Investors who bought Arcos Dorados (Nasdaq:ARCO) thinking they were getting McDonald's-like (NYSE:MCD) consistency with a Latin American growth kicker have been badly surprised over the past year, as Arcos Dorados' performance has lagged its franchiser's performance by roughly 25%. A lot of what has hurt the company is arguably out of management's control, as weakening consumer conditions across much of Latin America (including Brazil and Mexico) and persistent inflation make operations much more challenging. Although these shares do appear undervalued relative to their long-term potential, management has a lot of work to do to realize that potential.
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http://www.investopedia.com/stock-analysis/082013/arcos-dorados-still-several-fries-short-happy-meal-arco-mcd-bkw.aspx
Investopedia: Arcos Dorados Still Several Fries Short Of A Happy Meal
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