Arcos Dorados Holdings Inc. (ARCO) vs Chagee Holdings Limited - Sponsored ADR (CHA)

Arcos Dorados Holdings Inc. and Chagee Holdings Limited - Sponsored ADR are both Restaurants companies. Arcos Dorados Holdings Inc. and Chagee Holdings Limited - Sponsored ADR are of similar size ($1.5B and $1.4B). Arcos Dorados Holdings Inc. trades at the lower P/E: 5.9× against 11.3×. Chagee Holdings Limited - Sponsored ADR has the higher net margin (10.3% vs 5.15%) and the higher return on invested capital (221.5% vs 16.3%). Across the 19 metrics below, Chagee Holdings Limited - Sponsored ADR leads on 12 and Arcos Dorados Holdings Inc. on 7.

Valuation

Metric ARCO CHA Restaurants median
P/E 5.93 11.30 22.14
P/S 0.31 1.13 0.91
P/B 1.83 1.76 2.01
Price to free cash flow 14.64 9.45 19.41
EV/EBITDA 3.64 4.53 11.48
EV/Sales 0.44 0.52 1.20
Earnings yield 16.85% 8.85% 2.30%
Free cash flow yield 6.83% 10.58% 3.92%

Profitability

Metric ARCO CHA Restaurants median
Gross margin 12.25% 54.19% 38.77%
Operating margin 7.87% 11.46% 4.30%
Net margin 5.15% 10.27% 1.85%
Free cash flow margin 2.09% 11.97% 3.12%
Return on equity 36.30% 16.60% 3.07%
Return on assets 7.07% 11.86% 1.50%
Return on invested capital 16.31% 221.49% 3.14%

Growth

Metric ARCO CHA Restaurants median
Revenue growth (TTM) 10.77% — 5.16%
EPS growth (last fiscal year) 42.25% (74.30%) —
Revenue growth, 5-year CAGR 18.71% — 10.57%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric ARCO CHA Restaurants median
Debt to equity 1.19 0.02 0.10
Current ratio 0.88 3.37 0.81
Net debt to EBITDA 1.26 (5.35) 0.43

Dividend

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

Size

Metric ARCO CHA Restaurants median
Market cap 1.51b 1.42b 482.66m

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