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Subject:  Re: ARCO Date:  1/12/2013  9:35 AM
Author:  clearbranch Number:  9825 of 9954

Here is the gist of a MF article on ARCO: I wouldn't be too worried about your investment, it a scary ride though but don't get off yet.

Arcos Dorados is down about 40% for the year. It's a pretty misunderstood company. If you look at their earnings, they look horrendous because their big market is Brazil but they're not located there, so weakness in the Brazilian currency has just made their earnings look like garbage, but on a constant currency basis, their same-store sales have been very impressive.

They continue to grow at really aggressive rates. They have, undoubtedly, the world's best brand in the restaurant space, McDonald's brand, the exclusive rights to it, and they are so far away from saturation in Latin America and Brazil in particular, it's amazing.

There's one McDonald's for every 22,000 citizens in the U.S. There's one for every 320,000 in Brazil. Now, of course they're not going to get to the same saturation as the U.S., but you can just see that chasm to fill, and just continue adding stores easily for years to come.
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