McDonald's Franchisee Arcos Dorados Stock Slips - Here's Why

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Arcos Dorados Holdings (NYSE: ARCO), the largest independent McDonald’s franchisee, saw its stock slip despite reporting strong Q4 2025 sales of $1.267 billion, which beat analyst expectations. However, the company’s EPS of 12 cents missed the consensus of 20 cents, largely due to a $33.8 million net tax benefit in Brazil. Arcos Dorados reported significant growth in systemwide comparable sales and digital channel revenue, along with plans to open 105-115 new restaurants in 2026.

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