Seeking Alpha: Arcos Dorados Still Several Fries Short Of A Happy Meal

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

Seeking Alpha: Arcos Dorados Stronger Than Its Stock

It's cold comfort for shareholders, but it seems like Arcos Dorados (ARCO) has gotten sucked into the same "anti-polar" vortex as many other consumer-oriented Latin American stocks. With the USD/BRL exchange rate moving from 2.03 to 2.37 over the past year and the USD / MXN rate moving from 12.67 to 13.08, worries about consumer spending trends in markets like Brazil and Mexico and the economies of Argentina and Venezuela are almost secondary.

The good news is that, as an operating company, Arcos Dorados is still doing pretty well. Sluggish comp growth in Brazil is a worry, but comps have generally been picking up and margins seem to have stabilized. I'm looking for strong comp growth and unit expansion to drive revenue growth, and I believe the shares are meaningfully undervalued today. All of that said, investors are going to have to be able to deal patiently with the ups and downs of currency movements or take a more aggressive view towards entering, exiting, and re-entering the shares.

Follow this link for more:
Arcos Dorados Stronger Than Its Stock

Investopedia: Arcos Dorados Still Several Fries Short Of A Happy Meal

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.

Continue here:
http://www.investopedia.com/stock-analysis/082013/arcos-dorados-still-several-fries-short-happy-meal-arco-mcd-bkw.aspx

Investopedia: McDonald's Has Eased Off, But Hardly Cheap

It seems as though gravity is finally weighing on the valuations in the consumer space, as stocks like Nike (NYSE:NKE), Coca-Cola (NYSE:KO), and McDonald's (NYSE:MCD) have underperformed over the past quarter. Worries tied to the ongoing sluggishness in China and margins may be the preferred talking points, but it's hard to overlook how expensive many of these consumer stocks got.

Turning back to McDonald's, there are now some worries about near-term performance, as management's comments on same-store sales suggest slowing growth. While I think selling McDonald's shares because of a couple months' worth of same-store sales is more of a justification than a reason, and I have every confidence that McDonald's will continue to find ways to continue growing, the shares are still well above what I'd call bargain territory.

Please click below to read the full article:
http://www.investopedia.com/stock-analysis/072213/mcdonalds-has-eased-hardly-cheap-mcd-bkw-yum-cmg.aspx

Investopedia: Does A Tough Patch Really Matter To McDonald's Shareholders?

Excellent earnings consistency and a long history of dividend payments will buy a lot of patience and support from investors. Consequently, I find it hard to imagine that even this disappointing patch of weak same-store sales will really dent McDonald's (NYSE:MCD) all that much. Though I'm not very fond of the multiples being paid for consumer stocks these days and won't be looking to add McDonald's to my own portfolio, I don't expect a mass exodus from these shares unless the market as a whole takes a tumble.

Follow this link for more:
http://www.investopedia.com/stock-analysis/041913/does-tough-patch-really-matter-mcdonalds-shareholders-mcd-yum-bkw-sonc.aspx

Investopedia: Sonic Still In A Tricky Spot

Try as it might, drive-in quick service restaurant (QSR) Sonic (Nasdaq:SONC) just can't seem to get everything working at top form in its business model. While the company has an innovative (some might say “quirky”) menu that really does stand out from the offerings at McDonald's (NYSE:MCD), Burger King (NYSE:BKW), and Wendy's (NYSE:WEN), and has looked to refine its promotional activity and value-priced offerings, the company has made only modest progress in terms of growth.

As it stands today, analyst expectations on Sonic are pretty bifurcated. There's a small group that believe that Sonic will regain its growth momentum and do significantly better from here, while the larger group is more pessimistic and calls for Sonic to basically bump along as it has for some time now. While these shares have been strong over the past year and have recently broken out to a multi-year high, further gains could well be in store if the optimists are right.

Read more here:
http://www.investopedia.com/stock-analysis/032713/sonic-still-tricky-spot-sonc-wen-jack-mcd-bkw-cmg-pnra.aspx

Seeking Alpha: Arcos Dorados Somewhere Between Gold And Scrap Iron

For the most part, investors can't seem to get enough of Brazilian consumer stocks, bidding many of them up to exceptionally demanding valuations. And to be fair, many of these companies are producing pretty solid growth numbers. In the case of Arcos Dorados (ARCO), though, a combination of sluggish comp-store growth, rampant cost inflation, and fears of competition seem to be combining to create a stock that many investors are pretty ambivalent about today. While it is important that investors not understate the risks to the Arcos business model, I think these shares could be an interesting speculative play at these levels.

