Arcos Dorados Q4 EPS Misses by 40%, Revenue Rises 11.4% to $1.27B
Arcos Dorados reported Q4 EPS of $0.12 versus a $0.20 estimate, down from $0.28 a year ago, while revenue climbed 11.4% to $1.27 billion, beating forecasts by 0.4%. The restaurant owner’s P/E of 6.5 and debt-to-equity of 2.77 highlight a low valuation alongside elevated leverage.
1. Q4 Financial Results
Arcos Dorados reported EPS of $0.12 for the quarter ended December 2025, missing the $0.20 consensus estimate and down from $0.28 in Q4 2024, while revenue climbed 11.4% to $1.27 billion, beating forecasts by 0.4%.
2. Year-Over-Year Trends
Revenue improved from $1.14 billion in the same quarter last year, marking four consecutive quarters of sales outperformance, even as EPS forecasts were only surpassed twice in that span.
3. Valuation Metrics
The company trades at a P/E ratio of 6.50 and price-to-sales ratio of 0.35, signaling a low market valuation relative to earnings and sales, supported by a 15.37% earnings yield.
4. Leverage and Liquidity
Arcos Dorados carries a debt-to-equity ratio of 2.77 and a current ratio of 0.89, indicating elevated leverage and potential liquidity constraints, while its enterprise value to sales and operating cash flow ratios stand at 0.76 and 12.82 respectively.