Arcos Dorados Holdings Inc. (ARCO) Stock Analysis
Breakout setup
Consumer Cyclical · Restaurants
Sell if holding. At $8.83, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.8): -1.5; Thin upside margin: 8.8%.
Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 21 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil,... Read more
Sell if holding. At $8.83, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.8): -1.5; Thin upside margin: 8.8%. Chart setup: Golden cross, above all MAs, RSI 52, MACD bullish. Score 6.5/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 67d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-06-13Recent Developments — Arcos Dorados Holdings Inc.
Latest news
- NEWS Arcos Dorados Holdings (ARCO) Is Up 6.7% After Q1 2026 Earnings Jump, Has The Bull Case Changed? - simplywall.st — simplywall.st positive
- NEWS Why Is Arcos Dorados Stock Gaining Wednesday? - Arcos Dorados Holdings (NYSE:ARCO) - Benzinga — Benzinga positive
- NEWS Arcos Dorados Holdings Crushes Q1 2026 Profit Estimates by 54.5% - AlphaStreet — AlphaStreet positive
- NEWS Arcos Dorados Holdings Inc. 2026 Q1 - Results - Earnings Call Presentation (NYSE:ARCO) 2026-05-20 - Seeking Alpha — Seeking Alpha neutral
- NEWS Arcos Dorados shares rise after earnings beat despite revenue miss (ARCO) - MSN — MSN positive
Generated 2026-06-15T18:11:46Z.
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Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 ceiling hit
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $8.83, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.8): -1.5; Thin upside margin: 8.8%. Chart setup: Golden cross, above all MAs, RSI 52, MACD bullish. Prior stop was $8.33. Score 6.5/10, moderate confidence.
Take-profit target: $9.60 (+8.7% upside). Prior stop was $8.33. Stop-loss: $8.33.
Thin upside margin: 8.8%; Leverage penalty (D/E 2.8): -1.5.
Arcos Dorados Holdings Inc. trades at a P/E of 8.0 (forward 10.3). TrendMatrix value score: 8.7/10. Verdict: Sell.
14 analysts cover ARCO with a consensus score of 4.1/5. Average price target: $11.
What does Arcos Dorados Holdings Inc. do?Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. It has the exclusive right to own,...
Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 21 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. Arcos Dorados Holdings Inc. was founded in 2007 and is based in Montevideo, Uruguay.