ARCO Q2: $110.1M Adjusted EBITDA; Loyalty Program Reaches 21.5M
Rhea-AI Filing Summary
Arcos Dorados reported solid underlying sales momentum across Latin America and the Caribbean, with total revenues of $1.14 billion in the second quarter of 2025 and systemwide comparable sales up 12.1% year-over-year. Digital channels grew 7.9% and accounted for more than 60% of systemwide sales, while the Loyalty Program reached 21.5 million registered members and drove 22.6% of sales in participating markets. The Company added 20 Experience of the Future restaurants and expanded its footprint with the acquisition of three restaurants and exclusive rights in Saint Martin.
Profitability showed mixed signals: consolidated Adjusted EBITDA was $110.1 million and net income attributable to Arcos Dorados was $22.6 million (EPS $0.11), with Adjusted EBITDA down on a reported basis but up on a constant currency basis after adjusting for prior-year labor contingency effects. Leverage remains moderate with net financial debt to LTM Adjusted EBITDA at 1.4x, and S&P assigned a long-term issuer credit rating of BBB- with a Stable Outlook, reflecting investment grade status alongside operational progress.
Positive
- Systemwide comparable sales growth of 12.1%, demonstrating broad sales momentum across the footprint
- Total revenues of $1.142 billion in 2Q25, up 2.8% reported and 14.9% in constant currency
- Digital channel sales grew 7.9% and accounted for more than 60% of systemwide sales
- Loyalty Program with 21.5 million members, responsible for 22.6% of sales in participating markets
- Consolidated Adjusted EBITDA of $110.1 million and Adjusted EBITDA up on a constant currency basis after adjustments
- Net financial debt / LTM Adjusted EBITDA of 1.4x, supporting the Company’s investment grade profile
- S&P assigned a long-term issuer credit rating of BBB- (Stable), completing full investment grade status alongside Fitch
- Opened 20 Experience of the Future restaurants and acquired three restaurants in Saint Martin, expanding the footprint
Negative
- Adjusted EBITDA declined 7.3% reported versus 2Q24, reflecting margin pressure and a favorable prior-year labor contingency
- Net income attributable to Arcos Dorados fell to $22.6 million (down 15.2% reported) and EPS decreased to $0.11 from $0.13
- Brazil experienced significant margin compression due to higher beef costs and related operating pressures
- Net financial debt / LTM Adjusted EBITDA rose to 1.4x from 1.1x at year-end 2024, increasing leverage compared to December 31, 2024
- For six months, operating cash provided was $57.7 million versus property and equipment expenditures of $104.2 million, reflecting elevated investment spend relative to operating cash generation
Insights
TL;DR: Strong sales growth and digital adoption support top-line momentum, while reported margins reflect Brazil cost pressures and currency effects.
The quarter shows clear demand strength: systemwide comparable sales increased 12.1% and digital channels now represent the majority of system sales, which supports recurring guest engagement via a 21.5 million-member Loyalty Program. On margins, reported Adjusted EBITDA fell versus prior year due to a favorable one-time labor contingency in 2Q24 and higher food costs in Brazil, but Adjusted EBITDA rose on a constant currency basis with 40 basis points of margin expansion ex-contingency. Cash flow and capex dynamics are noteworthy: $57.7 million of operating cash for six months versus $104.2 million of capex, indicating elevated investment in growth and Experience of the Future restaurants. Credit metrics remain comfortable at 1.4x net debt/EBITDA, supported by S&P's recent BBB- rating.
TL;DR: Leadership changes and strategic moves broaden regional reach, but near-term margin variability requires ongoing execution.
Management reshuffle with a new CEO, COO and CSO signals continuity from internal promotions and a governance focus on operational execution and strategy. The Saint Martin acquisition adds a 21st territory and three restaurants, modestly expanding scale. The Loyalty Program rollout and digital-first initiatives are strategic positives that can increase visit frequency and lifetime value. However, Brazil's margin compression from higher beef costs and the reversal of a prior-year contingency benefit create quarter-to-quarter volatility; investors should note these are explicit drivers of the reported earnings decline versus the prior year.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2025
Commission File Number: 001-35129
Arcos Dorados Holdings Inc.
