From Yahoo Finance: 2025-05-14 14:51:00

Arcos Dorados Holdings Inc. (NYSE: ARCO) shares are down after reporting first-quarter results. Earnings per share were 7 cents, missing estimates, with sales of $1.08 billion. Total revenues grew by 14.1% in constant currency, supported by a 11.1% increase in systemwide comparable sales.

Digital sales rose by 6.3%, with close to 19 million monthly app users. Adjusted EBITDA for the quarter fell by 16.2% to $91.3 million, with a margin contraction to 8.5%. The Loyalty Program reached 18.8 million members, boosting frequency and check averages.

Consolidated profitability declined due to weaker currencies and margin pressures in Brazil. Net income margin attributable to the company was 1.3% lower than in the first quarter of 2024. CEO Marcelo Rabach noted off-premise channels generated 43% of total sales.

Arcos Dorados added 12 new restaurants in the first quarter and plans to open 90 to 100 more this year. Stock is down 6.13% to $7.660. The company aims to accelerate openings to meet full-year targets.

Read more: Why Is McDonald’s Franchisee Arcos Dorados Stock Falling On Wednesday?