Arcos Dorados Q2 revenue rises on increased guest traffic across divisions
Arcos Dorados Q2 revenue rises on increased guest traffic across divisions
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
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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.)
Recent news on Arcos Dorados Holdings
See all newsBrief: Arcos Dorados. Plans To Open 550-600 Restaurants And Invest $1.3-$1.50 Billion From 2027 To 2030
Arcos Dorados Holdings Inc. reports results for the quarter ended June 30 - Earnings Summary
Arcos Dorados Q2 revenue rises on increased guest traffic across divisions
Brief: Arcos Dorados Says Brazilian Subsidiary Borrows $150 Mln
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