- Arcos Dorados ( NYSE: ARCO ) Q3 topline showed 26% growth to $916.34M, beats consensus by $21.49M.
- Systemwide comparable sales grew 34.2% versus the prior year quarter, twice the period’s blended inflation rate, driven by higher guest traffic and market share gains in all divisions.
- Digital channels contributed 42% of systemwide sales, totaling nearly $500M.
- Adjusted EBITDA of $103M rose 15.0%.
- Adjusted EBITDA margin reached 11.2%, with strong profitability in all geographic divisions.
- Net Debt to Adjusted EBITDA leverage ratio improved to 1.0x at the end of Q3.
- Gross restaurant openings reached 15 new units in the quarter, including 14 freestanding units, of which 9 freestanding restaurants were opened in Brazil.
- GAAP EPS of $0.23 beats consensus by $0.11 .
- Also read ' Restaurant spending still looks solid as consumers battle through inflation ' and ' Weekly restaurant survey holds well amid looming uncertainties '
- Stock has a SA rating of Buy ; Wall Street rating of Buy with an average target price of $10.15; Quant rating of Hold with lowest factor grades given to valuation.
- Previously (Nov. 16): Arcos Dorados GAAP EPS of $0.23 beats by $0.11, revenue of $916.34M beats by $21.49M
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Arcos Dorados scales 6% after Q3 top and bottom line beat