It's tough to grow a business when two large markets are convulsing
under the weight of horrible macroeconomic mismanagement, but Arcos Dorados (ARCO)
isn't going to get a free pass just because the problems in Argentina
and Venezuela are not its fault. Inflation, affordability, and
competition remain challenges across the company's operations and I
don't fault investors who want nothing to do with another Latin American
consumer stock groaning under the weight of macroeconomic issues.
The shares of Arcos Dorados are down about 10% from when I last wrote,
and the story remains frustratingly similar. There is significant
growth potential in the business, as it could double the number of McDonald's (MCD) stores it operates over the next decade, but potential isn't worth much if the actual results don't get better.
Read the full article here:
Arcos Dorados Still Several Fries Short Of A Happy Meal
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