No. 9: Arcos Dorados
Q4 Return: -22%
Total Return: -42%
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 — has enjoyed double-digit gains since mid-November.
The bad news is that the company’s shares still shed over 20% in the past three months, putting them more than 40% in the red since January.
The stock reached a high over $22 in early February then began the downward slide as growth slowed. Not-so-hot consumer spending in Brazil and an unfavorable currency exchange weighed on the bottom line in the first quarter, when Arcos suffered a brutal 28% year-over-year drop in net income.
Plus, when 2012 kicked off, Arcos expected at least double-digit earnings growth. That was then lowered to a range of 8% to 10% … and then lowered again to between 3% and 5% growth.
Hopefully, that trend will head in the opposite direction in 2013.
Comments are currently unavailable. Please check back soon.