Arcos Dorados reports Q3 growth, earnings miss and $25M buyback
Arcos Dorados reported Q3 2026 revenue of $1.3B, up 11.3% year over year on a reported basis, while systemwide comparable sales grew 15.5%. Net income attributable to the company was $31.2 million, or $0.15 per share, and adjusted EBITDA rose 9% in U.S. dollars excluding the prior-year Brazil tax credit, to $125.9 million. The board authorized repurchases and cancellation of up to $25 million of Class A shares over the next 6 months.
Why it matters
The authorization could return up to $25 million to shareholders and reduce the number of shares outstanding if fully executed. Arcos Dorados said it considers its stock undervalued and views the repurchase as an accretive investment opportunity, while the reported EPS and revenue shortfalls mark near-term pressure against market expectations.
Key facts
- 1Reported Q3 revenue was $1.3B, a 11.3% year-over-year increase. tradingview.com
- 2Q3 EPS was $0.15, missing estimates by $0.02, while revenue was below the $1.34B consensus. investing.com
- 3Adjusted EBITDA increased 9% in U.S. dollars excluding the prior-year Brazil federal tax credit, reaching $125.9 million; adjusted EBITDA margin was 9.5% versus 16.9% in the prior year. investing.com
- 4The board approved repurchases and cancellation of up to $25 million of Class A stock in the open market over the next 6 months. finance.yahoo.com
- 5Management's long-term objectives include mid- to high single-digit annual total-revenue growth, high single- to low double-digit annual adjusted-EBITDA growth, and 550 to 600 restaurant openings from 2027 to 2030. finance.yahoo.com
Open questions
- Material 5's summary says adjusted EBITDA margins expanded, while material 4 reports that the adjusted EBITDA margin contracted to 9.5% from 16.9%; the materials do not reconcile the difference.
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.