10 Undervalued Smallcap Stocks Billionaires Are Quietly Loading Up On

8. Arcos Dorados Holdings Inc. (NYSE:ARCO)

Number of Billionaire Holdings: 8

Forward PE Ratio: 11.81

Arcos Dorados Holdings Inc. (NYSE:ARCO) is one of the cheap stocks to buy on our list.

The Fly reported on March 19 that ARCO reported fourth-quarter results with EBITDA and net income falling short of expectations. After adjusting for nonrecurring tax credits, the company recorded an unexpected net loss of $1 million. Morgan Stanley highlighted that the earnings miss is likely to hurt the stock’s performance. Despite this, the firm maintains an Overweight rating on the shares with a price target of $11.50. Following the announcement, the stock was down approximately 1%, trading near $7.64 during Thursday morning sessions, reflecting investor caution in response to the weaker-than-anticipated financial results.

In a separate development aimed at returning value to shareholders, on March 19, the board of directors of Arcos Dorados Holdings Inc. (NYSE:ARCO) authorized a cash dividend for 2026, distributing a total of $0.28 per share to holders of both Class A and Class B shares. This dividend will be delivered in four equal payments of $0.07 per share, scheduled for April 2, June 26, September 25, and December 29. Eligible shareholders will be those recorded on the company’s books as of March 30, June 22, September 21, and December 23, respectively. The structured installments ensure consistent returns to investors throughout the year, reflecting the company’s commitment to providing shareholder value while maintaining transparency regarding the dividend schedule.

Arcos Dorados Holdings Inc. (NYSE:ARCO) is the largest independent McDonald’s franchisee, operating and licensing McDonald’s restaurants across Latin America and the Caribbean, providing food service, franchise management, and brand operations to millions of customers.