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

Arcos Dormos Holdings Inc. (NYSE: ARCO) Low shares are traded on Wednesday after the company reported the results of the first quarter. ARCOS DORADOS Holdings is a Master Franching for the McDonald Restaurant Series in 20 countries and regions across Latin America and the Caribbean Sea region.

Arcos reported profits per share of 7 cents, and the street view was lost 13 cents. The quarterly sales of $ 1.08 billion (fixed year) exceeded the estimation of the consensus of the analyst of $ 1.05 billion.

The total revenue grew by 14.1 % in the fixed currency, with the support of comparable sales of 11.1 %.

Digital sales increased by 6.3 % in this period, and to help approximately 19 million average monthly users for the mobile phone application. Digital channels were born approximately 60 % of the system sales in the quarter.

Also read: McDonald’s launches a huge summer recruitment campaign for 375,000 workers amid US expansion plans and sales decline

The upgraded EBITDA of the quarter decreased by 16.2 % year on an annual basis to $ 91.3 million in the quarter in the review. EBITDA margin amended to 8.5 % of 10.1 %.

The loyalty program reached 18.8 million registered members at the end of the quarter, which supports increased frequency and average average in the available markets.

Uniform profitability decreased compared to last year due to the weakest local currencies and margin pressures in Brazil.

The clear income margin that attributed to the company was 1.3 %, or 130 lower basis points, compared to the first quarter of 2024.

The CEO said: “Even as consumers retreated to eating outside the home during this quarter, the channels remained out of their scope, which led to the generation of about 43 % of the total regime sales in the quarter,” said CEO. Marcelo Rabash.

ARCOS DORADOS 12 added a new EOTF restaurant to the company’s fingerprint, including 10 free menu units, in the first quarter of 2025.

The company said that it plans to accelerate the frequency of openings with the progress of the year to meet its instructions in the entire year from 90 to 100 new restaurants.

Price work: ARCO shares are trading by 6.13 % to $ 7.660 in the last selection on Wednesday.

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This article, why will the arrow of the McDonalds Arkos Dorados franchise fall on Wednesday? He originally appeared on Benzinga.com

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