Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q4 2024 Earnings Presentation
28 slides from Arcos Dorados's earnings presentation, Mar 12, 2025
Slide 1: 4Q & Full Year 2024 Results
Arcos Dorados 4Q & Full Year 2024 Results March 12, 2025
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 & Development 2 Sales & 5 Final Profitability Thoughts 3 Digital, Delivery & 6 Supplemental Drive Thru Information 3
Slide 4: Key Highlights
1 Key Highlights 4th Quarter & Full Year 2024
Slide 5: Fourth Quarter and Full Year 2024 Key Highlights
Fourth Quarter and Full Year 2024 Key Highlights Fourth Quarter Full Year 4Q 2024 Systemwide Systemwide Comparable Sales grew 1.7x blended inflation, excluding Argentina Total Revenue Comparable Sales • Up 1.8x inflation in Brazil, with positive guest traffic and average check growth. $1.1b 21.5% •
Slide 6: Sales & Profitability
2 Sales & Profitability Divisional Sales Performance
Slide 7: Fourth Quarter 2024 Brazil Division Sales Performance
Fourth Quarter 2024 Brazil Division BRAZIL 5.5% Sales Performance ($million) Systemwide comparable 9.2% sales growth (7.7)% 482.9 445.9 527.2 4Q23 4Q24 4Q24 (as reported) (in constant currency) • Comparable sales grew 1.1x inflation in the fourth quarter and 1.8x inflation for the full year 2024. •
Slide 8: Fourth Quarter 2024 North Latin American Division Sales Performance
Fourth Quarter 2024 North Latin American Division Sales Performance NOLAD 4.1% ($million) Systemwide comparable 5.5% sales growth 0.9% 300.4 303.1 317.0 4Q23 4Q24 4Q24 (as reported) (in constant currency) • Comparable sales up 1.7x blended inflation in the fourth quarter and 2.2x blended inflation f
Slide 9: Fourth Quarter 2024 South Latin American Division Sales Performance
Fourth Quarter 2024 South Latin American Division Sales Performance SLAD 61.8% ($million) Systemwide comparable sales growth 64.2% 0.8% 392.1 395.2 643.9 4Q23 4Q24 4Q24 (as reported) (in constant currency) • Comparable sales grew 0.8x blended inflation in the fourth quarter and 1.4x blended inflatio
Slide 10: Market Share Leadership Consolidation in 2024
Market Share Leadership Consolidation in 2024 Arcos Dorados Brazil Division Spend Share, year-to-date Spend Share, year-to-date 2.2x 1.8x Competitor 1 Competitor 1 2023 2024 2023 2024 McDonald's Competitor 1 Competitor 2 McDonald's Competitor 1 Competitor 2 Source: Proprietary research by IPSOS, mar
Slide 11: Fourth Quarter 2024 Consolidated Adjusted EBITDA Growth & Margin Bridge
Fourth Quarter 2024 Consolidated Adjusted EBITDA Growth & Margin Bridge 4Q24 – Adj. EBITDA Margin Performance 4Q24 – Consolidated 12.9% (% of total revenue) Adj. EBITDA margin ($million) 4Q23 Occupancy Franchised Other 4Q24 Adjusted Payroll & & Other Restaurants Operating Adjusted EBITDA Food & Empl
Slide 12: Fourth Quarter 2024 Divisional Profitability – SLAD achieves US dollar growth
Fourth Quarter 2024 Divisional Profitability – SLAD achieves US dollar growth BRAZIL 22.3% NOLAD 10.2% SLAD 10.8% ($million) ($million) ($million) Adj. EBITDA Adj. EBITDA Adj. EBITDA margin margin margin 25.5% 76.9% 6.0% 3.0% 4.1% (1.1)% 93.7 99.4 117.6 31.1 30.8 32.1 41.0 42.7 72.5 4Q23 4Q24 4Q24 4
Slide 13: Digital, Delivery & Drive-thru
3 Digital, Delivery & Drive-thru Organic Sales Drivers
Slide 14: Full Year Digital Sales up about 18% in US dollars
Full Year Digital Sales1 up about 18% in US dollars Driving Frequency with Data and Guest Experience Total Digital Sales Penetration 53% 58% ~147 m Mobile APP 4Q 2023 4Q 2024 Downloads Identified Sales Penetration ~99 m ~20.8 m Unique Registered Average Monthly 21% 25% Users Active Users 4Q 2023 4Q