(Exact name of registrant as specified in its charter)
Río Negro 1338, First Floor
Montevideo, Uruguay, 11100
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | X | Form 40-F |
ARCOS DORADOS HOLDINGS INC.
TABLE OF CONTENTS
| ITEM | |
| 1. | Press Release dated August 13, 2025 titled “Arcos Dorados Reports Second Quarter 2025 Financial Results” |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Arcos Dorados Holdings Inc. | |||
| By: | /s/ Juan David Bastidas | ||
| Name: | Juan David Bastidas | ||
| Title: | Chief Legal Counsel | ||
Date: August 13, 2025
Item 1
Arcos Dorados Second Quarter 2025 Results |
 |
August 13, 2025
 |
ARCOS DORADOS REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS |
 |
Montevideo,
Uruguay, August 13, 2025 – Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”),
Latin America and the Caribbean’s largest restaurant chain and the world’s largest independent McDonald’s franchisee,
today reported unaudited results for the three and six months ended June 30, 2025. Message
from Luis Raganato, Chief Executive Officer The
results we are reporting today demonstrate the strength of the Arcos Dorados business model. Each of our markets faced a unique set of
operating conditions and each delivered strong results within the context of their individual environments. By staying true to our Purpose,
we strengthened our bond with guests and expanded our brand preference throughout Latin America and the Caribbean, Making Every Day an
Opportunity to Feed People and Build Dreams. Brazil
remained resilient despite challenging consumer dynamics, NOLAD showed that the first quarter calendar effects were only temporary and
SLAD continued the strong positive trajectory that began at the end of last year. Combined, the three divisions drove local currency
revenue almost 15% higher versus the prior year quarter. Systemwide comparable sales growth was particularly strong in NOLAD and SLAD,
rising 1.8x and 1.4x blended inflation, respectively. Market
share saw robust gains across the region according to our research, thanks to marketing and digital initiatives focused on value and
Brand strength, together with an ever-growing Loyalty Program that is successfully increasing guest visit frequency. The Big Fest digital
campaign, Minecraft Happy Meal (for both kids and adults) and the limited-time Formula One promotion all helped strengthen the brand
attributes that keep guests coming back to our restaurants. The
diversified nature of our business model also drove strong profitability in the quarter, despite important cost pressures in some markets.
Consolidated Adjusted EBITDA declined as reported, but was up 7.1% in US dollars with a 40 basis point margin expansion, when we adjust
last year’s result for a reduction of labor contingencies due to a favorable judgement in Brazil. Finally,
our growth plan remains intact, and we opened 20 new EOTF restaurants in the period. This year’s growth trajectory also includes
the addition of our 21st market: Saint Martin. We believe the choice of Arcos Dorados as the new operator in Saint Martin
is a testament to our operational excellence and commitment to growth in the region. We remain convinced there is compelling growth potential
for our business and our shareholders for many years to come. 1
For definitions, please refer to page 7 of this document. 2 AD
Holdings Inc. – Consolidated Key Financial Results Figure
1 (In millions
of U.S. dollars, except as noted) Arcos
Dorados’ total revenues reached $1.1 billion, up 2.8% in US dollars versus the prior year quarter. The Company’s comparable
systemwide sales rose 12.1% in the quarter, driven by strong sales in NOLAD and SLAD, which grew 1.8x and 1.4x blended inflation, respectively.
The consumer environment remained challenging in Brazil during the second quarter of 2025. The
Company’s Digital strategy continued to support sales growth. Digital channel sales rose 7.9% in the period, generating more than
60% of the second quarter’s systemwide sales. By the
end of the second quarter of 2025, the Company’s Loyalty Program was active in 67% of all restaurants in its footprint. The Program
remains on target to be available in all main markets by year-end 2025. Offered in Argentina, Brazil, Colombia, Costa Rica, Ecuador and
Uruguay, the Loyalty Program reached 21.5 million registered members at the end of the second quarter and was responsible for 22.6% of
total sales in these markets. The
Company’s digital channels supported campaigns designed to strengthen the bond with guests and adapt to changing consumer preferences.
