Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q2 2026 Earnings Presentation
27 slides from Arcos Dorados's earnings presentation, Aug 13, 2026
Slide 1: 2nd Quarter 2026 Results
Arcos Dorados 2 Quarter nd 2026 Results August 13, 2026
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. Forward-looking statements can be identified by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “
Slide 3: Agenda
Agenda 1 Quarter 4 Balance Sheet & Highlights Development 2 Marketing, Digital & 5 Final Divisional Revenue Thoughts 3 Profitability & 6 Supplemental Margins Information 3
Slide 4: Quarter Highlights
1 Quarter Highlights 2nd Quarter 2026
Slide 5: Second Quarter 2026 Key Highlights
Second Quarter 2026 Key Highlights 2Q 2026 Systemwide Systemwide comparable sales included positive guest traffic in all three divisions Total Revenue Comparable Sales • The Company’s best guest volume performance of the last six quarters was driven mainly by volume growth in Brazil, Mexico and Colo
Slide 6: Marketing, Digital & Divisional Revenue
2 Marketing, Digital & Divisional Revenue Organic Growth Drivers
Slide 7: Visit Share remained strong despite 2Q26 market headwinds
Visit Share remained strong Mexico despite 2Q26 market headwinds +0.3 pp Latam Visit Share Colombia +0.5 pp Q2 2026 vs Q2 2025 +0.4 pp Brazil +0.8 pp -0.1 pp +1.8 pp Chile +1.1 pp Argentina +0.5 pp Main Competitor 1 Main Competitor 2 Q2 25 Q2 26 7 Source: IPSOS / Company research
Slide 8: Digital sales reached new heights
Digital sales reached new heights Boosted by growing Loyalty Program membership Digital Sales (in USD) Loyalty Program 5x Frequency +25% Active Redeeming Members vs. Non-Loyalty Customers Q2 25 Q2 26 8
Slide 9: The FIFA World Cup was a Hit
The FIFA World Cup was a Hit Boosting Brand Metrics across the Region Anticipation Euphoria Mini World Cup Ball Mundialistas FIFA World Cup Regional Regional + Happy Meal Q1 April - June Global June – July Panini Regional April - June 9
Slide 10: Second Quarter 2026 Total Revenues by Division
Second Quarter 2026 Total Revenues by Division BRAZIL 5.4% NOLAD (2.2)% SLAD 42.9% ($million) ($million) ($million) Systemwide Systemwide Systemwide comparable comparable comparable 11.7% sales growth sales growth sales growth 2.4% 38.1% 25.3% 9.3% 7.0% 415.4 520.6 463.8 317.8 347.5 325.3 409.1 437.
Slide 11: Profitability & Margins
3 Profitability & Margins Adjusted EBITDA & Margin Bridge
Slide 12: Second Quarter 2026 Consolidated Adj. EBITDA Margin & Bridge
Second Quarter 2026 Consolidated Adj. EBITDA Margin & Margin Bridge 2Q26 – Adj. EBITDA Margin Performance 2Q26 – Consolidated 9.7% (% of total revenue) Adj. EBITDA margin ($million) 2Q25 Occupancy Franchised Other 2Q26 Adjusted Payroll & & Other Restaurants Operating Adjusted 13.8% EBITDA Food & Emp
Slide 13: Second Quarter 2026 Adjusted EBITDA by Division
Second Quarter 2026 Adjusted EBITDA by Division BRAZIL 14.6% NOLAD 9.7% SLAD 9.9% ($million) ($million) ($million) Adj. EBITDA Adj. EBITDA Adj. EBITDA margin margin margin 27.3% 33.5% 43.2% (23.8)% 6.6% (18.3)% 53.0 75.8 67.4 41.2 33.7 31.4 40.5 43.2 54.1 2Q25 2Q26 2Q26 2Q25 2Q26 2Q26 2Q25 2Q26 2Q26
Slide 14: Balance Sheet & Development
4 Balance Sheet & Development Capital Allocation
Slide 15: Healthy Balance Sheet & Cash Flow to Support Future Growth
Healthy Balance Sheet & Cash Flow to Support Future Growth Strong Cash Generation Key Debt Metrics – at period end Adjusted Free Cash Flow ($million) ($million) Leverage Ratio 143.4 1.0x 1.1x 1.2x 1.1x BBB- 692 Stable 679 569 481 422 728 247 708 139 1,102 962 270 BBB- 16.1 2023 2024 2025 2Q26 Stable
Slide 16: Development & Capital Allocation
Development & Capital Allocation Growth and Modernization 2Q 2026 Quarter-end Restaurant Footprint Store Type Total Dessert Division McCafé Freestanding In Store MS & FC Restaurants Centers BRAZIL 691 90 469 1,250 223 2,023 NOLAD 426 48 196 670 22 506 SLAD 287 124 217 628 251 738 TOTAL 1,404 262 882
Slide 17: Wrap Up
5 Wrap Up Closing Remarks
Slide 18: Closing Remarks
Closing Remarks Resilience • The Arcos Dorados business model is delivering strong results, despite more challenging operating conditions in several markets. • Confident in the plan for the 2 nd half of 2026 to provide a strong foundation for 2027. Market Share and Brand Attributes • An enduring con
Slide 19: Questions & Answers
Questions & Answers
Slide 20: Supplemental Information
6 Supplemental Information
Slide 21: 2025 Social Impact and Sustainable Development Report
2025 Social Impact and Sustainable Development Report Key Highlights Our People Environmental & Community Impact • 120,000+ people are part of the Arcos Dorados system. • $8.4 million raised and donated through McHappy Day. • 53% of our employees are under 24 years old and • 100% of our 2025 climate
Slide 22: Second Quarter 2026 Consolidated Net Income Growth & Margin Bridge
Second Quarter 2026 Consolidated Net Income Growth & Margin Bridge 2Q26 – Net Income Margin Performance 2Q26 – Net Income, attributable to AD (% of total revenue) ($million) 3.4% Net Interest Other Net Income 2Q25 Operating Expense & Gain / (Loss) Foreign Non- attributable to 2Q26 margin Net Depreci
Slide 23: Net Debt to Net Income & Adjusted Free Cash Flow Reconciliation
Net Debt to Net Income & Adjusted Free Cash Flow Reconciliation Key Debt Metrics – at period end Adjusted Free Cash Flow Reconciliation ($million) ($million) Leverage Ratio LTM ended 2.7x 3.8x 3.2x 2.7x Jun 30, ($ million) 2026 2025 Net cash provided by operating activities 362,135 260,846 679 692 I
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For Three-Months ended June 30, ($ million) 2026 2025 Net income attributable to Arcos Dorados Holdings Inc. 45,005 22,587 Net income attributable to non-controlling interests 91 101 Income tax expense, net 25,948 18,486 Other non-operating expenses, net 95 481 Foreign
Slide 25: Definitions
Definitions In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), management analyzes business trends using a variety of performance, financial and liquidity measures, which are considered non-GAAP. This presentation contains the following non
Slide 26: Definitions
Definitions 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 s
Slide 27: Thank you!
Thank IR Contacts https://ir.arcosdorados.com you! ir@mcd.com.uy Dan Schleiniger Vice President Investor Relations daniel.schleiniger@mcd.com.uy Follow us on
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