Arcos Dorados Holdings Inc. reported Q1 2026 earnings per share (EPS) of $0.17, surpassing the forecast of $0.13 by 30.77%. Revenue came in at $1.2 billion, slightly below the $1.23 billion estimate. Despite this, the stock surged 7.81% pre-market to $8.70, reflecting strong investor confidence.
The company achieved record Q1 revenue of over $1.2 billion, driven by 16% system-wide comparable sales growth, mainly from higher average checks. Adjusted EBITDA reached $118-119 million, up 30% year-over-year, highlighting successful margin expansion strategies in Brazil.
Management provided guidance with EPS forecasts of $0.07 for Q2 and Q3, and $0.1 for Q4 2026. Full-year 2026 revenue is projected at $5.2 billion, with 2027 at $5.5 billion, indicating a positive long-term outlook.
The stock price action aligns with its 52-week high of $9.75, underscoring market optimism. Executives emphasized cost management and operational efficiency as key drivers.
