What caused ARCO's earnings to decline in Q4 2024?

Arcos Dorados' earnings declined in Q4 2024 due to a combination of factors: 1. **Revenue Miss**: The company's revenue fell by 2.7% year-on-year to $1.14 billion, missing Wall Street's revenue expectations by $10 million. This decline in revenue contributed to the overall earnings decline. 2. **Currency Impact**: The depreciation of key currencies like the Brazilian real and Mexican peso negatively affected US dollar revenue growth. This currency-related impact likely pressured margins and profitability. 3. **Macroeconomic Challenges**: Macroeconomic challenges in regions like NOLAD and SLAD led to tighter margins despite overall positive performance. These challenges could have resulted in reduced customer spending and increased costs, impacting earnings. In summary, Arcos Dorados' Q4 2024 earnings decline was likely a result of a combination of revenue missing expectations, currency impact and macroeconomic challenges. |code|Ticker|Name|Date|Net Income|market_code| |---|---|---|---|---|---| |ARCO|ARCO.N|Arcos Dorados|2024 Q1|2.8792E7|169| |ARCO|ARCO.N|Arcos Dorados|2024 Q2|2.6775E7|169| |ARCO|ARCO.N|Arcos Dorados|2024 Q3|3.529E7|169| |ARCO|ARCO.N|Arcos Dorados|2024 Q4|5.8522E7|169|