Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q4 2023 Earnings Presentation
25 slides from Arcos Dorados's earnings presentation, Mar 13, 2024
Slide 1: 4Q & Full Year 2023 Results
Arcos Dorados 4Q & Full Year 2023 Results March 13, 2024
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 Key 4 Balance Sheet Highlights & Growth 2 Sales & 5 Recipe for Profitability the Future 3 Digital, Delivery 6 Wrap Up & Drive-thru 3
Slide 4: Key Highlights
1 Key Highlights 4th Quarter and Full Year 2023
Slide 5: Fourth Quarter and Full Year 2023 Key Highlights
Fourth Quarter and Full Year 2023 Key Highlights 4Q 2023 Full Year 2023 Systemwide Comparable Sales Grew 32.4% in the 4Q 2023, up 1.1x blended inflation Total Revenue Total Revenue • Systemwide comparable sales grew with or above inflation in all divisions. • Guest traffic grew in all divisions vers
Slide 6: Market Share
Market Share QSR Visit Share McDonald’s Market Share Latin America vs. Main Competitor México 2.0x Panama 2.2x +1.1pp Costa Rica 2.6x YoY Colombia 2.1x +0.4pp Brazil YoY 2.1x (0.5)pp YoY Uruguay Chile 4Q22 4Q23 3.5x 3.7x Argentina McDonald's Competitor 1 Competitor 2 3.0x 6 Source: Proprietary resea
Slide 7: Sales & Profitability
2 Sales & Profitability Divisional Sales Performance
Slide 8: Fourth Quarter 2023 Brazil Division Sales Performance
Fourth Quarter 2023 Brazil Division BRAZIL 6.2%* Sales Performance ($million) 11.8% 18.9% 406.3 482.9 454.1 4Q22 4Q23 4Q23 (as reported) (in constant currency) • Comps were up 1.3x inflation in the 4Q23 and 2.1x inflation for the full year, with about even contributions from volume and average check
Slide 9: Fourth Quarter 2023 North Latin American Division Sales Performance
Fourth Quarter 2023 North Latin American Division Sales Performance NOLAD 5.4%* ($million) 7.5% 15.2% 260.8 300.4 280.3 4Q22 4Q23 4Q23 (as reported) (in constant currency) • Comps up 2.1x inflation in the 4Q23 and 2.9x inflation for the full year 2023. • Volume growth contributed about 2/3 of full y
Slide 10: Fourth Quarter 2023 South Latin American Division Sales Performance
Fourth Quarter 2023 South Latin American Division SLAD 94.7%* Sales Performance ($million) 94.3% 11.5% 351.6 392.1 683.1 4Q22 4Q23 4Q23 (as reported) (in constant currency) • Comps up 1.0x inflation in the 4Q23 and 1.2x inflation for the full year 2023. • Mid to high single digit volume growth in 20
Slide 11: Fourth Quarter 2023 Consolidated Adjusted EBITDA Growth & Margin Bridge
Fourth Quarter 2023 Consolidated Adjusted EBITDA Growth & Margin Bridge 4Q23 – Adj. EBITDA Margin Performance 4Q23 – Consolidated 11.3% (% of total revenue) Adj. EBITDA margin ($million) 4Q22 Occupancy Franchised Other 4Q23 33.3% Adjusted Payroll & & Other Restaurants Operating Adjusted EBITDA Food
Slide 12: Fourth Quarter 2023 Divisional Profitability – Double-Digit US dollar Growth
Fourth Quarter 2023 Divisional Profitability – Double-Digit US dollar Growth BRAZIL 19.4%* NOLAD 10.4%* SLAD 10.5%* ($million) ($million) ($million) 8.3% 180.9% 15.4% 3.6% 31.0% 11.7% 81.2 93.7 88.0 27.9 31.1 28.8 31.3 41.0 88.0 4Q22 4Q23 4Q23 4Q22 4Q23 4Q23 4Q22 4Q23 4Q23 (as reported) (in constant
Slide 13: Digital, Delivery & Drive-thru
3 Digital, Delivery & Drive-thru 3D’s
Slide 14: Total Digital Sales: Driving Frequency with Data and Guest Experience
Total Digital Sales¹ Driving Frequency with Data and Guest Experience Systemwide Digital Sales¹ Total Digital Identified Sales Penetration Sales Penetration 44% 53% 17% 21% 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q22 1Q23 2Q23 3Q23 4Q23 >115 m ~80 m ~18.5 m Mobile APP Unique Registered Average Monthly Down
Slide 15: Delivery & Drive-thru: Leveraging the Free-standing Portfolio
Delivery & Drive-thru: Leveraging the Free-standing Portfolio Systemwide Off-Premise Sales1 17.0% of systemwide sales 4Q22 1Q23 2Q23 3Q23 4Q23 25.0% of systemwide sales ¹Delivery and Drive-thru 15 2In US dollars versus 4Q 2022
Slide 16: Loyalty Program: >5.0 million members and growing fast
Loyalty Program: >5.0 million members and growing fast 16
Slide 17: Balance Sheet & Growth
4 Balance Sheet & Growth Capital Structure & Investments
Slide 18: Healthy Balance Sheet & Cash Flows to Support Future Growth
Healthy Balance Sheet & Cash Flows to Support Future Growth Key Debt Metrics Cash Flow from Operating Activities ($million) ($million) Leverage Ratio 7.6x 1.4x 1.0x 1.0x BB+ 11.0% Stable 519 472 379 370 685 166 658 279 674 304 728 247 Ba2 345.4 382.0 Stable 2020 2021 2022 2023 FY22 FY23 Total Debt C
Slide 19: Restaurant Portfolio: Latin America's Most Modernized Footprint
Restaurant Portfolio Latin America’s Most Modernized Footprint 4Q 2023 Quarter-end Restaurant Footprint Store Type Total Dessert Division McCafé Freestanding In Store MS & FC Restaurants Centers BRAZIL 579 91 460 1,130 97 2,002 NOLAD 404 50 193 647 19 520 SLAD 240 125 219 584 192 707 TOTAL 1,223 266
Slide 20: Recipe for the Future
5 Recipe for the Future ESG Platform
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance Sustainable Sourcing: Animal Welfare 100% cage-free fresh eggs in Brazil, Colombia, Costa Rica, Puerto Rico and Peru. Targeting all of Arcos Dorados by year-end 2025. Sustainable Expansion New and remodeled restaurants equipped with technology to support up to 25
Slide 22: Wrap Up
6 Wrap Up Closing Remarks
Slide 23: Closing Remarks
Closing Remarks Very Strong Results Strong Revenue and in 2023 Profitability Growth • Systemwide comparable sales rose • Higher guest volumes helped boost above inflation in all divisions. revenue growth. • Best value proposition in the region’s • Profitability grew mainly with revenue, QSR industry
Slide 24: Questions & Answers
Questions & Answers
Slide 25: Thank you!
IR Contacts www.arcosdorados.com/ir Thank Dan Schleiniger you! Vice President Investor Relations daniel.schleiniger@mcd.com.uy Leticia Santiago Senior Manager Investor Relations leticia.santiago@br.mcd.com Follow us on
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