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The Golden Arches of Latin America will keep growing. The exchange rate has affected financials but in the long run this company is Golden
MCD has been a favorite stock of mine for a while. Hence, when I found out about ARCO-- I got a bit more excited.ARCO is known as the largest McDonald's franchise in all of Latin America. Emerging markets can mean a world of "hidden" opportunities. The stock was recently updated by BoA from hold to buy. Although its current valuation may be a bit high (at about 22x earnings) I see potential for ongoing growth via expansion to more countries or opening additional stores in existing countries. Not to mention the company also pays a dividend.
WC and Olympics
McDonald's has a proven business model that has worked virtually everywhere in the world. I will not bet that it will now fail in a rapidly growing Latin American market where they have an already strong market position. This stock has been held back by currency translations and short term macroeconomic headwinds. Over the long run these factors will level out and this stock will outperform by a great margin. Once rapid expansion mode is over for the company - CapEx will fall, free cash flow will go through the roof and there's also the opportunity for margins to skyrocket once they focus on franchising corporate owned stores. This stock also allows you the opportunity to invest alongside the great Bill Gates as his foundation just disclosed that they own nearly 7% of the company's stock.
at under 10 this is a bet Latin America will recover. Venezuela seems to be priced in (not much of a chance fro recovery there)
I bought shares at $11.90 and am hoping this is the basement floor for this stock. I see nothing but double digit growth potential in Latin America for ARCO over the next 4 years and foreign equities seem like a bargain compared to US stocks at this time.World Cup + Olympics = Outperform
Maybe Brazil can cause still slowdown problems, but One Day this stock must go up , demand for this marketing will continu growing. Sois my conviction.
World cup and Olympics.
As the largest McDonald's franchisee in LatAm and many world events coming to the continent over the next 5 years, I believe SSS will continue to increase as well as earnings.
Arcos holds the McDonalds franchise for South America, primarily in Brazil but has room for lots of expansion.
Fast food is becoming a growing trend in South America, and the brand recognition for the golden arches (arcos dorados) is worldwide.
Latin American McDonalds - A bit of a roller coaster cycle in the past year but near the bottom of the hill; it's about time for this baby back up the track.
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.
Mexico and the other countries in Latin America have a very young population and the men and women get married in their teens. More young men and women go to fast food restaurants and know what is happening across the border-U.S.A.- and with 11,000,000 working in the U.S., eating in the U.S., and taking on the styles and habits of the Northern Frontier, ARCOs Dorados will capture more of the market. It is a slow rising curve that will benefit this company in the next 5 years. Mexico emulates the behavior of what they see on the WWW and there is a lot of cross traffic between the two countries.
World Cup + Olympics = many big macs
Tremendous brand in a growth region. Winning combination.
Fast food will never die, and improving economic conditions in Latin America will see a lot of hungry customers.
Add to track
Not crazy about a McD's clone, but the price really scheams "Value play" now...
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