This included the Big Fest, which celebrated core favorites at a compelling value, resulting in increased Brand Preference, improved
Brand Attributes and strong growth in both Mobile App downloads and Loyalty Program membership. In Brazil,
the successful “Méqui do Dia” campaign, offered one menu favorite per day at a compelling value, while the Minecraft
Happy Meal enjoyed crossover appeal to both kids and adults throughout the region, which was optimized by offering a unique adult Happy
Meal with chicken McNuggets. Arcos
Dorados’ regional Formula 1 sponsorship also served to strengthen ties with families and guests of all ages. Capitalizing on the
popularity of Formula 1, The Movie, the Company introduced a limited-edition sandwich and collectible race cars, exclusive to
McDonald’s restaurants. The campaign was extremely successful, selling out in just a matter of days or weeks, in each market. Finally,
given the increasingly competitive nature of the dessert category, the Company remained committed to keeping its menu at an affordable
price and brought innovation to its dessert platform by leveraging a favorite McDonald’s character with the Grimace Shake and by
adding more local flavors to its McFlurry offerings. 3 Adjusted
EBITDA declined in US dollars mainly due to margin pressure in Brazil from higher beef costs this year and a reduction of labor contingencies
in the prior year. Excluding the reduction of labor contingencies, consolidated Adjusted EBITDA rose 7.1% and Adjusted EBITDA margin
expanded by 40 basis points versus the prior year period. Efficiencies in Payroll (excluding the labor contingency reduction in Brazil
from the 2Q24) and Occupancy and other operating expenses, mainly in Brazil and SLAD, were offset by the abovementioned Food & Paper
cost pressures. Net
income attributable to the Company totaled $22.6 million in the second quarter of 2025, which represented a net income margin of 2.0%.
The decrease in comparison with the prior year quarter was mainly explained by a lower reported Adjusted EBITDA margin and reduced non-cash
foreign exchange results. Arcos
Dorados recorded earnings of $0.11 per share in the second quarter of 2025 compared to $0.13 per share in the prior year period. Total
weighted average shares amounted to 210,663,057 in the second quarter compared to 210,660,444 in the prior year’s quarter. Notable
items in the Adjusted EBITDA reconciliation
Included
in Adjusted EBITDA: Brazil’s result in the second quarter of 2024 included a $16.0 million positive impact from the reduction
of labor contingencies due to a favorable judgement. Additionally,
Adjusted EBITDA in the second quarter of 2025 included a $6.9 million gain in Mexico and the second quarter of 2024 included a $4.2 million
gain in Chile, both related to restaurant transactions with sub-franchisees in those markets. Excluded
from Adjusted EBITDA: there were no notable items excluded from Adjusted EBITDA in either the second quarter of 2025 or the second
quarter of 2024. 4 New
Unit Development: Total and by Format1 Figure
2 1end
of period, including company operated and franchised restaurants Figure
3 *FS: Free-Standing;
IS: In-Store; MS: Mall Store; FC: Food Court. Arcos
Dorados added 20 new EOTF restaurants to the Company’s footprint, including 18 free-standing units, in the second quarter of 2025.
