Overview

* Arcos Dorados Q2 2025 rev rises 2.8% to $1.14 bln, meeting analyst expectations

* Adjusted EBITDA for Q2 beats analyst estimates, despite margin pressure in Brazil

* Systemwide comparable sales grew 12.1% yr/yr, driven by NOLAD and SLAD regions

* Co opened 20 new EOTF restaurants, expanding its footprint in Latin America

Outlook

* Company aims to expand Loyalty Program to all main markets by year-end 2025

* Arcos Dorados ( ARCO ) plans to open more EOTF restaurants in new markets

Result Drivers

* COMPARABLE SALES - Systemwide comparable sales grew 12.1% yr/yr, driven by strong performance in NOLAD and SLAD regions

* DIGITAL CHANNELS - Digital channel sales rose 7.9% yr/yr, contributing over 60% of total systemwide sales

* LOYALTY PROGRAM - Loyalty Program reached 21.5 mln registered members, enhancing guest visit frequency

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 In-line $1.14 $1.14

Revenue bln bln (4

Analysts

)

Q2 Net Beat $22.60 $14 mln

Income mln (3

Analysts

)

Q2 Beat $110.10 $95 mln

Adjusted mln (3

EBITDA Analysts

)

Q2 Basic Beat $0.11 $0.08 (3

EPS 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 $10.00, about 30.5% above its August 12 closing price of $6.95

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

Press Release:

(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.)