McDonald's LatAm Franchisee Arcos Dorados Boasts More Than 17% Sales Growth For Q2

Arcos Dorados Holdings Inc ARCO reported second-quarter (Q2) 2023 sales growth of 17.1% year-on-year to $1.04 billion.

Analysts expected the company, known as Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, to report $1.05 billion.

Consolidated revenue rose 38.9% in constant currency. Digital channel sales reached $665.9 million, constituting 49% of systemwide sales in Q2.

Systemwide comparable sales grew 31.5% Y/Y.

The operating margin was 7.2%, and the operating income for the quarter was $74.82 million.

Adjusted EBITDA for the quarter climbed 20.5% to $110.1 million with an adjusted EBITDA margin of 10.6%, up 30 basis points versus last year.

EPS of $0.13 missed the analyst consensus of 14 cents.

Arcos Dorados held $319.1 million in cash and equivalents as of Sept. 30, 2022.

Price Action: ARCO shares are trading lower by 0.47% at $10.55 in premarket on the last check Thursday.

Image: Arcos Dorados