Arcos Dorados (ARCO) closed the most recent trading day at $12.85, moving -0.93% from the previous trading session. This move lagged the S&P 500's daily gain of 1.07%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq increased by 1.74%.Coming into today, shares of the restaurant owner had gained 8.9% in the past month. In that same time, the Retail-Wholesale sector gained 2.02%, while the S&P 500 gained 2.93%.The upcoming earnings release of Arcos Dorados will be of g ...

Core Insights - Arcos Dorados Holdings, Inc. (ARCO) reported strong systemwide comparable sales growth for Q4 2023 and the full year ending December 31, 2023, driven by its Three D's Strategy of Digital, Delivery, and Drive-thru [1] - The company anticipates opening 80 to 90 Experience of the Future (EOTF) restaurants in 2024, with a focus on free-standing units [4] - Total capital expenditures for 2023 were $350 million, with expectations for 2024 in the range of $300-$350 million [5] Systemwide Comparable Sales - In Q4 2023, systemwide comparable sales increased by 32.4%, down from 35.7% in the same period last year [2] - Brazil's systemwide comparable sales rose by 6.2% year-over-year, compared to a 21.9% increase a year ago [2] - The South Latin American Division (SLAD) saw a significant 94.7% year-over-year increase in systemwide comparable sales, compared to a 75.3% surge last year [3] Digital and Loyalty Program Performance - Digital channels contributed 53% to ARCO's systemwide sales in Q4 2023, with digital sales in constant currency rising by almost 65% [1][3] - The Loyalty Program surpassed three million members by the end of 2023, indicating increased customer engagement [1] Restaurant Openings - In 2023, ARCO opened 81 EOTF restaurants, with 50 located in Brazil [4] - The company plans to continue its expansion with 80 to 90 new openings in 2024, focusing on free-standing units [4] Capital Expenditures - Total capital expenditures for 2023 were $350 million, covering openings, modernizations, and investments in digital platforms [5] - For 2024, ARCO expects capital expenditures between $300-$350 million, funded by available cash and operational cash flow [5] Stock Performance - Arcos Dorados' shares surged by 49.9% over the past year, significantly outperforming the Zacks Retail - Restaurants industry's growth of 1.6% [6]

Core Insights - Arcos Dorados Holdings, Inc. reported strong systemwide comparable sales growth for Q4 and FY 2023, ahead of its earnings announcement scheduled for March 2024 [1] - The company continues to implement its Three D's Strategy (Digital, Delivery, and Drive-thru), which has significantly contributed to sales growth [2] Sales Performance - Systemwide comparable sales grew solidly in Q4, with Brazil experiencing a rebound in November and December after a challenging October [3] - Digital sales increased nearly 65% in constant currency, with Delivery sales up around 50% in Q4 [3] - Loyalty Program membership surpassed three million by the end of 2023, indicating strong customer engagement [2][3] Restaurant Openings and Capital Expenditures - In 2023, the company opened 81 Experience of the Future (EOTF) restaurants, with a focus on free-standing units [4] - For 2024, Arcos Dorados plans to open 80 to 90 EOTF restaurants, with approximately 90% being free-standing units [4] - Total capital expenditures for 2023 were approximately $350 million, in line with guidance, and projected capital expenditures for 2024 are estimated between $300 million and $350 million [4][6] Regional Performance - Brazil's comparable sales growth for FY 2023 was 9.9%, while NOLAD and SLAD regions reported 10.6% and 90.9% growth, respectively [5] - The company’s strong performance in NOLAD was particularly noted in Mexico and the French West Indies, despite challenges in Panama [3] Company Overview - Arcos Dorados is the largest independent McDonald's franchisee globally, operating over 2,300 restaurants across 20 Latin American and Caribbean countries [9] - The company is committed to community development and providing job opportunities for young people [9]

Company Performance - Arcos Dorados (ARCO) closed at $12.90, reflecting a -1.45% change from the previous day, underperforming the S&P 500's daily loss of 0.07% [1] - Over the past month, shares of Arcos Dorados have increased by 2.27%, while the Retail-Wholesale sector gained 1.02% and the S&P 500 rose by 3.05% [1] - The company is expected to report an EPS of $0.25, which is a decrease of 3.85% from the prior-year quarter, while revenue is anticipated to reach $1.16 billion, representing a 14.4% increase compared to the year-ago quarter [1] Analyst Estimates - Recent changes to analyst estimates for Arcos Dorados indicate a positive outlook for the company's business operations and profit generation [2] - The Zacks Rank system currently rates Arcos Dorados as 1 (Strong Buy), which has historically delivered an average annual return of +25% since 1988 [2] - Over the past month, the Zacks Consensus EPS estimate for Arcos Dorados has remained unchanged [2] Valuation Metrics - Arcos Dorados has a Forward P/E ratio of 13.83, which is lower than the industry's average Forward P/E of 19.79, indicating a valuation discount [3] - The company has a PEG ratio of 1.09, compared to the Retail - Restaurants industry's average PEG ratio of 1.84 [3] - The Retail - Restaurants industry, which includes Arcos Dorados, ranks in the top 44% of all industries according to the Zacks Industry Rank [3]

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, January 25:Arcos Dorados Holdings Inc. (ARCO) : This franchisee of McDonald’s restaurants carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days.Arcos Dorados Holdings has a PEG ratio of 1.04 compared with 2.74 for the industry. The company possesses a Growth Score of A.EnerSys (ENS) : This stored energy solutions company ...

The U.S. restaurant industry made a solid turnaround last year after a disappointing 2022 and continued to perform despite inflationary pressures. Sales soared as Americans continued to spend lavishly on eating out, helping the industry recover from the setback during the peak of the COVID-19 pandemic.The Commerce Department reported last week that sales at U.S. bars and restaurants totaled $96.1 billion in December, increasing 8.7% month over month. On a year-over-year basis, restaurant sales jumped a whop ...

The S&P 500 is trading at new highs as Wall Street waits for the tech giants to start reporting their quarterly earnings results and offer insights into the state of the U.S. and global economies in the first quarter of 2024.Some are worried that the rally has been too top-heavy, driven by huge gains from mega-cap tech and the Magnificent 7 alone. Thankfully, far more areas are participating, with eight of the 11 S&P 500 sectors in the green over the last 12 months. Better yet, every sector outside of Energ ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, January 23:Arcos Dorados Holdings Inc. (ARCO) : This McDonald's franchisee company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days.Arcos Dorados Holdings has a PEG ratio of 1.02 compared with 2.68 for the industry. The company possesses a Growth Score of A.EnerSys (ENS) : This energy storage company carries a Zacks ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to fin ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today January 19th:Arcos Dorados (ARCO) : This company which, operates as a franchisee of McDonald's and also runs quick service restaurants in Latin America and the Caribbean, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days.Arcos Dorados has a PEG ratio of 1.01 compared with 2.66 for the industry. The compan ...