Is Arcos Dorados Holdings Inc. (ARCO) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 102.8% / 30% | 8.3% / 30% | 9.7% / 30% | 0.4% / 5% | ✗ NOT HALAL |
| DJIM | 102.8% / 33% | 8.3% / 33% | 9.7% / 33% | 0.4% / 5% | ✗ NOT HALAL |
| MSCI | 59.5% / 33% | 4.8% / 33% | 5.6% / 33% | 0.4% / 5% | ✗ NOT HALAL |
| S&P | 102.8% / 33% | 8.3% / 33% | 9.7% / 33% | 0.4% / 5% | ✗ NOT HALAL |
| FTSE | 59.5% / 33% | 4.8% / 33% | 5.6% / 50% | 0.4% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 12.3% | |
| Operating Margin | 9.4% | |
| Net Margin | 4.5% | |
| Return on Equity (ROE) | 33.2% | |
| Return on Assets (ROA) | 6.9% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $267M |
| Free Cash Flow | -$61M |
| Total Debt | $1.7B |
| Debt-to-Equity | 290.8 |
| Current Ratio | 1.0 |
| Total Assets | $2.9B |
Price & Trading
| Last Close | $8.27 |
| 50-Day MA | $8.19 |
| 200-Day MA | $7.47 |
| Avg Volume | 1.4M |
| Beta | 0.5 |
|
52-Week Range
$6.51
| |
About Arcos Dorados Holdings Inc. (ARCO)
Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. The company 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, Curacao, 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. The company was founded in 2007 and is based in Montevideo, Uruguay.
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Frequently Asked Questions
Is Arcos Dorados Holdings Inc. (ARCO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Arcos Dorados Holdings Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Arcos Dorados Holdings Inc.'s debt ratio?
Arcos Dorados Holdings Inc.'s debt ratio is 102.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 59.5%.
What are Arcos Dorados Holdings Inc.'s key financial metrics?
Arcos Dorados Holdings Inc. has a market capitalization of $1.7B, trailing P/E ratio of 8.0, and revenue of $4.5B. The company maintains a gross margin of 12.3% and a net margin of 4.5%. Return on equity stands at 33.2%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.