Arcos Dorados Q1 Earnings Beat Estimates, Sees Prospects In Latin America And Caribbean

Arcos Dorados Holdings Inc.ARCO reported first-quarter FY23 sales growth of 25.3% year-on-year to $990.79 million, beating the consensus of $953.39 million.
EPS of $0.18 beat the analyst consensus of $0.13. The company mainly operates as a franchisee of McDonald's Corporation MCD restaurants.
Digital channels (Delivery, Mobile App and Self-order Kiosks) continued to drive topline performance, representing about 47% of systemwide sales in Q1. Systemwide comparable sales increased by 37.6%, with solid sales growth in all divisions.
Adjusted EBITDA for the quarter was $100.50 million, up 28% Y/Y. Adjusted EBITDA margin was 10.1%, up 20 basis points versus last year.
The company held $263.83 million in cash and equivalents as of March 31, 2023.
During Q1, Arcos Dorados opened 8 restaurants, all of them free-standing units, including 7 restaurants in Brazil.
The company sad its restaurant opening pipeline remains robust for the remainder of 2023 and beyond.
"Latin America and the Caribbean is a widely underpenetrated region for the quick service restaurant industry, which represents a significant growth opportunity for Arcos Dorados," said CEO Marcelo Rabach.
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Price Action: ARCO shares are trading higher by 7.80% at $9.06 on the last check Wednesday.