Arcos Dorados Holdings Inc. (ARCO) vs First Watch Restaurant Group, Inc. (FWRG)

Arcos Dorados Holdings Inc. and First Watch Restaurant Group, Inc. are both Restaurants companies. Arcos Dorados Holdings Inc. is the larger, with a market value of $1.5B against $809.9M — 1.8× the size. Arcos Dorados Holdings Inc. trades at the lower P/E: 5.7× against 39.8×. First Watch Restaurant Group, Inc. grew revenue faster over the last twelve months: 15.6% against 10.8%. Arcos Dorados Holdings Inc. has the higher net margin (5.15% vs 1.45%) and the higher return on invested capital (16.3% vs 2.00%). Across the 20 metrics below, Arcos Dorados Holdings Inc. leads on 15 and First Watch Restaurant Group, Inc. on 5.

Valuation

Metric ARCO FWRG Restaurants median
P/E 5.72 39.80 26.18
P/S 0.30 0.60 1.11
P/B 1.77 1.25 2.06
Price to free cash flow 14.11 n/m 17.92
EV/EBITDA 3.54 9.23 12.81
EV/Sales 0.43 0.80 1.29
Earnings yield 17.48% 2.51% 2.23%
Free cash flow yield 7.09% (2.70%) 3.23%

Profitability

Metric ARCO FWRG Restaurants median
Gross margin 12.25% 20.57% 38.86%
Operating margin 7.87% 2.16% 4.59%
Net margin 5.15% 1.45% 1.83%
Free cash flow margin 2.09% (1.60%) 2.47%
Return on equity 36.30% 3.13% 3.72%
Return on assets 7.07% 1.10% 1.10%
Return on invested capital 16.31% 2.00% 3.01%

Growth

Metric ARCO FWRG Restaurants median
Revenue growth (TTM) 10.77% 15.60% 5.52%
EPS growth (last fiscal year) 42.25% 3.33% (5.05%)
Revenue growth, 5-year CAGR 18.71% 28.99% 10.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARCO FWRG Restaurants median
Debt to equity 1.19 0.45 0.22
Current ratio 0.88 0.25 0.78
Net debt to EBITDA 1.26 2.53 0.43

Dividend

Metric ARCO FWRG Restaurants median
Dividend yield 3.87% — 1.79%
Payout ratio 0.22 — 0.45

Size

Metric ARCO FWRG Restaurants median
Market cap 1.46b 809.85m 612.23m

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