Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q1 2026 Earnings Presentation
24 slides from Arcos Dorados's earnings presentation, May 20, 2026
Slide 1: Arcos Dorados 1st Quarter 2026 Results
Arcos Dorados 1 Quarter st 2026 Results May 20, 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 1st Quarter 2026
Slide 5: First Quarter 2026 Key Highlights
First Quarter 2026 Key Highlights 1Q 2026 Systemwide Systemwide comparable sales underpinned by positive guest traffic in NOLAD and SLAD Total Revenue Comparable Sales • SLAD’s growth was fueled by both guest volume and average check, NOLAD ‘s growth $1.2b 16.0% continued to be driven by higher gues
Slide 6: Marketing, Digital & Divisional Revenue
2 Marketing, Digital & Divisional Revenue Organic Growth Drivers
Slide 7: Marketing, Digital & Loyalty
Marketing, Digital & Loyalty Leveraging the Brand, Supporting Profitability & Gaining Share Total Digital Sales Penetration ~59% ~64% 1Q 2025 1Q 2026 Loyalty Program Registered Members 18.8m 30.4m 1Q 2025 1Q 2026 7
Slide 8: First Quarter 2026 Total Revenues by Division
First Quarter 2026 Total Revenues by Division BRAZIL 0.5% NOLAD 1.6% SLAD 47.7% ($million) ($million) ($million) Systemwide Systemwide Systemwide comparable comparable comparable 5.8% sales growth sales growth sales growth 6.2% 43.0% 17.8% 14.5% 6.9% 400.3 471.5 423.7 281.7 322.6 299.2 394.6 421.9 5
Slide 9: Profitability & Margins
3 Profitability & Margins Adjusted EBITDA & Margin Bridge
Slide 10: First Quarter 2026 Consolidated Adj. EBITDA Margin & Margin Bridge
First Quarter 2026 Consolidated Adj. EBITDA Margin & Margin Bridge 1Q26 – Adj. EBITDA Margin Performance 1Q26 – Consolidated 9.7% (% of total revenue) Adj. EBITDA margin ($million) 1Q25 Occupancy Franchised Other 1Q26 Adjusted Payroll & & Other Restaurants Operating Adjusted 34.0% EBITDA Food & Empl
Slide 11: First Quarter 2026 Adjusted EBITDA by Division
First Quarter 2026 Adjusted EBITDA by Division BRAZIL 12.7% NOLAD 9.8% SLAD 11.7% ($million) ($million) ($million) Adj. EBITDA Adj. EBITDA Adj. EBITDA margin margin margin 8.6% 65.6% 20.9% 12.1% 26.5% 20.8% 49.6 59.9 53.8 26.2 31.7 29.4 39.1 49.4 64.7 1Q25 1Q26 1Q26 1Q25 1Q26 1Q26 1Q25 1Q26 1Q26 (as
Slide 12: Balance Sheet & Development
4 Balance Sheet & Development Capital Allocation
Slide 13: 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 109.2 1.0x 1.0x 1.1x 1.2x 1.2x BBB- 709 Stable 679 569 481 370 674 304 728 247 708 139 1,102 422 975 266 BBB- -3.1 2022 2023
Slide 14: Development & Capital Allocation
Development & Capital Allocation Growth and Modernization 1Q 2026 Quarter-end Restaurant Footprint Store Type Total Dessert Division McCafé Freestanding In Store MS & FC Restaurants Centers BRAZIL 684 90 467 1,241 214 2,019 NOLAD 427 48 195 670 20 524 SLAD 286 124 215 625 248 740 TOTAL 1,397 262 877
Slide 15: Wrap Up
5 Wrap Up Closing Remarks
Slide 16: Closing Remarks
Closing Remarks Uniquely positioned within the Latin American consumer space: • Key segment of the economy, meeting a basic need. • Significant competitive advantages spanning brand, sales channels and capital structure. • A foundation of operational excellence on which the business is built. 2025 S
Slide 17: Questions & Answers
Questions & Answers
Slide 18: Supplemental Information
6 Supplemental Information
Slide 19: First Quarter 2026 Consolidated Net Income Growth & Margin Bridge
First Quarter 2026 Consolidated Net Income Growth & Margin Bridge 1Q26 – Net Income Margin Performance 1Q26 – Net Income, attributable to AD (% of total revenue) ($million) 3.0% Net Interest Other Net Income 1Q25 Operating Expense & Gain / (Loss) Foreign Non- attributable to 1Q26 margin Net Deprecia
Slide 20: Net Debt to Net Income & Adjusted Free Cash Flow Reconciliation
Net Debt to Net Income & Adjusted Free Cash Flow Reconciliation Key Debt Metrics – at period end Adjusted Free Cash Flow Reconciliation ($million) ($million) Leverage Ratio LTM ended 2.6x 2.7x 3.8x 3.2x 3.0x Mar 31, ($ million) 2026 2025 Net cash provided by operating activities 327,906 262,799 679
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For Three-Months March 31, ($million) 2026 2025 Net income attributable to Arcos Dorados Holdings Inc. 36,141 13,930 Net income attributable to non-controlling interests 90 147 Income tax expense, net 23,815 12,505 Other non-operating expenses, net 16 122 Foreign curre
Slide 22: 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 and the accompanying table
Slide 23: 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 24: 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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