Arcos Dorados Holdings Inc Financials

ARCO

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2024 Currency USD FYE December

This page shows Arcos Dorados Holdings Inc (ARCO) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 40/100

Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Arcos Dorados Holdings Inc has an operating margin of 7.3%, meaning the company retains $7 of operating profit per $100 of revenue. This results in a moderate score of 36/100, indicating healthy but not exceptional operating efficiency. This is up from 7.2% the prior year.

Growth

Arcos Dorados Holdings Inc's revenue grew a modest 3.2% year-over-year to $4.5B. This slow but positive growth earns a score of 38/100.

Leverage

Arcos Dorados Holdings Inc has a moderate D/E ratio of 1.41. This balance of debt and equity financing earns a leverage score of 59/100.

Liquidity

Arcos Dorados Holdings Inc's current ratio of 0.61 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 4/100, which could limit financial flexibility.

Cash Flow

While Arcos Dorados Holdings Inc generated $266.8M in operating cash flow, capex of $327.6M consumed most of it, leaving -$60.8M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Returns

100

Arcos Dorados Holdings Inc earns a strong 29.3% return on equity (ROE), meaning it generates $29 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 35.2% the prior year.

Altman Z-Score Grey Zone

2.56

Arcos Dorados Holdings Inc scores 2.56, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.

Piotroski F-Score Neutral

5/9

Arcos Dorados Holdings Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.

Earnings Quality Cash-Backed

1.79x

For every $1 of reported earnings, Arcos Dorados Holdings Inc generates $1.79 in operating cash flow ($266.8M OCF vs $148.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

6.9x

Arcos Dorados Holdings Inc earns $6.9 in operating income for every $1 of interest expense ($324.5M vs $47.2M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Revenue

$4.5B

YoY+3.2%

5Y CAGR+8.6%

10Y CAGR+2.0%

Arcos Dorados Holdings Inc generated $4.5B in revenue in fiscal year 2024. This represents an increase of 3.2% from the prior year.

EBITDA

$501.9M

YoY+8.3%

5Y CAGR+12.1%

10Y CAGR+10.3%

Arcos Dorados Holdings Inc's EBITDA was $501.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 8.3% from the prior year.

Free Cash Flow

-$60.8M

YoY-378.0%

Arcos Dorados Holdings Inc generated -$60.8M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 378.0% from the prior year.

Net Income

$148.8M

YoY-17.9%

5Y CAGR+13.2%

Arcos Dorados Holdings Inc reported $148.8M in net income in fiscal year 2024. This represents a decrease of 17.9% from the prior year.

EPS (Diluted)

$0.71

YoY-17.4%

5Y CAGR+13.3%

Arcos Dorados Holdings Inc earned $0.71 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 17.4% from the prior year.

Cash & Debt

$135.1M

YoY-31.3%

5Y CAGR+2.1%

10Y CAGR-0.3%

Arcos Dorados Holdings Inc held $135.1M in cash against $716.0M in long-term debt as of fiscal year 2024.

Dividends Per Share

$0.24

YoY+26.3%

5Y CAGR+16.9%

10Y CAGR+0.0%

Arcos Dorados Holdings Inc paid $0.24 per share in dividends in fiscal year 2024. This represents an increase of 26.3% from the prior year.

Shares Outstanding

N/A

Gross Margin

98.1%

YoY+0.0pp

5Y CAGR+0.2pp

Arcos Dorados Holdings Inc's gross margin was 98.1% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 0.0 percentage points from the prior year.

Operating Margin

7.3%

YoY+0.0pp

5Y CAGR+1.9pp

10Y CAGR+5.3pp

Arcos Dorados Holdings Inc's operating margin was 7.3% in fiscal year 2024, reflecting core business profitability. This is up 0.0 percentage points from the prior year.

Net Margin

3.3%

YoY-0.8pp

5Y CAGR+0.6pp

10Y CAGR+6.3pp

Arcos Dorados Holdings Inc's net profit margin was 3.3% in fiscal year 2024, showing the share of revenue converted to profit. This is down 0.8 percentage points from the prior year.

Return on Equity

29.3%

YoY-5.9pp

5Y CAGR+10.3pp

Arcos Dorados Holdings Inc's ROE was 29.3% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is down 5.9 percentage points from the prior year.

