HomeMost PopularInvestingArcos Dorados Prepares for Q3 Earnings: What to Expect

Arcos Dorados Prepares for Q3 Earnings: What to Expect

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As the anticipated reporting date of Arcos Dorados Holdings Inc. (ARCO) for the third quarter of 2023 approaches on Nov 16, analysts and investors are eager to gain insight into the company’s performance. This comes on the heels of the last quarter where earnings aligned with the Zacks Consensus Estimate.

Q3 Estimates

The Zacks Consensus Estimate projects earnings of 20 cents per share, signaling a 13% decrease year over year. Over the past 60 days, the earnings estimate has remained stable. Furthermore, market consensus for revenues sits at $1.07 billion, reflecting a robust 16.9% increase from the previous year.

Key Factors

Arcos Dorados’ third-quarter performance is expected to be steered by a surge in comparable sales, amplified guest traffic, successful new restaurant launches, and a significant uptick in on-premise sales. The company foresees a boost from robust digital sales. However, headwinds are anticipated from an inflationary environment, elevated Food & Paper costs, and payroll expenses.

Forecast and Our Model’s Perspective

Despite the positive aspects influencing the financials, our proven model does not definitively predict an earnings beat for Arcos Dorados this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) typically increases the odds of an earnings beat. Currently, Arcos Dorados holds an Earnings ESP of 0.00% and a Zacks Rank #3.

Promising Stocks in the Same Space

Amidst the anticipated earnings season, certain stocks have caught the eye of our model for their potential to outperform. Names such as Costco (COST), Ross Stores (ROST), and Walmart (WMT) have been identified to have the right combination of elements to potentially achieve an earnings beat this quarter.

It is crucial to keep track of upcoming earnings announcements to stay ahead in the dynamic market.

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