Investopedia: Brazil Limiting The Happy In Arcos Dorados' Happy Meals
may be the leading dining concept in Brazil and much of Latin America,
but that doesn't promise smooth sailing for its large
franchisee/operator Arcos Dorados (NYSE:ARCO). Not only are operating expenses pressuring margins,
but overall economic conditions and rising competition in Brazil are
squeezing numbers from the other side as well. Although these shares do
not look too expensive today, investors need to appreciate the
above-average volatility if they choose to nibble on these shares.