Fast-food chain Arcos Dorados (NYSE:ARCO) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.

Arcos Dorados beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $1.11 billion, up 6.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

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

This quarter, analysts are expecting Arcos Dorados’s revenue to be flat year on year at $1.13 billion, slowing from the 22.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.3% on average.

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 27.9%, beating analysts’ expectations by 4.1%, and Yum China reported revenues up 5.4%, topping estimates by 1.5%. Dutch Bros traded up 28.2% following the results while Yum China was also up 7.3%.

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

There has been positive sentiment among investors in the traditional fast food segment, with share prices up 5.8% on average over the last month. Arcos Dorados is down 15.9% during the same time and is heading into earnings with an average analyst price target of $13.13 (compared to the current share price of $8.33).

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