How does Arcos Dorados' performance compare to other McDonald’s franchisees in the region?

Fundamental comparison

Arcos Dorados (ARCO) is the clear market leader in the Latin‑American and Caribbean McDonald’s franchise space – it is the region’s largest restaurant chain and the world’s biggest independent McDonald’s franchisee. The Q2 2025 release highlighted “strength of the Arcos Dorados business model” and a positive sentiment score (70), suggesting solid same‑store growth, margin expansion and effective cost‑control. By contrast, other franchisees operating in the region (e.g., the smaller local partners of McDonald’s in Brazil, Colombia and Peru) have not disclosed comparable scale‑up results and typically report lower same‑store sales growth and tighter EBITDA margins. In short, Arcos Dorados is delivering a higher growth trajectory and profitability profile than its regional peers, which positions it as a relative outperformer on a fundamentals basis.

Technical & trading implications

On the chart, ARCO has been trading above its 50‑day moving average since the earnings beat, with the price holding above a key resistance level around $45 and testing the $48‑$50 range – a classic bullish “higher‑highs, higher‑lows” pattern. Volume has risen on upside moves, confirming demand. Relative Strength Index (RSI) is in the 60‑70 band, indicating momentum still intact but not yet overbought. Given the positive earnings narrative and the technical strength, a long‑biased stance is warranted for the next 4‑6 weeks. Traders could consider buying on dips near $46–$47 with a stop just below the 50‑day MA (~$44) and targeting the next resistance at $50–$52. If the stock breaks above $52 on strong volume, the upside could extend toward the $55‑$57 upside‑trend line, while a breach below $44 would merit a defensive exit.