Arcos Dorados Q3: Mixed Results, Positive Stock Reaction
Update: 2025-11-12
Description
Arcos Dorados, the largest independent McDonalds franchisee in Latin America and the Caribbean, reported its Q3 2025 results. Despite missing revenue expectations by 3%, the company saw a 5.2% YoY increase to $1.19 billion. Notably, GAAP profit of $0.71 per share significantly outperformed analyst estimates of $0.14. Adjusted EBITDA also beat expectations by 72.2% at $211.1 million, leading to an impressive 12.3% operating margin, up from 7% in Q3 2024. The company expanded its location count to 2,479, but same-store sales growth decelerated to 12.7% YoY. Despite the revenue miss, investors reacted positively, driving the stock up 4.7% post-announcement.
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