Latest news with #ARCO
Yahoo
15-05-2025
- Business
- Yahoo
Arcos Dorados Holdings Inc (ARCO) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Arcos Dorados Holdings Inc (NYSE:ARCO) reported total revenue of $1.1 billion, maintaining levels from the previous year despite challenging conditions. Digital sales accounted for almost 60% of system-wide sales in the first quarter, with notable strength in loyalty programs and mobile order and pay. The company saw a strong rebound in Argentina, contributing to a 38.7% rise in comparable sales in the SLAT division. Arcos Dorados Holdings Inc (NYSE:ARCO) has a robust marketing plan for the remainder of the year, which is expected to improve sales performance. The company has a strong balance sheet with an investment-grade rating from Fitch and no material debt maturities until 2029. First quarter consolidated adjusted EBITDA was $91.3 million, down from the previous year due to weaker local currencies and margin pressure in Brazil. Brazil's margin contraction was mainly due to higher food and paper costs from rising beef prices. The QSR industry in Brazil and NOLAD experienced reduced traffic, attributed to lower consumer purchasing power. The company faced significant headwinds from calendar effects, including Leap Day and Holy Week, impacting sales comparisons. There was a decline in first-quarter EBITDA margin due to higher food, paper, occupancy, and other expenses as a percentage of revenue. Warning! GuruFocus has detected 3 Warning Sign with ARCO. Q: Could you comment on sales trends in the early 2nd quarter of 2025, especially in Brazil and NOLAD, under a more normalized quarter in terms of calendar effects? How much of the weak comparable sales in the first quarter is attributable to negative calendar effects versus a weaker consumption environment? A: (Marcelo Raba, CEO) In NOLAD, particularly Mexico, Panama, and Costa Rica, we faced reduced traffic in the QSR industry due to calendar effects like Holy Week. However, April showed strong performance, especially in Mexico, which is a significant market for us. We see a positive outlook for NOLAD in the coming quarters. (Luisagannao, COO) In Brazil, the calendar impact was significant, but the QSR visits were down due to lower consumer purchasing power. We remained cautious with pricing, but delivery performed strongly. We expect improved performance as the year progresses. Q: How does the company see competition passing higher beef prices into prices, and when should we start seeing a recovery in margins in Brazil? A: (Mariana Tannenbaum, CFO) During the first quarter, we faced increased beef prices in Brazil, impacting margins. We expect to stabilize gross margins through pricing strategies, supplier negotiations, and revenue management initiatives. We anticipate margins for 2025 to be similar to 2024, excluding last year's payroll expense reversals and credits in Brazil. Q: What is the company's perception of recent consumption trends in Argentina, and how can we think about the region's outlook for 2025? A: (Luisagannao, COO) Argentina showed a strong rebound due to a more stable economic environment. We expect sustained growth in volumes, sales, and margins throughout the year. The market team is doing an excellent job, and we anticipate continued positive performance in Argentina and the SLAT region. Q: Can you expand on why you only expected a 10 basis points decline in the royalty expense on a consolidated basis? A: (Marcelo Raba, CEO) The new MFA with McDonald's set a 6% contract royalty rate, eliminating the growth support concept. Brazil now pays 6% of sales, while NOLAD and SLAT pay 6% instead of 7%. This results in a 10 basis points reduction in royalties, providing a small positive impact on EBITDA margins. Q: Can you talk about consumption in Brazil and whether there are signs of improvement? A: (Marcelo Raba, CEO) The leap day had a 110 basis points impact on comparable sales, and Holy Week affected Mexico significantly. While trends are improving, the consumption environment remains volatile. We focus on maintaining customer traffic and offering competitive promotions to build a sustainable business. Despite challenges, we are gaining market share and are well-positioned for future growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Company News for May 15, 2025
Shares of Arcos Dorados Holdings Inc. (ARCO) tumbled 5.6% after the company reported first-quarter 2025 earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.13 per share. Dynatrace, Inc.'s (DT) shares jumped 5.9% after the company reported fourth-quarter fiscal 2025 earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.30 per share. Shares of Exelixis, Inc. (EXEL) surged 20.1% after the company reported first-quarter 2025 earnings of $0.62 per share, surpassing the Zacks Consensus Estimate of $0.42 per share. Alcon Inc.'s (ALC) shares plummeted 6.1% after the company reported first-quarter 2025 earnings of $0.73 per share, missing the Zacks Consensus Estimate of $0.76 per share. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcon (ALC) : Free Stock Analysis Report Exelixis, Inc. (EXEL) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Dynatrace, Inc. (DT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
14-05-2025
- Business
- Yahoo
Why Is McDonald's Franchise Arcos Dorados Stock Falling On Wednesday?
