Arcos Dorados (ARCO) Reports Q3 EPS of $0.12, Revenues Beat, Comps Up 7.4%

Arcos Dorados (NYSE: ARCO) reported Q3 EPS of $0.12, versus $0.00 reported last year. Revenue for the quarter came in at $724 million versus the consensus estimate of $454 million.

“Systemwide comparable sales grew 7.4% on top of the 10.4% achieved last year, with strong contributions from most of our markets throughout Latin America and the Caribbean. Our operating structure and disciplined approach to growth was supported by restaurant level, bottom line profitability and cash flow generation. In Brazil, sales grew over 2% in constant currency terms as we focused on consistently growing in a profitable manner. We achieved adjusted EBITDA margin expansion of 130 basis points, excluding other operating income mostly related to a tax credit, as we effectively managed food and paper as well as labor costs.

Our investments in innovative marketing and digital initiatives and in enhancing the guest experience also contributed to comparable sales growth, as guest traffic continued rising in increasingly important markets, such as Mexico and the Andean markets within the SLAD division. Comparable sales in our NOLAD division grew 6.7% in the quarter.

With the uncertainty about Mexico’s presidential election and the US trade agreement behind us and the choice of Brazil’s president decided, we are more optimistic about the macro environments of these two important markets. However, even under improving market conditions, we will remain vigilant, protecting and expanding our customer base across our markets while seeking to preserve and enhance our margins.

We are strong in a number of ways that support Arcos Dorados’ long-term, financial sustainability. Through leveraging our scale, vast geographic footprint, compelling line-up of menu items, and obsession with elevating our guests’ dining experience, we will successfully execute on our strategic plan,” said Sergio Alonso, Chief Executive Officer of Arcos Dorados.

For earnings history and earnings-related data on Arcos Dorados (ARCO) click here.

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