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Arcos Dorados Q4 Earnings & Revenues Top, Digital Sales Up Y/Y
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Arcos Dorados Holdings Inc. (ARCO - Free Report) reported better-than-expected fourth-quarter 2024 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimate. On a year-over-year basis, the bottom line grew while the top line tumbled.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The quarter’s top-line performance was adversely impacted by the strong depreciation of local currencies along with the challenging macroeconomic and consumer environments in the market. However, benefits realized from the Four-D’s strategy, increased digital penetration and a favored loyalty program bode well for the company’s prospects.
Moreover, a decline in the operating costs and expenses aided the bottom line’s marginal growth despite the ongoing macro risks.
ARCO’s Q4 in Detail
The company reported adjusted earnings per share (EPS) of 28 cents, which surpassed the Zacks Consensus Estimate of 22 cents by 27.3%. In the year-ago quarter, it reported an adjusted EPS of 27 cents.
The quarterly revenues of $1.144 billion also topped the consensus mark of $1.102 billion by 3.8% but declined 2.7% year over year. On a constant currency basis, the quarterly revenues grew 26.6% from the last year’s quarter.
Arcos Dorados Holdings Inc. Price, Consensus and EPS Surprise
The company’s systemwide comparable sales grew 21.5% year over year. The quarter’s digital sales reached a new record value of $863.5 million, up 7% year over year.
Arcos Dorados’ Operating Highlights
Food and paper costs declined to $383.8 million from $396.1 million reported in the prior-year quarter. General and administrative expenses were down 14.5% year over year to $70.2 million.
The operating income was $102.9 million compared with $81.8 million reported in the prior-year quarter.
The adjusted EBITDA reached $147.4 million from $132.6 million in the prior-year quarter. The adjusted EBITDA margin expanded 160 basis points (bps) year over year to 12.9%.
Sneak Peek at ARCO’s 2024
The company’s full-year revenues increased to $4.27 billion from $4.14 billion reported in 2023.
The operating income in 2024 was $324.5 million, up 3.3% from last year. The adjusted EBITDA was $500.1 million, up from $472.3 million reported in 2023. The adjusted EBITDA margin grew 30 bps from the last year to 11.2%.
The full-year adjusted EPS of 71 cents declined 17.4% from 86 cents reported in 2023.
Balance Sheet of ARCO
As of Dec. 31, 2024, Arcos Dorados had total cash and cash equivalents of $138.6 million, down from $246.8 million at 2023-end.
Total financial debt as of 2024-end was $707.6 million, down from $728.1 million as of 2023-end.
Store Development & Other Information of Arcos Dorados
During 2024, ARCO opened 85 restaurants, out of which 79 were free-standing units. In Brazil, the company opened 15 Experience of the Future (EOTF) locations in the quarter and 47 restaurants in the full year 2024, including 46 free-standing units. As of Dec. 31, 2024, the company has 2,428 total restaurants and 1,629 EOTF restaurants, offering guests the most modern and complete restaurant experience.
At the end of the fourth quarter of 2024, Arcos Dorados’ loyalty program had 15.8 million registered members, indicating 22% sequential growth.
Restaurant Brands International, Inc. (QSR - Free Report) reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
During the quarter, consolidated comps increased 2.5% year over year and net restaurants grew 3.4% year over year. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant growth.
McDonald's Corporation (MCD - Free Report) reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate but revenues missed the same. Both the top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.
At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.
YUM! Brands, Inc. (YUM - Free Report) reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. It reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales — excluding foreign currency translation — grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.
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Arcos Dorados Q4 Earnings & Revenues Top, Digital Sales Up Y/Y
Arcos Dorados Holdings Inc. (ARCO - Free Report) reported better-than-expected fourth-quarter 2024 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimate. On a year-over-year basis, the bottom line grew while the top line tumbled.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The quarter’s top-line performance was adversely impacted by the strong depreciation of local currencies along with the challenging macroeconomic and consumer environments in the market. However, benefits realized from the Four-D’s strategy, increased digital penetration and a favored loyalty program bode well for the company’s prospects.
Moreover, a decline in the operating costs and expenses aided the bottom line’s marginal growth despite the ongoing macro risks.
ARCO’s Q4 in Detail
The company reported adjusted earnings per share (EPS) of 28 cents, which surpassed the Zacks Consensus Estimate of 22 cents by 27.3%. In the year-ago quarter, it reported an adjusted EPS of 27 cents.
The quarterly revenues of $1.144 billion also topped the consensus mark of $1.102 billion by 3.8% but declined 2.7% year over year. On a constant currency basis, the quarterly revenues grew 26.6% from the last year’s quarter.
Arcos Dorados Holdings Inc. Price, Consensus and EPS Surprise
Arcos Dorados Holdings Inc. price-consensus-eps-surprise-chart | Arcos Dorados Holdings Inc. Quote
The company’s systemwide comparable sales grew 21.5% year over year. The quarter’s digital sales reached a new record value of $863.5 million, up 7% year over year.
Arcos Dorados’ Operating Highlights
Food and paper costs declined to $383.8 million from $396.1 million reported in the prior-year quarter. General and administrative expenses were down 14.5% year over year to $70.2 million.
The operating income was $102.9 million compared with $81.8 million reported in the prior-year quarter.
The adjusted EBITDA reached $147.4 million from $132.6 million in the prior-year quarter. The adjusted EBITDA margin expanded 160 basis points (bps) year over year to 12.9%.
Sneak Peek at ARCO’s 2024
The company’s full-year revenues increased to $4.27 billion from $4.14 billion reported in 2023.
The operating income in 2024 was $324.5 million, up 3.3% from last year. The adjusted EBITDA was $500.1 million, up from $472.3 million reported in 2023. The adjusted EBITDA margin grew 30 bps from the last year to 11.2%.
The full-year adjusted EPS of 71 cents declined 17.4% from 86 cents reported in 2023.
Balance Sheet of ARCO
As of Dec. 31, 2024, Arcos Dorados had total cash and cash equivalents of $138.6 million, down from $246.8 million at 2023-end.
Total financial debt as of 2024-end was $707.6 million, down from $728.1 million as of 2023-end.
Store Development & Other Information of Arcos Dorados
During 2024, ARCO opened 85 restaurants, out of which 79 were free-standing units. In Brazil, the company opened 15 Experience of the Future (EOTF) locations in the quarter and 47 restaurants in the full year 2024, including 46 free-standing units. As of Dec. 31, 2024, the company has 2,428 total restaurants and 1,629 EOTF restaurants, offering guests the most modern and complete restaurant experience.
At the end of the fourth quarter of 2024, Arcos Dorados’ loyalty program had 15.8 million registered members, indicating 22% sequential growth.
ARCO’s Zacks Rank & Peer Releases
Arcos Dorados currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here.
Restaurant Brands International, Inc. (QSR - Free Report) reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
During the quarter, consolidated comps increased 2.5% year over year and net restaurants grew 3.4% year over year. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant growth.
McDonald's Corporation (MCD - Free Report) reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate but revenues missed the same. Both the top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.
At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.
YUM! Brands, Inc. (YUM - Free Report) reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. It reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales — excluding foreign currency translation — grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.