Arcos Dorados Holdings Inc. ( ARCO ) shares are trading lower in the morning session on Wednesday.

The company reported total revenues of $1.081 billion in the first quarter, up 9.1% versus the prior year. Quarterly sales marginally beat the analyst consensus of $1.020 billion.

Systemwide comparable sales grew 38.6% in the first quarter, supported by the twelfth consecutive quarter of guest volume growth. Digital channels (Mobile App, Delivery, and Self-order Kiosks) generated 55% of systemwide sales in the period, including 22% identified sales.

Consolidated Adjusted EBITDA in the quarter under review was $108.9 million, rising 8.4% year-over-year. Adjusted EBITDA margin expanded 90 basis points in Brazil and 30 basis points in NOLAD.

Arcos Dorados reported first-quarter earnings per share of 14 cents, missing the street view of 17 cents.

“By operating responsibly and managing the business with a long-term mindset, we built our strongest ever Brand reputation among Latin America’s quick service restaurant (QSR) customers,” said Marcelo Rabach, Chief Executive Officer.

Notably, in the first quarter of 2024, the company signed an agreement to become a regional sponsor of Formula One in Latin America. 

“This agreement is expected to provide significant brand presence and the sponsorship will focus on further leveraging the company’s successful Three-D’s strategy, especially the Drive-thru segment with its precision, teamwork and speed of service,” the company said.

Price Action: ARCO shares are trading lower by 2.59% to $10.92 at last check Wednesday.