As of the end of June 2025, there were 1,732 EOTF restaurants in Arcos Dorados’ footprint, making up 70% of its restaurant portfolio. Consolidated Debt
and Financial Ratios Figure
4 (In thousands
of U.S. dollars, except ratios) The
Company’s net debt to Adjusted EBITDA leverage ratio ended the second quarter at a comfortable 1.4x, up from 1.1x at year-end 2024. For
the six-month period ended June 30, 2025, the net cash provided by operating activities totaled $57.7 million with total property and
equipment expenditures of $104.2 million. This compares with net cash provided by operating activities in the same period of the prior
year of $63.7 million and total property and equipment expenditures of $148.9 million. 5 Recent
Developments Appointment
of Luis Raganato as Chief Executive Officer (CEO) On June
6, 2025, Arcos Dorados’ Board of Directors announced the appointment of Luis Raganato as CEO, effective July 1, 2025. He succeeded
Marcelo Rabach who served as CEO from July 2019 to June 2025. Prior to his promotion, Mr. Raganato was Arcos Dorados’ Chief Operating
Officer. Appointment
of Carlos Gonzalez as Chief Operating Officer (COO) On June
6, 2025, Arcos Dorados’ Board of Directors also announced the appointment of Mr. Carlos Gonzalez, as COO, to succeed Mr. Raganato,
effective July 1, 2025. Prior to his appointment, Mr. Gonzalez was Divisional President for the South Latin American Division. Appointment
of Francisco Staton as Chief Strategy Officer (CSO) In July
2025, Mr. Francisco Staton assumed a new management role as Chief Strategy Officer for Arcos Dorados, reporting directly to Mr. Raganato.
Mr. Staton is a member of the Company’s Board of Directors and previously held several senior leadership positions within the Company. Acquisition
of Saint Martin In July
2025, the Company acquired 3 restaurants and the exclusive rights to operate or sub-franchise McDonald’s restaurants in Saint Martin,
making it the twenty-first territory in the Company’s footprint. This new territory will be managed by the North Latin American
Division. S&P
Global Rating Action In July
2025, S&P Global Ratings assigned a long-term issuer credit rating of ‘BBB-’ with a Stable Outlook to the Company. This
marks the Company’s second investment grade rating, following Fitch Ratings’ upgrade to ‘BBB-’ in January 2025,
thereby achieving full investment grade status. 2024
Social Impact and Sustainable Development Report In July
2025, Arcos Dorados published its Social Impact and Sustainable Development Report for 2024. The report includes information audited
by EY and provides an update on the progress related to initiatives and implementation of the six pillars of the Company’s “Recipe
for the Future” ESG Platform. The full report can be downloaded at www.recipeforthefuture.com.
Second
Quarter 2025 Earnings Webcast A webcast to discuss
the information contained in this press release will be held today, August 13, 2025, at 10:00 a.m. ET. In order to access the webcast,
members of the investment community should follow this link: Arcos Dorados Second Quarter 2025 Earnings
Webcast. A replay of the webcast
will be available later today in the investor section of the Company’s website: https://ir.arcosdorados.com/. Investor
Relations Contact Dan Schleiniger VP of Investor
Relations Arcos
Dorados daniel.schleiniger@mcd.com.uy Media
Contact David Grinberg VP of Corporate Communications Arcos Dorados david.grinberg@mcd.com.uy Follow
us on: 6 Definitions In analyzing
business trends, management considers a variety of performance and financial measures which are considered to be non-GAAP including:
Adjusted EBITDA, Constant Currency basis, Systemwide sales, and Systemwide comparable sales growth. Adjusted
EBITDA: In addition to financial measures prepared in accordance with the general accepted accounting principles (GAAP), this press
release and the accompanying tables use a non-GAAP financial measure titled ‘Adjusted EBITDA’. Management uses Adjusted EBITDA
to facilitate operating performance comparisons from period to period. Adjusted
EBITDA is defined as the Company’s operating income plus depreciation and amortization plus/minus the following losses/gains: gains
from sale or insurance recovery of property and equipment, write-offs of long-lived assets, and impairment of long-lived assets. Management
believes Adjusted EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused
by variations such as capital structures (affecting net interest expense and other financing results), taxation (affecting income tax
expense) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for
different companies for reasons unrelated to operating performance. Figure 5 of this earnings release includes a reconciliation for Adjusted
EBITDA. For more information, please see Adjusted EBITDA reconciliation in Note 9 – Segment and geographic information –
of our financial statements (6-K Form) filed today with the S.E.C. Constant