Slide 15: Delivery & Drive-thru: Long-Term Growth Drivers
Delivery & Drive-thru: Long-Term Growth Drivers Systemwide Off-Premise Sales1 (US dollars) ~19% of systemwide sales 2021 2022 2023 2024 ~25% of systemwide sales 15 ¹Delivery and Drive-thru
Slide 16: Loyalty Program: 15.8 million members, and growing
Loyalty Program 15.8 million members, and growing Registered Members (million) • Available in Brazil, Costa Rica and Uruguay in 2024, representing 18% of 4Q24 sales in these markets. • Expanded to Argentina and Colombia in the 1 st quarter of 2025. • Rolling out to all of Arcos Dorados by late 2025
Slide 17: Balance Sheet & Development
4 Balance Sheet & Development Capital Structure & Investments
Slide 18: Strong Balance Sheet and Long-Term Debt Ratings
Strong Balance Sheet and Long-Term Debt Ratings Investment Grade Rated by Fitch Key Debt Metrics Long-term Debt Profile – Pro Forma1 ($million) ($million) Leverage Ratio 1.4x 1.0x 1.0x 1.1x BBB- 569 Stable 602.8 481 379 370 335.1 658 279 674 304 728 247 708 139 Ba1 2.6 0.8 0.8 0.9 1.2 0.9 0.9 Stable
Slide 19: Development – Capturing the Region's Growth Potential
Development – Capturing the Region’s Growth Potential Strengthening the Pipeline to Support Long-Term Expansion 4Q 2024 Quarter-end Restaurant Footprint Store Type Total Dessert Division McCafé Freestanding In Store MS & FC Restaurants Centers BRAZIL 625 91 457 1,173 138 2,011 NOLAD 411 47 196 654 1
Slide 20: Wrap Up
5 Wrap Up Final Thoughts
Slide 21: Closing Remarks
Closing Remarks Position of Strength Strategic Flexibility • Market share leadership. • Omnichannel approach. • Benchmark digital platform. • Accessible menu board. • Modernized restaurant portfolio. • Complete guest experience. McDonald’s Partnership Resilient Business Model • Long-term relationshi
Slide 22: Questions & Answers
Questions & Answers
Slide 23: Supplemental Information
6 Supplemental Information
Slide 24: Fourth Quarter 2024 Consolidated Net Income Growth & Margin Bridge
Fourth Quarter 2024 Consolidated Net Income Growth & Margin Bridge 4Q24 – Net Income Margin Performance 4Q24 – Net Income 5.1% (% of total revenue) ($million) margin Net Interest Other Net Income 4Q23 Operating Expense & Gain / (Loss) Foreign Non- attributable to 4Q24 Net Depreciation Charges Other
Slide 25: Net Debt to Net Income
Net Debt to Net Income Key Debt Metrics ($million) Leverage Ratio 8.3x 2.6x 2.7x 3.8x 569 481 379 370 658 279 674 304 728 247 708 139 2021 2022 2023 2024 Total Debt Cash & Equivalents Net Debt • Total financial debt includes short-term debt, long-term debt, accrued interest payable and derivatives i
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For Three-Months For Twelve-Months ended ended December 31 , December 31 , ($million) 2024 2023 2024 2023 Adjusted E BITDA Reconciliation Net income attributable to Arcos Dorados Holdings Inc. 58.4 55.8 1 48.8 1 81 .3 Net income attributable to non-controlling interest
Slide 27: Definitions
Definitions In analyzing business trends, management considers a variety of performance and financial measures which are considered to be non-GAAP including: Adjusted EBITDA, Constant Currency basis, Systemwide sales, and Systemwide comparable sales growth. Adjusted EBITDA: In addition to financial
Slide 28: Thank you!
IR Contacts https://ir.arcosdorados.com 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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