Arcos Dorados Holdings Inc. ( ARCO ) shares are trading lower on Wednesday.

The company reported fourth earnings per share of 26 cents, which missed the street view of 31 cents. 

Quarterly sales of 1.176 billion outpaced the analyst consensus of $1.150 billion. Sales rose 15.4% year over year.

Systemwide comparable sales increased 32.4%, with higher guest traffic and average check driving at or above-inflation growth in all divisions.

Consolidated adjusted EBITDA reached $132.6 million, the company’s highest quarterly result, rising 16.3% year over year.

Consolidated Adjusted EBITDA margin was 11.3%, rising 10 basis points year over year.

Arcos Dorados ( ARCO ) opened 36 restaurants in the quarter, including 31 free-standings locations and 18 new restaurants in Brazil.

“We are just getting started with the Three D’s strategy driving sustainable sales growth, supported by restaurant volume and average check,” said CEO Marcelo Rabach. 

“Our objective is to deliver above inflation growth in systemwide comparable sales to then drive operating leverage and profitability growth over time,” Rabach added.

Arcos Dorados ( ARCO ) plans to open 80 to 90 restaurants in 2024, comprised of about 90% free-standing units. 

The company projects total capital expenditures of $300 million to $350 million for the full year 2024.

ARCO Price Action: Arcos Dorados ( ARCO ) shares are trading lower by 4.81% to $11.38 on last check Wednesday.

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