Arcos Dorados Holdings Inc. (ARCO) vs The Wendy's Company (WEN)

Arcos Dorados Holdings Inc. and The Wendy's Company are both Restaurants companies. Arcos Dorados Holdings Inc. is the larger, with a market value of $1.5B against $1.2B — 1.2× the size. Arcos Dorados Holdings Inc. trades at the lower P/E: 5.9× against 9.9×. Arcos Dorados Holdings Inc. grew revenue faster over the last twelve months: 10.8% against −0.98%. The Wendy's Company has the higher net margin (5.72% vs 5.15%) and the lower return on invested capital (5.98% vs 16.3%). Both pay a dividend; The Wendy's Company yields more (5.24% vs 1.80%). Across the 23 metrics below, Arcos Dorados Holdings Inc. leads on 13 and The Wendy's Company on 10.

Valuation

Metric ARCO WEN Restaurants median
P/E 5.93 9.92 22.14
P/S 0.31 0.57 0.91
P/B 1.83 10.35 2.01
Price to free cash flow 14.64 5.39 19.41
EV/EBITDA 3.64 8.93 11.48
EV/Sales 0.44 1.93 1.20
Earnings yield 16.85% 10.08% 2.30%
Free cash flow yield 6.83% 18.54% 3.92%

Profitability

Metric ARCO WEN Restaurants median
Gross margin 12.25% 58.83% 38.77%
Operating margin 7.87% 13.63% 4.30%
Net margin 5.15% 5.72% 1.85%
Free cash flow margin 2.09% 10.50% 3.12%
Return on equity 36.30% 108.04% 3.07%
Return on assets 7.07% 2.58% 1.50%
Return on invested capital 16.31% 5.98% 3.14%

Growth

Metric ARCO WEN Restaurants median
Revenue growth (TTM) 10.77% (0.98%) 5.16%
EPS growth (last fiscal year) 42.25% (10.53%) —
Revenue growth, 5-year CAGR 18.71% 4.66% 10.57%
Net income growth, 5-year CAGR 0.00% 6.98% 0.00%

Health

Metric ARCO WEN Restaurants median
Debt to equity 1.19 28.20 0.10
Current ratio 0.88 1.90 0.81
Net debt to EBITDA 1.26 5.96 0.43

Dividend

Metric ARCO WEN Restaurants median
Dividend yield 1.80% 5.24% 2.32%
Payout ratio 0.22 0.84 0.00

Size

Metric ARCO WEN Restaurants median
Market cap 1.51b 1.24b 482.66m

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