2 December 2024
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Market + Management

Arcos Dorados: Reports Q3-2024 Financial Results

Montevideo / UY. (arc) Arcos Dorados Holdings Inc., Latin America’s and the Caribbean’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, reported unaudited results for the three and nine months ended September 30, 2024.

Third Quarter 2024 Highlights

  • Consolidated revenues totaled USD 1.1 billion, rising in US dollars despite weaker local currencies.
  • Systemwide comparable sales rose 32.1 percent versus the third quarter of 2023, including the impact of high inflation in Argentina over the last 12 months.
  • Consolidated Adjusted Ebitda reached USD 125.0 million, with an 11.0 percent margin.
  • Net Income was USD 35.2 million, with a 3.1 percent margin.
  • Net Debt to Adjusted Ebitda leverage ratio ended the third quarter at 1.2x, unchanged from the end of the previous quarter.
  • The Company opened 19 Experience of the Future (EOTF) restaurants in the quarter, all of them free-standing, including 11 in Brazil.
  • Digital channel sales grew 16 percent, including strong performances in Mobile App and Delivery as well as the continued growth of the Loyalty Program.

Chief Executive Officer’s Summary

CEO Marcelo Rabach: «Third quarter 2024 results demonstrate the resilience of Arcos Dorados’ business model. Sales and profitability were strong, as US dollar revenue set a new high for a third quarter and Adjusted Ebitda was the second highest for a third quarter. Notably, comparable guest counts rose for the 14th consecutive quarter, with broad-based traffic increases in the region. This helped drive systemwide comp sales growth in all three divisions, despite more challenging economic and consumer environments.

«Our strategy, built around Digital, Delivery and Drive-thru, remained an unmatched structural competitive advantage across all markets. In line with McDonald’s global growth strategy, we expect our restaurant opening pipeline to unlock even more shareholder value, as we capture the significant expansion opportunity over the next several years. Our balance sheet is as strong as ever, which allows us to continue ramping up on the Fourth «D» of our strategy: Development. With that in mind, moving forward, we will begin referring to our Four D’s Strategy.

«For the year-to-date through September, we opened 56 Experience of the Future restaurants, including 32 openings in Brazil. And, since the fourth quarter began, we either opened or broke ground on all the restaurants we plan to open this year.

«I believe there are so many reasons to be excited about the future for Arcos Dorados and its shareholders, including: operating the world’s most beloved QSR Brand, executing the successful Four D’s Strategy, the largest market share in the region’s quick service restaurant (QSR) industry, by far, and a strong balance sheet to support future growth. In addition, we operate the region’s most modernized restaurant portfolio with the highest number of free-standing locations that we believe will continue to be a structural competitive advantage for the foreseeable future.

«Finally, we believe we are operating in the world’s best ZIP code. Latin America has one of the globe’s most underpenetrated QSR industries. While it is true we have political and economic cycles, we are the least impacted emerging market when it comes to the serious geopolitical issues in other parts of the world. And, the consumer class continues to grow in Latin America’s biggest markets, which will generate growing demand for the world’s most popular QSR Brand. It will be our job to capitalize on these opportunities in the years to come.»


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