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Arcos Dorados Holdings ( (ARCO) ) has provided an update.
On May 20, 2026, Arcos Dorados reported unaudited results for the quarter ended March 31, 2026, showing revenues of $1.22 billion, up from $1.08 billion a year earlier, driven mainly by higher sales at company-operated restaurants. Operating income rose to $62.8 million from $45.1 million, reflecting stronger top-line growth despite higher food, labor and occupancy costs.
Net income more than doubled year-on-year to $36.2 million, with earnings per share increasing to $0.17 from $0.07, aided by improved operating performance, lower net interest expense, gains on derivatives and favorable foreign exchange results. The figures underscore continued profitability momentum for the McDonald’s master franchisee in Latin America and the Caribbean, signalling healthier margins and earnings for shareholders in the first quarter of 2026.
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 the largest independent McDonald’s franchisee in the world, operating and franchising McDonald’s restaurants across Latin America and the Caribbean. The company focuses on quick-service dining, generating most of its revenue from company-operated outlets supplemented by fees and rent from franchised locations.
Average Trading Volume: 1,146,019
Technical Sentiment Signal: Buy
Current Market Cap: $1.75B
See more insights into ARCO stock on TipRanks’ Stock Analysis page.