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Arcos Dorados Holdings ( (ARCO) ) has provided an update.
In the first quarter of 2026, Arcos Dorados reported total revenue of $1.216 billion, a 12.9% increase in U.S. dollars versus a year earlier, with systemwide comparable sales up 16.0% and digital channels accounting for 64% of sales. Adjusted EBITDA rose 29.3% to a first-quarter record of $118 million, net income climbed to $36.1 million or $0.17 per share, margins improved across the board, and the company opened 19 new restaurants while continuing to modernize its footprint and expand its loyalty program to 30.4 million members.
Management highlighted that, from 2019 through the end of 2025, revenue grew nearly 60%, Adjusted EBITDA almost doubled and net income more than 2.5 times in U.S. dollars, underscoring the scale of its market-share gains and brand strength. The quarter’s performance was driven by higher guest traffic in NOLAD and SLAD, larger average checks in Brazil and SLAD, efficiency gains in food and paper costs, and marketing campaigns that combined value platforms, menu innovation, and culturally focused partnerships, reinforcing the company’s competitive position in the regional quick-service restaurant industry.
The most recent analyst rating on (ARCO) stock is a Buy with a $9.05 price target. To see the full list of analyst forecasts on Arcos Dorados Holdings stock, see the ARCO Stock Forecast page.
Spark’s Take on ARCO Stock
According to Spark, TipRanks’ AI Analyst, ARCO is a Neutral.
The score is held back primarily by balance-sheet leverage and weak/volatile free cash flow, alongside bearish technical momentum. These are partially offset by a very low P/E with a solid dividend yield and a generally positive earnings-call outlook on expansion, cost discipline, and margin improvement (tempered by Brazil cost/traffic and tax/FX-related risks).
To see Spark’s full report on ARCO stock, click here.
More about Arcos Dorados Holdings
Arcos Dorados Holdings Inc. is Latin America and the Caribbean’s largest restaurant chain and the world’s biggest independent McDonald’s franchisee. The company operates more than 2,500 McDonald’s restaurants across key markets in Brazil, NOLAD and SLAD, focusing on quick-service dining, digital ordering, delivery and loyalty-driven customer engagement.
Average Trading Volume: 1,146,019
Technical Sentiment Signal: Buy
Current Market Cap: $1.75B
See more data about ARCO stock on TipRanks’ Stock Analysis page.