Arcos Dorados Holdings Inc. (ARCO) vs Biglari Holdings Inc. (BH)

Arcos Dorados Holdings Inc. and Biglari Holdings Inc. are both Restaurants companies. Arcos Dorados Holdings Inc. is the larger, with a market value of $1.5B against $1.1B — 1.4× the size. Biglari Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Arcos Dorados Holdings Inc. trades at 5.9×. Arcos Dorados Holdings Inc. grew revenue faster over the last twelve months: 10.8% against 7.54%. Arcos Dorados Holdings Inc. has the higher net margin (5.15% vs −7.33%) and the higher return on invested capital (16.3% vs 0.87%). Across the 20 metrics below, Biglari Holdings Inc. leads on 11 and Arcos Dorados Holdings Inc. on 9.

Valuation

Metric ARCO BH Restaurants median
P/E 5.93 n/m 22.14
P/S 0.31 0.21 0.91
P/B 1.83 0.16 2.01
Price to free cash flow 14.64 1.34 19.41
EV/EBITDA 3.64 1.35 11.48
EV/Sales 0.44 0.24 1.20
Earnings yield 16.85% (31.68%) 2.30%
Free cash flow yield 6.83% 74.64% 3.92%

Profitability

Metric ARCO BH Restaurants median
Gross margin 12.25% 39.13% 38.77%
Operating margin 7.87% 7.52% 4.30%
Net margin 5.15% (7.33%) 1.85%
Free cash flow margin 2.09% 16.01% 3.12%
Return on equity 36.30% (5.25%) 3.07%
Return on assets 7.07% (3.10%) 1.50%
Return on invested capital 16.31% 0.87% 3.14%

Growth

Metric ARCO BH Restaurants median
Revenue growth (TTM) 10.77% 7.54% 5.16%
EPS growth (last fiscal year) 42.25% (969.59%) —
Revenue growth, 5-year CAGR 18.71% (1.84%) 10.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARCO BH Restaurants median
Debt to equity 1.19 0.58 0.10
Current ratio 0.88 2.45 0.81
Net debt to EBITDA 1.26 (0.36) 0.43

Dividend

Metric ARCO BH Restaurants median
Dividend yield 1.80% — 2.32%
Payout ratio 0.22 0.00 0.00

Size

Metric ARCO BH Restaurants median
Market cap 1.51b 1.11b 482.66m

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