Sifting through countless of stocks in the Hotels, Restaurants & Leisure industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Arcos Dorados Holdings Inc. or Shake Shack Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Arcos Dorados Holdings Inc. and Shake Shack Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Arcos Dorados Holdings Inc. and Shake Shack Inc.

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 21 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. Arcos Dorados Holdings Inc. was founded in 2007 and is based in Montevideo, Uruguay.

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. It offers burger, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is based in New York, New York.

Latest Hotels, Restaurants & Leisure and Arcos Dorados Holdings Inc., Shake Shack Inc. Stock News

As of September 9, 2026, Arcos Dorados Holdings Inc. had a $1.7 billion market capitalization, compared to the Hotels, Restaurants & Leisure median of $2.3 million. Arcos Dorados Holdings Inc.’s stock is up 10.2% in 2026, up 0.4% in the previous five trading days and up 18.62% in the past year.

Currently, Arcos Dorados Holdings Inc.’s price-earnings ratio is 6.6. Arcos Dorados Holdings Inc.’s trailing 12-month revenue is $5.0 billion with a 5.2% net profit margin. Year-over-year quarterly sales growth most recently was 14.3%. Analysts expect adjusted earnings to reach $0.802 per share for the current fiscal year. Arcos Dorados Holdings Inc. currently has a 3.5% dividend yield.

As of September 9, 2026, Shake Shack Inc. had a $2.5 billion market cap, putting it in the 57th percentile of all stocks. Shake Shack Inc.’s stock is down 22.4% in 2026, down 6.8% in the previous five trading days and down 35.43% in the past year.

Currently, Shake Shack Inc.’s price-earnings ratio is 66.3. Shake Shack Inc.’s trailing 12-month revenue is $1.6 billion with a 2.6% net profit margin. Year-over-year quarterly sales growth most recently was 17.1%. Analysts expect adjusted earnings to reach $1.124 per share for the current fiscal year. Shake Shack Inc. does not currently pay a dividend.

How We Compare Arcos Dorados Holdings Inc. and Shake Shack Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Arcos Dorados Holdings Inc. and Shake Shack Inc.’s stock grades to see how they measure up against one another.

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Arcos Dorados Holdings Inc. and Shake Shack Inc. Growth Grades

Company	Ticker	Growth
Arcos Dorados Holdings Inc.	ARCO	A
Shake Shack Inc.	SHAK	B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Arcos Dorados Holdings Inc. has a Growth Score of 89, which is Very Strong. Shake Shack Inc. has a Growth Score of 69, which is Strong.

The Growth Grade Winner: Arcos Dorados Holdings Inc.

As you can clearly see from the Growth Grade breakdown above, Arcos Dorados Holdings Inc. has a more attractive growth grade than Shake Shack Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Arcos Dorados Holdings Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Arcos Dorados Holdings Inc. and Shake Shack Inc.’s Momentum Grades

Company	Ticker	Momentum
Arcos Dorados Holdings Inc.	ARCO	C
Shake Shack Inc.	SHAK	C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Arcos Dorados Holdings Inc. has a Momentum Score of 50, which is Average. Shake Shack Inc. has a Momentum Score of 34, which is Weak.

The Momentum Stock Winner: No Clear Winner

Neither Arcos Dorados Holdings Inc. or Shake Shack Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Arcos Dorados Holdings Inc. or Shake Shack Inc. is the better investment when it comes to momentum.

Arcos Dorados Holdings Inc. and Shake Shack Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Arcos Dorados Holdings Inc.	ARCO	B
Shake Shack Inc.	SHAK	C

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Arcos Dorados Holdings Inc. has a Earnings Estimate Score of 73, which is Positive. Shake Shack Inc. has a Earnings Estimate Score of 37, which is Negative.

The Earnings Estimate Revisions Grade Winner: Arcos Dorados Holdings Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Arcos Dorados Holdings Inc. has a better Earnings Estimate Revisions Grade than Shake Shack Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Arcos Dorados Holdings Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Arcos Dorados Holdings Inc. and Shake Shack Inc. Grades

In addition to Growth, Momentum and Estimate Revisions, A+ Investor also provides grades for Value and Quality.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Arcos Dorados Holdings Inc. and Shake Shack Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Arcos Dorados Holdings Inc. or Shake Shack Inc. Stock?

Overall, Arcos Dorados Holdings Inc. stock has a Growth Score of 89, Momentum Score of 50 and Estimate Revisions Score of 73.

Shake Shack Inc. stock has a Growth Score of 69, Momentum Score of 34 and Estimate Revisions Score of 37.

Comparing Arcos Dorados Holdings Inc. and Shake Shack Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.