ARCO
Arcos Dorados Holdings Inc.Consumer Cyclical · $1.5B market cap
Verdict
Share price
$7.11
close of Oct 3, 2026
Fair value
$9.74
Sticker Price
Payback Price
$3.89
buy price
ARCO is Undervalued: at $7.11 it trades 27% below its fair value of $9.74. Its buy price (Payback Price) is $3.89, 45% below today's price. Business quality is limited: none of the 5 key numbers clears the 10% bar.
How we valued it
Buffett Normalized. A profitable, growing business, so we project its earnings 10 years ahead and work out what that is worth today.
Business quality
0 of 5 clear the 10% bar. What are the Big Five?
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3 of the investors we track hold ARCO. In Q2 2026, 1 opened a position. Who we track
Richard Pzena
Pzena Investment Management · as of Q2 2026
$87.1M
10,804,358 shares
Sarah Ketterer
Causeway Capital Management · as of Q2 2026
$15.8M
1,961,513 shares
Dodge & Cox Funds
Dodge & Cox Funds · as of Q2 2026
$911K
112,966 shares
Moves in Q2 2026
New position: Sarah Ketterer
Insider activity
Since Aug 24, 2026: no open-market purchases and 3 sales worth $262K. Why purchases matter
Sales
About Arcos Dorados Holdings Inc.
Arcos Dorados Holdings Inc. serves as the premier franchisee for McDonald's, holding exclusive rights to operate, own, and sub-franchise the fast-food chain's eateries. Its extensive domain covers 20 countries and territories throughout Latin America and the Caribbean, specifically encompassing nations like Argentina, Brazil, Mexico, Chile, Colombia, Peru, Uruguay, Panama, Ecuador, Costa Rica, and Venezuela…
Restaurants
Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works