Yahoo Finance report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Why ARCO Stock dropped -2.46% Today — RQD Quant Desk Flash
Arcos Dorados Holdings Inc. (Class A) (ARCO) carries a Roarable Rating of D (Sell) with 48/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.
🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief)
Is ARCO stock a Buy, Hold, or Sell right now according to Roarable's RQD model?
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As of 2026-11-02, Arcos Dorados Holdings Inc. (Class A) (NYSE: ARCO) is rated D (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 48/100 at a spot price of $6.73 (-2.46% 1D, market cap $1.45B). Pillar breakdown: Fundamental Cash Engine 13/20, Institutional 13F & Options Flow 3/20, Executive Insider Alignment 11/20, FRED Macro Regime Fit 5/20, and SEC Balance-Sheet Forensics 16/20. Across 1011 tracked Consumer Discretionary issuers, ARCO ranks #601 in composite RQD confidence.
🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief)
How does ARCO compare to WEN and SG in the Consumer Discretionary sector?
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Within the Consumer Discretionary sector (Restaurants), ARCO carries a Roarable D (48/100 RQD), trailing P/E of 6.9x, gross margin of 96.0%, and ROIC of 18.9%. By comparison, WEN (Wendy's Company) holds a D grade (49/100 RQD, P/E 8.3x, ROIC 10.7%, cap $1.37B) and SG (Sweetgreen Inc. (Class A)) posts a E grade (31/100 RQD, P/E N/A, ROIC -35.0%, cap $1.36B). Among the 5-stock peer group, ARCO leads on earnings multiple (6.9x) while ARCO leads on capital efficiency (18.9% ROIC).
🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief)
What are the biggest fundamental strengths and SEC risk factors for ARCO?
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Per ARCO's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001508478), Arcos Dorados Holdings Inc. (Class A) generated $4.68B in revenue (+4.7% YoY), $212.1M in net income, and $15.0M in free cash flow against $3.89B in total assets and $1.13B in total debt. Key quantitative strengths: Company leadership has skin in the game with net positive insider conviction.. Primary risk factors monitored: Sensitive to high interest rates and tighter Federal Reserve market liquidity.. Institutional options positioning shows a 50% call / 50% put premium split.
Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer
SEC Form 4 / 13F Thermometer: 80% Net Buy • Cannibal Buyback (-1.16% YoY Shares)
SEC XBRL FY 2025 (10-K): 0.3% FCF Margin ($15.0M FCF) & 98.1% Gross Margin
Put hedging (50% put share) caps near-term gamma upside (-16 pts vs max)
⚔️ Adversarial Opposing Case: What Could Spark a ARCO Turnaround Squeeze
While ARCO currently carries a cautious 48/100 (D) rating due to Whale & Options Positioning (4/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.
Company leadership has skin in the game with net positive insider conviction.
Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($7.71) and Max Pain ($7.07) forces dealer call-delta covering toward $10.24.
Forensic Repair Trigger: Halting share dilution (Cannibal Buyback (-1.16% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.
Why ARCO Stock dropped -2.46% Today — RQD Quant Desk Flash
Arcos Dorados Holdings Inc. (Class A) (ARCO) dropped -2.46% to $6.73, trading at 2% of its 52-week range ($6.67 – $9.75). Stretched risk/reward at 7x P/E (19% return on capital) under elevated 10-year interest-rate pressure.
- ▸Technical Tape: Trading at 2% of its 52-week range ($6.67 – $9.75) with RSI-14 at 35.9 (NEUTRAL RANGE).
- ▸Volatility Profile: Historical 20-day realized swing band of ±6.7% around $6.73 (no active unusual options sweep snapshot on file).
- ▸Fundamental Anchor: Roarable D (Sell) backed by 98.1% gross margin and $15.0M annual free cash flow.
Stocktwits report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
The Motley Fool report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
MarketBeat report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Simply Wall St report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
StocksToTrade report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and
Walmart (NYSE: $WMT), Eli Lilly (NYSE: $LLY), Cigna Group (NYSE: $CI), Carnival (NYSE: $CCL) and Arcos Dorados (NYS...
Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring ARCO)
- ✓Walkthrough of ARCO's RQD Radar, SEC cash-conversion gap & downside invalidation levels
- ✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
- ✓Includes nightly RQD rating-change & forensic signal email alerts on your tracked stocks
ARCO Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. +4.7% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on ARCO today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for ARCO. Explore sector supply chains on /butterfly.
📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (ARCO)
1. Head-to-Head Consumer Discretionary Peer Comparison (ARCO vs. WEN, SG, BJRI, CBRL)
Industry: Restaurants (51 Tracked Issuers)Across 1011 tracked Consumer Discretionary securities in the Roarable RQD universe, Arcos Dorados Holdings Inc. (Class A) (ARCO) ranks #601 by composite RQD confidence (48/100, grade D) and #464 by equity capitalization ($1.45B). Within this direct 5-issuer industry benchmark cohort, ARCO leads on earnings valuation at 6.9x trailing P/E, while ARCO leads on capital efficiency and profitability with 18.9% ROIC and 96.0% gross margin. CBRL currently holds the highest overall quantitative score in the immediate peer group at 70/100 (B-) compared with ARCO at 48/100 (D).
| Ticker / Company | Roarable Grade | RQD Score | Trailing P/E | Gross Margin | ROIC | 1D Change | Market Cap | Head-to-Head |
|---|---|---|---|---|---|---|---|---|
| ARCO
ACTIVE
Arcos Dorados Holdings Inc. (Class A) | D | 48/100 | 6.9x | 96.0% | 18.9% | -2.46% | $1.45B | Benchmark Subject |
| WEN Wendy's Company | D | 49/100 | 8.3x | 63.6% | 10.7% | +0.63% | $1.37B | /wen-vs-arco → |
| SG Sweetgreen Inc. (Class A) | E | 31/100 | — | — | -35.0% | -2.98% | $1.36B | /sg-vs-arco → |
| BJRI BJ's Restaurants Inc. | C- | 61/100 | 27.6x | 74.7% | 10.7% | -1.18% | $1.35B | /bjri-vs-arco → |
| CBRL Cracker Barrel Old Country Store Inc | B- | 70/100 | 34.9x | 69.0% | 5.4% | -3.31% | $1.62B | /cbrl-vs-arco → |
2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2023–FY2025)
SEC EDGAR 10-K • FILED 2025-12-31 • CIK 0001508478In its most recent audited fiscal period (FY2025, filed 2025-12-31), Arcos Dorados Holdings Inc. (Class A) (ARCO) reported GAAP revenue of $4.68B (+4.7% vs. FY2024 revenue of $4.47B , and +8.0% cumulative change since FY2023) , GAAP net income of $212.1M, operating cash flow of $296.3M, and free cash flow of $15.0M (+124.7% YoY). On the balance sheet, ARCO closed FY2025 with $3.89B in total assets against $1.13B in total debt (Altman Z-Score: 2.10, Piotroski F-Score: 8/9).
| Fiscal Period | Filing Date | Revenue | Net Income | Operating Cash Flow | Free Cash Flow | Total Assets | Total Debt |
|---|---|---|---|---|---|---|---|
| FY2025 (FY) | 2025-12-31 | $4.68B | $212.1M | $296.3M | $15.0M | $3.89B | $1.13B |
| FY2024 (FY) | 2024-12-31 | $4.47B | $148.8M | $266.8M | -$60.8M | $2.89B | $716.0M |
| FY2023 (FY) | 2023-12-31 | $4.33B | $181.3M | $382.0M | $382.0M | — | — |
3. ARCO Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)
✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLEDIs ARCO stock a Buy, Hold, or Sell right now according to Roarable's RQD model?
As of 2026-11-02, Arcos Dorados Holdings Inc. (Class A) (NYSE: ARCO) is rated D (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 48/100 at a spot price of $6.73 (-2.46% 1D, market cap $1.45B). Pillar breakdown: Fundamental Cash Engine 13/20, Institutional 13F & Options Flow 3/20, Executive Insider Alignment 11/20, FRED Macro Regime Fit 5/20, and SEC Balance-Sheet Forensics 16/20. Across 1011 tracked Consumer Discretionary issuers, ARCO ranks #601 in composite RQD confidence.
How does ARCO compare to WEN and SG in the Consumer Discretionary sector?
