We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arcos Dorados (ARCO) Reports in Line Q2 Earnings, Stock Down
Read MoreHide Full Article
Arcos Dorados Holdings Inc. (ARCO - Free Report) reported second-quarter 2024 results, wherein earnings came in line with the Zacks Consensus Estimate while revenues surpassed the same. The top line beat the estimate for the fourth straight quarter. The company’s shares declined 4.7% on Aug 15 following the results.
Delving Deeper
ARCO reported adjusted earnings per share (EPS) of 13 cents in the second quarter. The metric remained flat year over year.
It reported quarterly revenues of $1,110.9 million, beating the consensus mark of $1,056 million. Moreover, the top line increased 6.8% on a year-over-year basis. The revenue increase can be attributed to a rise in guest traffic, which has continued to boost comparable sales. Despite consumers becoming more cautious with their discretionary spending, McDonald's has successfully positioned itself as the region's preferred quick-service restaurant brand. This success is driven by the company's effective omnichannel strategy, strong value offerings and operational excellence.
Digital channel sales contributed more than 57% to systemwide sales. Systemwide comparable sales improved 40.8% year over year.
Arcos Dorados Holdings Inc. Price, Consensus and EPS Surprise
In the second quarter, operating income amounted to $74.2 million compared with $74.9 million reported in the prior-year quarter.
Food and paper costs came in at $372.9 million compared with $351.7 million reported in the prior-year quarter. General and administrative expenses were $73 million compared with $69.5 million in the year-earlier period.
Adjusted EBITDA reached $118.8 million compared with $110.1 million in the prior-year quarter.
Balance Sheet
Cash and cash equivalents as of Jun 30, 2024, totaled $104.2 million compared with $196.7 million on Dec 31, 2023.
Total financial debt as of Jun 30, 2024, was $724.6 million compared with $729.8 million as of Dec 31, 2023.
Store Developments
In the first half of 2024, the company launched 37 Experience of the Future (EOTF) restaurants, with 34 of these being free-standing locations. In its largest market, Brazil, the company introduced 21 EOTF restaurants, including 20 new free-standing units.
Zacks Rank
Arcos Dorados currently carries a Zacks Rank #4 (Sell).
The Wendy’s Company (WEN - Free Report) reported dismal second-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top line rose while the bottom line declined. Solid same-restaurant sales and strength in the U.S. breakfast sales and digital sales momentum aided the company’s performance.
The company continues to focus on industry-leading quality, innovation and value. WEN aims to maintain a customer-first approach while driving its restaurant economic model throughout the year and beyond.
Shake Shack Inc. (SHAK - Free Report) posted decent second-quarter fiscal 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The bottom and the top line increased on a year-over-year basis. In the quarter, the company benefited from product innovations, strategic menu pricing, technology implementations and promotions.
Looking ahead, SHAK is committed to achieving efficiency across regions and formats by utilizing drive-throughs and third-party delivery. The company plans to reduce build costs by 10% in 2024 and further lower costs in 2025, enabling the exploration of new real estate options while maintaining returns. It intends to achieve strong unit-level economics and boost ROI, fostering long-term value creation for its shareholders.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The bottom and the top line increased from the prior-year quarter’s figure.
In the quarter, CAKE stated benefits from strong demand and sales performance of new restaurant openings. Also, improvements in food efficiencies, labor productivity, overtime and wage management enhanced restaurant-level profitability. The company emphasizes strengthening its operational service to drive long-term growth.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Arcos Dorados (ARCO) Reports in Line Q2 Earnings, Stock Down
Arcos Dorados Holdings Inc. (ARCO - Free Report) reported second-quarter 2024 results, wherein earnings came in line with the Zacks Consensus Estimate while revenues surpassed the same. The top line beat the estimate for the fourth straight quarter. The company’s shares declined 4.7% on Aug 15 following the results.
Delving Deeper
ARCO reported adjusted earnings per share (EPS) of 13 cents in the second quarter. The metric remained flat year over year.
It reported quarterly revenues of $1,110.9 million, beating the consensus mark of $1,056 million. Moreover, the top line increased 6.8% on a year-over-year basis. The revenue increase can be attributed to a rise in guest traffic, which has continued to boost comparable sales. Despite consumers becoming more cautious with their discretionary spending, McDonald's has successfully positioned itself as the region's preferred quick-service restaurant brand. This success is driven by the company's effective omnichannel strategy, strong value offerings and operational excellence.
Digital channel sales contributed more than 57% to systemwide sales. Systemwide comparable sales improved 40.8% year over year.
Arcos Dorados Holdings Inc. Price, Consensus and EPS Surprise
Arcos Dorados Holdings Inc. price-consensus-eps-surprise-chart | Arcos Dorados Holdings Inc. Quote
Operating Highlights
In the second quarter, operating income amounted to $74.2 million compared with $74.9 million reported in the prior-year quarter.
Food and paper costs came in at $372.9 million compared with $351.7 million reported in the prior-year quarter. General and administrative expenses were $73 million compared with $69.5 million in the year-earlier period.
Adjusted EBITDA reached $118.8 million compared with $110.1 million in the prior-year quarter.
Balance Sheet
Cash and cash equivalents as of Jun 30, 2024, totaled $104.2 million compared with $196.7 million on Dec 31, 2023.
Total financial debt as of Jun 30, 2024, was $724.6 million compared with $729.8 million as of Dec 31, 2023.
Store Developments
In the first half of 2024, the company launched 37 Experience of the Future (EOTF) restaurants, with 34 of these being free-standing locations. In its largest market, Brazil, the company introduced 21 EOTF restaurants, including 20 new free-standing units.
Zacks Rank
Arcos Dorados currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Retail-Wholesale Releases
The Wendy’s Company (WEN - Free Report) reported dismal second-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top line rose while the bottom line declined. Solid same-restaurant sales and strength in the U.S. breakfast sales and digital sales momentum aided the company’s performance.
The company continues to focus on industry-leading quality, innovation and value. WEN aims to maintain a customer-first approach while driving its restaurant economic model throughout the year and beyond.
Shake Shack Inc. (SHAK - Free Report) posted decent second-quarter fiscal 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The bottom and the top line increased on a year-over-year basis. In the quarter, the company benefited from product innovations, strategic menu pricing, technology implementations and promotions.
Looking ahead, SHAK is committed to achieving efficiency across regions and formats by utilizing drive-throughs and third-party delivery. The company plans to reduce build costs by 10% in 2024 and further lower costs in 2025, enabling the exploration of new real estate options while maintaining returns. It intends to achieve strong unit-level economics and boost ROI, fostering long-term value creation for its shareholders.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The bottom and the top line increased from the prior-year quarter’s figure.
In the quarter, CAKE stated benefits from strong demand and sales performance of new restaurant openings. Also, improvements in food efficiencies, labor productivity, overtime and wage management enhanced restaurant-level profitability. The company emphasizes strengthening its operational service to drive long-term growth.