Arcos Dorados Holdings Inc. (NYSE: ARCO), the largest independent McDonald's franchisee in Latin America and the Caribbean, saw its stock price surge 5.13% in pre-market trading on Wednesday following the release of its impressive third-quarter 2025 financial results.
The company reported a remarkable quarterly earnings per share (EPS) of $0.71, significantly outperforming the FactSet analyst consensus estimate of $0.14 by 407%. This represents a substantial increase from $0.17 per share in the same period last year. Arcos Dorados' net income for the quarter reached $150.4 million, while revenue came in at $1.2 billion, slightly below the analyst estimate of $1.229 billion but still showing a 5.11% increase year-over-year.
The stellar performance was bolstered by strong systemwide comparable sales growth of 12.7% versus the prior year, aligning with the company's blended inflation for the period. Notably, Arcos Dorados' digital channels, including Mobile App, Delivery, and Self-order Kiosks, saw an 11.2% year-over-year increase in sales, accounting for 61% of systemwide sales in the quarter. The company's Adjusted EBITDA reached $201.1 million, which included an $85.6 million benefit from a federal tax credit in Brazil related to the period 2016-2023. These results demonstrate Arcos Dorados' resilience and ability to navigate challenging economic conditions while continuing to grow its business across Latin America and the Caribbean.
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