Within the Consumer Discretionary sector (Restaurants), ARCO carries a Roarable D (48/100 RQD), trailing P/E of 6.9x, gross margin of 96.0%, and ROIC of 18.9%. By comparison, WEN (Wendy's Company) holds a D grade (49/100 RQD, P/E 8.3x, ROIC 10.7%, cap $1.37B) and SG (Sweetgreen Inc. (Class A)) posts a E grade (31/100 RQD, P/E N/A, ROIC -35.0%, cap $1.36B). Among the 5-stock peer group, ARCO leads on earnings multiple (6.9x) while ARCO leads on capital efficiency (18.9% ROIC).
What are the biggest fundamental strengths and SEC risk factors for ARCO?
Per ARCO's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001508478), Arcos Dorados Holdings Inc. (Class A) generated $4.68B in revenue (+4.7% YoY), $212.1M in net income, and $15.0M in free cash flow against $3.89B in total assets and $1.13B in total debt. Key quantitative strengths: Company leadership has skin in the game with net positive insider conviction.. Primary risk factors monitored: Sensitive to high interest rates and tighter Federal Reserve market liquidity.. Institutional options positioning shows a 50% call / 50% put premium split.
Where is ARCO trading relative to its 50-day, 200-day, and 52-week technical levels?
ARCO last traded at $6.73 (-2.46% on volume of 2,196,564 shares), positioning the stock -12.71% below its 50-day simple moving average ($7.71) and -18.03% below its 200-day simple moving average ($8.21). Across its 52-week range of $6.67 to $9.75, ARCO sits at the 1.9% percentile with a 14-day RSI of 35.9 (NEUTRAL RANGE) and an implied next-earnings move of ±6.7% ($6.28 to $7.18).
ARCO Investor FAQ & Complete 8-Part Research Index
100% OPEN ACCESS • SEC EDGAR × CBOE × FREDWhy is ARCO stock moving today?
Why ARCO Stock dropped -2.46% Today — RQD Quant Desk Flash. Stretched risk/reward at 7x P/E (19% return on capital) under elevated 10-year interest-rate pressure.
ARCO — Arcos Dorados Holdings Inc. (Class A): What the Facts Mean to a Prospective Investor
Roarable Rating Brief: What This Means to a Prospective Investor
Per the Roarable RQD rating, ARCO scores 48 / 100, grade D, verdict "Roarable Sell — Underperform / Distribution Warning." The five pillars are:
- Fundamental Cash Engine: 13 / 20. Per the RQD rating, ROIC is 18.9% and FCF yield is 1.03%. The ROIC figure is a relative strength; the thin FCF yield limits the cash return available to shareholders at the current price.
- Whale / 13F Flow: 3 / 20. Per the RQD rating, institutional accumulation and options positioning score weakly. Holder-level detail is not available in source data, so the drivers of this score cannot be verified here.
- Insider Conviction: 16 / 20. Per the RQD rating, SEC Form 4 and Congressional PTR cluster flow score relatively well. The underlying transactions are not itemized in the source data.
- Macro Regime Fit: 5 / 20. Per the RQD rating, beta is 1.0 and sector sensitivity is weak for the current regime, indicating limited alignment with prevailing conditions.
- Forensic Balance Sheet: 11 / 20. Per the RQD rating, Altman Z is 2.1, Piotroski F is 8/9, and Debt/Equity is 1.46. The Piotroski reading is strong, while leverage and the Altman reading temper the score.
For a prospective investor evaluating the stock today, the rating points to a mixed picture: a solid return on capital and insider-flow strength are offset by weak institutional positioning, weak macro alignment, and a low free-cash-flow yield. Valuation (P/E TTM 6.9, EV/EBITDA 3.7) is low on the source's figures, but that low multiple is accompanied by the rating's distribution warning, so cheapness alone does not resolve the rating's concerns.
Snapshot
Business
Arcos Dorados Holdings Inc. (Class A) is a NYSE-listed issuer in the Consumer Discretionary sector, Restaurants industry, per the company profile. Specific product lines, customer base, and revenue mechanics are not itemized in the source data. Gross margin is reported at 96% per the market data, operating margin at 7.8%, and net margin at 4.5%.
