What's Going On With McDonald's Franchisee Arcos Dorados Stock Today?
Portfolio Pulse from Nabaparna Bhattacharya
Arcos Dorados Holdings Inc. (NYSE: ARCO) shares are trading lower despite reporting a 9.1% increase in total revenues for Q1 2024, slightly beating analyst expectations. The company saw a 38.6% growth in systemwide comparable sales and an 8.4% rise in Adjusted EBITDA. However, earnings per share missed estimates, coming in at 14 cents versus the expected 17 cents. Additionally, Arcos Dorados signed a regional sponsorship agreement with Formula One in Latin America.
May 15, 2024 | 3:26 pm
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Arcos Dorados Holdings Inc. reported a 9.1% increase in Q1 2024 revenues and a 38.6% growth in systemwide comparable sales. However, the company's earnings per share missed analyst expectations, leading to a 2.59% drop in share price. The company also announced a new regional sponsorship agreement with Formula One in Latin America.
Despite positive revenue and sales growth, the miss on earnings per share is likely causing the stock to trade lower. The new sponsorship deal with Formula One could have long-term benefits but does not offset the immediate impact of the earnings miss.
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