Arcos Dorados Q4 Earnings: Sales Slip, EPS Beat, South Latin America Strength And More

On Wednesday, Arcos Dorados Holdings Inc. ARCO reported fourth-quarter earnings per share of 28 cents, beating the street view of 21 cents.

Quarterly sales of $1.144 billion (down 2.7% year over year) missed the analyst consensus estimate of $1.152 billion.

Systemwide comparable sales increased by 21.5%, roughly matching blended inflation.

Brazil’s revenues totaled $445.9 million, down 7.7% year over year. North Latin American Division revenues totaled $303.1 million, rising 0.9% versus the prior year quarter. South Latin American Division sales totaled $395.2 million, driven by a 61.8% increase in systemwide comparable sales versus the prior year.

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The Loyalty Program grew to 15.8 million members, a 22% rise from the previous quarter.

Consolidated Adjusted EBITDA reached $147.4 million, up 11.1% year-over-year. The Adjusted EBITDA margin was 12.9%, improving by 160 basis points compared to the same quarter last year.

Arcos Dorados opened 29 “Experience of the Future” restaurants in the quarter, including 26 standalone locations and 15 new units in Brazil.

“We are operating from a position of strength in Latin America, with significant market share leadership, an industry benchmark Digital platform, and the most modernized restaurant portfolio in the region’s QSR industry,” said Marcelo Rabach, Chief Executive Officer.

“This gives us the strategic flexibility to pull the levers necessary to adapt to any operating environment and to changing consumer preferences.”

The company exited the quarter with cash & equivalents worth $138.593 million.

Outlook Reiterated: Arcos Dorados has reaffirmed its 2025 guidance, expecting to open 90-100 new restaurants during the year. The company also projects capital expenditures between $300 million and $350 million.

Price Action: ARCO shares are trading higher by 4.82% to $8.176 at last check Wednesday.

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