Financial Performance - Total revenues for the nine-month period ended September 30, 2024, increased to $3,325,942, up 5.4% from $3,156,423 in 2023[10] - Net income attributable to Arcos Dorados Holdings Inc. for the same period was $90,355, a decrease of 28.1% compared to $125,496 in 2023[10] - Basic and diluted net income per common share attributable to Arcos Dorados Holdings Inc. was $0.43, down from $0.60 in 2023[10] - Total operating costs and expenses rose to $3,104,347, an increase of 6.2% from $2,924,171 in 2023[10] - Comprehensive income attributable to Arcos Dorados Holdings Inc. was $47,479, significantly lower than $158,135 in 2023[13] - Adjusted EBITDA for the same period was $352,716, up from $339,680 in 2023, reflecting a growth of 3.05%[94] Cash Flow and Liquidity - Cash and cash equivalents decreased to $115,908 as of September 30, 2024, from $196,661 at the end of 2023[16] - Net cash provided by operating activities for the nine-month period was $159,794, down from $232,277 in 2023[18] - The company maintained a provision for contingencies of $36,151 as of September 30, 2024, down from $50,619 at the end of 2023[87] - The fair value of cash equivalents as of September 30, 2024, was $57,381,000, compared to $113,726,000 at December 31, 2023, reflecting a decrease of 49.5%[121] Assets and Liabilities - Total assets decreased to $2,961,117 as of September 30, 2024, from $3,019,238 at the end of 2023[16] - Total liabilities decreased to $2,447,643 as of September 30, 2024, from $2,502,399 at the end of 2023[16] - The company reported a retained earnings balance of $510,410 thousand at the end of the period, up from $424,936 thousand at the beginning of the fiscal year[23] - Long-term debt totaled $719,307 thousand as of September 30, 2024, slightly up from $714,841 thousand as of December 31, 2023, reflecting a marginal increase of approximately 0.65%[53] Shareholder Information - The company declared cash dividends of $0.19 per share, totaling $40,022 thousand to shareholders during the nine-month period[23] - The company plans to distribute a cash dividend of $0.24 per share in four installments throughout 2024, with $37,917 paid as of September 30, 2024[104] - As of September 30, 2023, total shareholders' equity amounted to $442,681 thousand, reflecting an increase from $441,763 thousand at the beginning of the fiscal year[23] Market Presence and Operations - The company operates and franchises McDonald's restaurants across 20 territories in Latin America and the Caribbean, indicating a strong market presence[27] - The company plans to finalize a new 20-year Master Franchise Agreement with McDonald's Corporation, effective January 1, 2025, which will enhance its operational framework[26] - The company plans to open at least 200 new restaurants and modernize at least 400 restaurants, with capital expenditures of approximately $650 million from 2022 to 2024[80] Foreign Currency and Derivatives - The company reported a foreign currency translation loss of $51,044 for the nine-month period ended September 30, 2024[13] - The Company has implemented measures to mitigate foreign currency fluctuations through various derivative instruments, including cross-currency interest rate swaps and foreign currency forwards[56] - The total fair value of derivative instruments was $70,176,000, compared to $46,605,000 as of December 31, 2023, representing a significant increase[58] Debt and Financing - The Company renewed its revolving credit facility with J.P. Morgan for $25 million, maturing on February 17, 2026, and signed additional revolving credit facilities totaling $50 million with Itaú Unibanco S.A. and Banco Santander (Brasil) S.A.[47] - The net indebtedness to EBITDA ratio was reported at 1.23x as of September 30, 2024, well below the covenant requirement of 3.00x[49] - The maximum leverage ratio required by the banks was 4.25, while the actual ratios were significantly lower at 0.27 for Itaú and 0.46 for both Credit Suisse and J.P. Morgan as of September 30, 2024[85] Other Comprehensive Income - The company reported a net current-period other comprehensive loss of $42,876,000 for the nine-month period ended September 30, 2024[106] - As of September 30, 2024, total accumulated other comprehensive loss was $605,957,000, compared to $563,081,000 at December 31, 2023, indicating an increase of 7.6%[106] Expenses - For the nine-month period ended September 30, 2024, food and paper expenses amounted to $255,469,000, an increase of 9.7% from $232,755,000 in 2023[110] - The company reported property and equipment expenditures of $239,169 for the nine-month period, compared to $227,753 in 2023, indicating an increase of 5.88%[96]

Arcos Dorados Holdings Inc. (ARCO) is scheduled to report third-quarter 2024 results on Nov. 13.ARCO’s Q3 EstimatesThe Zacks Consensus Estimate for earnings is pegged at 16 cents per share, down 46.7% year over year. In the past 30 days, earnings estimates have remained stable. The consensus mark for revenues is pegged at $1.11 billion, down 0.4% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Factors to Note Ahead of ARCO’s Q3 ReleaseArcos Dorados’ upcoming quarterly r ...

