Arcos Dorados Holdings Inc. (ARCO) Q3 Results Impress on Robust Growth in Argentina and Mexico

Arcos Dorados Holdings Inc. (NYSE:ARCO) is one of the best breakout stocks to invest in. On November 11, JPMorgan lowered its price target for the stock to $8.70 from $8.80, despite the company delivering strong third-quarter results while navigating challenging consumer dynamics.

Arcos Dorados Holdings Inc. (ARCO) Q3 Results Impress on Robust Growth in Argentina and Mexico

Total revenue in the quarter rose 12.7% to $1.2 billion, in line with blended inflation. The revenue increase was driven by strong growth in Argentina and Mexico. Additionally, Arcos Dorados Holdings Inc. (NYSE:ARCO) benefited from an aggressive marketing strategy and a digital approach that supported sales growth. Digital channels were up 11.2% in the quarter.

It also generated $201.1 million in adjusted EBITDA, an improvement from $125 million in the same quarter last year. Arcos Dorados Holdings’ third-quarter earnings per share more than quadrupled to $0.71 compared to $0.17 delivered in the same quarter the previous year.

“During the third quarter of 2025, we successfully navigated challenging consumer dynamics to generate balanced US dollar revenue growth and solid profitability. We are focused on exceeding guests’ expectations in today’s business while modernizing and improving our growth processes to support higher returns on investment and to ensure Arcos Dorados maintains its leadership position for many years to come,” said CEO Luis Raganato.

Arcos Dorados Holdings Inc. (NYSE:ARCO) is the world’s largest independent McDonald’s franchisee, operating the brand’s restaurants in 21 countries and territories across Latin America and the Caribbean. The company owns, operates, and sub-franchises McDonald’s locations and is responsible for managing their operations, marketing, and expansion.

While we acknowledge the potential of Arcos Dorados Holdings Inc. (NYSE:ARCO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ARCO and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.