Arcos Dorados (US:ARCO) ZACKSยท2025-08-13 13:26Company Performance - Arcos Dorados reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $0.13 per share a year ago, representing an earnings surprise of +120.00% [1] - The company posted revenues of $1.14 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.67% and up from $1.11 billion year-over-year [2] - Over the last four quarters, Arcos Dorados has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - The stock has underperformed the market, losing about 4.5% since the beginning of the year compared to the S&P 500's gain of 9.6% [3] - The current consensus EPS estimate for the coming quarter is $0.17 on revenues of $1.2 billion, and for the current fiscal year, it is $0.62 on revenues of $4.64 billion [7] - The estimate revisions trend for Arcos Dorados was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Retail - Restaurants industry, to which Arcos Dorados belongs, is currently in the bottom 25% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]