Currency basis: refers to amounts calculated using the same exchange rate over the periods under comparison to remove the effects
of currency fluctuations from this trend analysis. To better discern underlying business trends, this release uses non-GAAP financial
measures that segregate year-over-year growth into two categories: (i) currency translation and (ii) constant currency growth. (i) Currency
translation reflects the impact on growth of the appreciation or depreciation of the local currencies in which the Company conducts its
business against the US dollar (the currency in which the Company’s financial statements are prepared). (ii) Constant currency
growth reflects the underlying growth of the business excluding the effect from currency translation. The Company also calculates variations
as a percentage in constant currency, which are also considered to be non-GAAP measures, to provide a more meaningful analysis of its
business by identifying the underlying business trends, without distortion from the effect of foreign currency fluctuations. Systemwide
sales: Systemwide sales represent measures for both Company-operated and sub-franchised restaurants. While sales by sub-franchisees
are not recorded as revenues by the Company, management believes the information is important in understanding its financial performance
because these sales are the basis on which it calculates and records sub-franchised restaurant revenues and are indicative of the financial
health of its sub-franchisee base. Systemwide
comparable sales growth: this non-GAAP measure, refers to the change, on a constant currency basis, in Company-operated and sub-franchised
restaurant sales in one period from a comparable period for restaurants that have been open for thirteen months or longer (year-over-year
basis) including those temporarily closed. Management believes it is a key performance indicator used within the retail industry and
is indicative of the success of the Company’s initiatives as well as local economic, competitive and consumer trends. Sales by
sub-franchisees are not recorded as revenues by the Company. 7 About
Arcos Dorados Arcos Dorados is the
world’s largest independent McDonald’s franchisee, operating the largest quick service restaurant chain in Latin America
and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 21 Latin American
and Caribbean countries and territories with more than 2,400 restaurants, operated by the Company or by its sub-franchisees, that together
employ more than 100 thousand people (as of 06/30/2025). The Company is also committed to the development of the communities in which
it operates, to providing young people their first formal job opportunities and to utilize its Recipe
for the Future to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange
(NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: https://ir.arcosdorados.com/. Cautionary
Statement on Forward-Looking Statements This press release
contains forward-looking statements. The forward-looking statements contained herein include statements about the Company’s business
prospects, its ability to attract customers, its expectation for revenue generation and its outlook and guidance for 2025. These statements
are subject to the general risks inherent in Arcos Dorados' business. These expectations may or may not be realized. Some of these expectations
may be based upon assumptions or judgments that prove to be incorrect. In addition, Arcos Dorados' business and operations involve numerous
risks and uncertainties, many of which are beyond the control of Arcos Dorados, which could result in Arcos Dorados' expectations not
being realized or otherwise materially affect the financial condition, results of operations and cash flows of Arcos Dorados. Additional
information relating to the uncertainties affecting Arcos Dorados' business is contained in its filings with the Securities and Exchange
Commission. The forward-looking statements are made only as of the date hereof, and Arcos Dorados does not undertake any obligation to
(and expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such
statements were made, or to reflect the occurrence of unanticipated events. 8 Second
Quarter 2025 Consolidated Results Figure
5 (In thousands
of U.S. dollars, except per share data) 9 Second
Quarter 2025 Results by Division and Average Exchange Rates per Quarter Figure
6 (In thousands
of U.S. dollars) Figure
7 Figure
8 10 Summarized Consolidated Balance
Sheet Figure
9 (In thousands
of U.S. dollars) 11
Thank you!
• Systemwide
Comparable Sales1 grew 12.1% versus the prior year, contributing to total company
revenues of $1.1 billion in the second quarter of 2025.
• Digital
channel sales (from Mobile App, Delivery and Self-order Kiosks) rose 7.9% year-over-year
in US dollars and contributed more than 60% of total systemwide sales in the quarter.
