Topic: How To Invest

Pat: What is your opinion on Arcos Dorados? Thanks.

Article Excerpt

Arcos Dorados, $8.57, symbol ARCO on New York (Shares outstanding: 129.9 million; Market cap: $1.8 billion; www.arcosdorados.com), is the largest McDonald’s franchisee in the world by revenue and number of restaurants. It’s also the largest quick-service chain in Latin America and the Caribbean. Arcos Dorados has the exclusive right to own, operate and franchise McDonald’s restaurants in 20 countries and territories, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad and Tobago, Uruguay and Venezuela. The company operates, directly or through franchisees, more than 2,062 McDonald’s outlets, with over 95,000 employees. The restaurants serve about 4.3 million customers a day. In the three months ended June 30, 2014, Arcos Dorados’s revenue fell 7.2% to $917.9 million from $989.2 million a year earlier. The company lost $0.47 a share in the latest quarter, compared to a profit of $0.04. The falling value of the Venezuelan currency accounted for a..