Arcos Dorados Q3 Earnings and Revenues Surpass Estimates

Core Viewpoint - Arcos Dorados Holdings Inc. (ARCO) reported third-quarter 2024 results with earnings and revenues exceeding expectations, although the bottom line showed a significant decline year over year [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q3 were 17 cents, surpassing the Zacks Consensus Estimate of 16 cents, but down 39.3% from 28 cents in the same quarter last year [2]. - Revenues reached $1.13 billion, beating the consensus mark of $1.09 billion, reflecting a year-over-year increase of 0.8% [2]. Sales and Growth Metrics - Digital channel sales grew by 16% year over year, accounting for 58% of systemwide sales, driven by strong performance in Mobile App and Delivery services, as well as the expansion of the Loyalty Program [3]. - Comparable restaurant sales increased by 32.1% year over year, attributed to a significant rise in guest volume [3]. Operating Highlights - Operating income for the quarter was $79.8 million, down from $91.1 million in the prior-year quarter [4]. - Food and paper costs were reported at $381.2 million, slightly up from $376 million in the previous year [4]. - General and administrative expenses increased to $68.1 million from $67.8 million year over year [4]. EBITDA and Cash Flow - Adjusted EBITDA for Q3 was $125 million, compared to $129.1 million in the same quarter last year [5]. - Total cash and cash equivalents as of September 30, 2024, were $115.9 million, down from $196.7 million at the end of 2023 [6]. - Net debt increased to $598.3 million from $481.3 million at the end of 2023 [6]. Store Developments - The company opened 19 Experience of the Future (EOTF) restaurants during the third quarter, with 11 located in Brazil [7].