Why Arcos Dorados Stock Is Sinking Today
Arcos Dorados (NYSE: ARCO) is the largest independent McDonald's franchisee with 2,400 locations across Latin America and the Caribbean. Its shares were down 7% as of 1 p.m. ET Wednesday, according to data provided by S&P Global Market Intelligence.
The sub-franchisee reported first-quarter earnings Wednesday and delivered 11% sales growth on a constant currency basis while taking market share in a challenging consumer spending environment.
However, Arcos Dorados' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and net income slid 16% and 51%, prompting today's drop in price.
Source Fool.com
