Arcos Dorados (US:ARCO) Zacks Investment Researchยท2024-01-30 19:10Core 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]