Arcos Dorados Holdings Inc. (NYSE:ARCO) shares are trading lower on Wednesday after the company reported first-quarter results. Arcos Dorados Holdings is the master franchise of the fast food restaurant chain McDonald's in 20 countries and territories across Latin America and the Caribbean. Arcos reported earnings per share of 7 cents, missing the Street view of 13 cents. Quarterly sales of $1.08 billion (flat year-over-year) outpaced the analyst consensus estimate of $1.05 billion. Total revenues grew 14.1% in constant currency, supported by 11.1% higher systemwide comparable sales. Digital sales rose 6.3% in the period, helped by close to 19 million monthly average users of the mobile app. Digital channels generated almost 60% of systemwide sales in the EBITDA for the quarter slumped 16.2% on a year-over-year basis to $91.3 million in the quarter under review. Adjusted EBITDA margin contracted to 8.5% from 10.1%. The Loyalty Program reached 18.8 million registered members at the end of the quarter, supporting increased frequency and higher average check in available markets. Consolidated profitability declined compared to last year due mainly to weaker local currencies and margin pressures in Brazil. The net income margin attributable to the company was 1.3%, or 130 basis points lower, versus the first quarter of 2024. 'Even as consumers pulled back on eating out of home during the quarter, off-premise channels remained resilient, generating about 43% of total systemwide sales in the quarter,' said CEO Marcelo Rabach. Arcos Dorados added 12 new EOTF restaurants to the company's footprint, including 10 free-standing units, in the first quarter of 2025. The company said it plans to accelerate the pace of openings as the year progresses to meet its full-year guidance of 90 to 100 new restaurants. Price Action: ARCO shares are trading lower by 6.13% to $7.660 at last check Wednesday. Image by sombat muycheen via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? ARCOS DORADOS HOLDINGS (ARCO): Free Stock Analysis Report This article Why Is McDonald's Franchise Arcos Dorados Stock Falling On Wednesday? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
14-05-2025
- Business
- Yahoo
Arcos Dorados (ARCO) Lags Q1 Earnings Estimates
Arcos Dorados (ARCO) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -46.15%. A quarter ago, it was expected that this restaurant owner would post earnings of $0.22 per share when it actually produced earnings of $0.28, delivering a surprise of 27.27%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Arcos Dorados , which belongs to the Zacks Retail - Restaurants industry, posted revenues of $1.08 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.86%. This compares to year-ago revenues of $1.08 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Arcos Dorados shares have added about 12.1% since the beginning of the year versus the S&P 500's gain of 0.1%. While Arcos Dorados has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Arcos Dorados: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $1.12 billion in revenues for the coming quarter and $0.71 on $4.69 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Red Robin (RRGB), has yet to report results for the quarter ended March 2025. This casual restaurant chain is expected to post quarterly loss of $0.58 per share in its upcoming report, which represents a year-over-year change of +27.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Red Robin's revenues are expected to be $388.04 million, down 0.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Red Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
New York Post
14-05-2025
- New York Post
Beloved grandfather and Army vet dragged to death by deranged carjacker in California: cops
A crazed carjacker in California dragged an Army vet and beloved grandfather a half-mile to his death after speeding off in the 79-year-old's car, police said. James 'Jim' Norman was vacuuming out the back of his Chevrolet Trailblazer at an ARCO gas station in Norco at around 12:30 p.m. Monday when Ryan Hewitt, 29, jumped into the front seat, according to cops. 3 James Norman, known to his friends and family as Jim, was dragged to death during a carjacking. gofundme Advertisement Hewitt sped away with Norman desperately hanging onto the car's backseat, police said. Witnesses who saw the carjacking taking place called police. 'The caller reported witnessing a male entering the driver seat of a vehicle and driving away with the vehicle owner partially inside the rear seat,' police officials said. Norman was eventually thrown from the car, according to cops. Advertisement Investigators found his crumpled body a half-mile from the gas station and just a few miles from his home. Paramedics rushed the septuagenarian to a nearby hospital but his injuries were too severe. He was pronounced dead at the hospital. 'I just hope he went quickly and I'm grateful for the people — and I hope to meet them — that surrounded him and protected his body so he wasn't just out in the middle of the road,' Norman's daughter, Nicole Lauritsen, told 7 ABC Eyewitness News. Lauritsen also told the station that her father had plans to meet for a meal. She said she thinks the killer knew her father was clinging on for his life, but panicked and kept driving. Advertisement 'He was too old and frail to get out before the door slammed on him,' she said. 'He knew my dad was hanging, but just panicked and kept going until he fell out of the car.' 3 Police investigate the dragging death of James Norman, a grandfather and Army veteran. CBS News Her father wore hearing aids, but wasn't wearing them at the time, so he probably didn't even notice when the carjacker jumped into the driver's seat, Lauritsen told KCAL News. 'He didn't have his hearing aids in, so I'm guessing he didn't hear with the vacuum on and all of a sudden his car's backing up,' she said. Advertisement Investigators called Lauritsen and asked her if she had any way to track her father's phone. She said that she could track his car, since she had placed an AirTag on it to help keep track of him, according to KCAL. Cops found Norman's car parked and unoccupied. Shortly after, they found and arrested Hewitt. He was charged with carjacking and murder, police said. 3 Police charged Ryan Hewitt, 29, with carjacking and murder in the dragging death of James Norman, 79. Riverside County Sheriffs Office Norman lived a modest life, but an adventurous one, according to a GoFundMe page set up to help pay for his funeral and burial costs. He served in the Army and worked multiple jobs in his life, including construction, vehicle transport and 'even took to the skies as a pilot.' 'His passion for travel for work and exploration led him to many corners of the United States,' according to the GoFundMe page. 'Whether building something with his hands or sharing tales from the road, Jim brought energy and authenticity to everything he did.'
