Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q1 2023 Earnings Presentation
21 slides from Arcos Dorados's earnings presentation, May 17, 2023
Slide 1: 1st Quarter 2023 Earnings
Arcos Dorados 1 Quarter st 2023 Earnings May 17, 2023
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: Discussion Topics
Discussion Topics Key Highlights Divisional Sales & Profitability Three D’s Strategy Balance Sheet & Growth Recipe for the Future Wrap Up 03
Slide 4: Key Highlights
Key Highlights 1st Quarter 2023
Slide 5: First Quarter 2023 Key Highlights
First Quarter 2023 Key Highlights Systemwide Comparable Sales – 1.7x blended inflation 1Q 2023 Systemwide • Systemwide comparable sales growth was strong in all divisions. Total Revenue Comparable Sales • Visit Share1 ~2.0 and 3.5x bigger than the 2 closest brands, respectively. $990.8m +37.6% Three
Slide 6: Sales & Profitability
Sales & Profitability Divisional Sales Performance
Slide 7: 1Q23 – Systemwide Comparable Sales by Division
1Q23 – Systemwide Comparable Sales by Division Systemwide comparable sales growth (%) BRAZIL 13.8% NOLAD 16.6% SLAD 91.8% ($million) ($million) ($million) 19.2% 88.5% 19.9% 21.4% 30.0% 27.2% 312.0 374.2 371.9 203.9 259.3 247.5 274.9 357.3 518.1 1Q22 1Q23 1Q23 1Q22 1Q23 1Q23 1Q22 1Q23 1Q23 (as report
Slide 8: 1Q23 – Consolidated Adjusted EBITDA & Bridge
1Q23 – Consolidated Adjusted EBITDA & Bridge Consolidated 10.1% ($million) margin 42.7% 28.0% 78.5 100.5 112.0 1Q22 1Q23 1Q23 (as reported) (in constant currency) • Consolidated Adj. EBITDA margin expanded by 20 basis points, with operating leverage offsetting the higher royalty rate. • Food & Paper
Slide 9: 1Q23 – Adj. EBITDA by Division
1Q23 – Adj. EBITDA by Division Adjusted EBITDA margin (%) BRAZIL NOLAD SLAD 15.9% 9.1% 11.4% ($million) ($million) ($million) 28.5% 107.4% 29.2% 6.3% 34.3% 10.7% 46.0 59.5 59.2 21.4 23.7 22.8 30.3 40.7 62.9 1Q22 1Q23 1Q23 1Q22 1Q23 1Q23 1Q22 1Q23 1Q23 (as reported) (in constant (as reported) (in con
Slide 10: Digital, Delivery & Drive-thru
Digital, Delivery & Drive-thru
Slide 11: Total Digital Sales – Driving Consistent Topline Growth
Total Digital Sales1 – Driving Consistent Topline Growth Systemwide Digital Sales ($USD) Total Digital Identifiable Sales Penetration Sales Penetration 38% 47% 14% 18% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 93 m 15.2 m 1Q22 2Q22 3Q22 4Q22 1Q23 Downloads Average Monthly Users 68 m Unique Registered Users 1D
Slide 12: Delivery & Drive-thru – Strong sales even as front counter rebounds
Delivery & Drive-thru – Strong sales even as front counter rebounds McDelivery Sales Drive-thru Sales 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 16.0% 25.0% of systemwide sales of systemwide sales 1in constant currency versus 1Q 2022 12
Slide 13: Balance Sheet & Growth
Balance Sheet & Growth Capital Structure & Investments
Slide 14: Cash Flow from Operations & Net Leverage
Cash Flow from Operations & Net Leverage Key Debt Metrics Cash Flow from Operating Activities Leverage Ratio ($ million) 7.6x 1.4x 1.0x 1.0x ($ million) 519 425 BB+ 379 370 Stable 685 166 658 279 674 304 689 264 Ba2 35.2 29.5 2020 2021 2022 1Q23 Stable 1Q22 1Q23 Total Debt Cash & Equivalents Net Deb
Slide 15: Restaurant Portfolio
Restaurant Portfolio 1Q 2023 QUARTER-END RESTAURANT FOOTPRINT STORE TYPE TOTAL DESSERT DIVISION MCCAFES RESTAURANTS CENTERS Freestanding In Store MS & FC BRAZIL 542 92 457 1,091 129 1,977 NOLAD 392 51 196 639 13 521 SLAD 232 128 222 582 164 700 TOTAL 1,166 271 875 2,312 306 3,198 1Q23 Openings 1,072
Slide 16: Recipe for the Future
Recipe for the Future ESG Platform
Slide 17: 2022 Social Impact and Sustainable Development Report
2022 Social Impact and Sustainable Development Report CLIMATE CIRCULAR SUSTAINABLE YOUTH COMMITMENT DIVERSITY & CHANGE ECONOMY SOURCING OPPORTUNITY TO FAMILIES INCLUSION 29% energy 2.9 m liters of oil 99% of beef >450,000 >890,000 books 58% of people from renewable recovered and sourced from develop
Slide 18: Wrap Up
Wrap Up Closing Remarks
Slide 19: Closing Remarks
Closing Remarks Brand ✓ Building a loved brand creates value. ✓ Culturally relevant Brand activations. Restaurants ✓ Freestanding restaurant portfolio. ✓ Coolture of Service. Three D’s Strategy ✓ Digital engagement. ✓ When, where and how. Environmental, Social & Governance ✓ Leading the QSR industry
Slide 20: Questions & Answers
Questions & Answers
Slide 21: Thank you!
IR Contacts www.arcosdorados.com/ir Thank you! Dan Schleiniger 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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