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Arcos Dorados Holdings Inc (ARCO)
NYSE:ARCO
Earnings Data
Report Date
May 20, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.13Last Year’s EPS
0.07Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong top-line and adjusted EBITDA growth, record full-year EBITDA, rapid digital and loyalty adoption, successful restaurant expansion and capital-structure improvements. These positives were tempered by market-specific challenges—most notably subdued consumer traffic and high beef-driven Food & Paper costs in Brazil, some margin pressure in NOLAD, and substantial tax-related one-offs that boost comparability. Management emphasized disciplined cost control, continued investment in digital and restaurant development, and early signs of recovery entering 2026.Company Guidance
Quarterly Revenue Growth
Total revenue of $1.3 billion in Q4 2025, representing 10.7% year-over-year growth.
Strong Comparable Sales
Systemwide comparable sales rose 16% in Q4 2025 (in line with blended inflation across 21 markets), driven primarily by average check, pricing discipline, promotions, and digital/loyalty strength.
Adjusted EBITDA Expansion
Adjusted EBITDA for Q4 2025 was $172.7 million, up 17.2% year over year, representing an 80 basis point expansion in adjusted EBITDA margin. Excluding tax-related items, adjusted EBITDA grew almost 14% in USD with a ~30 bps margin expansion.
Record Full-Year Adjusted EBITDA & Revenue Growth
Full-year 2025 revenue grew almost 5% in USD and full-year adjusted EBITDA was the highest in company history (benefited by tax-related items totaling $159.0 million of P&L impact in 2025).
Digital and Loyalty Momentum
Digital penetration reached a record 62% of total sales; digital channel sales grew 18.7% versus prior-year quarter. Loyalty program reached 27.2 million registered members and is available in all main markets, covering >90% of restaurants.
Restaurant Expansion & Modernization
Opened 102 restaurants in 2025 (exceeding guidance), bringing the modernized percentage of the portfolio to 73% at year-end; roughly half of 2025 CapEx funded openings.
Divisional Strengths (SLAD & Mexico)
SLAD comparable sales increased 49.5% in Q4 (driven by Argentina) and delivered 26.1% USD EBITDA growth and ~200 bps margin expansion for the year. Mexico comps grew 5.6% in Q4 (1.5x country inflation) and was a main contributor to NOLAD performance.
Capital Structure Optimization
Brazilian subsidiary secured $150 million local bank debt (estimated USD cost 2.53%) and used proceeds to tender $135 million of 2029 sustainability-linked notes (6.8% coupon), lowering average USD cost of long-term debt and increasing interest deductibility.
G&A and Cost Discipline
Completed headcount/G&A reduction yielding >$10 million of ongoing annualized cost savings; payroll expenses are among the lowest as a percentage of sales historically (payroll improved ~60 bps excluding Brazil tax benefit).
Shareholder Return
Board declared cash dividends of $0.28 per share for 2026, up from $0.24 in the prior year.
ARCO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ARCO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 19, 2026 | $7.70 | $7.67 | -0.39% |
Nov 12, 2025 | $7.15 | $7.53 | +5.27% |
Aug 13, 2025 | $6.83 | $7.50 | +9.79% |
May 14, 2025 | $7.96 | $7.51 | -5.63% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Arcos Dorados Holdings Inc (ARCO) report earnings?
Arcos Dorados Holdings Inc (ARCO) is schdueled to report earning on May 20, 2026, Before Open (Confirmed).
What is Arcos Dorados Holdings Inc (ARCO) earnings time?
Arcos Dorados Holdings Inc (ARCO) earnings time is at May 20, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ARCO EPS forecast?
ARCO EPS forecast for the fiscal quarter 2026 (Q1) is 0.13.