Fast-food chain Arcos Dorados (NYSE: ARCO) will be announcing earnings results this Wednesday before market open. Here’s what to expect.

Arcos Dorados missed analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.14 billion, up 2.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ same-store sales estimates.

Is Arcos Dorados a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Arcos Dorados’s revenue to grow 8.5% year on year to $1.23 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arcos Dorados has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Arcos Dorados’s peers in the traditional fast food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Dutch Bros delivered year-on-year revenue growth of 25.2%, beating analysts’ expectations by 2.3%, and Wendy's reported a revenue decline of 3%, topping estimates by 3.1%. Dutch Bros traded down 4.3% following the results while Wendy's was also down 3.2%.

Read our full analysis of Dutch Bros’s results here and Wendy’s results here.

Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the traditional fast food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.5% on average over the last month. Arcos Dorados is up 2.7% during the same time and is heading into earnings with an average analyst price target of $10.19 (compared to the current share price of $7.12).

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