Continue reading:
Arcos Dorados Somewhere Between Gold And Scrap Iron

Investopedia: McDonald's Seems Back On Track, But Not Cheap

Even some of the best-run companies in the world can make mistakes. McDonald's (NYSE:MCD) started 2012 betting on a turn in the economy and consumer sentiment, and tried to move customers up-market from its value offerings. That didn't work, and the stock lagged for the year. While McDonald's has retrenched around value and continues to deliver impressive profits, investors' perennial support for this company rarely allows it to get very cheap.

Please continue here:
http://www.investopedia.com/stock-analysis/2013/McDonalds-Seems-Back-On-Track-But-Not-Cheap-MCD-WEN-BKW-YUM0128.aspx

Investopedia: Brazil Limiting The Happy In Arcos Dorados' Happy Meals

McDonald's (NYSE:MCD) 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.

Please read more here:
http://stocks.investopedia.com/stock-analysis/2012/Brazil-Limiting-The-Happy-In-Arcos-Dorados-Happy-Meals-ARCO-MCD-BKW-YUM0808.aspx

Investopedia: Two More Reheats Heading To The IPO Market

Everything old is new again, and apparently everything taken private comes back to the public market sooner or later. Following in the shoes of Burger King Worldwide (NYSE:BKW), investors will soon see shares publicly trading again for CKE Restaurants (Hardee's/Carl's Jr parent) and Bloomin' Brands (Outback Steakhouse/Carrabba's/Bonefish Grill parent).While more investing options are generally a good thing for investors, it's worth asking what is inspiring restaurant owners to head to the public markets.

Please read more here:
http://stocks.investopedia.com/stock-analysis/2012/Two-More-Reheats-Heading-To-The-IPO-Market-BKW-MCD-CMG-BWLD0807.aspx

Seeking Alpha: McDonald's Looks Vulnerable To Indigestion

The trouble with great businesses is that they give investors so few chances to buy in at discounts to fair value, and that's the problem with McDonald's (MCD) today. While there's no reason to think that the company's share gains or excellent margins will abate, the Street already has baked in exceptional performance for many years to come. Even with this restaurant's consistent record of surpassing expectations, it looks like a bad setup for new investors.

Please click here for more:
McDonald's Looks Vulnerable To Indigestion

Investopedia: Burger King Coming Back To The Market

Investors hankering to own a piece of Burger King apparently won't have to worry about a long wait. While this well-known fast food chain was taken private less than two years ago, it looks the company's current owners are going to pursuing a listing once again on the NYSE. Given the ongoing performance problems, though, investors may want to let others take the first bites.

A Quick Turnaround, Minus the Turnaround 
Investors would do well to ask themselves why 3G Capital is in such a hurry to put Burger King back on the public market. After all, private equity investors aren't really known for being especially generous when it comes to sharing in the success of a really good idea. The company recently announced a merger with Justice Holdings (OTCBB:JSTUF), an investment vehicle co-founded by Bill Ackman and publicly listed in London. As part of the merger, 3G Capital gets $1.4 billion in cash and maintains its majority position, but will also list the combined company on the NYSE.

Please continue here:
http://stocks.investopedia.com/stock-analysis/2012/Burger-King-Coming-Back-To-The-Market-JSTUF.PK-MCD-WEN-CMG0409.aspx

Private Equity Has A Hankering For Fast Food

The long, strange story of Burger King (NYSE:BKC) is soon to take another twist. The world's #2 hamburger chain announced Thursday morning that it had accepted a long-rumored bid from 3G Capital that will give current Burger King shareholders $24 in cash per share.

What a Long, Strange Trip it has Been
BurFor a large international restaurant chain, Burger King has had some ups and downs on the ownership front. The company was privately-owned for about eight years before Pillsbury bought it. Pillsbury had difficulty running the company and it became part of Grand Metropolitan (now Diageo (NYSE:DEO)) in 1989, when Grand Metropolitan bought Pillsbury.

Diageo built on Pillsbury's legacy of poor management with even more poor management, but decided to sell the chain at the turn of the century. A group of three well-known investors (a unit of Goldman Sachs (NYSE:GS), Bain Capital, and TPG Capital) bought the company, actually ran it reasonably well by prior standards and then took the company public in 2006. 


Click on the link below to read the full piece:
http://stocks.investopedia.com/stock-analysis/2010/Private-Equity-Has-A-Hankering-For-Fast-Food-BKC-DEO-MCD-WEN-YUM0903.aspx