Arcos Dorados Holdings Inc. (NYSE:ARCO) shares are trading lower on Wednesday.
The company reported earnings per share of 17 cents, beating the street view of 16 cents. Quarterly revenues of $1.133 billion outpaced the analyst consensus estimate of $1.120 billion.
Arcos Dorados reported strong third-quarter results, with systemwide comparable sales growing 32.1%, fueled by both higher average check amounts and increased guest volume. Digital channel sales, including those from the Mobile App, Delivery, and Self-order Kiosks, rose 16% compared to the prior year and now account for 58% of total systemwide sales.
The company's Loyalty Program, now active in three markets, saw significant growth, reaching 12.9 million registered members. Consolidated adjusted EBITDA for the quarter was $125.0 million, reflecting an 11.0% margin.
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Arcos Dorados' net debt to adjusted EBITDA leverage ratio remained steady at 1.2x at the end of the third quarter, unchanged from the previous quarter.
The company opened 19 new Experience of the Future (EOTF) restaurants during the quarter, with 11 of them located in Brazil.
The restaurant development plan remains on track and the company expects to meet its full year guidance of 80 to 90 restaurant openings in 2024.
The company exited the quarter with cash and equivalents worth $120.807 million.
Price Action: ARCO shares are trading lower by 0.48% to $8.36 at last check Wednesday.
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