Wall Street Zen downgrades Arcos Dorados stock to Hold

Published on 10/20/2026 at 21:24 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q2 adjusted EBITDA hit USD 126.80 million, up more than 20.00 percent year over year. Arcos Dorados stock costs EUR 7.17 on October 20, 2026.

Analyst rating and reporting date

Wall Street Zen downgraded Arcos Dorados from Buy to Hold on October 10, 2026.
Adjusted EBITDA reached USD 126.80 million in the second quarter of 2026, up more than 20.00 percent year over year.
Arcos Dorados stock costs EUR 7.17 at Lang & Schwarz on October 20, 2026 at 9:17 p.m. CEST.
Arcos Dorados will release third-quarter 2026 results on November 12, 2026.

ARCO, VGG0457F1071, Illustration mit AI erstellt.

Wall Street Zen downgraded Arcos Dorados from Buy to Hold in a research note dated October 10, 2026, as reported by MarketBeat. Arcos Dorados Holdings Inc. (VGG0457F1071) also posted a strong second-quarter operating comparison. At Lang & Schwarz, the stock was trading at EUR 7.17 on October 20, 2026 at 9:17 p.m. CEST.

Second-quarter earnings add scale

Adjusted EBITDA reached USD 126.80 million in the second quarter of 2026, up more than 20.00 percent from the prior-year period, according to ScanXNews. The same report said adjusted EBITDA margin expanded by 70 basis points after excluding a one-time transaction with a Mexican subfranchisee recorded in the prior year.

Digital sales represented 66.00 percent of total sales in the quarter and increased more than 25.00 percent year over year, while systemwide comparable sales rose 15.30 percent. The company opened 16 restaurants during the quarter, bringing first-half openings to 35.

NYSE valuation stays in view

On the NYSE, ARCO was trading at USD 8.08 on October 20, 2026 at 3:23 p.m. EDT. The stock's market capitalization was USD 1.7 billion, with a P/E ratio of 6.66 and a 52-week range of USD 6.67 to USD 9.75.

MarketBeat reported on October 11, 2026 that five firms had a Moderate Buy consensus and an average 12-month target of USD 10.50. That target stood 29.95 percent above the October 20 NYSE price.

November 12 is the next date

Arcos Dorados will release its third-quarter results before the NYSE opens on November 12, 2026, and will hold a webcast at 10:00 a.m. ET. The report will cover the quarter ended September 30, 2026, according to Business Wire.

Expansion remains measurable

The company targets 550 to 600 restaurant openings between 2027 and 2030 and capital spending of USD 1.30 billion to USD 1.50 billion over that period. Arcos Dorados operates more than 2,500 restaurants across 21 Latin American and Caribbean markets.

Stock and next reporting date

The October 10 rating change adds a more cautious analyst signal to a company entering its next reporting cycle with second-quarter adjusted EBITDA of USD 126.80 million and a November 12 results date.

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