MONTEVIDEO, Uruguay - Arcos Dorados Holdings Inc . (NYSE: NYSE:ARCO), the world's largest independent McDonald's (NYSE:MCD) franchisee, reported its fourth-quarter earnings, matching analyst predictions for EPS at $0.26 while surpassing revenue expectations.
The company announced quarterly revenues of $1.2 billion, exceeding the consensus estimate of $1.18 billion and marking a 15.4% increase in US dollars compared to the same quarter last year.
The robust revenue performance, which outpaced analyst forecasts, drove the company's stock up by 1.34%.
CEO Marcelo Rabach commented on the successful quarter, attributing the strong performance to the company's strategic focus on Digital, Delivery, and Drive-thru channels, which continue to evolve and leverage the industry's largest free-standing restaurant portfolio. Digital sales, which accounted for 53% of systemwide sales in the fourth quarter, were a key driver of growth, with identified sales making up 21% of consolidated sales.
For the full year 2023, Arcos Dorados also reported its highest ever revenues in US dollars, totaling $4.3 billion, a 19.7% increase over the previous year. Systemwide comparable sales grew by 34.6%, with the company achieving above-inflation growth across all divisions.
Looking ahead to 2024, Arcos Dorados has provided guidance for capital expenditures ranging from $300 million to $350 million, with plans to open 80 to 90 new restaurants, approximately 90% of which will be free-standing units. This investment strategy is expected to be funded through cash on hand and operational cash flow.
The company's strong balance sheet and strategic growth plans, as highlighted by Rabach, position Arcos Dorados to capture significant growth opportunities in the coming years while continuing to operate responsibly and support the communities it serves. The Board of Directors has declared a cash dividend of $0.24 per share for 2024.
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