Arcos Dorados Holdings Inc (ARCO) Shares Decline Despite Market Challenges

ATHA

Arcos Dorados Holdings Inc (NYSE: ARCO)’s stock price has decreased by -1.31 compared to its previous closing price of 7.65. However, the company has seen a 0.53% increase in its stock price over the last five trading sessions. businesswire.com reported 2025-04-29 that MONTEVIDEO, Uruguay–(BUSINESS WIRE)–Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), hereby announces that on this date the Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 (the “2024 Annual Report”) with the Securities and Exchange Commission (the “SEC”). The 2024 Annual Report can be accessed by visiting either the SEC’s website at www.sec.gov or the SEC Filings section of the Company’s investor relations website at ir.arco.

Is It Worth Investing in Arcos Dorados Holdings Inc (NYSE: ARCO) Right Now?

The price-to-earnings ratio for Arcos Dorados Holdings Inc (NYSE: ARCO) is above average at 10.69x, Company’s 36-month beta value is 0.66.Analysts have differing opinions on the stock, with 3 analysts rating it as a “buy,” 5 as “overweight,” 1 as “hold,” and 0 as “sell.”

The public float for ARCO is 121.18M, and currently, short sellers hold a 1.48% ratio of that floaft. The average trading volume of ARCO on May 02, 2025 was 1.61M shares.

ARCO’s Market Performance

ARCO’s stock has seen a 0.53% increase for the week, with a -8.26% drop in the past month and a -3.70% fall in the past quarter. The volatility ratio for the week is 2.26%, and the volatility levels for the past 30 days are at 4.42% for Arcos Dorados Holdings Inc The simple moving average for the past 20 days is 2.37% for ARCO’s stock, with a -9.89% simple moving average for the past 200 days.

Analysts’ Opinion of ARCO

Many brokerage firms have already submitted their reports for ARCO stocks, with Jefferies repeating the rating for ARCO by listing it as a “Buy.” The predicted price for ARCO in the upcoming period, according to Jefferies is $15 based on the research report published on December 01, 2023 of the previous year 2023.

Barclays, on the other hand, stated in their research note that they expect to see ARCO reach a price target of $9. The rating they have provided for ARCO stocks is “Overweight” according to the report published on September 27th, 2022.

HSBC Securities gave a rating of “Hold” to ARCO, setting the target price at $8 in the report published on April 04th of the previous year.

ARCO Trading at -3.18% from the 50-Day Moving Average

After a stumble in the market that brought ARCO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -34.29% of loss for the given period.

Volatility was left at 4.42%, however, over the last 30 days, the volatility rate increased by 2.26%, as shares sank -8.37% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -10.55% lower at present.

During the last 5 trading sessions, ARCO rose by +0.53%, which changed the moving average for the period of 200-days by -23.81% in comparison to the 20-day moving average, which settled at $7.38. In addition, Arcos Dorados Holdings Inc saw 3.71% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ARCO starting from Rabach Marcelo, who proposed sale 100,000 shares at the price of $8.34 back on Mar 17 ’25. After this action, Rabach Marcelo now owns shares of Arcos Dorados Holdings Inc, valued at $834,000 using the latest closing price.

BASTIDAS SALDARRIAGA JUAN DAVI, the Officer of Arcos Dorados Holdings Inc, proposed sale 7,889 shares at $8.15 during a trade that took place back on Nov 27 ’24, which means that BASTIDAS SALDARRIAGA JUAN DAVI is holding shares at $64,274 based on the most recent closing price.

Stock Fundamentals for ARCO

Current profitability levels for the company are sitting at:

  • 0.07 for the present operating margin
  • 0.13 for the gross margin

The net margin for Arcos Dorados Holdings Inc stands at 0.03. The total capital return value is set at 0.15. Equity return is now at value 29.07, with 5.03 for asset returns.

Based on Arcos Dorados Holdings Inc (ARCO), the company’s capital structure generated 0.77 points at debt to capital in total, while cash flow to debt ratio is standing at 0.15. The debt to equity ratio resting at 3.39. The interest coverage ratio of the stock is 8.24.

Currently, EBITDA for the company is 502.88 million with net debt to EBITDA at 3.3. When we switch over and look at the enterprise to sales, we see a ratio of 0.71. The receivables turnover for the company is 27.61for trailing twelve months and the total asset turnover is 1.55. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.61.

Conclusion

In a nutshell, Arcos Dorados Holdings Inc (ARCO) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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