Insights Ahead: Arcos Dorados Holdings's Quarterly Earnings

Arcos Dorados Holdings (NYSE:ARCO) is preparing to release its quarterly earnings on Wednesday, 2025-11-12. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Arcos Dorados Holdings to report an earnings per share (EPS) of $0.17.

Investors in Arcos Dorados Holdings are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.05, leading to a 1.57% drop in the share price the following trading session.

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

Arcos Dorados Holdings Share Price Analysis

Shares of Arcos Dorados Holdings were trading at $7.13 as of November 10. Over the last 52-week period, shares are down 16.8%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Insights Shared by Analysts 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.

A total of 2 analyst ratings have been received for Arcos Dorados Holdings, with the consensus rating being Neutral. The average one-year price target stands at $8.6, suggesting a potential 20.62% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of and Wendy's, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Wendy's, with an average 1-year price target of $9.59, suggesting a potential 34.5% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for and Wendy's, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Arcos Dorados Holdings is positioned in the middle compared to its peers for Consensus rating. It ranks at the bottom for Revenue Growth and Gross Profit, while it is at the top for Return on Equity.

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.

Arcos Dorados Holdings: Delving into Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Arcos Dorados Holdings's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 2.83%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Arcos Dorados Holdings's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.98%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Arcos Dorados Holdings's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.12%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Arcos Dorados Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.66%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Arcos Dorados Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.49.

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.