Arcos Dorados Holdings Inc. (NYSE:ARCO)

CAPS Rating: 4 out of 5


Player Avatar TMFRSue (56.13) Submitted: 7/22/2013 10:47:24 AM : Outperform Start Price: $10.66 ARCO Score: -75.73

Arcos Dorados is the largest McDonald's franchisee in the world with restaurants, dessert centers and McCafes in 20 Latin American countries where there are substantial multi-year growth opportunities benefitting 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.

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