Arcos Dorados Holdings Inc. (NYSE:ARCO)

CAPS Rating: 4 out of 5

Recs

1
Player Avatar RSue (93.96) Submitted: 7/22/2013 10:47:24 AM : Outperform Start Price: $10.83 ARCO Score: -26.55

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.

Featured Broker Partners


Advertisement