Arcos Dorados Holdings (NYSE: ARCO) reported its second quarter 2025 financial results. Revenue was US$1.14 billion, up 2.8 % from the same period in 2024. Net income was US$22.6 million, down 15 % from Q2 2024. Profit margin fell to 2.0 % from 2.4 % in the prior year, driven by higher expenses. Earnings per share (EPS) were US$0.11, down from US$0.13 in Q2 2024. Despite the decline, EPS beat analyst estimates by 41 %, and revenue was in line with analyst expectations. The company forecasts revenue growth of 7.5 % per annum on average over the next three years, compared with a 9.9 % growth forecast for the U.S. hospitality industry. Shares of Arcos Dorados rose 7.6 % from a week ago.

Arcos Dorados operates as a franchisee of McDonald’s restaurants. The article notes two warning signs for the company but does not elaborate.

The report was produced by Simply Wall St, with financial data provided by S&P Global Market Intelligence LLC. Simply Wall Street Pty Ltd, based in Sydney, Australia, is a Corporate Authorised Representative of Sanlam Private Wealth Pty Ltd. The article is general commentary and not investment advice.

Comparable companies mentioned include Yum! Brands (NYSE: YUM) and Restaurant Brands International (NYSE: QSR).

Arcos Dorados Holdings Second Quarter 2025 Earnings: EPS Beats Expectations

Arcos Dorados Holdings (NYSE: ARCO) released its Q2 2025 results, reporting revenue of US$1.14 billion and net income of US$22.6 million. While profit margin fell to 2.0 % and EPS dropped to US$0.11, the EPS beat analyst estimates by 41 %. The company forecasts 7.5 % annual revenue growth over the next three years and its shares rose 7.6 % from a week ago. Arcos Dorados operates as a McDonald’s franchisee. The report was produced by Simply Wall St with data from S&P Global Market Intelligence.