Arcos Dorados Reports Strong Q1 Earnings with 12% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
Source: seekingalpha
- Earnings Performance: Arcos Dorados Holdings Inc. reported a GAAP EPS of $0.17 for Q1, indicating stable profitability and reflecting the company's competitive position in the market.
- Revenue Growth: The company achieved revenue of $1.21 billion in Q1, marking a 12.0% year-over-year increase, which complements its strong market share performance and demonstrates the effectiveness of its business model.
- Sales Increase: Systemwide comparable sales rose by 16.0% in the first quarter, significantly supporting the company's market share performance across various business segments, further solidifying its market position.
- EBITDA Growth: Consolidated Adjusted EBITDA for Q1 reached $118.0 million, up 29.3% year-over-year, representing the company's highest first-quarter performance, with EBITDA margin expanding by 120 basis points to 9.7%.
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Analyst Views on ARCO
Wall Street analysts forecast ARCO stock price to fall
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 8.870
Low
8.50
Averages
8.50
High
8.50
Current: 8.870
Low
8.50
Averages
8.50
High
8.50
About ARCO
Arcos Dorados Holdings Inc. is a McDonald's franchisee. The Company operates or franchises over 2,140 McDonald's-branded restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the United States Virgin Islands of Saint Croix and Saint Thomas, and Venezuela; the North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and the South Latin America division (SLAD), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Its menus feature over three tiers of products: entry-level options, such as its Big Pleasures, Small Prices offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Arcos Dorados (ARCO) Q1 2026 Earnings Transcript
See More
Arcos Dorados Reports Strong Q1 Earnings with 12% Revenue Growth
- Earnings Performance: Arcos Dorados Holdings Inc. reported a GAAP EPS of $0.17 for Q1, indicating stable profitability and reflecting the company's competitive position in the market.
- Revenue Growth: The company achieved revenue of $1.21 billion in Q1, marking a 12.0% year-over-year increase, which complements its strong market share performance and demonstrates the effectiveness of its business model.
- Sales Increase: Systemwide comparable sales rose by 16.0% in the first quarter, significantly supporting the company's market share performance across various business segments, further solidifying its market position.
- EBITDA Growth: Consolidated Adjusted EBITDA for Q1 reached $118.0 million, up 29.3% year-over-year, representing the company's highest first-quarter performance, with EBITDA margin expanding by 120 basis points to 9.7%.
See More
Arcos Dorados to Announce Q1 Earnings on May 20
- Earnings Announcement Schedule: Arcos Dorados Holdings Inc. is set to release its Q1 2023 earnings report on May 20 before the market opens, with a consensus EPS estimate of $0.12, reflecting a significant year-over-year increase of 71.4%, indicating strong profitability.
- Revenue Growth Expectations: The revenue for Q1 is projected to reach $1.21 billion, representing a 12.0% year-over-year growth, showcasing robust sales performance in the Latin American market, which may further solidify the company's market leadership.
- Historical Performance Review: Over the past year, Arcos Dorados has exceeded EPS and revenue estimates 75% of the time, demonstrating stability in financial performance and effective management capabilities.
- Market Attention: As the earnings report approaches, investor interest in Arcos Dorados is rising, with analysts generally optimistic about its future growth potential, which could influence its stock price movements.
See More
Nvidia Earnings Week Approaches, Market Anticipates Key Insights
- Nvidia Earnings Expectations: Nvidia is set to report its Q1 earnings on Wednesday, with revenue anticipated at $78.67 billion and EPS of $1.76, as analysts look for results that exceed expectations to boost stock prices and alleviate concerns about a slowing investment cycle.
- Home Depot Performance Outlook: Home Depot is expected to see only 0.8% same-store sales growth in Q1, as rising mortgage rates and a challenging economic backdrop lead analysts to predict its full-year guidance will remain flat to 2%, reflecting low market expectations for its performance.
- TJX Companies Performance: TJX anticipates a 4.1% same-store sales growth in Q1, benefiting from consumer demand for quality merchandise at affordable prices, although rising freight costs may impact margins; nonetheless, the company is viewed as a solid long-term investment.
- Google Developer Conference: Google will host its annual developer conference on Tuesday and Wednesday, with analysts warning that a lack of a
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Brightlight Capital Reduces Stake in Hilton Grand Vacations
- Stake Reduction Impact: Brightlight Capital Management disclosed in a February 17, 2026 SEC filing that it reduced its stake in Hilton Grand Vacations by 79,500 shares, resulting in a $2.43 million decrease in quarter-end position value, indicating a cautious outlook on the company's future performance.
- Ownership Ratio Change: Following this transaction, Brightlight's stake in Hilton Grand Vacations now represents 9.65%, which may affect market confidence in the company, especially as its primary revenue source from vacation ownership sales faces challenges.
- Financial Overview: As of February 13, 2026, Hilton Grand Vacations' stock price was $46.22, reflecting a 9.3% increase over the past year, yet underperforming the S&P 500 by 2.5 percentage points, indicating relative weakness in the market that could influence investor decisions.
- Investor Considerations: Hilton Grand Vacations relies heavily on vacation ownership sales and resort operations for revenue; while it has stable recurring income, it still faces consumer credit risk, prompting investors to monitor market demand and credit conditions' impact on sales and profitability.
See More
Brightlight Capital Reduces Stake in Hilton Grand Vacations
- Share Reduction Details: Brightlight Capital Management disclosed in an SEC filing dated February 17, 2026, that it sold 79,500 shares of Hilton Grand Vacations, resulting in a $2.43 million decline in quarter-end position value, reflecting both trading activity and stock price movements.
