeeperARCO reported adjusted earnings per share (EPS) of 13 cents in the second quarter. The metric remained flat year over year.It reported quarterly revenues of $1,110.9 million, beating the consensu ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Arcos Dorados Holdings Inc. (ARCO) is a franchisee of McDonald’s restaurants. The Zacks Consensus Estimate for its current year earnings has been 13.5% downward over the last 60 days.CONMED Corporation (CNMD) is a medical technology company that sells surgical devices. The Zacks Consensus Estimate for its current year earnings has been revised 7.2% downward over the last 60 days.CVS Health Corporation (CVS) is a provider of healthcare ...

Arcos Dorados TodayARCOArcos Dorados$10.04 -0.06 (-0.59%) 52-Week Range$8.59▼$13.20Dividend Yield2.39%P/E Ratio12.40Price Target$15.00Add to WatchlistThere are many reasons to buy Arcos Dorados NYSE: ARCO, but they center on the company’s leadership in the Latin American QSR industry and its growing moat. Arcos Dorados is the largest independent McDonald’s NYSE: MCD franchisee. It is not without competition, but it has a moat. Not only is the QSR industry under-represented in Latin America, but existing mar ...

Arcos Dorados Holdings Inc. (NYSE:ARCO) Q2 2024 Earnings Conference Call August 14, 2024 10:00 AM ET Company Participants Dan Schleiniger - Investor Relations Marcelo Rabach - Chief Executive Officer Luis Raganato - Chief Operating Officer Mariano Tannenbaum - Chief Financial Officer Dan Schleiniger Good morning, everyone, and thank you for joining our Second Quarter 2024 Earnings Webcast. With us today are Marcelo Rabach, our Chief Executive Officer; Luis Raganato, our Chief Operating Officer; and Mariano ...

Arcos Dorados 2 nd Quarter 2024 Results August 14, 2024 ARCO LISTED NYSE Disclaimer This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. Forward-looking statements can be identified by terminology such as "may," "will," "would," "could," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" or the negative of these terms or other similar expressions ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August, 2024 Commission File Number: 001-35129 Arcos Dorados Holdings Inc. (Exact name of registrant as specified in its charter) Río Negro 1338, First Floor Montevideo, Uruguay, 11100 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports ...

Arcos Dorados Holdings Inc. (ARCO) is scheduled to report second-quarter 2024 results on Aug 14.Q2 EstimatesThe Zacks Consensus Estimate for earnings is pegged at 13 cents per share, down 7.1% year over year. In the past 30 days, earnings estimates for the quarter have witnessed downward revisions of 38.1%. The consensus mark for revenues is pegged at $1.05 billion, up 1.6% year over year.Factors to NoteArcos Dorados’ second-quarter 2024 top line is likely to have been aided by robust comparable sales, expa ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Arcos Dorados Holdings Inc. (ARCO) is a franchisee of McDonald’s restaurants. The Zacks Consensus Estimate for its current year earnings has been 2.3% downward over the last 60 days.Herc Holdings Inc. (HRI) is an equipment rental supplier. The Zacks Consensus Estimate for its current year earnings has been revised 3.4% downward over the last 60 days.Nissan Motor Co., Ltd. (NSANY) is an automobile manufacturing giant. The Zacks Consens ...