Latest news with #GoldenArches'
Yahoo
14-05-2025
- Business
- Yahoo
Arcos Dorados (NYSE:ARCO) Misses Q1 Sales Targets
Fast-food chain Arcos Dorados (NYSE:ARCO) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.08 billion. Its GAAP profit of $0.07 per share was 30% below analysts' consensus estimates. Is now the time to buy Arcos Dorados? Find out in our full research report. Revenue: $1.08 billion vs analyst estimates of $1.12 billion (flat year on year, 3.6% miss) EPS (GAAP): $0.07 vs analyst expectations of $0.10 ($0.03 miss) Adjusted EBITDA: $91.3 million vs analyst estimates of $91.25 million (8.5% margin, in line) Operating Margin: 4.2%, down from 6.2% in the same quarter last year Locations: 2,439 at quarter end, up from 2,381 in the same quarter last year Same-Store Sales rose 11.1% year on year (38.6% in the same quarter last year) Market Capitalization: $1.72 billion Translating to 'Golden Arches' in Spanish, Arcos Dorados (NYSE:ARCO) is the master franchisee of the McDonald's brand in Latin America and the Caribbean, responsible for its operations and growth in over 20 countries. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $4.47 billion in revenue over the past 12 months, Arcos Dorados is one of the larger restaurant chains in the industry and benefits from a well-known brand that influences consumer purchasing decisions. As you can see below, Arcos Dorados's sales grew at a decent 7.1% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it opened new restaurants and increased sales at existing, established dining locations. This quarter, Arcos Dorados missed Wall Street's estimates and reported a rather uninspiring 0.4% year-on-year revenue decline, generating $1.08 billion of revenue. Looking ahead, sell-side analysts expect revenue to grow 10.4% over the next 12 months, an acceleration versus the last six years. This projection is commendable and implies its newer menu offerings will spur better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. A restaurant chain's total number of dining locations often determines how much revenue it can generate. Arcos Dorados sported 2,439 locations in the latest quarter. Over the last two years, it has opened new restaurants quickly, averaging 2.5% annual growth. This was faster than the broader restaurant sector. When a chain opens new restaurants, it usually means it's investing for growth because there's healthy demand for its meals and there are markets where its concepts have few or no locations. The change in a company's restaurant base only tells one side of the story. The other is the performance of its existing locations, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing restaurants and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Arcos Dorados has been one of the most successful restaurant chains over the last two years thanks to skyrocketing demand within its existing dining locations. On average, the company has posted exceptional year-on-year same-store sales growth of 30.3%. This performance suggests its rollout of new restaurants is beneficial for shareholders. We like this backdrop because it gives Arcos Dorados multiple ways to win: revenue growth can come from new restaurants or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, Arcos Dorados's same-store sales rose 11.1% year on year. This was a meaningful deceleration from its historical levels. We'll be watching closely to see if Arcos Dorados can reaccelerate growth. We struggled to find many positives in these results. Its same-store sales missed and its revenue fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 3.6% to $7.87 immediately after reporting. Arcos Dorados may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. 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New York Post
02-05-2025
- Entertainment
- New York Post
McDonald's customers raving over Cotton Candy Sprite on secret menu — here's the hack to order one
What if your crisp, fountain Sprite tasted like a sweet treat? TikTokkers have discovered a hack to get a secret menu item at McDonald's: Cotton Candy Sprite. TikTokkers have discovered Cotton Candy Sprite at McDonald's. radub85 – Advertisement The trick to getting the carnival-like twist on a regular soda is to order a Sprite and ask them to add three pumps of French vanilla syrup, which apparently will make the drink taste like cotton candy. However, the catch is that you can only do this hack in-store because there is no option to add French vanilla syrup to a carbonated drink online or in the app. People online have been lovin' the Golden Arches' secret menu soda concoction. Advertisement 'This is the new hack for 2025,' one TikTok user declared. 'I'm telling you, the way they reworking Sprite is amazing, and we are here to enjoy.' A reviewer on YouTube shared that they enjoyed the beverage and didn't expect it to actually have a cotton candy taste to it. Advertisement 'Wow. That is awesome. That is really good,' he said. 'I was not ready for it to actually kind of taste like cotton candy. It still tastes more like vanilla than cotton candy, but this is awesome.' An apparent McDonald's employee tried the hack himself after sharing that a customer told him about it. 'It actually tastes like cotton candy,' he said, before making inaudible noises and writing in text on the video, 'I can't speak, I'm so confused.' 'At this point, I don't even know, you just have to try it for yourself,' he added. 'But it tastes like cotton candy.' Advertisement Instagram food blogger @mouthattack also posted about the viral concoction, saying that the 'viral menu hack is quickly becoming a favorite for those in the know.' They described the drink as a 'bubbly, refreshing drink that tastes just like cotton candy—perfect for satisfying your sweet tooth.'
