It’s still a bull thesis, just subverted: Arcos Dorados Holdings Inc (ARCO)

At the time of writing, Arcos Dorados Holdings Inc [ARCO] stock is trading at $7.51, down -1.57%. An important factor to consider is whether the stock is rising or falling in short-term value. The ARCO shares have gain 7.59% over the last week, with a monthly amount glided 3.87%, and seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Arcos Dorados Holdings Inc [NYSE: ARCO] stock has seen the most recent analyst activity on July 02, 2025, when JP Morgan downgraded its rating to a Neutral but kept the price target unchanged to $8.80 for it. Previously, Jefferies started tracking the stock with Buy rating on December 01, 2023, and set its price target to $15. On September 27, 2022, Barclays initiated with a Overweight rating and assigned a price target of $9 on the stock. HSBC Securities downgraded its rating to a Hold but stick to its price target of $8 on April 04, 2022. BofA Securities upgraded its rating to a Buy and raised its price target to $10 on March 24, 2022. Credit Suisse upgraded its rating to Outperform for this stock on February 23, 2022, but kept the price target unchanged to $9.50. In a note dated January 19, 2022, Goldman upgraded an Buy rating on this stock and boosted its target price from $6 to $7.

For the past year, the stock price of Arcos Dorados Holdings Inc fluctuated between $6.51 and $10.55. Currently, Wall Street analysts expect the stock to reach $12.15 within the next 12 months. Arcos Dorados Holdings Inc [NYSE: ARCO] shares were valued at $7.51 at the most recent close of the market. An investor can expect a potential return of 61.78% based on the average ARCO price forecast.

Analyzing the ARCO fundamentals

According to Arcos Dorados Holdings Inc [NYSE:ARCO], the company’s sales were 4.50B for trailing twelve months, which represents an 2.83% jump. Gross Profit Margin for this corporation currently stands at 0.13% with Operating Profit Margin at 0.07%, Pretax Profit Margin comes in at 0.05%, and Net Profit Margin reading is 0.03%. To continue investigating profitability, this company’s Return on Assets is posted at 0.04, Equity is 0.27 and Total Capital is 0.12. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 4.27.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 7.41 points at the first support level, and at 7.30 for the second support level. However, for the 1st resistance point, the stock is sitting at 7.67, and for the 2nd resistance point, it is at 7.82.

Ratios To Look Out For

It is important to note that Arcos Dorados Holdings Inc [NYSE:ARCO] has a current ratio of 0.80. On the other hand, the Quick Ratio is 0.73, and the Cash Ratio is 0.4. Considering the valuation of this stock, the price to sales ratio is 0.35, the price to book ratio is 2.73 and price to earnings (TTM) ratio is 12.16.

Transactions by insiders

Recent insider trading involved Rabach Marcelo, Officer, that happened on Mar 17 ’25 when 100000.0 shares were purchased. Officer, BASTIDAS SALDARRIAGA JUAN DAVI completed a deal on Nov 27 ’24 to buy 7889.0 shares. Meanwhile, Director Annette Franqui bought 0.2 million shares on Aug 30 ’24.

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