A Look at Arcos Dorados Holdings's Upcoming Earnings Report

Arcos Dorados Holdings ARCO will release its quarterly earnings report on Wednesday, 2025-08-13. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Arcos Dorados Holdings to report an earnings per share (EPS) of $0.06.

The announcement from Arcos Dorados Holdings is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

During the last quarter, the company reported an EPS missed by $0.06, leading to a 3.9% drop in the share price on the subsequent day.

Here's a look at Arcos Dorados Holdings's past performance and the resulting price change:

Stock Performance

Shares of Arcos Dorados Holdings were trading at $6.76 as of August 11. Over the last 52-week period, shares are down 30.73%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Opinions on Arcos Dorados Holdings

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Arcos Dorados Holdings.

The consensus rating for Arcos Dorados Holdings is Neutral, derived from 1 analyst ratings. An average one-year price target of $8.8 implies a potential 30.18% upside.

Comparing Ratings with Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Cracker Barrel Old, Sweetgreen and First Watch Restaurant Gr, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Cracker Barrel Old, with an average 1-year price target of $57.14, suggesting a potential 745.27% upside.
• Analysts currently favor an Neutral trajectory for Sweetgreen, with an average 1-year price target of $16.12, suggesting a potential 138.46% upside.
• Analysts currently favor an Buy trajectory for First Watch Restaurant Gr, with an average 1-year price target of $21.71, suggesting a potential 221.15% upside.

Analysis Summary for Peers

The peer analysis summary provides a snapshot of key metrics for Cracker Barrel Old, Sweetgreen and First Watch Restaurant Gr, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Arcos Dorados Holdings ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity. The company's Revenue Growth is negative, Gross Profit is the lowest among peers, and Return on Equity is higher than one peer but lower than another.

All You Need to Know About Arcos Dorados Holdings

Arcos Dorados Holdings Inc operates McDonald's branded restaurants in various countries and territories in Latin America and the Caribbean. The Company manages its business as distinct geographic segments and its operations are divided into three geographic divisions, as follows: Brazil, the North Latin American division, or NOLAD, which is comprised of Costa Rica, Mexico, Panama, Puerto Rico, Martinique, Guadeloupe, French Guiana and the U.S. Virgin Islands of St. Croix and St. Thomas and the South Latin American division, or SLAD, which is comprised of Argentina, Chile, Ecuador, Peru, Uruguay, Colombia, Venezuela, Trinidad and Tobago, Aruba and Curacao. Their menu includes hamburgers, McNuggets, salad, sandwiches, French fries, and others.

Key Indicators: Arcos Dorados Holdings's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Arcos Dorados Holdings's financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -0.44% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Arcos Dorados Holdings's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 1.29%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Arcos Dorados Holdings's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.72%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Arcos Dorados Holdings's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.44%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Arcos Dorados Holdings's debt-to-equity ratio stands notably higher than the industry average, reaching 4.27. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Arcos Dorados Holdings visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.