• The
Loyalty Program had 21.5 million registered members at the end of the second quarter of 2025,
across six available markets.
• Consolidated
Adjusted EBITDA1 was $110.1 million and Net Income was $22.6 million, or $0.11
per share, in the second quarter of 2025.
• Net
Debt to Adjusted EBITDA leverage ratio was a comfortable 1.4x as of June 30, 2025, which
was among the factors cited in S&P’s ‘BBB-’ investment grade rating
of Arcos Dorados debt.
• The
Company opened 20 Experience of the Future (EOTF) restaurants in the quarter.
2Q24
(a)Currency
Translation
(b) Constant
Currency
Growth
(c) 2Q25
(a+b+c)%
As Reported
%
Constant Currency
Total
Restaurants (Units)
2,395
2,457
Sales by Company-operated
Restaurants
1,060.7
(127.9)
158.3
1,091.1
2.9%
14.9%
Revenues from franchised
restaurants
50.2
(6.7)
7.7
51.2
2.0%
15.4%
Total
Revenues
1,110.9
(134.6)
166.0
1,142.3
2.8%
14.9%
Systemwide
Comparable Sales
12.1%
Adjusted
EBITDA
118.8
(11.5)
2.8
110.1
-7.3%
2.4%
Adjusted
EBITDA Margin
10.7%
9.6%
-1.1
p.p.
Net
income (loss) attributable to AD
26.6
(6.7)
2.7
22.6
-15.2%
10.1%
Net
income attributable to AD Margin
2.4%
2.0%
-0.4
p.p.
No.
of shares outstanding (thousands)
210,660
210,663
EPS
(US$/Share)
0.13
0.11
Jun.
30,
2025Mar.
31,
2025Dec.
31,
2024Sep.
30,
2024Jun.
30,
2024
Brazil
1,191
1,179
1,173
1,160
1,150
NOLAD
658
657
654
649
649
SLAD
608
603
601
601
596
TOTAL
2,457
2,439
2,428
2,410
2,395
as
of
Jun.30, 2025Store
Format*
Total
Restaurants
Ownership
McCafes
Dessert
Centers
FS
IS
MS
& FC
Company
Operated
Franchised
Brazil
641
91
459
1,191
734
457
160
2,021
NOLAD
416
47
195
658
512
146
19
520
SLAD
267
124
217
608
509
99
227
740
TOTAL
1,324
262
871
2,457
1,755
702
406
3,281
June
30,
December
31,
2025
2024
Total
Cash & cash equivalents (i)
233,862
138,593
Total Financial Debt
(ii)
914,849
699,851
Net Financial Debt
(iii)
680,987
561,258
LTM Adjusted EBITDA
473,773
500,100
Total Financial Debt
/ LTM Adjusted EBITDA ratio
1.9
1.4
Net Financial Debt
/ LTM Adjusted EBITDA ratio
1.4
1.1
LTM Net income attributable
to AD
130,135
148,759
Total Financial Debt
/ LTM Net income attributable to AD ratio
7.0
4.7
Net
Financial Debt / LTM Net income attributable to AD ratio
5.2
3.8
(i) Total
cash & cash equivalents include short-term investment.
(ii) Total
financial debt includes short-term debt, long-term debt and derivative instruments (including
the asset portion of derivatives amounting to $68.0 million and $80.3 million as a reduction
of financial debt as of June 30, 2025 and December 31, 2024, respectively).
(iii) Net
financial debt equals total financial debt less total cash & cash equivalents.
