Arcos Dorados Shares Higher After 1Q Beat

By Michael Dabaie

Arcos Dorados Holdings Inc. shares were up 6% to $7.94 Wednesday afternoon after its quarterly results were ahead of analyst estimates.
The Latin American independent McDonald’s franchisee reported first-quarter consolidated revenue excluding Venezuela rose to $787.3 million, while total revenue was $790.7 million. The FactSet consensus forecast was for sales of $723.5 million.

Arcos Dorados said its consolidated results may continue to be impacted by Venezuela’s macroeconomic volatility, so the company focuses discussion of its operating performance on results that exclude that market.
Earnings per share were 12 cents, turning around a year-earlier loss and beating the FactSet consensus estimate for 6 cents.
System wide comparable sales, excluding Venezuela, increased 42%, Arcos Dorados said.
Chief Operating Officer Luis Raganato, discussing digital sales during the company’s conference call, said mobile app downloads have exceeded 69 million.
“Record quarterly delivery sales included the highest-ever monthly sales for the segment in March, and we set another delivery sales record in April,” Mr. Raganato said.
Delivery sales grew more than 29% in constant currency, with similar growth levels in all divisions, Mr. Raganato said, adding that self-ordering kiosk sales also set a record in the quarter.
The channel “generates a 15% to 20% higher average check compared with the front counter. Order Ahead is still in its infancy and has not yet been fully implemented in all markets. But it is showing the value of allowing guests to choose where, when, and how to enjoy their McDonald’s menu favorites,” Mr. Raganato said.
The company recently issued a sustainability-linked bond, extending the average maturity of its long-term debt to six years, with no major maturities until September 2027.
Write to Michael Dabaie at michael.dabaie@wsj.com