ARCO

Here is how Arcos Dorados (ARCO) and Maplebear (CART) have performed compared to their sector so far this year.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

MONTEVIDEO, Uruguay--(BUSINESS WIRE)--Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”) today announced its intent to redeem all of its outstanding 6.125% sustainability-linked senior notes due 2029 (the “Notes”). A notice of redemption will be sent to the holders of the Notes in accordance with the requirements of the indenture governing the Notes (the “Indenture”). Pursuant to the terms of the Indenture, the Notes will be redeemed at a redemption price equal to 103.0.

Here is how Arcos Dorados (ARCO) and Five Below (FIVE) have performed compared to their sector so far this year.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Arcos Dorados, McDonald's main franchisee in Latin America, delivered a notably strong Q1, with EPS more than doubling year-over-year. Q1 revenue grew 12%, aided by market share gains and new store openings, but some of this gain came from currency effects as well. Despite recent improvements, ARCO's long-term revenue growth has lagged inflation, and its heavy exposure to volatile Brazil and Argentina remains a concern.

Arcos Dorados reported strong 1Q26 headline results, but underlying fundamentals remain pressured by local inflation and currency effects. ARCO's apparent revenue and EBITDA growth are largely driven by currency appreciation and inflation, not genuine business improvement. Adjusted EBITDA was boosted by non-recurring gains, while comparable sales likely declined on an inflation-adjusted basis in key regions.

Arcos Dorados Holdings Inc. (ARCO) Q1 2026 Earnings Call Transcript

Arcos Dorados NYSE: ARCO reported a stronger first quarter of 2026, with management saying revenue, adjusted EBITDA and cash flow improved despite a challenging consumer environment in parts of Latin America.

Arcos Dorados (ARCO) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.07 per share a year ago.