Arcos Dorados (US:ARCO) ZACKSยท2024-08-16 13:50Core Insights - Arcos Dorados Holdings Inc. (ARCO) reported second-quarter 2024 results with earnings in line with estimates and revenues surpassing expectations for the fourth consecutive quarter [1][2] - The company's shares declined by 4.7% following the results announcement on August 15 [1] Financial Performance - Adjusted earnings per share (EPS) for the second quarter were 13 cents, remaining flat year over year [2] - Quarterly revenues reached $1,110.9 million, exceeding the consensus estimate of $1,056 million, and reflecting a year-over-year increase of 6.8% [2] - Systemwide comparable sales improved by 40.8% year over year, driven by increased guest traffic and effective omnichannel strategies [2] Operating Metrics - Operating income for the second quarter was $74.2 million, slightly down from $74.9 million in the prior-year quarter [3] - Food and paper costs increased to $372.9 million from $351.7 million year over year [3] - General and administrative expenses rose to $73 million compared to $69.5 million in the previous year [3] - Adjusted EBITDA was reported at $118.8 million, up from $110.1 million in the prior-year quarter [3] Balance Sheet Overview - As of June 30, 2024, cash and cash equivalents totaled $104.2 million, down from $196.7 million on December 31, 2023 [4] - Total financial debt decreased slightly to $724.6 million from $729.8 million as of December 31, 2023 [4] Expansion Initiatives - In the first half of 2024, the company launched 37 Experience of the Future (EOTF) restaurants, with 34 being free-standing locations [5] - In Brazil, the largest market, 21 EOTF restaurants were introduced, including 20 new free-standing units [5]