ARCO vs. AEO
ARCO (Arcos Dorados Holdings Inc.) and AEO (American Eagle Outfitters, Inc.) are both stocks. Both are in the Consumer Cyclical sector — ARCO in Restaurants, AEO in Apparel Retail. Over the past 10 years, ARCO returned 8.77%/yr vs 2.99%/yr for AEO. At a 0.21 correlation, their price movements are largely independent.
Performance
ARCO vs. AEO - Performance Comparison
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Returns By Period
In the year-to-date period, ARCO achieves a 14.48% return, which is significantly higher than AEO's -37.33% return. Over the past 10 years, ARCO has outperformed AEO with an annualized return of 8.77%, while AEO has yielded a comparatively lower 2.99% annualized return.
ARCO
- 1D
- -4.91%
- 1M
- -3.70%
- YTD
- 14.48%
- 6M
- 9.90%
- 1Y
- 17.06%
- 3Y*
- 0.79%
- 5Y*
- 7.15%
- 10Y*
- 8.77%
AEO
- 1D
- 1.87%
- 1M
- -0.37%
- YTD
- -37.33%
- 6M
- -31.06%
- 1Y
- 62.22%
- 3Y*
- 17.36%
- 5Y*
- -10.94%
- 10Y*
- 2.99%
ARCO vs. AEO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARCO Arcos Dorados Holdings Inc. | 14.48% | 4.14% | -41.05% | 54.92% | 46.32% | 17.56% | -35.25% | 4.09% | -22.62% | 91.67% |
AEO American Eagle Outfitters, Inc. | -37.33% | 64.66% | -19.34% | 54.86% | -43.44% | 29.76% | 38.82% | -22.10% | 5.50% | 28.48% |
Correlation
The correlation between ARCO and AEO is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.29 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.29 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Apr 15, 2011 | 0.21 |
The correlation between ARCO and AEO shifts across timeframes, from 0.21 (all time) to 0.32 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
ARCO:
$1.75B
AEO:
$2.82B
ARCO:
$1.11
AEO:
$1.62
ARCO:
7.49
AEO:
10.09
ARCO:
0.12
AEO:
2.56
ARCO:
0.36
AEO:
0.50
ARCO:
2.26
AEO:
1.71
ARCO:
$4.82B
AEO:
$5.60B
ARCO:
$588.03M
AEO:
$2.00B
ARCO:
$593.43M
AEO:
$662.21M
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Return for Risk
ARCO vs. AEO — Risk / Return Rank
ARCO
AEO
ARCO vs. AEO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Arcos Dorados Holdings Inc. (ARCO) and American Eagle Outfitters, Inc. (AEO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| ARCO | AEO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.41 | ||
| Sortino ratioReturn per unit of downside risk | -0.89 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.23 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.95 | 1.34 | -0.38 |
| Martin ratioReturn relative to average drawdown | 1.94 | 2.93 | -0.98 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ARCO | AEO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.49 | 0.90 | -0.41 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.20 | -0.20 | +0.40 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.22 | 0.06 | +0.16 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.10 | 0.22 | -0.32 |
Drawdowns
ARCO vs. AEO - Drawdown Comparison
The maximum ARCO drawdown since its inception was -91.66%, which is greater than AEO's maximum drawdown of -80.67%. Use the drawdown chart below to compare losses from any high point for ARCO and AEO.
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Drawdown Indicators
| ARCO | AEO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -91.66% | -80.67% | -10.99% |
Max Drawdown (1Y)Largest decline over 1 year | -17.94% | -46.69% | +28.75% |
Max Drawdown (3Y)Largest decline over 3 years | -47.87% | -63.13% | +15.26% |
Max Drawdown (5Y)Largest decline over 5 years | -47.87% | -73.04% | +25.17% |
Max Drawdown (10Y)Largest decline over 10 years | -70.58% | -75.67% | +5.09% |
Current DrawdownCurrent decline from peak | -61.83% | -50.31% | -11.52% |
Average DrawdownAverage peak-to-trough decline | -65.52% | -37.88% | -27.64% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 8.79% | 21.32% | -12.53% |
Volatility
ARCO vs. AEO - Volatility Comparison
The current volatility for Arcos Dorados Holdings Inc. (ARCO) is 16.12%, while American Eagle Outfitters, Inc. (AEO) has a volatility of 18.28%. This indicates that ARCO experiences smaller price fluctuations and is considered to be less risky than AEO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCO | AEO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 16.12% | 18.28% | -2.16% |
Volatility (6M)Calculated over the trailing 6-month period | 27.40% | 39.84% | -12.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.19% | 69.65% | -34.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.92% | 54.03% | -18.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 40.90% | 51.68% | -10.78% |
Dividends
ARCO vs. AEO - Dividend Comparison
ARCO's dividend yield for the trailing twelve months is around 3.00%, less than AEO's 3.06% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AEO American Eagle Outfitters, Inc. | 3.06% | 1.90% | 3.00% | 1.42% | 2.58% | 3.22% | 1.37% | 2.81% | 2.85% | 2.66% | 3.30% | 3.23% |
ARCO Arcos Dorados Holdings Inc. | 3.00% | 3.27% | 3.30% | 1.50% | 1.79% | 0.00% | 2.17% | 1.36% | 1.27% | 0.00% | 0.00% | 0.00% |
Financials
ARCO vs. AEO - Financials Comparison
This section allows you to compare key financial metrics between Arcos Dorados Holdings Inc. and American Eagle Outfitters, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
ARCO vs. AEO - Profitability Comparison
ARCO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Arcos Dorados Holdings Inc. reported a gross profit of 133.63M and revenue of 1.22B. Therefore, the gross margin over that period was 11.0%.
AEO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, American Eagle Outfitters, Inc. reported a gross profit of 456.17M and revenue of 1.20B. Therefore, the gross margin over that period was 38.2%.
ARCO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Arcos Dorados Holdings Inc. reported an operating income of 56.88M and revenue of 1.22B, resulting in an operating margin of 4.7%.
AEO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, American Eagle Outfitters, Inc. reported an operating income of 28.23M and revenue of 1.20B, resulting in an operating margin of 2.4%.
ARCO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Arcos Dorados Holdings Inc. reported a net income of 36.14M and revenue of 1.22B, resulting in a net margin of 3.0%.
AEO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, American Eagle Outfitters, Inc. reported a net income of 23.53M and revenue of 1.20B, resulting in a net margin of 2.0%.
Frequently Asked Questions
ARCO and AEO have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AEO has higher volatility (18.28%) compared to ARCO (16.12%). In terms of maximum drawdown, ARCO dropped -91.66% vs AEO's -80.67%.
AEO currently has the higher Sharpe Ratio (0.90 vs 0.49), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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