Latin American McDonald’s franchisee Arcos Dorados Holdings (NYSE:ARCO) said Monday that it expects its third-quarter net income will be lower than last year due to higher compensation expenses, one-time charges and depreciation of local currencies.
The Buenos Aires, Argentina-headquartered company said it expects net income of $18 to $20 million for the three months to September 30, with revenue of $970 to $990 million.
The net income forecast is a drop of about 31.3% to 38.2% from its results last year, while the revenue outlook is up 23% to 25.5% from that period.
Arcos Dorados, which went public in April, also anticipates third quarter same-store sales to be up between 14.8% to 16.2%. Comparative sales are a key indicator of a restaurant operator’s health since it excludes results from restaurants recently opened or closed.
The company also said it is launching an underwritten secondary offering of about 40.4 million shares of its common stock. The offering will include as much as almost 44.5 million shares, if underwriters exercise their option to buy more shares.
Arcos Dorados – which means «Golden Arches» in Spanish – was down 6% at $24.20 Monday afternoon. Since its April market debut, the stock is up 14%.
Source: /proactiveinvestors.com