McDonald’s franchisee Arcos Dorados' Q2 revenue meets estimates
Overview
Arcos Dorados Q2 2025 rev rises 2.8% to $1.14 bln, meeting analyst expectations
Adjusted EBITDA for Q2 beats analyst estimates, despite margin pressure in Brazil
Systemwide comparable sales grew 12.1% yr/yr, driven by NOLAD and SLAD regions
Co opened 20 new EOTF restaurants, expanding its footprint in Latin America
Outlook
Company aims to expand Loyalty Program to all main markets by year-end 2025
Arcos Dorados plans to open more EOTF restaurants in new markets
Result Drivers
COMPARABLE SALES - Systemwide comparable sales grew 12.1% yr/yr, driven by strong performance in NOLAD and SLAD regions
DIGITAL CHANNELS - Digital channel sales rose 7.9% yr/yr, contributing over 60% of total systemwide sales
LOYALTY PROGRAM - Loyalty Program reached 21.5 mln registered members, enhancing guest visit frequency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | In-line | $1.14 bln | $1.14 bln (4 Analysts) |
Q2 Net Income | Beat | $22.60 mln | $14 mln (3 Analysts) |
Q2 Adjusted EBITDA | Beat | $110.10 mln | $95 mln (3 Analysts) |
Q2 Basic EPS | Beat | $0.11 | $0.08 (3 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "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 $10.00, about 30.5% above its August 12 closing price of $6.95
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw15WcX5a
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