Arcos Dorados (ARCO)
NYSE:ARCO
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Earnings Data
Report Date
Aug 19, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.15Last Year’s EPS
0.11Same Quarter Last Year
Strong Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted multiple strong operational and financial improvements: double-digit revenue growth (~13%), a 16% rise in systemwide comparable sales, the highest first-quarter adjusted EBITDA (~$118–$119M) with 120 bps of consolidated margin expansion, and a material turnaround to ~ $110M adjusted free cash flow over the trailing 12 months. Digital and loyalty initiatives showed clear traction (digital +21%, loyalty members +62% to ~30M). Offsetting these positives were short-term volume pressure in Brazil (industry volumes down mid- to high-single digits), margin softness in NOLAD excluding one-time items, and ongoing payroll and occupancy cost pressures. Management emphasized disciplined pricing, mix optimization and continued investment discipline. Overall, the favorable revenue, margin expansion and cash flow turnaround materially outweigh the near-term operational headwinds.Company Guidance
Top-Line Growth and Record Quarterly Revenue
Total revenue grew ~13% year-over-year and surpassed $1.2 billion for the first time in a first quarter, driven by systemwide comparable sales and favorable currency movements.
Strong Comparable Sales Performance
Systemwide comparable sales increased ~16% year-over-year, driven mainly by higher average check with improving guest traffic in several markets.
Highest First-Quarter Adjusted EBITDA
Adjusted EBITDA reached $118–$119 million in Q1 2026 (highest Q1 result in U.S. dollars), with consolidated EBITDA margin expanding by 120 basis points year-over-year.
Adjusted Free Cash Flow Turnaround
Adjusted free cash flow for the 12 months ended March 31 reached almost $110 million versus negative $3 million in the prior period, highlighting materially improved cash generation.
Margin Improvements from Cost and G&A Actions
Consolidated margin expansion comprised ~60 bps improvement from food & paper and ~60 bps from G&A (G&A down ~60 bps vs prior year), reflecting restructuring benefits and disciplined cost management.
Regional Division Strength — SLAD and Brazil
SLAD delivered strong U.S. dollar growth and EBITDA margin expansion (~120 bps rise). Brazil delivered the highest growth among divisions, with adjusted EBITDA up >20% in U.S. dollars and a ~30 bps division EBITDA margin expansion to 12.7%.
Digital and Loyalty Momentum
Digital channels (mobile app, delivery, kiosks) grew ~21% year-over-year and accounted for ~64% of systemwide sales. Loyalty registered members reached ~30 million (a 62% increase vs year-end), representing ~25% of sales and driving a 20–25% increase in frequency among 90-day active users.
Disciplined CapEx and Store Growth Efficiency
CapEx invested $36.8 million in Q1 (down from $48.8 million prior-year period) including $16.7 million for new restaurants. The company opened 19 restaurants (vs 10 prior year) while lowering average investment per unit through format and execution efficiencies.
Operational Footprint and Market Position
Added 19 restaurants (13 freestanding), maintained ~70% company-operated / ~30% sub-franchise mix, and reported sustained market-share gains and improved brand metrics (visit share highest since 2022 in Brazil).
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 |
|---|---|---|---|
May 20, 2026 | $8.07 | $9.08 | +12.52% |
Mar 19, 2026 | $7.63 | $7.60 | -0.39% |
Nov 12, 2025 | $7.09 | $7.46 | +5.28% |
Aug 13, 2025 | $6.77 | $7.44 | +9.79% |
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 (ARCO) report earnings?
Arcos Dorados (ARCO) is schdueled to report earning on Aug 19, 2026, Before Open (Confirmed).
What is Arcos Dorados (ARCO) earnings time?
Arcos Dorados (ARCO) earnings time is at Aug 19, 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 (Q2) is 0.15.