Arcos Dorados Jumps on Same-Store Sales

It's in the red for the year, but shares made some gains today

   

best stocks for 2012 logo Arcos Dorados Jumps on Same Store SalesArcos Dorados (NASDAQ:ARCO) is lagging behind in InvestorPlace‘s Top Stocks for 2012 contest, but you wouldn’t know it after its second quarter earnings report.

Shares of ARCO saw a double-digits increase — up nearly 13% — this morning as investors jumped on news of strong same-store sales growth in Q2.

Net income decreased, though, falling to around $12 million from last year’s $14 million, while adjusted EBITDA dropped by just under a percent, coming in at $67 million. A strong U.S. dollar made for an unfavorable currency exchange for the Latin American company, as it did last quarter.

Revenue was hit by the same problem, but the 10% increase in same-store sales helped revenue still increase just under 2% year-over-year. Plus, the increase in same-store sales comes on the heels of 14% growth in the second quarter of last year.

On top of that, the company opened 91 new restaurants in the last 12 months, which added more than $40 million in revenue.

Still, Arcos Dorados has a long way to go to just break even for 2012. The McDonald’s (NYSE:MCD) brand may be strong — one of Josh Brown’s reason for picking the stock to begin with — but it hasn’t been strong enough to offset the many economic issues in ARCO’s region.

The stock is in the red over 25% since January and sits at second-to-last in the contest.

As of writing this, Alyssa Oursler did not own a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/arcos-dorados-jumps-on-same-store-sales/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.