Arcos Dorados (ARCO) investor relations material

Executive summary

• Total revenue reached $1.2 billion in Q3 2025, up 5.2% year-over-year, with balanced growth across all divisions and strong digital channel performance; Brazil stabilized sequentially.

• Systemwide comparable sales grew 12.7% year-over-year, driven by average check growth, offsetting a low single-digit decline in guest traffic.

• Net income was $150.4 million ($0.71 per share), significantly boosted by a $125.2 million net benefit from a federal tax credit in Brazil.

• Digital sales contributed 61% of systemwide sales, and loyalty program membership grew nearly 50% year-over-year to 23.6 million.

• 22 new restaurants opened in Q3, with 72% of the portfolio modernized.

Financial highlights

• Adjusted EBITDA was $201.1 million, up 60.9% year-over-year, with margin improving to 16.9%, including an $85.6 million net impact from the federal tax credit.

• Systemwide comparable sales grew in line with blended inflation, driven by average check growth offsetting a slight volume decline.

• Net income margin increased to 12.6% from 3.1% in Q3 2024.

• Food & Paper costs increased, especially in Brazil due to elevated beef prices.

• Digital channel sales rose over 11% year-over-year, accounting for 61% of systemwide sales.

Outlook and guidance

• Expect to deliver 90-100 new restaurant openings in 2025, with more than 2,500 restaurants by year-end.

• Positioned for normalized top-line and EBITDA growth as macroeconomic and consumer environments improve.

• Focused on expanding EBITDA margin in 2026 and maintaining flexibility in investment pace based on market conditions.

• 2026 FIFA World Cup sponsorship and major marketing campaigns planned for the three largest markets.

• Loyalty program expansion on track to cover all main markets by year-end 2025.