No. 9: Arcos Dorados
Q3 Return: +4%
YTD Return: -25%
Investor: Josh Brown
The good news is that Arcos Dorados (NYSE:ARCO) — the largest McDonald’s (NYSE:MCD) franchisee in the world, operating primarily in Latin America — did see gains in Q3 and moved up a spot in the rankings.
The company got a boost following its Q2 earnings report, as news of organic revenue and same-store sales growth sent shares up around 15%.
The bad news is that the company has still lost around a quarter of its value since January.
ARCO has struggled in the wake of slowing consumer spending in Brazil, for example — something Brown didn’t foresee when he recommended the company. Plus, ARCO’s management team is been unable to control expectations, the political situation in some of the countries ARCO operates has grown shakier and a negative currency exchange has taken its toll.
Still, Q3 was a silver lining for these golden arches and could be just the bump ARCO needs to reach its clear potential. In terms of this contest, though, the company seems to be running out of time.