- Holding Proportion Change: Following this transaction, Brightlight's stake decreased to 303,200 shares valued at $13.57 million, representing 9.65% of its assets under management, which places it outside the fund's top five holdings, indicating a strategic shift in investment focus.
- Market Performance Analysis: As of February 13, 2026, Hilton Grand Vacations' stock was priced at $46.22, up 9.3% over the past year, yet underperformed the S&P 500 by 2.5 percentage points, reflecting a potential decline in market confidence towards the company.
- Business Model and Risks: Hilton Grand Vacations relies on revenue from timeshare sales and club management, with approximately 333,000 members; however, its performance is highly dependent on consumer demand and credit risk, suggesting that economic fluctuations could significantly impact profitability.
See More
Arcos Dorados (ARCO) Q1 2026 Earnings Transcript
See More
Arcos Dorados Reports Strong Q1 Earnings with 12% Revenue Growth
- Earnings Performance: Arcos Dorados Holdings Inc. reported a GAAP EPS of $0.17 for Q1, indicating stable profitability and reflecting the company's competitive position in the market.
- Revenue Growth: The company achieved revenue of $1.21 billion in Q1, marking a 12.0% year-over-year increase, which complements its strong market share performance and demonstrates the effectiveness of its business model.
- Sales Increase: Systemwide comparable sales rose by 16.0% in the first quarter, significantly supporting the company's market share performance across various business segments, further solidifying its market position.
- EBITDA Growth: Consolidated Adjusted EBITDA for Q1 reached $118.0 million, up 29.3% year-over-year, representing the company's highest first-quarter performance, with EBITDA margin expanding by 120 basis points to 9.7%.
See More
Arcos Dorados to Announce Q1 Earnings on May 20
- Earnings Announcement Schedule: Arcos Dorados Holdings Inc. is set to release its Q1 2023 earnings report on May 20 before the market opens, with a consensus EPS estimate of $0.12, reflecting a significant year-over-year increase of 71.4%, indicating strong profitability.
- Revenue Growth Expectations: The revenue for Q1 is projected to reach $1.21 billion, representing a 12.0% year-over-year growth, showcasing robust sales performance in the Latin American market, which may further solidify the company's market leadership.
- Historical Performance Review: Over the past year, Arcos Dorados has exceeded EPS and revenue estimates 75% of the time, demonstrating stability in financial performance and effective management capabilities.
- Market Attention: As the earnings report approaches, investor interest in Arcos Dorados is rising, with analysts generally optimistic about its future growth potential, which could influence its stock price movements.
See More
Nvidia Earnings Week Approaches, Market Anticipates Key Insights
- Nvidia Earnings Expectations: Nvidia is set to report its Q1 earnings on Wednesday, with revenue anticipated at $78.67 billion and EPS of $1.76, as analysts look for results that exceed expectations to boost stock prices and alleviate concerns about a slowing investment cycle.
- Home Depot Performance Outlook: Home Depot is expected to see only 0.8% same-store sales growth in Q1, as rising mortgage rates and a challenging economic backdrop lead analysts to predict its full-year guidance will remain flat to 2%, reflecting low market expectations for its performance.
- TJX Companies Performance: TJX anticipates a 4.1% same-store sales growth in Q1, benefiting from consumer demand for quality merchandise at affordable prices, although rising freight costs may impact margins; nonetheless, the company is viewed as a solid long-term investment.
- Google Developer Conference: Google will host its annual developer conference on Tuesday and Wednesday, with analysts warning that a lack of a
See More
Brightlight Capital Reduces Stake in Hilton Grand Vacations
- Stake Reduction Impact: Brightlight Capital Management disclosed in a February 17, 2026 SEC filing that it reduced its stake in Hilton Grand Vacations by 79,500 shares, resulting in a $2.43 million decrease in quarter-end position value, indicating a cautious outlook on the company's future performance.
- Ownership Ratio Change: Following this transaction, Brightlight's stake in Hilton Grand Vacations now represents 9.65%, which may affect market confidence in the company, especially as its primary revenue source from vacation ownership sales faces challenges.
- Financial Overview: As of February 13, 2026, Hilton Grand Vacations' stock price was $46.22, reflecting a 9.3% increase over the past year, yet underperforming the S&P 500 by 2.5 percentage points, indicating relative weakness in the market that could influence investor decisions.
- Investor Considerations: Hilton Grand Vacations relies heavily on vacation ownership sales and resort operations for revenue; while it has stable recurring income, it still faces consumer credit risk, prompting investors to monitor market demand and credit conditions' impact on sales and profitability.
See More
Brightlight Capital Reduces Stake in Hilton Grand Vacations
- Share Reduction Details: Brightlight Capital Management disclosed in an SEC filing dated February 17, 2026, that it sold 79,500 shares of Hilton Grand Vacations, resulting in a $2.43 million decline in quarter-end position value, reflecting both trading activity and stock price movements.
- Holding Proportion Change: Following this transaction, Brightlight's stake decreased to 303,200 shares valued at $13.57 million, representing 9.65% of its assets under management, which places it outside the fund's top five holdings, indicating a strategic shift in investment focus.
- Market Performance Analysis: As of February 13, 2026, Hilton Grand Vacations' stock was priced at $46.22, up 9.3% over the past year, yet underperformed the S&P 500 by 2.5 percentage points, reflecting a potential decline in market confidence towards the company.
- Business Model and Risks: Hilton Grand Vacations relies on revenue from timeshare sales and club management, with approximately 333,000 members; however, its performance is highly dependent on consumer demand and credit risk, suggesting that economic fluctuations could significantly impact profitability.
See More
