Arcos Dorados (ARCO) Gears Up for Q2 Earnings: What's in Store?

Core Viewpoint - Arcos Dorados Holdings Inc. (ARCO) is expected to report second-quarter 2024 results on August 14, with earnings estimates showing a decline year over year, while revenue estimates indicate a slight increase [1][2]. Q2 Estimates - The Zacks Consensus Estimate for earnings is 13 cents per share, reflecting a 7.1% decrease year over year [2]. - Revenue estimates are projected at $1.05 billion, which represents a 1.6% increase compared to the previous year [2]. - Earnings estimates have been revised downward by 38.1% in the past 30 days [2]. Factors to Note - The company's revenue growth is likely supported by strong comparable sales, expansion efforts, and robust performance in Brazil and North Latin America [3]. - Positive guest traffic and strong digital sales are anticipated to contribute positively to quarterly results [3]. - Sales growth is driven by effective management of pricing, product mix, and guest volumes, with a focus on maintaining high guest volumes at McDonald's restaurants in the region [3]. - The company faces challenges from an inflationary environment, increased food and paper costs, and higher payroll expenses [3]. What Our Model Says - Current analysis does not predict an earnings beat for Arcos Dorados, as the company has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [4].