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ARCO · NYSE · United States · Retail-Eating Places
In shortArcos Dorados Holdings Inc. is profitable, generates cash and carries moderate debt, with revenue growing (+4.7% last year).
Financial health
Solid
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 7.8% | 43/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 4.5% | 38/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 33.2% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 11.9% | 79/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.03× | 19/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 1.48× | 29/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | 1.27× | 78/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 26.68× | 100/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 1.62 | 13/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 0.3% | 21/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 0.07× | 0/100 |
| Years with positive free cash flow (last 5) | 4 of 5 | 75/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 15.6% | 53/100 |
| Operating margin volatility | 1.0% | 100/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 8.9% | 66/100 |
|---|---|---|
| EPS growth, 3-year average | 14.7% | 98/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 2,660 | 3,619 | 4,332 | 4,470 | 4,678 |
| Cost of revenue | 51 | 68 | 83 | 84 | 90 |
| Gross profit | 2,609 | 3,551 | 4,249 | 4,386 | 4,589 |
| Operating income | 140 | 264 | 314 | 325 | 364 |
| Interest expense | 50 | 44 | 32 | 47 | 14 |
| Pre-tax income | 78 | 226 | 278 | 259 | 341 |
| Income tax | 32 | 85 | 96 | 110 | 129 |
| Net income | 45 | 140 | 181 | 149 | 212 |
| Diluted EPS | $0.22 | $0.67 | $0.86 | $0.71 | $1.01 |
| Diluted shares (millions) | 211 | 211 | 211 | 211 | 211 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
1.62 Grey zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
6/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Dec 31, 2025 · Data updated Apr 30, 2026