Yahoo
24-04-2025
- Entertainment
- Yahoo
McDonald's Is Bringing Back My Favorite Discontinued Menu Item—and Making It Permanent
Oh, be still my McDonald's-loving heart. We may have thought it was too good to be true—or that Mickey D's was playing a sick joke on us—but the road to the Snack Wrap's return has never been clearer. On April 15, McDonald's cryptically teased that its long-awaited Snack Wrap would return on 0x.14.2025. Unfortunately, we haven't received any word on what that crucial missing number is—though many fans are speculating that it could be as early as May 14—but Mickey D's key Snack Wrap ingredient is officially returning to menus. McDonald's is finally bringing back its chicken strips—and, honestly, I'm more excited about this return than the actual Snack Wrap. Years ago, McDonald's sold crunchy, crispy, juicy Chicken Selects as both a main dish and the chicken used in the Snack Wrap. However, despite the Chicken Selects being my go-to order, the tenders were axed from McDonald's menus in the late 2010s (though they're still available in the UK), along with the Snack Wrap. Now, McDonald's is reviving its chicken tender offering, but in a new, reimagined way with its McCrispy Strips. In an earnings call earlier this year, McDonald's promised to bring a 'new chicken strip offering' to menus ahead of the Snack Wrap's return. What we didn't anticipate, but you'll likely be excited to know, is that the McCrispy Strips are debuting as a permanent menu item—in fact, they're Mickey D's first permanent menu item launch in more than four years. We can't promise that means the Snack Wraps are coming back for good, but with crispy chicken strips on menus at all times, at least the ingredients are available at the Golden Arches' disposal. McDonald's new McCrispy Strips are made with 100% white meat and coated with a golden-brown breading and new black pepper-seasoned flavor. The new McCrispy Strips look a little bit different from the ultra-crunchy Chicken Selects. They seem more on par with the sandwich of the same name, the McCrispy. But, Chicken Select lovers, don't fear, Instagram user @snackolator tried the new McCrispy Strips during a menu test and said they're 'seasoned similar to the Chicken Selects even though the breading isn't as thick.' I'll take that as a win. The new McCrispy Strips will join McDonald's menus, alongside a new dipping sauce called Creamy Chili Dip. The chain describes the new sauce as 'savory, slightly tangy, sweet with a hint of chili pepper heat and a nutty toasted sesame finish,' which sounds pretty unique compared to the other dippers on the menu. McDonald's new McCrispy Strips will hit menus nationwide by May 5 (though some locations may have them sooner) in a three- and four-count order—and I can already guarantee I'll be the first person in line as soon as the clock strikes 10:30 a.m. Read the original article on ALLRECIPES
Yahoo
02-04-2025
- Business
- Yahoo
3 Reasons to Sell ARCO and 1 Stock to Buy Instead
Over the past six months, Arcos Dorados's shares (currently trading at $8.42) have posted a disappointing 14.6% loss while the S&P 500 was down 1.7%. This might have investors contemplating their next move. Is there a buying opportunity in Arcos Dorados, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even with the cheaper entry price, we're cautious about Arcos Dorados. Here are three reasons why we avoid ARCO and a stock we'd rather own. Translating to 'Golden Arches' in Spanish, Arcos Dorados (NYSE:ARCO) is the master franchisee of the McDonald's brand in Latin America and the Caribbean, responsible for its operations and growth in over 20 countries. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Arcos Dorados's revenue to rise by 3.9%, a deceleration versus its 8.6% annualized growth for the past five years. This projection doesn't excite us and indicates its menu offerings will face some demand challenges. We prefer higher gross margins because they not only make it easier to generate more operating profits but also indicate pricing power and differentiation, whether it be the dining experience or quality and taste of food. Arcos Dorados has bad unit economics for a restaurant company, signaling it operates in a competitive market and has little room for error if demand unexpectedly falls. As you can see below, it averaged a 13.4% gross margin over the last two years. Said differently, Arcos Dorados had to pay a chunky $86.55 to its suppliers for every $100 in revenue. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Arcos Dorados broke even from a free cash flow perspective over the last two years, giving the company limited opportunities to return capital to shareholders. Arcos Dorados's business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at $8.42 per share (or 0.4× forward price-to-sales). The market typically values companies like Arcos Dorados based on their anticipated profits for the next 12 months, but there aren't enough published estimates to arrive at a reliable number. You should avoid this stock for now - better opportunities lie elsewhere. Let us point you toward a safe-and-steady industrials business benefiting from an upgrade cycle. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
