Arcos Dorados to Report Q4 Earnings: What's in the Cards?

Arcos Dorados Holdings Inc. ARCO is scheduled to report fourth-quarter 2024 results on March 12.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, ARCO registered an earnings surprise of 6.3%.Trend in Estimate Revision of ARCOThe Zacks Consensus Estimate for the fourth-quarter earnings per share (EPS) is pegged at 22 cents, indicating a deterioration of 18.5% from 27 cents reported in the year-ago quarter.For revenues, the consensus mark is pegged at $1.1 billion. The projection suggests a 5.3% fall from the year-ago quarter’s reported figure.Arcos Dorados Holdings Inc. Price and EPS Surprise Arcos Dorados Holdings Inc. price-eps-surprise | Arcos Dorados Holdings Inc. QuoteLet's take a look at how things have shaped up in the quarter.Factors Likely to Shape ARCO’s Quarterly ResultsArcos Dorados’ fourth-quarter performance is likely to have benefited from its focus on menu innovation, digital transformation and operational efficiencies. Additionally, strategic pricing actions and increased customer engagement through loyalty programs are anticipated to have aided the company’s performance in the to-be-reported quarter.The expansion of Arcos Dorados’ digital sales, including mobile orders, delivery and self-service kiosks, is likely to have been a key growth driver in the fourth quarter. Higher digital adoption rates, coupled with an enhanced app experience and targeted promotions, are expected to have bolstered fourth-quarter average check sizes and transaction volumes.However, macroeconomic challenges in certain markets, particularly currency fluctuations and inflationary pressures in Argentina and Brazil, may have impacted revenue growth. Rising labor and food costs, especially in proteins and dairy, are expected to have weighed on fourth-quarter margins.What Our Model Says About ARCOOur proven model does not conclusively predict an earnings beat for Arcos Dorados this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.Earnings ESP for ARCO: Arcos Dorados has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Arcos Dorados’ Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent Retail-Wholesale ReleasesRestaurant Brands International, Inc. QSR reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the top and bottom lines increased on a year-over-year basis.During the quarter, consolidated comps increased 2.5% year over year, and net restaurants grew 3.4%. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least a 5% net restaurant increase.McDonald's Corporation MCD reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate, but revenues missed the same. Both the top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.YUM! Brands, Inc. YUM reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. Both the top and bottom lines increased on a year-over-year basis.The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. YUM reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales, excluding foreign currency translation, grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McDonald's Corporation (MCD): Free Stock Analysis Report Yum! Brands, Inc. (YUM): Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report Restaurant Brands International Inc. (QSR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks