ARCO - Arcos Dorados Is Recovering And A Speculative Buy Only

• Arcos Dorados is returning to the profitability it enjoyed before the pandemic.
• Considering that growth depends on risky Latin American development, I consider a 15 PE multiple expensive from a capital return perspective.
• However, the stock has built brand leverage towards a growing economy, therefore justifying a speculative play on that.
• Financially, it remains strong with maturities lengthened towards 2029.
• Its business model is not beneficial for the company.

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