Fast-food chain Arcos Dorados (NYSE:ARCO) will be announcing earnings results tomorrow before market open. Here's what to look for.
Last quarter Arcos Dorados reported revenues of $1.13 billion, up 22.1% year on year, beating analyst revenue expectations by 3.4%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue estimates.
Is Arcos Dorados buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Arcos Dorados's revenue to grow 14.9% year on year to $1.17 billion, slowing down from the 30.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.1%.
Looking at Arcos Dorados's peers in the traditional fast food segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Restaurant Brands (NYSE:QSR) delivered top-line growth of 7.8% year on year, beating analyst estimates by 1% and Portillo's reported revenues up 24.5% year on year, exceeding estimates by 2%. Restaurant Brands traded flat on the results, and Portillo's was up 9%.
Read the full analysis of Restaurant Brands's and Portillo's's results on StockStory.
Investors in the traditional fast food segment have had steady hands going into the earnings, with the stocks up on average 0.2% over the last month. Arcos Dorados is down 2.8% during the same time, and is heading into the earnings with analyst price target of $13.9, compared to share price of $11.62.