Arcos Dorados (ARCO) investor relations material

Executive summary

• Achieved double-digit revenue growth and record adjusted EBITDA for Q4 and full year 2025, with margin expansion despite cost and consumer pressures in key markets.

• Q4 2025 revenue was $1.3 billion, up 10.7% year-over-year; full year revenue reached $4.7 billion, up 4.7% year-over-year.

• Adjusted EBITDA hit $172.7 million in Q4 and $575.2 million for the year, both record highs in US dollars.

• Digital sales penetration reached 62% of total sales, with loyalty program covering over 90% of restaurants and 27.2 million members.

• Opened 102 new restaurants, raising modernized portfolio to 73%; digital and loyalty platforms drove engagement and sales.

Financial highlights

• Q4 revenue reached $1.3 billion, up 10.7% year-over-year; system-wide comparable sales rose 16%, in line with blended inflation.

• Adjusted EBITDA for Q4 was $172.7 million, up 17.2% year-over-year, with an 80 basis point margin expansion; full year adjusted EBITDA hit a record, aided by net tax benefits.

• Q4 Adjusted EBITDA margin was 13.6%, up from 12.9% in Q4 2024; full year margin was 12.3%, up from 11.2% in 2024.

• Net income was $25.2 million in Q4 and $212.1 million for the year, with significant tax benefits in Brazil.

• Full year net cash from operations was $296.3 million, with capital expenditures of $281.4 million.

Outlook and guidance

• Expect underlying profitability trends from Q4 to continue into 2026, with potential for higher gross margin.

• Guidance for 2026: 105-115 new restaurant openings, CapEx of $275-325 million, and continued focus on cost discipline and margin improvement.

• Board declared a cash dividend of $0.28 per share for 2026, up from $0.24, to be paid in four installments.

• Effective tax rate (ETR) for 2026 expected to remain stable at 37.7%, with no structural changes anticipated.