Investors who bought Arcos Dorados (Nasdaq:ARCO) thinking they were getting McDonald's-like (NYSE:MCD)
consistency with a Latin American growth kicker have been badly
surprised over the past year, as Arcos Dorados' performance has lagged
its franchiser's performance by roughly 25%. A lot of what has hurt the
company is arguably out of management's control, as weakening consumer
conditions across much of Latin America (including Brazil and Mexico)
and persistent inflation make operations much more challenging. Although
these shares do appear undervalued relative to their long-term
potential, management has a lot of work to do to realize that potential.
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http://www.investopedia.com/stock-analysis/082013/arcos-dorados-still-several-fries-short-happy-meal-arco-mcd-bkw.aspx
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