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

$327.6M

YoY-9.0%

5Y CAGR+4.3%

10Y CAGR+6.8%

Arcos Dorados Holdings Inc invested $327.6M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 9.0% from the prior year.

ARCO Income Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Revenue	$4.5B+3.2%	$4.3B+19.7%	$3.6B+36.1%	$2.7B+34.1%	$2.0B-32.9%	$3.0B
Cost of Revenue	$83.7M+0.4%	$83.4M+22.5%	$68.0M+34.4%	$50.6M+16.4%	$43.5M-29.0%	$61.3M
Gross Profit	$4.4B+3.2%	$4.2B+19.6%	$3.6B+36.1%	$2.6B+34.5%	$1.9B-33.0%	$2.9B
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$279.9M-1.8%	$285.0M+19.1%	$239.3M+13.4%	$210.9M+23.1%	$171.4M-19.4%	$212.5M
Operating Income	$324.5M+3.3%	$314.0M+18.8%	$264.4M+89.5%	$139.5M+309.0%	-$66.8M-141.7%	$159.9M
Interest Expense	$47.2M+46.4%	$32.3M-26.2%	$43.8M-11.7%	$49.5M+48.4%	$33.4M-35.9%	$52.1M
Income Tax	$109.9M+14.8%	$95.7M+12.0%	$85.5M+167.7%	$31.9M+82.1%	$17.5M-54.9%	$38.8M
Net Income	$148.8M-17.9%	$181.3M+29.2%	$140.3M+208.5%	$45.5M+130.4%	-$149.5M-287.1%	$79.9M
EPS (Diluted)	$0.71-17.4%	$0.86+28.4%	$0.67+204.5%	$0.22+130.6%	$-0.72-289.5%	$0.38

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18	Q4'17
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

ARCO Balance Sheet

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Total Assets	$2.9B-4.2%	$3.0B+14.5%	$2.6B+11.7%	$2.4B+2.9%	$2.3B-10.3%	$2.6B
Current Assets	$468.4M-22.6%	$605.3M-11.6%	$684.4M+26.7%	$540.1M+30.0%	$415.5M+2.5%	$405.4M
Cash & Equivalents	$135.1M-31.3%	$196.7M-26.3%	$266.9M-4.3%	$278.8M+68.0%	$166.0M+36.2%	$121.9M
Inventory	$51.6M-2.2%	$52.8M+5.5%	$50.1M+32.5%	$37.8M+12.5%	$33.6M-11.1%	$37.8M
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	$13.3M+12.1%	$11.9M+64.6%	$7.2M+38.7%	$5.2M-7.0%	$5.6M-17.4%	$6.8M
Total Liabilities	$2.4B-4.8%	$2.5B+8.2%	$2.3B+8.0%	$2.1B+2.1%	$2.1B-1.9%	$2.1B
Current Liabilities	$765.9M-9.0%	$841.7M+10.8%	$759.4M+22.9%	$617.9M+22.7%	$503.5M-15.4%	$595.4M
Long-Term Debt	$716.0M+0.4%	$713.0M+0.2%	$711.7M-3.7%	$739.2M-4.4%	$773.4M+24.0%	$623.6M
Total Equity	$508.1M-1.4%	$515.3M+59.2%	$323.6M+46.8%	$220.4M+11.6%	$197.5M-53.1%	$421.1M
Retained Earnings	$664.4M+17.3%	$566.2M+33.2%	$424.9M+34.4%	$316.2M+8.7%	$290.9M-38.3%	$471.1M

