Arcos Dorados Holdings Inc., one of the biggest McDonald’s franchisees, anticipates that its third-quarter net income will be lower than in the same period last year due to higher compensation expense, one-time charges and depreciation of local currencies.
Its stock fell $2.10, or 8.2 percent, to $23.64 in premarket trading.
The company, based in Buenos Aires, Argentina, said Monday that it expects net income of $18 million to $20 million, with revenue of $970 million to $990 million.
Arcos Dorados — which means «Golden Arches» in Spanish — said its net income forecast is a drop of about 31.3 percent to 38.2 percent from its results a year ago. The revenue outlook is up 23 percent to 25.5 percent from that period.
Arcos Dorados, which went public in April, also anticipates third-quarter systemwide revenue at restaurants open at least a year to be up 14.8 percent to 16.2 percent.
This figure is a key indicator of a restaurant operator’s health because it excludes results from restaurants recently opened or closed.
In addition, Arcos Dorados 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 nearly 44.5 million shares, if underwriters exercise their option to buy more shares.
Source: businessweek.com