Arcos Dorados Q2 Results Exceed Expectations with 12.1% Systemwide Comparable Sales Growth.

Arcos Dorados reported Q2 EPS of 11 cents, beating consensus of 7 cents. Revenue was $1.1B, slightly below consensus of $1.14B. Systemwide comparable sales grew 12.1%. The company attributed its strong results to the strength of its business model and its ability to stay true to its purpose of feeding people and building dreams.

Arcos Dorados Holdings Inc. (ARCO) reported its second-quarter (Q2) 2025 financial results, demonstrating robust earnings and revenue growth. The company's earnings per share (EPS) came in at $0.11, surpassing the Zacks Consensus Estimate of $0.05 per share [1][2]. This marks a significant improvement from the same period last year when EPS was $0.13 per share, adjusted for non-recurring items.

Revenue for the quarter totaled $1.1 billion, slightly below the Zacks Consensus Estimate of $1.14 billion but still representing a 1.67% increase over the same period last year. The company's systemwide comparable sales grew by 12.1% year-over-year, driven primarily by digital channel sales, which rose 7.9% year-over-year in US dollars and contributed more than 60% of total systemwide sales [3].

Arcos Dorados attributed its strong results to the resilience of its business model and its commitment to its purpose of feeding people and building dreams. The company's digital channels, including its Mobile App, Delivery, and Self-order Kiosks, have proven to be particularly effective in driving sales growth.

The company also highlighted the strength of its loyalty program, which had 21.5 million registered members at the end of the second quarter of 2025, across six available markets.

Consolidated Adjusted EBITDA for the quarter was $110.1 million, and net income was $22.6 million, or $0.11 per share. The net debt to Adjusted EBITDA leverage ratio was a comfortable 1.4x as of June 30, 2025, which was among the factors cited in S&P’s ‘BBB-’ investment grade rating of Arcos Dorados debt.

Looking ahead, investors will be closely watching the company's earnings outlook and how management's commentary on the earnings call influences stock performance. The current consensus EPS estimate is $0.17 on $1.2 billion in revenues for the coming quarter and $0.62 on $4.64 billion in revenues for the current fiscal year.

References:
[1] https://finance.yahoo.com/news/arcos-dorados-arco-tops-q2-122501271.html
[2] https://www.nasdaq.com/articles/arcos-dorados-arco-tops-q2-earnings-and-revenue-estimates
[3] https://www.businesswire.com/news/home/20250813357666/en/Arcos-Dorados-Reports-Second-Quarter-2025-Financial-Results