ARCO - Arcos Dorados Q1 Earnings Fall Y/Y Sales Top Estimates | Benzinga
Arcos Dorados Holdings Inc. (NYSE: ARCO) reported first-quarter 2024 results, with revenues beating the Zacks Consensus Estimate. The top line increased year-over-year, while the bottom line fell from the prior-year quarter's figure.
During the quarter, the company stated benefits from the integration of the business model with the Three-D's strategy (Digital, Delivery, and Drive-thru). Also, the emphasis on pricing, product assortment and guest traffic management resulted in comparable sales growth exceeding inflation rates across its operations.
Following the results, the company's shares fell 5.7% during trading hours on May 15. Negative investor sentiments were witnessed as the company cited sales pressure in the short term due to the persistent challenging macroeconomic conditions.
Delving Deeper
During the first quarter, the company reported adjusted earnings per share of 14 cents. The bottom line fell 22% year over year from 18 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 $1.08 billion, beating the consensus mark of $1.04 billion. The top line increased 9.1% on a year-over-year basis.
Off-premise sales, including Delivery and Drive-thru, rose 14% (in U.S. dollars), contributing 44% to systemwide sales. On-premise sales rose by 7% year over year and contributed 56% to systemwide sales.
Digital channel sales ...