Arcos Dorados Holdings Overview
Valuation check: ARCO's ROE is 30.89%, above the Consumer Staples sector average of 13.28%.
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+ Follow30.89%
Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
Arcos Dorados Holdings posts a ROE of 30.89%. That is above the Consumer Staples sector average of 13.28%. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Consumer Staples stocks, a ROE near 13.28% is typical. Arcos Dorados Holdings's 30.89% is higher that level. That is roughly 132.6% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Arcos Dorados Holdings's ROE moves when the underlying profit, equity, or asset base changes. Cost cuts, pricing power, buybacks, write-downs, and cyclical swings can all shift the percentage. The latest reading is 30.89%; use YoY and peer views to separate noise from signal.
Context for ARCO's ROE usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 13.28%), and (3) consistency with growth and profitability. This page covers the first two; Arcos Dorados Holdings's other metric pages and overview cover the third.
Judging Arcos Dorados Holdings against Consumer Staples peers is usually better than using a market-wide rule of thumb. Business models inside Consumer Staples are more comparable, which makes gaps in ROE easier to interpret. Start with 30.89% here, then scan peer and history charts to see if the gap is persistent.
