Arcos Dorados (ARCO) Registers a Bigger Fall Than the Market: Important Facts to Note

Company Performance - Arcos Dorados (ARCO) closed at $12.90, reflecting a -1.45% change from the previous day, underperforming the S&P 500's daily loss of 0.07% [1] - Over the past month, shares of Arcos Dorados have increased by 2.27%, while the Retail-Wholesale sector gained 1.02% and the S&P 500 rose by 3.05% [1] - The company is expected to report an EPS of $0.25, which is a decrease of 3.85% from the prior-year quarter, while revenue is anticipated to reach $1.16 billion, representing a 14.4% increase compared to the year-ago quarter [1] Analyst Estimates - Recent changes to analyst estimates for Arcos Dorados indicate a positive outlook for the company's business operations and profit generation [2] - The Zacks Rank system currently rates Arcos Dorados as 1 (Strong Buy), which has historically delivered an average annual return of +25% since 1988 [2] - Over the past month, the Zacks Consensus EPS estimate for Arcos Dorados has remained unchanged [2] Valuation Metrics - Arcos Dorados has a Forward P/E ratio of 13.83, which is lower than the industry's average Forward P/E of 19.79, indicating a valuation discount [3] - The company has a PEG ratio of 1.09, compared to the Retail - Restaurants industry's average PEG ratio of 1.84 [3] - The Retail - Restaurants industry, which includes Arcos Dorados, ranks in the top 44% of all industries according to the Zacks Industry Rank [3]