ARCOS DORADOS Reports Fourth Quarter 2022 Earnings Results
March 24, 2023
Earnings Overview
ARCOS DORADOS ($NYSE:ARCO) reported total revenue of USD 54.5 million and a net income of USD 1,018.6 million for the fourth quarter of fiscal year 2022, which ended on December 31, 2022. These results, published on March 15, 2023, marked a 19.6% and 30.5% year-over-year growth in revenue and net income respectively.
Transcripts Simplified
The decrease was driven primarily by reduced stock levels resulting from a decrease in sales in our Argentina division due to the impact of the pandemic, as well as reduced sales in Mexico and other Latin American countries. The increase was mainly due to higher personnel-related costs and higher administrative costs related to our operations in Mexico and Brazil, partially offset by reduced advertising and promotional expenses in our Argentina division due to the impact of the pandemic. The increase was primarily due to increased gross profit partially offset by increased general and administrative expenses as discussed above. The increase was primarily due to increased income from operations partially offset by increased income tax expense and increased interest expense as discussed below.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arcos Dorados. More…
| Total Revenues | Net Income | Net Margin |
| 3.38k | 45.49 | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arcos Dorados. More…
| Operations | Investing | Financing |
| 345.44 | -259.65 | -59.98 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arcos Dorados. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.64k | 2.31k | 1.54 |
Key Ratios Snapshot
Some of the financial key ratios for Arcos Dorados are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.5% | 17.7% | 4.8% |
| FCF Margin | ROE | ROA |
| 3.8% | 38.1% | 3.4% |
Stock Price
ARCOS DORADOS, one of the largest operators of McDonald’s restaurants in the world, reported their fourth quarter 2022 earnings results on Wednesday. After opening at $8.2, the stock closed at $7.8, down by 2.5% from its previous closing price of $8.0. The company has also continued to invest in technology, which analysts believe will help to improve their operations and profitability in the long run. Live Quote…
Analysis
At GoodWhale, we have conducted a comprehensive analysis of the financials of ARCOS DORADOS, and have found that the company presents a medium risk investment in terms of both financial and business aspects. Our Risk Ratings can provide investors with deeper insights into the company’s financial position. We have identified two risk warnings from the income statement and balance sheet that investors should take into account when considering an investment in ARCOS DORADOS. For more in-depth information about these risks, as well as our comprehensive analysis of ARCOS DORADOS’s financials, be sure to register on goodwhale.com. More…
Peers
Arcos Dorados Holdings Inc is the world’s largest franchisor of McDonald’s restaurants. The company operates or franchises over 1,700 McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean. Arcos Dorados is headquartered in Buenos Aires, Argentina. The company’s primary competitors are Del Taco Restaurants Inc, Amrest Holdings SE, and Alsea SAB de CV.
– Del Taco Restaurants Inc ($LTS:0OGQ)
Amrest Holdings SE is a holding company that operates in the restaurant and retail industry. It has a market cap of 4B as of 2022 and a return on equity of 14.44%. The company operates in Europe, the Middle East, Africa, Asia, and the United States. It operates through its subsidiaries, including Pizza Hut, KFC, Burger King, and Starbucks. The company was founded in 1993 and is headquartered in Warsaw, Poland.
– Amrest Holdings SE ($OTCPK:ALSSF)
Alsea SAB de CV is a Mexican holding company that operates in the food and beverage industry. Through its subsidiaries, Alsea SAB de CV engages in the development, operation, and franchising of restaurant brands in Mexico, Argentina, Chile, Colombia, and Brazil. As of 2022, Alsea SAB de CV had a market capitalization of 1.59 billion and a return on equity of 52.23%. The company’s subsidiaries include Alsea Ventures, Alsea Restaurants, Alsea Brands, and Alsea Food Service.
Summary
ARCOS DORADOS reported strong financial results for the fourth quarter of 2022, with total revenue up 19.6% and net income up 30.5% year-over-year. Investors should take note of the company’s consistent growth, as well as their ability to increase profits in a challenging market. Further analysis should focus on ARCOS DORADOS’ ability to manage operational costs and maintain financial stability, as well as their potential to expand and capitalize on new opportunities. With these positive indicators in mind, it appears that ARCOS DORADOS is an attractive investment opportunity for the foreseeable future.
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