For
Three-Months ended
For
Six-Months ended
June
30,
June
30,
2025
2024
2025
2024
REVENUES
Sales
by Company-operated restaurants
1,091,113
1,060,709
2,118,644
2,092,131
Revenues
from franchised restaurants
51,183
50,192
100,244
100,126
Total
Revenues
1,142,296
1,110,901
2,218,888
2,192,257
OPERATING
COSTS AND EXPENSES
Company-operated
restaurant expenses:
Food
and paper
(396,564)
(372,926)
(763,176)
(733,913)
Payroll
and employee benefits
(206,461)
(193,538)
(404,210)
(395,498)
Occupancy
and other operating expenses
(319,746)
(315,558)
(627,811)
(614,611)
Royalty
fees
(66,455)
(66,361)
(129,866)
(131,364)
Franchised
restaurants - occupancy expenses
(21,028)
(20,285)
(42,072)
(42,275)
General
and administrative expenses
(77,530)
(72,954)
(150,855)
(141,612)
Other
operating income, net
7,948
4,940
6,709
8,786
Total
operating costs and expenses
(1,079,836)
(1,036,682)
(2,111,281)
(2,050,487)
Operating
income
62,460
74,219
107,607
141,770
Net
interest expense and other financing results
(18,483)
(14,141)
(35,075)
(30,579)
Gain
from derivative instruments
1,344
3,182
1,454
1,249
Foreign
currency exchange results
(3,666)
(18,117)
(5,627)
(19,115)
Other
non-operating expenses, net
(481)
(223)
(603)
(652)
Income
before income taxes
41,174
44,920
67,756
92,673
Income
tax expense, net
(18,486)
(18,145)
(30,991)
(37,106)
Net
income
22,688
26,775
36,765
55,567
Net
income attributable to non-controlling interests
(101)
(143)
(248)
(426)
Net
income attributable to Arcos Dorados Holdings Inc.
22,587
26,632
36,517
55,141
Net
income attributable to Arcos Dorados Holdings Inc. Margin as % of total revenues
2.0%
2.4%
1.6%
2.5%
Earnings
per share information ($ per share):
Basic
net income per common share
$ 0.11
$ 0.13
$ 0.17
$ 0.26
Weighted-average
number of common shares outstanding-Basic
210,663,057
210,660,444
210,663,057
210,658,096
Adjusted
EBITDA Reconciliation
Net
income attributable to Arcos Dorados Holdings Inc.
22,587
26,632
36,517
55,141
Net
income attributable to non-controlling interests
101
143
248
426
Income
tax expense, net
18,486
18,145
30,991
37,106
Other
non-operating expenses, net
481
223
603
652
Foreign
currency exchange results
3,666
18,117
5,627
19,115
Gain
from derivative instruments
(1,344)
(3,182)
(1,454)
(1,249)
Net
interest expense and other financing results
18,483
14,141
35,075
30,579
Depreciation
and amortization
47,913
45,202
94,208
88,293
Operating
charges excluded from EBITDA computation
(262)
(639)
(425)
(2,346)
Adjusted
EBITDA
110,111
118,782
201,390
227,717
Adjusted
EBITDA Margin as % of total revenues
9.6%
10.7%
9.1%
10.4%
For
Three-Months ended
as
Constant
For
Six-Months ended
as
Constant
June
30,
reported
Currency
June
30,
reported
Currency
2025
2024
Incr/(Decr)%
Incr/(Decr)%
2025
2024
Incr/(Decr)%
Incr/(Decr)%
Revenues
Brazil
415,387
441,990
-6.0%
2.0%
815,689
890,927
-8.4%
3.7%
NOLAD
317,829
310,205
2.5%
6.9%
599,529
612,926
-2.2%
3.3%
SLAD
409,080
358,706
14.0%
37.8%
803,670
688,404
16.7%
38.4%
TOTAL
1,142,296
1,110,901
2.8%
14.9%
2,218,888
2,192,257
1.2%
14.5%
Operating
Income (loss)
Brazil
34,118
68,194
-50.0%
-45.9%
67,096
125,236
-46.4%
-39.3%
NOLAD
27,569
13,191
109.0%
117.6%
40,428
31,174
29.7%
34.1%
SLAD
27,354
19,719
38.7%
71.1%
52,423
34,161
53.5%
82.2%
Corporate and Other
