Arco Dorado: Blue-Chip Value in Latin America

27 days ago

Thomas Hughes

"The last one is Arco Dorado. That sounds familiar. It's McDonald's Latin American franchiser. This company is growing at mid-sle digits. It's got a really solid dividend. It provides a deep value and a high yield compared to the parent company. So, you kind of get the benefits of owning the blue chip McDonald's, but with the emerging market exposure."

Arco Dorado is presented as a value play that offers blue-chip benefits through its association with McDonald's, while providing emerging market exposure. Despite current margin pressures, catalysts like market share gains and a recovering margin profile in the coming year underpin its potential.

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