By Micah Maidenberg
Arcos Dorados Holdings Inc. (ARCO) said revenue weakened in the first quarter, as the franchisor and operator of McDonald's restaurants across Latin America and the Caribbean struggled with falling currencies in key markets.
The Montevideo, Uruguay-based company said revenue fell to $727.9 million in the quarter, down 9% from the year earlier. Arcos attributed the weakness to the depreciation of the Argentine peso and the Brazilian real.
Adjusting for currency movements, the company said revenue grew 12%.
Arcos reported net income of $12.2 million, or 6 cents a share, up from $518,000 a year earlier.
Lower costs helped earnings. Its biggest expense, food and paper, dropped 13%.
Arcos said that visits to its stores in Mexico grew in the first quarter, boosting sales in that country, and said it is remodeling stores in Chile, where the economy is stronger than in other countries in the southern part of Latin America.
Write to Micah Maidenberg at email@example.com