Arcos Dorados beats earnings estimates, stock rises

Published 12/03/2025, 12:46
Arcos Dorados beats earnings estimates, stock rises

NEW YORK -On Wednesday, Arcos Dorados Holdings Inc . (NYSE:ARCO), the world’s largest independent McDonald’s (NYSE:MCD) franchisee, reported fourth-quarter earnings that surpassed analyst expectations.

The company’s stock was up 1.41% in premarket trading following the release.

The Latin American fast-food operator posted adjusted earnings per share of $0.28, beating the consensus estimate of $0.18 by a significant margin. Revenue for the quarter came in at $1.14 billion, slightly below analysts’ projections of $1.16 billion.

Systemwide comparable sales rose 21.5% YoY, driven by strong local currency revenue growth across the company’s markets. Digital channel sales reached new quarterly and full year records, representing 58% of systemwide sales in Q4.

"Full year 2024 total revenue of $4.5 billion was our highest ever, despite a more discerning consumer and challenging macroeconomic conditions, including currency headwinds, in many of our largest markets," said Marcelo Rabach, Chief Executive Officer of Arcos Dorados.

The company’s Adjusted EBITDA for the full year reached $500 million, including an 11.2% margin, both representing new highs for Arcos Dorados. This achievement came despite significant currency depreciation in key markets like Brazil and Mexico in the second half of 2024.

Arcos Dorados reiterated its 2025 guidance, projecting 90 to 100 new restaurant openings and total capital expenditures of $300 million to $350 million for the full year.

The company’s net debt to Adjusted EBITDA leverage ratio ended the quarter at 1.1x, nearly unchanged from year-end 2023, reflecting a stable financial position.

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