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Arcos Dorados Holdings Inc (ARCO)
NYSE:ARCO
Earnings Data
Report Date
May 14, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.15Last Year’s EPS
0.14Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Mar 12, 2025
|% Change Since: 6.59%
|Next Earnings Date:May 14, 2025
Earnings Call Sentiment|Positive
The earnings call highlighted strong digital and delivery growth, record-high EBITDA, and market share gains. However, currency depreciation and economic challenges in Argentina and Brazil's food cost pressures presented notable challenges.Company Guidance
In the fourth quarter and full-year 2024 earnings webcast, Arcos Dorados highlighted its strong financial performance despite challenging macroeconomic conditions. The company reported a significant milestone, achieving an all-time high adjusted EBITDA of $500 million for the full year, with a corresponding record full-year EBITDA margin of 11.2%. Systemwide comparable sales grew by 1.7 times the blended inflation rate, excluding Argentina, driven by increases in average check and guest volumes across all three divisions. Notably, digital sales rose by 18% in U.S. dollars compared to 2023. In Brazil, total revenue grew by 9.2% in constant currency during the fourth quarter, although U.S. dollar revenue declined due to currency depreciation. Digital channels accounted for 70% of sales in Brazil, with loyalty program contributions growing steadily. The company's net debt-to-adjusted EBITDA ratio remained stable at 1.1x, and it received upgrades from Moody's and Fitch on its debt rating. Arcos Dorados plans to open between 90 and 100 Experience of the Future (EOTF) restaurants in 2025, with capital expenditures ranging from $300 million to $350 million. The company also aims to increase its EOTF restaurant penetration to 90% by the end of 2027, building on the 67% achieved by the end of 2024.Record Full-Year EBITDA
Adjusted EBITDA for the full-year reached $500 million for the first time in Arcos Dorados history. Full-year EBITDA margin also reached an all-time high in 2024.
Strong Digital and Delivery Growth
Full-year digital sales grew 18% in U.S. dollars versus 2023. Mobile App sales were up 25%, and delivery sales rose 17% in U.S. dollars.
Expansion of EOTF Restaurant Penetration
85 Experience of the Future (EOTF) restaurant openings were completed in 2024, bringing EOTF penetration to 67% of the total footprint.
Market Share Gains
Arcos Dorados added the most market share of the top three QSR operators on average across the region in 2024.
Improved Debt Structure
Moody’s upgraded Arcos Dorados’ debt rating to Ba1 with a stable outlook, and Fitch upgraded it to BBB-. The company issued $600 million in new debt due in 2032.
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ARCO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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ARCO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Mar 12, 2025 | $7.74 | $8.16 | +5.43% |
| Nov 13, 2024 | $8.27 | $8.47 | +2.42% |
| Aug 14, 2024 | $9.87 | $9.82 | -0.51% |
| May 15, 2024 | $10.89 | $10.26 | -5.79% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Arcos Dorados Holdings Inc (ARCO) report earnings?
Arcos Dorados Holdings Inc (ARCO) is schdueled to report earning on May 14, 2025, TBA Not Confirmed.
What is Arcos Dorados Holdings Inc (ARCO) earnings time?
Arcos Dorados Holdings Inc (ARCO) earnings time is at May 14, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ARCO EPS forecast?
ARCO EPS forecast for the fiscal quarter 2025 (Q1) is 0.15.
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