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18	Q4'17
Total Assets	$2.9B-4.2%	$3.0B+14.5%	$2.6B+11.7%	$2.4B+2.9%	$2.3B-10.3%	$2.6B+62.1%	$1.6B-12.5%	$1.8B
Current Assets	$468.4M-22.6%	$605.3M-11.6%	$684.4M+26.7%	$540.1M+30.0%	$415.5M+2.5%	$405.4M-12.7%	$464.6M-28.9%	$653.0M
Cash & Equivalents	$135.1M-31.3%	$196.7M-26.3%	$266.9M-4.3%	$278.8M+68.0%	$166.0M+36.2%	$121.9M-38.2%	$197.3M-36.0%	$308.5M
Inventory	$51.6M-2.2%	$52.8M+5.5%	$50.1M+32.5%	$37.8M+12.5%	$33.6M-11.1%	$37.8M-18.0%	$46.1M-44.3%	$82.7M
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	$13.3M+12.1%	$11.9M+64.6%	$7.2M+38.7%	$5.2M-7.0%	$5.6M-17.4%	$6.8M+14.2%	$5.9M-16.1%	$7.1M
Total Liabilities	$2.4B-4.8%	$2.5B+8.2%	$2.3B+8.0%	$2.1B+2.1%	$2.1B-1.9%	$2.1B+80.2%	$1.2B-9.4%	$1.3B
Current Liabilities	$765.9M-9.0%	$841.7M+10.8%	$759.4M+22.9%	$617.9M+22.7%	$503.5M-15.4%	$595.4M+20.7%	$493.3M-18.5%	$605.6M
Long-Term Debt	$716.0M+0.4%	$713.0M+0.2%	$711.7M-3.7%	$739.2M-4.4%	$773.4M+24.0%	$623.6M-0.5%	$626.4M-0.4%	$629.1M
Total Equity	$508.1M-1.4%	$515.3M+59.2%	$323.6M+46.8%	$220.4M+11.6%	$197.5M-53.1%	$421.1M+7.3%	$392.4M-20.8%	$495.6M
Retained Earnings	$664.4M+17.3%	$566.2M+33.2%	$424.9M+34.4%	$316.2M+8.7%	$290.9M-38.3%	$471.1M+14.1%	$413.1M+3.0%	$401.1M

ARCO Cash Flow Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Operating Cash Flow	$266.8M-30.1%	$382.0M+10.6%	$345.4M+33.9%	$258.0M+1516.2%	$16.0M-92.9%	$223.5M
Capital Expenditures	$327.6M-9.0%	$360.1M+65.9%	$217.1M+88.8%	$115.0M+33.2%	$86.3M-67.5%	$265.2M
Free Cash Flow	-$60.8M-378.0%	$21.9M-83.0%	$128.3M-10.3%	$143.0M+303.3%	-$70.3M-68.5%	-$41.8M
Investing Cash Flow	-$280.3M+26.3%	-$380.3M-46.5%	-$259.6M-139.8%	-$108.3M-22.1%	-$88.7M+66.0%	-$261.0M
Financing Cash Flow	-$37.2M-214.3%	-$11.8M+80.3%	-$60.0M-234.6%	-$17.9M-114.2%	$126.0M+525.2%	-$29.6M
Dividends Paid	$50.6M+26.3%	$40.0M+26.7%	$31.6M+150314.3%	$21K-99.8%	$10.2M-54.4%	$22.4M
Share Buybacks	N/A	N/A	N/A	$0	$0-100.0%	$14.0M

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18	Q4'17
Operating Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

ARCO Financial Ratios

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Gross Margin	98.1%+0.0pp	98.1%-0.0pp	98.1%+0.0pp	98.1%+0.3pp	97.8%-0.1pp	97.9%
Operating Margin	7.3%+0.0pp	7.2%-0.1pp	7.3%+2.1pp	5.3%+8.6pp	-3.4%-8.8pp	5.4%
Net Margin	3.3%-0.8pp	4.2%+0.3pp	3.9%+2.2pp	1.7%+9.2pp	-7.5%-10.2pp	2.7%
Return on Equity	29.3%-5.9pp	35.2%-8.2pp	43.4%+22.7pp	20.6%	N/A	19.0%
Return on Assets	5.1%-0.9pp	6.0%+0.7pp	5.3%+3.4pp	1.9%+8.4pp	-6.5%-9.6pp	3.1%
Current Ratio	0.61-0.1	0.72-0.2	0.90+0.0	0.87+0.0	0.83+0.1	0.68
Debt-to-Equity	1.41+0.0	1.38-0.8	2.20-1.2	3.35-0.6	3.92+2.4	1.48
FCF Margin	-1.4%-1.9pp	0.5%-3.0pp	3.5%-1.8pp	5.4%+8.9pp	-3.5%-2.1pp	-1.4%

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18	Q4'17
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	0.61-0.1	0.72-0.2	0.90+0.0	0.87+0.0	0.83+0.1	0.68-0.3	0.94-0.1	1.08
Debt-to-Equity	1.41+0.0	1.38-0.8	2.20-1.2	3.35-0.6	3.92+2.4	1.48-0.1	1.60+0.3	1.27
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

Note: The current ratio is below 1.0 (0.61), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

What is Arcos Dorados Holdings Inc's annual revenue?

