Arcos Dorados' stock surged 5.70% in pre-market trading following the release of its first-quarter 2026 financial results, which significantly exceeded analyst expectations across key metrics.

The Latin American McDonald's franchise operator reported Q1 earnings per share of $0.17, beating the FactSet consensus estimate of $0.11. Revenue rose 12.9% year-over-year to $1.22 billion, also surpassing the $1.21 billion estimate. Net income more than doubled to $36.1 million, while adjusted EBITDA increased 29.3% to $118 million, with the margin expanding by 120 basis points to 9.7%.

The strong performance was driven by a 16% systemwide comparable sales growth, increased guest traffic, and higher average checks. Digital channel sales, representing 64% of systemwide sales, grew approximately 21%, and the company added 19 new restaurants during the quarter.