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Arcos Dorados (ARCO) Q2 Earnings Match Estimates, Revenues Top
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Arcos Dorados Holdings Inc. (ARCO - Free Report) reported decent second-quarter fiscal 2023 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
Delving Deeper
The company reported adjusted earnings per share (EPS) of 14 cents in the second quarter, in line with the Zacks Consensus Estimate. In the prior-year quarter, ARCO reported an adjusted EPS of 7 cents.
During the quarter, the company reported revenues of $1,034.4 million, beating the consensus mark of $1,033 million. Moreover, the top line increased 17% on a year-over-year basis. The upside was primarily driven by solid performance in the front counter, dessert center and Delivery sales.
Arcos Dorados Holdings Inc. Price, Consensus and EPS Surprise
During the quarter, counter sales (including self-order kiosks) and delivery sales grew 37% and 41% year over year, respectively, on a constant-currency basis. Digital channel sales increased 41% year over year to $665.9 million during the second quarter.
During the second quarter, comparable restaurant sales increased 31.5% year over year.
Operating Highlights
During the second quarter, operating income amounted to $74.9 million compared with $60.6 million reported in the prior-year quarter.
During the quarter, food and beverage costs came in at $351.7 million compared with $301 million reported in the prior-year quarter. General and administrative expenses in the second quarter came in at $69.5 million compared to $55 million in the prior-year period.
Adjusted EBITDA in the second quarter came in at $110.1 million compared with $91.4 million reported in the prior-year quarter.
Balance Sheet
Cash and cash equivalents as of Jun 30, 2023, totaled $201.5 million compared with $266.9 million on Dec 31, 2022.
Total debt as of Jun 30, 2023, came in at $695.5 million compared with $674.4 million as of Dec 31, 2022.
Store Developments
During the second quarter, the company opened 10 restaurants, including nine restaurants in Brazil and eight free-standing units. Going forward, the company emphasized a strong pipeline of restaurant openings and modernizations for the second semester of 2023. With ground breaks done, the company anticipates opening 75 to 80 new restaurants in 2023. It expects to complete 250 restaurant modernizations.
Restaurant Brands International, Inc. (QSR - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily driven by strong global comparable sales, unit growth and a healthy balance of traffic and check.
During the quarter, QSR reported adjusted EPS of 85 cents, surpassing the Zacks Consensus Estimate of 76 cents. The bottom line increased 3.7% from an adjusted EPS of 82 cents reported in the prior-year quarter. Quarterly net revenues of $1,775 million surpassed the consensus mark of $1,746 million. The top line increased 8.3% on a year-over-year basis. The upside was driven by a rise in system-wide sales at Tim Hortons, Burger King, Popeyes and Firehouse Subs. However, this was partially offset by unfavorable FX movements.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter fiscal 2023 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. The bottom and the top lines increased year over year. An increase in comparable restaurant sales backed by improving consumer demand and new restaurant openings drove the company’s performance.
During the quarter, CAKE reported adjusted EPS of 88 cents, beating the Zacks Consensus Estimate of 81 cents by 8.6%. The reported figure suggested a 69.2% year-over-year increase. Total revenues of $866.2 million missed the consensus estimate of $881 million by 1.7%. However, the top line increased 4% on a year-over-year basis.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released mixed second-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, Chipotle reported adjusted EPS of $12.65, beating the Zacks Consensus Estimate of $12.25. The bottom line increased 36% from the $9.30 reported in the year-ago quarter. Quarterly revenues of $2,514.8 million missed the consensus mark of $2,524 million. The top line increased 13.6% on a year-over-year basis. The upside can primarily be attributed to strong comparable restaurant sales growth and new restaurant openings.
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Arcos Dorados (ARCO) Q2 Earnings Match Estimates, Revenues Top
Arcos Dorados Holdings Inc. (ARCO - Free Report) reported decent second-quarter fiscal 2023 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
Delving Deeper
The company reported adjusted earnings per share (EPS) of 14 cents in the second quarter, in line with the Zacks Consensus Estimate. In the prior-year quarter, ARCO reported an adjusted EPS of 7 cents.
During the quarter, the company reported revenues of $1,034.4 million, beating the consensus mark of $1,033 million. Moreover, the top line increased 17% on a year-over-year basis. The upside was primarily driven by solid performance in the front counter, dessert center and Delivery sales.
Arcos Dorados Holdings Inc. Price, Consensus and EPS Surprise
Arcos Dorados Holdings Inc. price-consensus-eps-surprise-chart | Arcos Dorados Holdings Inc. Quote
During the quarter, counter sales (including self-order kiosks) and delivery sales grew 37% and 41% year over year, respectively, on a constant-currency basis. Digital channel sales increased 41% year over year to $665.9 million during the second quarter.
During the second quarter, comparable restaurant sales increased 31.5% year over year.
Operating Highlights
During the second quarter, operating income amounted to $74.9 million compared with $60.6 million reported in the prior-year quarter.
During the quarter, food and beverage costs came in at $351.7 million compared with $301 million reported in the prior-year quarter. General and administrative expenses in the second quarter came in at $69.5 million compared to $55 million in the prior-year period.
Adjusted EBITDA in the second quarter came in at $110.1 million compared with $91.4 million reported in the prior-year quarter.
Balance Sheet
Cash and cash equivalents as of Jun 30, 2023, totaled $201.5 million compared with $266.9 million on Dec 31, 2022.
Total debt as of Jun 30, 2023, came in at $695.5 million compared with $674.4 million as of Dec 31, 2022.
Store Developments
During the second quarter, the company opened 10 restaurants, including nine restaurants in Brazil and eight free-standing units. Going forward, the company emphasized a strong pipeline of restaurant openings and modernizations for the second semester of 2023. With ground breaks done, the company anticipates opening 75 to 80 new restaurants in 2023. It expects to complete 250 restaurant modernizations.
Zacks Rank
Arcos Dorados currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Peer Releases
Restaurant Brands International, Inc. (QSR - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily driven by strong global comparable sales, unit growth and a healthy balance of traffic and check.
During the quarter, QSR reported adjusted EPS of 85 cents, surpassing the Zacks Consensus Estimate of 76 cents. The bottom line increased 3.7% from an adjusted EPS of 82 cents reported in the prior-year quarter. Quarterly net revenues of $1,775 million surpassed the consensus mark of $1,746 million. The top line increased 8.3% on a year-over-year basis. The upside was driven by a rise in system-wide sales at Tim Hortons, Burger King, Popeyes and Firehouse Subs. However, this was partially offset by unfavorable FX movements.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter fiscal 2023 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. The bottom and the top lines increased year over year. An increase in comparable restaurant sales backed by improving consumer demand and new restaurant openings drove the company’s performance.
During the quarter, CAKE reported adjusted EPS of 88 cents, beating the Zacks Consensus Estimate of 81 cents by 8.6%. The reported figure suggested a 69.2% year-over-year increase. Total revenues of $866.2 million missed the consensus estimate of $881 million by 1.7%. However, the top line increased 4% on a year-over-year basis.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released mixed second-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, Chipotle reported adjusted EPS of $12.65, beating the Zacks Consensus Estimate of $12.25. The bottom line increased 36% from the $9.30 reported in the year-ago quarter. Quarterly revenues of $2,514.8 million missed the consensus mark of $2,524 million. The top line increased 13.6% on a year-over-year basis. The upside can primarily be attributed to strong comparable restaurant sales growth and new restaurant openings.