Overview
Arcos Dorados Q3 revenue misses analyst expectations, reaching $1.2 bln
Net income for Q3 beats estimates, aided by a federal tax credit in Brazil
Adjusted EBITDA for Q3 exceeds estimates, reflecting operational efficiencies
Outlook
Company did not provide specific guidance for future quarters or full year
Result Drivers
DIGITAL SALES - Digital channels, including Mobile App and Delivery, contributed 61% of systemwide sales, growing 11.2% year-over-year
TAX CREDIT IMPACT - Federal tax credit in Brazil provided a $125.2 mln net benefit, positively affecting net income and adjusted EBITDA
OPERATIONAL EFFICIENCIES - Efficiencies in payroll and occupancy expenses contributed to improved adjusted EBITDA margin
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.20 bln | $1.22 bln (3 Analysts) |
Q3 Net Income | Beat | $150.40 mln | $22.50 mln (2 Analysts) |
Q3 Adjusted EBITDA | Beat | $201.10 mln | $118.98 mln (3 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Arcos Dorados Holdings Inc is $9.50, about 24.1% above its November 11 closing price of $7.21
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw9bk13ma
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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