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An announcement from Arcos Dorados Holdings ( (ARCO) ) is now available.
Arcos Dorados Holdings reported its second-quarter 2025 financial results, highlighting a 12.1% growth in systemwide comparable sales and total revenues of $1.1 billion. The company’s digital channels contributed significantly, with digital sales accounting for over 60% of total sales. The Loyalty Program expanded to 21.5 million members across six markets, enhancing customer engagement. Despite challenging consumer dynamics in Brazil, the company’s diversified business model and strategic marketing initiatives, such as the Big Fest and Formula 1 promotions, drove strong profitability and brand preference. The company opened 20 new Experience of the Future restaurants and plans to expand into its 21st market, Saint Martin, demonstrating its commitment to growth in the region.
The most recent analyst rating on (ARCO) stock is a Buy with a $11.00 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.
Arcos Dorados Holdings’ overall score reflects a balance of strengths and challenges. The company’s attractive valuation and consistent revenue growth are significant positives, but high debt levels, negative free cash flow, and recent bearish technical indicators present risks. The mixed earnings call outcomes further contribute to the cautious outlook, emphasizing the importance of managing margin pressures and currency impacts.
To see Spark’s full report on ARCO stock, click here.
More about Arcos Dorados Holdings
Arcos Dorados Holdings Inc. is the largest restaurant chain in Latin America and the Caribbean and the world’s largest independent McDonald’s franchisee. The company focuses on providing fast-food services and operates a vast network of McDonald’s restaurants across the region.
Average Trading Volume: 1,427,288
Technical Sentiment Signal: Sell
Current Market Cap: $1.46B
Find detailed analytics on ARCO stock on TipRanks’ Stock Analysis page.