ARCO Earnings Prediction
The chart below shows how ARCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARCO sees a -3.68% change in stock price 10 days leading up to the earnings, and a -2.39% change 10 days following the report. On the earnings day itself, the stock moves by +1.29%. This data can give you a slight idea of what to expect for the next quarter's release.
ARCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.14B
-2.66%
0.93%
Gross Margin
14.92%
5.52%
19.84%
Operating Margin
9.07%
19.50%
29.20%
Net Margin
5.11%
6.90%
64.31%
EPS
0.28
7.69%
64.71%
No Data Available
ARCO Earnings Analysis
Arcos Dorados Holdings Inc Corporation (ARCO.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Arcos Dorados Holdings Inc. reported an EPS of $0.28, exceeding expectations of $0.22.
Business Resilience and Profitability: The company demonstrated resilience in its business model, showcasing strong sales and profitability despite challenging macroeconomic conditions.
Four D's Strategy Impact: The Four D’s Strategy (Digital, Delivery, Drive-thru, and Development) has leveraged structural competitive advantages, indicating potential for future sales and operational efficiencies.
Strong Balance Sheet Stability: The company has a strong and stable balance sheet with a healthy leverage ratio and no significant debt maturities in the next four years.
Sales Growth Performance: Full-year systemwide comparable sales grew 1.7 times blended inflation, excluding Argentina, indicating robust performance.
Sales Growth Drivers: Growth in average check and guest volumes across all divisions contributed to higher comparable sales.
Average Check Enhancements: Average check improvements were driven by a better product mix, increased items per order, and pricing strategies.
Guest Count Increase: Comp guest counts have risen for the fourth consecutive year, enhancing market share and providing strategic flexibility for 2025.
Negative
Earnings Beat Amid Challenges: Despite beating earnings expectations, the company faced challenges with a more discerning consumer and difficult macroeconomic conditions in key markets.
Sales Growth vs. Inflation: The growth in systemwide comparable sales was only 1.7x blended inflation, indicating that sales growth may not be keeping pace with rising costs.
Average Check Analysis: While average check increased, it was largely due to improved product mix and pricing, which may not be sustainable in the long term.
Financial Stability Concerns: The company highlighted a stable balance sheet, but the mention of no significant debt maturities does not address potential future financial pressures or market volatility.
Strategic Innovation Necessity: The reliance on the Four D’s Strategy (Digital, Delivery, Drive-thru, Development) suggests that the company may be facing competitive pressures that require constant innovation and adaptation.
ARCO FAQs
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ARCO Earning Call Sentiment
Arcos Dorados Holdings Inc. (NYSE:ARCO) Q4 2024 Earnings Call Transcript
ARCO.N
-1.1%Positive
The earnings call reveals strong financial performance with EPS exceeding expectations, a robust balance sheet, and increased market share. The Q&A section indicates management's confidence in handling challenges like beef cost pressures. The share buyback program and high profitability outlook further enhance sentiment. Despite some competitive pressures, the overall strategy and financial health suggest a positive stock price movement, especially given the company's market cap, which indicates moderate sensitivity to news.
