Arcos Dorados Holdings Inc (ARCO)vsChipotle Mexican Grill Inc (CMG)
ARCO
Arcos Dorados Holdings Inc
$7.94
-0.87%
CONSUMER CYCLICAL · Cap: $1.70B
CMG
Chipotle Mexican Grill Inc
$37.03
+2.29%
CONSUMER CYCLICAL · Cap: $46.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Chipotle Mexican Grill Inc generates 149% more annual revenue ($12.42B vs $4.98B). CMG leads profitability with a 11.4% profit margin vs 5.2%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 72/100 (B).
ARCO
Strong Buy72
out of 100
Grade: B
CMG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.2%
Fair Value
$11.71
Current Price
$7.94
$3.77 discount
Intrinsic value data unavailable for CMG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 99.3% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 65 in profit
Areas to Watch
Grey zone — moderate risk
Smaller company, higher risk/reward
5.2% margin — thin
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 21.3x book value
Earnings declined 1.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 14.3% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bull Case : CMG
The strongest argument for CMG centers on Return on Equity.
Bear Case : ARCO
The primary concerns for ARCO are Altman Z-Score, Market Cap, Profit Margin. Debt-to-equity of 2.65 is elevated, increasing financial risk.
Bear Case : CMG
The primary concerns for CMG are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.46 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMG carries more volatility with a beta of 0.94 — expect wider price swings.
ARCO is growing revenue faster at 14.3% — sustainability is the question.
CMG generates stronger free cash flow (463M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (72/100 vs 56/100) and 14.3% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
Visit Website →Chipotle Mexican Grill Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission burritos that are made to order in front of the customer.
Visit Website →Compare with Other RESTAURANTS Stocks
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