McDonald's Franchisee Arcos Dorados Sees Growth Driven By Digital Sales Despite Brazil Margin Pressures
The company reported second-quarter earnings per share of 11 cents, beating the analyst consensus estimate of 7 cents.
Quarterly sales of $1.142 billion (+2.8% year over year) outpaced the Street view of $1.137 billion. Revenues grew 14.9% at constant currency.Arcos Dorados Holdings is the master franchise of the fast food restaurant chain McDonald's (NYSE:MCD) in 20 countries and territories across Latin America and the Caribbean.
Systemwide comparable sales rose 12.1% year-over-year, while digital channel sales grew 7.9%, accounting for over 60% of total sales in the quarter.
View more earnings on ARCO
Adjusted EBITDA in the quarter under review declined to $110.111 million, compared with $118.782 million in the year-ago period, mainly due to margin pressure in Brazil from higher beef costs this year. Adjusted EBITDA Margin contracted to 9.6% from 10.7%.
The company exited the quarter with cash and equivalents worth $147.052 million, higher than $135.064 million as of December 31, 2024.
The company opened 20 Experience of the Future (EOTF) restaurants in the quarter.
By the end of the second quarter, the company's Loyalty Program was active in 67% of all restaurants in its footprint.
Price Action: ARCO shares are trading higher by 8.63% to $7.550 at last check Wednesday.
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This article McDonald's Franchisee Arcos Dorados Sees Growth Driven By Digital Sales Despite Brazil Margin Pressures originally appeared on Benzinga.com
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