Core Viewpoint - Arcos Dorados stock is considered a bargain due to fast growth, a low valuation, and an unchanged royalty rate following the renewal of its master franchise agreement with McDonald's [1][2]. Group 1: Master Franchise Agreement Renewal - Arcos Dorados has replaced its existing master franchise agreement with a new 20-year agreement effective January 1, 2025 [2]. - The new agreement stipulates a royalty payment of 6% of gross sales for the first 10 years, increasing to 6.25% for years 11-15, and 6.5% for years 16-20 [2][3]. - The royalty rate will remain unchanged at 6% until 2034, providing stability for the company's profit margins despite potential sales growth [2]. Group 2: Growth Potential - Management believes there are significant growth opportunities in the 20 countries and territories where Arcos Dorados operates, including plans to open approximately 90 to 100 new restaurants in 2025 [3]. - Analysts project a 16% annualized earnings growth for Arcos Dorados over the next five years, supported by the new master franchise agreement [4]. Group 3: Valuation Metrics - The stock is currently valued at less than 11 times its trailing-12-month earnings, indicating a cheap valuation [4]. - The company has a PEG ratio of only 0.7, suggesting that the stock is undervalued relative to its expected growth [4].

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions [1] Company Summaries - **Arcos Dorados Holdings Inc. (ARCO)**: This company, a franchisee of McDonald's, has seen its current year earnings estimate revised downward by 10% over the last 60 days [1] - **BM Technologies, Inc. (BMTX)**: A financial technology firm, BM Technologies has experienced a significant downward revision of 132.1% in its current year earnings estimate over the past 60 days [1] - **Bio-Techne Corporation (TECH)**: This life sciences and diagnostics company has had its current year earnings estimate revised downward by 9.2% in the last 60 days [1]

Arcos Dorados Holdings Inc. (ARCO) reported second-quarter 2024 results, wherein earnings came in line with the Zacks Consensus Estimate while revenues surpassed the same. The top line beat the estimate for the fourth straight quarter. The company’s shares declined 4.7% on Aug 15 following the results.Delving DeeperARCO reported adjusted earnings per share (EPS) of 13 cents in the second quarter. The metric remained flat year over year.It reported quarterly revenues of $1,110.9 million, beating the consensu ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Arcos Dorados Holdings Inc. (ARCO) is a franchisee of McDonald’s restaurants. The Zacks Consensus Estimate for its current year earnings has been 13.5% downward over the last 60 days.CONMED Corporation (CNMD) is a medical technology company that sells surgical devices. The Zacks Consensus Estimate for its current year earnings has been revised 7.2% downward over the last 60 days.CVS Health Corporation (CVS) is a provider of healthcare ...

Arcos Dorados TodayARCOArcos Dorados$10.04 -0.06 (-0.59%) 52-Week Range$8.59▼$13.20Dividend Yield2.39%P/E Ratio12.40Price Target$15.00Add to WatchlistThere are many reasons to buy Arcos Dorados NYSE: ARCO, but they center on the company’s leadership in the Latin American QSR industry and its growing moat. Arcos Dorados is the largest independent McDonald’s NYSE: MCD franchisee. It is not without competition, but it has a moat. Not only is the QSR industry under-represented in Latin America, but existing mar ...

Arcos Dorados Holdings Inc. (NYSE:ARCO) Q2 2024 Earnings Conference Call August 14, 2024 10:00 AM ET Company Participants Dan Schleiniger - Investor Relations Marcelo Rabach - Chief Executive Officer Luis Raganato - Chief Operating Officer Mariano Tannenbaum - Chief Financial Officer Dan Schleiniger Good morning, everyone, and thank you for joining our Second Quarter 2024 Earnings Webcast. With us today are Marcelo Rabach, our Chief Executive Officer; Luis Raganato, our Chief Operating Officer; and Mariano ...

Arcos Dorados 2 nd Quarter 2024 Results August 14, 2024 ARCO LISTED NYSE Disclaimer This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. Forward-looking statements can be identified by terminology such as "may," "will," "would," "could," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" or the negative of these terms or other similar expressions ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August, 2024 Commission File Number: 001-35129 Arcos Dorados Holdings Inc. (Exact name of registrant as specified in its charter) Río Negro 1338, First Floor Montevideo, Uruguay, 11100 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports ...