Arcos Dorados Holdings

ARCO

Market cap $1.85B

Arcos Dorados, McDonald's main franchisee in Latin America, delivered a notably strong Q1, with EPS more than doubling year-over-year. Q1 revenue grew 12%, aided by market share gains and new store openings, but some of this gain came from currency effects as well. Despite recent improvements, ARCO's long-term revenue growth has lagged inflation, and its heavy exposure to volatile Brazil and Argentina remains a concern.

Arcos Dorados reported strong 1Q26 headline results, but underlying fundamentals remain pressured by local inflation and currency effects. ARCO's apparent revenue and EBITDA growth are largely driven by currency appreciation and inflation, not genuine business improvement. Adjusted EBITDA was boosted by non-recurring gains, while comparable sales likely declined on an inflation-adjusted basis in key regions.

Arcos Dorados Holdings Inc. (ARCO) Q1 2026 Earnings Call Transcript

Arcos Dorados NYSE: ARCO reported a stronger first quarter of 2026, with management saying revenue, adjusted EBITDA and cash flow improved despite a challenging consumer environment in parts of Latin America.

Arcos Dorados (ARCO) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.07 per share a year ago.

MONTEVIDEO, Uruguay--(BUSINESS WIRE)--Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America and the Caribbean's largest restaurant chain and the world's largest independent McDonald's franchisee, today reported unaudited results for the three months ended March 31, 2026. Message from Luis Raganato, Chief Executive Officer Arcos Dorados has consistently added to its leading market share position and strengthened the McDonald's Brand across our operating footp.

MONTEVIDEO, Uruguay--(BUSINESS WIRE)--Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), hereby announces that on this date the Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 (the “2025 Annual Report”) with the U.S. Securities and Exchange Commission (the “SEC”). The 2025 Annual Report can be accessed by visiting either the SEC's website at www.sec.gov or the SEC Filings section of the Company's investor relations website at ir.

MONTEVIDEO, Uruguay--(BUSINESS WIRE)--Arcos Dorados Holdings Inc. (NYSE: ARCO) will hold a webcast to discuss its results for the first quarter ended March 31, 2026, which will be released before the market opens on Wednesday, May 20, 2026. Luis Raganato, Chief Executive Officer, and senior management will host the webcast. Opening remarks will be followed by a question-and-answer period. Participants from the investment community will be able to join the webcast (Google Chrome is recommended).

Arcos Dorados (ARCO) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Arcos Dorados, McDonald's main LatAm franchisee, has underperformed  and remains well below its IPO price. Despite strong reported revenue growth in recent years, this hasn't turned into sustainable shareholder value creation. Structural challenges—low margins, volatile markets, and brand positioning—justify a hold rating, with ARCO trading at about 12x forward earnings.