NEW YORK (TheStreet) -- What's good for McDonald's (MCD) - Get Report is great for Arcos Dorados Holdings (ARCO) - Get Report, McDonald's largest global franchisee. Conversely, Arcos Dorados, which means "Golden Arches" in English, feels the results of McDonald's struggles, which have lasted for several years.

Mickey-D's, however, is putting plans in motion to turn its fortunes around, which should benefit Arcos,  a company that has Bill Gates, the world's richest person according toForbes, as one of its biggest believers. Retail investors looking to capitalize on a possible McDonald's turnaround and follow Gates should consider Arcos Dorados.

The shares -- which traded at $4.35, down 1 cent, on Friday morning, after rising 4.6% on Thursday, -- look cheap ahead of earnings. They trade at less than 9 times estimated earnings for 2014. Arcos is scheduled to report its fourth-quarter and year-end results on Tuesday.

Founded in 2007 via a spinoff from McDonald's, Argentina-based Arcos operates and franchises McDonald's restaurants in Latin and South America. Brazil is its biggest market, accounting for almost 50% of its total revenue.

Since going public in April 2011, when it closed its first day of trading at $21.20, investors have suffered. Take a look at the chart.

ARCO 1 Year Price Returns (Daily)

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YCharts

The shares are down almost 20% in 2015, and have dropped 55% during the past year and 77% during the past three years.

Investors, however, can take solace in that Microsoft (MSFT) - Get Report co-founder Bill Gates has also suffered losses. As of Feb. 2, Gates had accumulated more than 3 million shares for an average price of $9.69, according toGuru Focus, an investing Web site, which means Gates is down 55%.

And yet there are reasons for optimism.

Analysts project Arcos' earnings will increase at an annual rate of 24% during the next five years, according toCNN Money. Of the five analysts who cover the company, Arcos has an average 12-month price target of $6.40, suggesting a gain of almost 50% from Thursday's close. Assuming Gates wants to at least break even, the target is $9.69, which is more than double the current price.