Arcos Dorados Holdings Inc. (ARCO) and The Wendy’s Company (NASDAQ:WEN) Comparison side by side

Both Arcos Dorados Holdings Inc. (NYSE:ARCO) and The Wendy’s Company (NASDAQ:WEN) compete on a level playing field in the Restaurants industry. We will evaluate their performance with regards to analyst recommendations, institutional ownership, profitability, risk, dividends, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arcos Dorados Holdings Inc. 3.23B 0.54 96.88M 0.65 12.54
The Wendy’s Company 1.26B 3.06 460.12M 1.89 9.16

Demonstrates Arcos Dorados Holdings Inc. and The Wendy’s Company earnings per share (EPS), top-line revenue and valuation. The Wendy’s Company seems to has lower revenue, but higher earnings compared to Arcos Dorados Holdings Inc. The company that Currently has a higher price-to-earnings ratio is considered the more expensive of the two businesses. Arcos Dorados Holdings Inc.’s shares have been trading at higher price-to-earnings ratio which means it is currently more expensive than The Wendy’s Company.

Profitability

Table 2 shows the net margins, return on assets and return on equity of the two firms.

Net Margins Return on Equity Return on Assets
Arcos Dorados Holdings Inc. 3.00% 15.3% 4.1%
The Wendy’s Company 36.52% 79.1% 10.8%

Volatility & Risk

A 1.08 beta indicates that Arcos Dorados Holdings Inc. is 8.00% more volatile compared to S&P 500. Competitively, The Wendy’s Company is 24.00% less volatile than S&P 500, because of the 0.76 beta.

Dividends

Arcos Dorados Holdings Inc. pays out its dividends annually at $0.1 per share and 1.21% dividend yield. The dividend yield for The Wendy’s Company is 2.04% while its annual dividend payout is $0.34 per share.

Analyst Recommendations

The table delivered features the ratings and recommendations for Arcos Dorados Holdings Inc. and The Wendy’s Company.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Arcos Dorados Holdings Inc. 0 0 0 0.00
The Wendy’s Company 0 4 5 2.56

Meanwhile, The Wendy’s Company’s consensus target price is $18.81, while its potential upside is 11.96%.

Institutional & Insider Ownership

The shares of both Arcos Dorados Holdings Inc. and The Wendy’s Company are owned by institutional investors at 67.7% and 77.2% respectively. 5.59% are Arcos Dorados Holdings Inc.’s share owned by insiders. Insiders Comparatively, owned 6.7% of The Wendy’s Company shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Arcos Dorados Holdings Inc. -5.04% -11.67% 4.25% 15.71% -16.49% 2.53%
The Wendy’s Company 1.47% -0.23% -3.36% -2.76% 8.14% 10.7%

For the past year Arcos Dorados Holdings Inc. has weaker performance than The Wendy’s Company

Summary

The Wendy’s Company beats on 13 of the 16 factors Arcos Dorados Holdings Inc.

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. As of December 31, 2016, the company operated and franchised 2,156 McDonald’s branded restaurants. Arcos Dorados Holdings Inc. was founded in 2007 and is based in Montevideo, Uruguay.

The Wendy's Company, through its subsidiaries, operates as a quick-service restaurant company in the hamburger sandwich segment worldwide. It is involved in operating, developing, and franchising a system of quick-service restaurants. The companyÂ’s restaurants offer a range of chicken breast sandwiches, chicken nuggets, chili, French fries, baked potatoes, salads, soft drinks, Frosty desserts, and kidsÂ’ meals. As of January, 2017, its restaurant system included approximately 6,537 restaurants, of which 330 were company-owned and operated restaurants. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The WendyÂ’s Company in July 2011. The Wendy's Company was founded in 1969 and is headquartered in Dublin, Ohio.

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