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) Q4 Earnings Up Y/Y, Revenues Top Estimates
Read MoreHide Full Article
Arcos Dorados Holdings Inc. (ARCO - Free Report) reported fourth-quarter 2023 results, with revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company reported increased visit frequency and market share gains, with the Three D’s strategy driving sustainable sales growth supported by restaurant volume and average checks. Also, it reported benefits from the expansion of Digital channels facilitated by a mobile app, growing Delivery sales and the implementation of self-order kiosks.
The company emphasizes accelerating restaurant openings to seize growth opportunities while maintaining operations and community support.
Delving Deeper
During the fourth quarter, the company reported adjusted earnings per share (EPS) of 27 cents. The top line rose 3.8% year over year from 26 cents reported in the year-ago quarter.
Arcos Dorados Holdings Inc. Price, Consensus and EPS Surprise
During the quarter, the company reported revenues of approximately $1.2 billion, beating the consensus mark of $1.16 billion. The top line increased 15.4% on a year-over-year basis. The upside was primarily driven by the solid execution of Three D’s Strategy (comprising Digital, Delivery and Drive-thru), On-premise sales growth and expanding penetration of digital channels.
During the quarter, On-premise sales (including front counter, dessert centers and McCafe) increased 14% (in US dollars) year over year. Off-premise channels (Delivery and Drive-thru) increased 16% (in US dollar sales) versus the prior year’s figure. Digital channel sales during the quarter increased 39% year over year (to over $800 million) and contributed 53% to the company’s systemwide sales.
During the fourth quarter, comparable restaurant sales increased 32.4% year over year.
Operating Highlights
During the fourth quarter, operating income amounted to $81.8 million compared with $81.5 million reported in the prior-year quarter.
During the quarter, food and paper costs came in at $396.1 million compared with $346.5 million reported in the prior-year quarter. General and administrative expenses in the fourth quarter came in at $82.1 million compared with $70.1 million in the prior-year period.
Adjusted EBITDA in the fourth quarter came in at $132.6 million compared with $114.1 million reported in the prior-year quarter.
Balance Sheet
Total cash and cash equivalents as of Dec 31, 2023, totaled $224 million compared with $304.4 million on Dec 31, 2022.
Total debt as of Dec 31, 2023, came in at $695.5 million compared with $674.4 million as of Dec 31, 2022.
2023 Highlights
Total revenues in 2023 amounted to $4.3 billion, up 19.7% (in US dollars versus 2022) year over year.
Adjusted EBITDA during the year came in at $472.3 million, up 22.2% (in US dollars) year over year.
In 2023, Net income per share came in at 86 cents compared with 67 cents reported in the previous year.
Store Developments
During the fourth quarter, the company opened 36 restaurants, including 18 restaurants in Brazil and 31 free-standing units. In 2024, the company emphasized opening 80 to 90 new restaurants.
Zacks Rank
Arcos Dorados currently carries a Zacks Rank #3 (Hold).
McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 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, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% year over year.
Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. The top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns and continued digital and delivery growth.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago.
Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 21% year over year. The upside can be attributed to net new unit contribution (12%) and same-store sales growth (4%).
Brinker International, Inc. (EAT - Free Report) reported mixed second-quarter fiscal 2024 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. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic bode well.
During the quarter, EAT reported adjusted EPS of 99 cents, surpassing the Zacks Consensus Estimate of a loss of $1.47. The company reported adjusted EPS of 76 cents in the prior-year quarter.
Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. However, the top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Arcos Dorados (ARCO) Q4 Earnings Up Y/Y, Revenues Top Estimates
Arcos Dorados Holdings Inc. (ARCO - Free Report) reported fourth-quarter 2023 results, with revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company reported increased visit frequency and market share gains, with the Three D’s strategy driving sustainable sales growth supported by restaurant volume and average checks. Also, it reported benefits from the expansion of Digital channels facilitated by a mobile app, growing Delivery sales and the implementation of self-order kiosks.
The company emphasizes accelerating restaurant openings to seize growth opportunities while maintaining operations and community support.
Delving Deeper
During the fourth quarter, the company reported adjusted earnings per share (EPS) of 27 cents. The top line rose 3.8% year over year from 26 cents reported in the year-ago quarter.
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, the company reported revenues of approximately $1.2 billion, beating the consensus mark of $1.16 billion. The top line increased 15.4% on a year-over-year basis. The upside was primarily driven by the solid execution of Three D’s Strategy (comprising Digital, Delivery and Drive-thru), On-premise sales growth and expanding penetration of digital channels.
During the quarter, On-premise sales (including front counter, dessert centers and McCafe) increased 14% (in US dollars) year over year. Off-premise channels (Delivery and Drive-thru) increased 16% (in US dollar sales) versus the prior year’s figure. Digital channel sales during the quarter increased 39% year over year (to over $800 million) and contributed 53% to the company’s systemwide sales.
During the fourth quarter, comparable restaurant sales increased 32.4% year over year.
Operating Highlights
During the fourth quarter, operating income amounted to $81.8 million compared with $81.5 million reported in the prior-year quarter.
During the quarter, food and paper costs came in at $396.1 million compared with $346.5 million reported in the prior-year quarter. General and administrative expenses in the fourth quarter came in at $82.1 million compared with $70.1 million in the prior-year period.
Adjusted EBITDA in the fourth quarter came in at $132.6 million compared with $114.1 million reported in the prior-year quarter.
Balance Sheet
Total cash and cash equivalents as of Dec 31, 2023, totaled $224 million compared with $304.4 million on Dec 31, 2022.
Total debt as of Dec 31, 2023, came in at $695.5 million compared with $674.4 million as of Dec 31, 2022.
2023 Highlights
Total revenues in 2023 amounted to $4.3 billion, up 19.7% (in US dollars versus 2022) year over year.
Adjusted EBITDA during the year came in at $472.3 million, up 22.2% (in US dollars) year over year.
In 2023, Net income per share came in at 86 cents compared with 67 cents reported in the previous year.
Store Developments
During the fourth quarter, the company opened 36 restaurants, including 18 restaurants in Brazil and 31 free-standing units. In 2024, the company emphasized opening 80 to 90 new restaurants.
Zacks Rank
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.
Recent Retail-Wholesale Releases
McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 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, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% year over year.
Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. The top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns and continued digital and delivery growth.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago.
Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 21% year over year. The upside can be attributed to net new unit contribution (12%) and same-store sales growth (4%).
Brinker International, Inc. (EAT - Free Report) reported mixed second-quarter fiscal 2024 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. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic bode well.
During the quarter, EAT reported adjusted EPS of 99 cents, surpassing the Zacks Consensus Estimate of a loss of $1.47. The company reported adjusted EPS of 76 cents in the prior-year quarter.
Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. However, the top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.