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An announcement from Arcos Dorados Holdings ( (ARCO) ) is now available.
On July 31, 2025, Arcos Dorados Holdings Inc. announced that S&P Global Ratings has assigned it an investment grade long-term issuer credit rating of ‘BBB-‘ with a Stable Outlook, marking the company’s achievement of full investment grade status. This follows a similar upgrade by Fitch Ratings in January 2025. The ratings reflect Arcos Dorados’ leading position in the quick service restaurant industry in Latin America, its exclusive rights to the McDonald’s brand, and its strong financial profile. The renewed Master Franchise Agreement with McDonald’s, valid through 2044, further strengthens its strategic position, offering significant competitive advantages. The company’s robust liquidity, broad geographic footprint, and prudent financial management are also highlighted as key strengths, enhancing its standing in global capital markets.
The most recent analyst rating on (ARCO) stock is a Buy with a $8.65 price target. To see the full list of analyst forecasts on Arcos Dorados Holdings stock, see the ARCO Stock Forecast page.
Spark’s Take on ARCO Stock
According to Spark, TipRanks’ AI Analyst, ARCO is a Neutral.
Arcos Dorados Holdings’ overall stock score reflects a mix of moderate financial performance, stable technical indicators, and reasonable valuation. The company’s strong digital sales and market position are positives, but challenges such as high debt levels, negative free cash flow, and margin pressures in Brazil weigh on the score. The earnings call provided a balanced view of strengths and challenges, influencing the final evaluation.
To see Spark’s full report on ARCO stock, click here.
More about Arcos Dorados Holdings
Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating in Latin America and the Caribbean. It holds exclusive rights to own, operate, and grant franchises of McDonald’s restaurants in 20 countries across the region, with over 2,400 restaurants and employing more than 100,000 people. The company is committed to community development, providing job opportunities for young people, and achieving a positive environmental impact. Arcos Dorados is listed on the New York Stock Exchange.
Average Trading Volume: 1,403,105
Technical Sentiment Signal: Sell
Current Market Cap: $1.48B
For a thorough assessment of ARCO stock, go to TipRanks’ Stock Analysis page.