Overview

* Arcos Dorados ( ARCO ) Q3 revenue misses analyst expectations, reaching $1.2 bln

* Net income for Q3 beats estimates, aided by a federal tax credit in Brazil

* Adjusted EBITDA for Q3 exceeds estimates, reflecting operational efficiencies

Outlook

* Company did not provide specific guidance for future quarters or full year

Result Drivers

* DIGITAL SALES - Digital channels, including Mobile App and Delivery, contributed 61% of systemwide sales, growing 11.2% year-over-year

* TAX CREDIT IMPACT - Federal tax credit in Brazil provided a $125.2 mln net benefit, positively affecting net income and adjusted EBITDA

* OPERATIONAL EFFICIENCIES - Efficiencies in payroll and occupancy expenses contributed to improved adjusted EBITDA margin

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $1.20 $1.22

Revenue bln bln (3

Analysts

)

Q3 Net Beat $150.40 $22.50

Income mln mln (2

Analysts

)

Q3 Beat $201.10 $118.98

Adjusted mln mln (3

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for Arcos Dorados Holdings Inc ( ARCO ) is $9.50, about 24.1% above its November 11 closing price of $7.21

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)