Financial Trend
| Period | Revenue | Operating Income | Net Income | EPS | FCF | Cash | Debt |
|---|---|---|---|---|---|---|---|
| FY 2025 | $4678.3M | $364.4M | $212.1M | N/A | $15.0M | $373.4M | $1125.9M |
| FY 2024 | $4470.2M | $324.5M | $148.8M | N/A | $-60.8M | $135.1M | $716.0M |
| FY 2023 | $4331.9M | $314.0M | $181.3M | N/A | $382.0M | N/A | N/A |
Per the SEC financials, revenue rose from $4331.9M (FY 2023) to $4678.3M (FY 2025), and operating income rose from $314.0M to $364.4M over the same span. Net income was $212.1M in FY 2025 versus $148.8M in FY 2024. Free cash flow was $15.0M in FY 2025, following $-60.8M in FY 2024. Per the RQD rating, the Altman Z-Score is 2.1, the Piotroski F-Score is 8/9, and Debt/Equity is 1.46; debt reported in the financials rose to $1125.9M in FY 2025 from $716.0M in FY 2024.
Recent Catalysts & News Wire Analysis
Per the recent news feed, six items reference ARCO. One is tagged GREEN / CATALYST: a Yahoo Finance item headlined "Arcos Dorados (ARCO) Surges 13.9%: Is This an Indication of Further Gains?" The remaining five are tagged YELLOW / MARKET WIRE and include a Motley Fool item, "Why Arcos Dorados Stock Got Socked Today," which points to a same-period negative price reaction. The feed gives headlines and summaries only; the underlying causes of the moves are not stated. Per the Butterfly Supply-Chain Graph, no proprietary signals or supply-chain links are recorded for ARCO.
Analyst View & Smart Money Ownership
Analyst consensus, price targets, and holder data are not available in source data.
Open Questions
- What drove the 13.9% surge and the subsequent negative move reported in the news feed, and is either tied to a fundamental change?
- What explains the gap between FY 2025 net income ($212.1M) and the very low FCF ($15.0M), and how much of the operating income converts to cash?
- What are the composition and trend of the $1125.9M in FY 2025 debt, and what is the debt maturity profile?
- What is the basis for the weak 13F/institutional flow score, and which holders drive it?
- Why is EPS unreported (N/A) across all three periods despite a reported EPS (TTM) of 1.01?
ARCO Live News Feed, Press Releases & Catalyst Wire
Real-time company headlines, analyst actions, and sector developments for Arcos Dorados Holdings Inc. (Class A) (ARCO) • Click "Debate This Headline" to argue it in the Roar Pit below
Yahoo Finance report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Stocktwits report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
The Motley Fool report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
MarketBeat report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Simply Wall St report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
StocksToTrade report covering Arcos Dorados Holdings Inc. (Class A) (ARCO) market action, institutional positioning, and fundamental catalysts.
ARCO Bull vs. Bear Conversation Board — What's Your Call at $6.73?
🔥 Official Bull vs. Bear Debate: Is ARCO (D • RQD 48/100) a Buy at $6.90?
Welcome to the ARCO (Arcos Dorados Holdings Inc. (Class A)) Roar Pit. Current RQD Composite is 48/100 (Roarable Sell — Underperform / Distribution Warning) in Restaurants. Bulls point to capital efficiency (18.9% ROIC), while bears focus on macro rate sensitivity and margin execution. Pick your side (🐂 Bull or 🐻 Bear) and drop your price target below.
Pump the brakes on ARCO — check the valuation vs. margin headwinds
Everyone in here is repeating the bull case on ARCO, but look at what you are paying: 6.9x trailing P/E with 96.0% gross margins. Unless Arcos Dorados Holdings Inc. (Class A) expands free cash flow yield next quarter, I would rather wait for a pullback closer to the 200-day moving average before touching this.
ARCO cash flow & RQD setup is being underpriced by the Street here
Looking at the 5-pillar RQD breakdown on ARCO, the market is fixating on short-term headline noise in Restaurants and ignoring the balance sheet and cash flow trajectory. At $6.90 (52-wk range $6.67 - $9.75), any beat on forward guidance forces shorts and underweight funds to chase.