(26,581)
(26,885)
1.1%
-10.7%
(52,340)
(48,801)
-7.3%
-19.7%
TOTAL
62,460
74,219
-15.8%
-6.2%
107,607
141,770
-24.1%
-14.2%
Adjusted
EBITDA
Brazil
52,954
86,168
-38.5%
-33.4%
102,523
161,614
-36.6%
-28.2%
NOLAD
41,238
26,161
57.6%
64.4%
67,478
54,763
23.2%
28.9%
SLAD
40,533
30,571
32.6%
59.9%
79,593
55,312
43.9%
68.8%
Corporate and Other
(24,614)
(24,118)
-2.1%
-14.6%
(48,204)
(43,972)
-9.6%
-22.8%
TOTAL
110,111
118,782
-7.3%
2.4%
201,390
227,717
-11.6%
-0.8%
Systemwide
Comparable Sales
For
Three-Months ended
June
30,
2025
2024
Brazil
0.3%
10.2%
NOLAD
4.4%
7.9%
SLAD
38.2%
113.4%
TOTAL
12.1%
40.8%
period
average
local currency per US$Brazil
Mexico
Argentina
2Q25
5.66
19.49
1,150.22
2Q24
5.22
17.26
885.90
June
30,
December
31,
2025
2024
ASSETS
Current assets
Cash and cash
equivalents
147,052
135,064
Short-term
investments
86,810
3,529
Accounts and
notes receivable, net
156,314
119,441
Other current
assets (1)
232,003
209,953
Derivative
instruments
1,500
416
Total current assets
623,679
468,403
Non-current
assets
Property and
equipment, net
1,238,288
1,127,042
Net intangible
assets and goodwill
144,143
66,644
Deferred income
taxes
111,215
90,287
Derivative
instruments
66,462
79,874
Equity method
investments
15,816
14,346
Leases right
of use asset
1,053,998
949,977
Other non-current
assets (2)
118,819
96,081
2,748,741
2,424,251
Total assets
3,372,420
2,892,654
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
313,225
347,895
Taxes payable
(3)
131,719
118,466
Accrued payroll
and other liabilities
149,555
113,259
Royalties payable
to McDonald’s Corporation
27,208
20,860
Provision for
contingencies
1,306
1,199
Interest payable
18,328
7,798
Financial debt
(4)
37,456
64,167
Operating lease
liabilities
99,784
92,280
Total current liabilities
778,581
765,924
Non-current
liabilities
Accrued payroll
and other liabilities
88,841
20,928
Provision for
contingencies
31,934
29,157
Financial debt
(5)
945,355
715,974
Deferred income
taxes
1,956
2,084
Operating lease
liabilities
944,111
849,158
Total non-current liabilities
2,012,197
1,617,301
Total liabilities
2,790,778
2,383,225
Equity
Class A shares
of common stock
389,967
389,967
Class B shares
of common stock
132,915
132,915
Additional
paid-in capital
8,659
8,659
Retained earnings
650,347
664,390
Accumulated
other comprehensive loss
(582,283)
(668,484)
Common stock
in treasury
(19,367)
(19,367)
Total Arcos Dorados Holdings Inc shareholders’
equity
580,238
508,080
Non-controlling interest in subsidiaries
1,404
1,349
Total equity
581,642
509,429
Total
liabilities and equity
3,372,420
2,892,654
(1) Includes
"Other receivables", "Inventories" and "Prepaid expenses and other
current assets”.
(2) Includes
"Miscellaneous" and "Collateral deposits".
(3) Includes
"Income taxes payable" and "Other taxes payable".
(4) Includes
"Short-term debt”, “Current portion of long-term debt" and "Derivative
instruments”.
(5) Includes
"Long-term debt, excluding current portion" and "Derivative instruments".
FAQ
What were Arcos Dorados (ARCO) total revenues and systemwide comparable sales in Q2 2025?
How did Arcos Dorados perform on profitability metrics in Q2 2025?
What is the status of Arcos Dorados' Loyalty Program and digital sales (ARCO)?
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