Arcos Dorados Holdings Inc (ARCO) reported $4.5B in total revenue for fiscal year 2024. This represents a 3.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Arcos Dorados Holdings Inc's revenue growing?

Arcos Dorados Holdings Inc (ARCO) revenue grew by 3.2% year-over-year, from $4.3B to $4.5B in fiscal year 2024.

Is Arcos Dorados Holdings Inc profitable?

Yes, Arcos Dorados Holdings Inc (ARCO) reported a net income of $148.8M in fiscal year 2024, with a net profit margin of 3.3%.

What is Arcos Dorados Holdings Inc's earnings per share (EPS)?

Arcos Dorados Holdings Inc (ARCO) reported diluted earnings per share of $0.71 for fiscal year 2024. This represents a -17.4% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is Arcos Dorados Holdings Inc's EBITDA?

Arcos Dorados Holdings Inc (ARCO) had EBITDA of $501.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Arcos Dorados Holdings Inc have?

As of fiscal year 2024, Arcos Dorados Holdings Inc (ARCO) had $135.1M in cash and equivalents against $716.0M in long-term debt.

What is Arcos Dorados Holdings Inc's gross margin?

Arcos Dorados Holdings Inc (ARCO) had a gross margin of 98.1% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.

What is Arcos Dorados Holdings Inc's operating margin?

Arcos Dorados Holdings Inc (ARCO) had an operating margin of 7.3% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.

What is Arcos Dorados Holdings Inc's net profit margin?

Arcos Dorados Holdings Inc (ARCO) had a net profit margin of 3.3% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.

Does Arcos Dorados Holdings Inc pay dividends?

Yes, Arcos Dorados Holdings Inc (ARCO) paid $0.24 per share in dividends during fiscal year 2024.

What is Arcos Dorados Holdings Inc's return on equity (ROE)?

Arcos Dorados Holdings Inc (ARCO) has a return on equity of 29.3% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.

What is Arcos Dorados Holdings Inc's free cash flow?

Arcos Dorados Holdings Inc (ARCO) generated -$60.8M in free cash flow during fiscal year 2024. This represents a -378.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Arcos Dorados Holdings Inc's operating cash flow?

Arcos Dorados Holdings Inc (ARCO) generated $266.8M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.

What are Arcos Dorados Holdings Inc's total assets?

Arcos Dorados Holdings Inc (ARCO) had $2.9B in total assets as of fiscal year 2024, including both current and long-term assets.

What are Arcos Dorados Holdings Inc's capital expenditures?

Arcos Dorados Holdings Inc (ARCO) invested $327.6M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.

What is Arcos Dorados Holdings Inc's current ratio?

Arcos Dorados Holdings Inc (ARCO) had a current ratio of 0.61 as of fiscal year 2024, which is below 1.0, which may suggest potential liquidity concerns.

What is Arcos Dorados Holdings Inc's debt-to-equity ratio?

Arcos Dorados Holdings Inc (ARCO) had a debt-to-equity ratio of 1.41 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Arcos Dorados Holdings Inc's return on assets (ROA)?

Arcos Dorados Holdings Inc (ARCO) had a return on assets of 5.1% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.

What is Arcos Dorados Holdings Inc's Altman Z-Score?

Arcos Dorados Holdings Inc (ARCO) has an Altman Z-Score of 2.56, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Arcos Dorados Holdings Inc's Piotroski F-Score?

Arcos Dorados Holdings Inc (ARCO) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Arcos Dorados Holdings Inc's earnings high quality?

Arcos Dorados Holdings Inc (ARCO) has an earnings quality ratio of 1.79x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Arcos Dorados Holdings Inc cover its interest payments?

Arcos Dorados Holdings Inc (ARCO) has an interest coverage ratio of 6.9x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Arcos Dorados Holdings Inc?

Arcos Dorados Holdings Inc (ARCO) scores 40 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.