Arcos Dorados Holdings Inc.·Consumer Cyclical

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 Holdings Inc. (NYSE: ARCO) tops Q1 Wall Street expectations with EPS of $0.17. Read the full earnings breakdown.

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.
Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. The company has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. As of December 31, 2021, it operated or franchised 2,261 restaurants. The company was founded in 2007 and is based in Montevideo, Uruguay.
Consumer Cyclical
Restaurants
100,000
2011-04-14
0.48