Arcos Dorados Holdings Stock Earnings Reports

Arcos Dorados reported a strong start to 2026 with total revenue up ~13% to over $1.2 billion and systemwide comparable sales up 16%, driven mainly by average check and improving guest traffic in several markets. Adjusted EBITDA reached a first-quarter record of ~$118–119 million, with consolidated margin expansion of ~120 bps (about 60 bps from food & paper and 60 bps from G&A). Division highlights: Brazil delivered the highest growth (helped by new restaurants, higher average check and real appreciation) and saw margin improvement driven chiefly by lower beef costs; SLAD continued strong USD growth and margin expansion; NOLAD had flatter margins partly due to payroll/occupancy pressure but showed sequential improvement in some metrics. Digital penetration and loyalty remain core growth drivers (30+ million registered loyalty members, loyalty representing ~25% of sales and showing higher frequency from members). The company opened 19 restaurants in Q1, invested $36.8 million (including $16.7 million in new restaurants), and emphasized disciplined, return-focused CapEx with a preference for freestanding/leased formats. Arcos Dorados reported improved cash generation: adjusted free cash flow for the last 12 months was nearly $110 million vs. -$3 million prior, and net debt/adjusted EBITDA was stable versus year-end 2025. Management reiterated a 2026 plan focused on monetizing market share, restoring traffic while protecting margins, continuing store modernization (targeting ~90% Experience of the Future) and sustaining cost discipline (G&A restructuring and supply-chain initiatives). They remain cautiously optimistic on food & paper costs (especially beef in Brazil) and expect further margin improvement as sales recover.