Arcos Dorados Q2 revenue rises on increased guest traffic across divisions

Arcos Dorados Holdings

13/08/2026 12:24

Overview
Latin America fast-food chain's Q2 revenue rose 14%, slightly beating analyst expectations
Adjusted EBITDA for Q2 rose 15%, slightly beating analyst expectations
Q2 basic EPS doubled to $0.22, beating analyst expectations

Outlook
Company did not provide specific guidance for the current or future periods

Result Drivers
GUEST TRAFFIC - Co said systemwide comparable sales rose 15.3% in Q2, driven by guest traffic growth across all divisions and higher average check in Brazil and SLAD
DIGITAL SALES - Digital channel sales rose about 25% and represented 66% of systemwide sales, with strong growth in self-order kiosk, delivery, and loyalty sales
MARKETING CAMPAIGNS - FIFA World Cup sponsorship enabled unique marketing campaigns and activations, boosting incremental sales and brand engagement

Company press release: ID:nBw9BNfY8a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$1.30 bln
$1.29 bln (3 Analysts)
Q2 Net Income
Beat
$45 mln
$32 mln (2 Analysts)
Q2 Adjusted EBITDA
Beat
$126.80 mln
$123.47 mln (3 Analysts)
Q2 Basic EPS
Beat
$0.22
$0.15 (3 Analysts)
Q2 Adjusted EBITDA Margin
 
9.70%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Arcos Dorados Holdings Inc. is $11.50, about 45.6% above its August 12 closing price of $7.90
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 11 - For McDonald's and rivals, cheap deals no longer do the trick
Aug 13 - India's Jubilant FoodWorks profit rises as Domino's sales growth picks up
Aug 12 - Canada's SIR Royalty Income Fund Q2 Pooled Revenue rises on World Cup boost

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)