Arcos Dorados Holdings Inc. (Class A) (ARCO) exhibits 96.0% gross margins and 18.9% return on invested capital within Consumer Discretionary (Restaurants), balanced against a 3.7x enterprise multiple and 4.8% implied options volatility.
Sustained 96.0% gross profitability converts into 7.8% operating margin and 18.9% ROIC, outpacing sector cost of capital.
ROIC: 18.9% // GM: 96.0%YoY revenue trajectory of +4.7% paired with 1.03% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +4.7% // FCF YLD: 1.03%Altman Z-Score of 2.10 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.10 // F-SCORE: 8/9Trading at 6.9x trailing P/E (6.4x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 6.9x // EV/EBITDA: 3.7xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $6.90 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Restaurants require continuous execution to defend 4.5% net margins.
NET MARGIN: 4.5% // D/E: 1.46x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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