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Arcos Dorados Holdings ( (ARCO) ) has issued an update.
On January 28, 2026, Arcos Dorados reported that it opened 102 restaurants in 2025, including 88 free-standing units and 73 company-operated locations, with the bulk of new stores in Brazil, and set guidance to open 105 to 115 restaurants across its Latin American and Caribbean footprint in 2026. The company also indicated that 2025 capital expenditures would come in toward the low end of its prior US$300 million to US$350 million range and projected total capex of US$275 million to US$325 million for 2026 to fund new openings, restaurant modernizations, operational optimizations and IT investments, all to be financed with operating cash flow and existing cash, underscoring its strategy of disciplined, returns-focused expansion in its core markets.
The most recent analyst rating on (ARCO) stock is a Hold with a $8.00 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 Outperform.
Arcos Dorados Holdings demonstrates strong revenue growth and operational efficiency, supported by positive technical indicators and a reasonable valuation. The earnings call provided a positive outlook with record revenue and digital growth, although challenges with input costs and profitability margins remain. High leverage and cash flow management issues are risks that need addressing.
To see Spark’s full report on ARCO stock, click here.
More about Arcos Dorados Holdings
Arcos Dorados Holdings Inc. is the world’s largest independent McDonald’s franchisee and operates the largest quick-service restaurant chain in Latin America and the Caribbean. With exclusive rights to own, operate and sub-franchise McDonald’s restaurants in 21 countries and territories across the region, the company and its sub-franchisees run more than 2,500 restaurants and employ over 100,000 people as of December 31, 2025, focusing on youth employment, community development and environmental initiatives under its Recipe for the Future program. The company is listed on the New York Stock Exchange under the ticker ARCO.
Average Trading Volume: 1,102,276
Technical Sentiment Signal: Strong Buy
Current Market Cap: $1.64B
For detailed information about ARCO stock, go to TipRanks’ Stock Analysis page.