NEW YORK - Arcos Dorados Holdings Inc . (NYSE:ARCO), the world's largest independent McDonald's (NYSE:MCD) franchisee, reported second-quarter revenue that exceeded analyst expectations, sending shares up slightly, by 0.99% in premarket trading Wednesday.
The Latin American restaurant operator posted revenue of $1.11 billion for the quarter, surpassing the consensus estimate of $1.06 billion. However, earnings per share came in at $0.13, missing analyst projections of $0.14.
Systemwide comparable sales rose 40.8% year-over-year, driven by strong guest volume growth. The company said digital channels accounted for over 57% of systemwide sales in the period.
"We believe our second quarter 2024 results demonstrate our ability to perform strongly in any operating context," said CEO Marcelo Rabach. "Sales and profitability growth through June have been consistent with our strategy, especially when you consider the tougher-than-expected macroeconomic and consumer environments we are facing this year."
Adjusted EBITDA increased 7.9% year-over-year to $118.8 million. The company opened 15 new "Experience of the Future" restaurants during the quarter, including 10 in Brazil.
The company said it remains on track with its restaurant development plans for the year, with a strong pipeline of openings and modernizations planned for the second half of 2024.
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