Arcos Dorados Holdings Inc. (ARCO) intrinsic value & 10-year financials
Arcos Dorados Holdings Inc. (ARCO) has a Graham intrinsic value of $21.35 per share. Over the last 10 fiscal years revenue grew 5.3% a year to $4.7B, with an average return on invested capital of 14.1%.
- Graham intrinsic value
- $21.35
- Revenue (FY2025)
- $4.7B
- Revenue growth (10-yr CAGR)
- 5.3%
- ROIC (10-yr avg)
- 14.1%
- Free cash flow (FY2025)
- $15.0M
ARCO 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $4.7B | $212.1M | $1.01 | $15.0M | 7.8% | 17.3% |
| FY2024 | $4.5B | $148.8M | $0.71 | -$60.8M | 7.3% | 17.6% |
| FY2023 | $4.3B | $181.3M | $0.86 | $21.9M | 7.2% | 22.6% |
| FY2022 | $3.6B | $140.3M | $0.67 | $128.3M | 7.3% | 22.3% |
| FY2021 | $2.7B | $45.5M | $0.22 | $143.0M | 5.2% | 11.0% |
| FY2020 | $2.0B | -$149.5M | -$0.73 | -$70.3M | -3.4% | -7.7% |
| FY2019 | $3.0B | $79.9M | $0.39 | -$41.8M | 5.4% | 12.3% |
| FY2018 | $3.1B | $36.8M | $0.18 | -$17.3M | 4.0% | 7.5% |
| FY2017 | $3.3B | $129.2M | $0.61 | $80.4M | 8.2% | 24.8% |
| FY2016 | $2.9B | $78.8M | $0.37 | $71.9M | 6.1% | 13.8% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Arcos Dorados Holdings Inc. has demonstrated mature, steady growth, with revenue compounding at 5.3% annually over the past decade.
Arcos Dorados Holdings Inc. returns on capital have been average, hovering around 14.1% ROIC over the decade.
Over the decade, Arcos Dorados Holdings Inc. shows that the company has leveraged its balance sheet to sustain operations.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Arcos Dorados Holdings Inc. is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $21.35 per share.