Paul Chi and I co-manage The Motley Fool’s Street Fighter portfolio, looking for cheap, unloved stocks with home run potential. In a recent video, Paul and I shared the one emerging market stock to buy. Today, after some weakness in the stock, I’m making the move and buying that stock for our portfolio.
Read on to find out why I think Arcos Dorados, which trades today for around $20, could be worth more than $50 five years from now.
Supersize your portfolio’s growth
Arcos Dorados (“Golden Arches” in Spanish) is the largest franchisee of McDonald’s restaurants in the world. Arcos purchased what was formerly McDonald’s Latin American and Caribbean business in 2007 for $698 million and was granted a 20-year agreement (renewable in 10-year increments) to be the exclusive operator and franchisor of McDonald’s restaurants in 19 countries and territories in Latin America and the Caribbean.