Fast-food chain Arcos Dorados (NYSE:ARCO) will be reporting results tomorrow morning. Here’s what to expect.
Arcos Dorados met analysts’ revenue expectations last quarter, reporting revenues of $1.13 billion, flat year on year. It was a very strong quarter for the company, with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ EBITDA estimates.
Is Arcos Dorados a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Arcos Dorados’s revenue to be flat year on year at $1.18 billion, slowing from the 15.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arcos Dorados has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.
Looking at Arcos Dorados’s peers in the traditional fast food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dutch Bros delivered year-on-year revenue growth of 34.9%, beating analysts’ expectations by 7.6%, and Portillo's reported a revenue decline of 1.7%, in line with consensus estimates. Dutch Bros traded up 29% following the results while Portillo's was also up 2.6%.
Read our full analysis of Dutch Bros’s results here and Portillo’s results here.
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