Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q1 2021 Earnings Presentation
16 slides from Arcos Dorados's earnings presentation, May 12, 2021
Slide 1: Arcos Dorados 1Q 2021 Earnings
Arcos Dorados 1Q 2021 Earnings May 12, 2021
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 ➢ 1Q21 Results & Recent Trends ➢ Divisional Sales Results ➢ Divisional Profitability ➢ Investments and Capital Structure ➢ Rest of Year Priorities 3
Slide 4: 1Q21 Comparable Sales Near or Above Prior Year Level in All Divisions
1Q21 Comparable Sales Near or Above Prior Year Level in All Divisions1,2 Arcos Dorados2 Brazil Caribbean2 SLAD NOLAD 1Percentage of prior year period comparable sales level 2Excluding Venezuela 4
Slide 5: First Quarter 2021 Key Highlights
First Quarter 2021 Key Highlights Drive-Thru Sales ➢ First positive comp sales result since the 4Q19 Total Revenue Growth ✓ Focused on Core Menu and Three D’s $559.8 m 55% ✓ Guests trust McDonald’s more than any other brand Constant Currency ✓ Adapted and overcame ongoing operating restrictions ➢ Ad
Slide 6: 1Q21 – Sequential Comp Sales Improvements Continue
1Q21 – Sequential Comp Sales Improvements Continue ➢ All four Divisions improved sequentially despite operating restrictions across most markets. ➢ Caribbean again benefitted from strong performances in Puerto Rico and the FWI. ➢ SLAD’s comparable sales growth outpaced blended inflation, thanks to C
Slide 7: The Three D’s Showing No Signs of Slowing Down
The Three D’s Showing No Signs of Slowing Down ✓ +55% (CC) vs. 1Q20 ✓ +208% (CC) vs. 1Q20 ✓ 39% of systemwide sales ✓ 17% of systemwide sales ✓ Awareness of versatility at ✓ Highest ever Delivery sales highest level ever for one quarter Digital ✓ 37% of sales from Digital platform ✓ >52 million cumu
Slide 8: Increased Frequency: Loyalty, Personalization and Trust
Increased Frequency: Loyalty, Personalization and Trust 1.1 mn Loyalty Club Members Mass Marketing to The Most Trusted Drive-thru VIP Club Mass Personalization Restaurant Experience 8
Slide 9: 1Q21 Divisional Adj. EBITDA – Diversification Benefits
1Q21 Divisional Adj. EBITDA – Diversification Benefits BRAZIL NOLAD SLAD CARIBBEAN (Ex-Vzla) ($ million) ($ million) ($ million) ($ million) 10.3% 6.7% 5.3% 3.6% 1.0% 5.9% 7.5% 10.5% (40.8)% (53.6)% (35.2)% 78.4% 667% (37.4)% 85.6% 29.2 526% 13.5 17.3 10.9 12.2 11.7 5.1 3.2 3.3 1.4 8.9 6.6 1Q20 1Q21
Slide 10: 1Q21 Adj. EBITDA Margin – Solid in a Tough Environment
1Q21 Adj. EBITDA Margin – Solid in a Tough Environment Breakdown of main variations contributing to 1Q20 Adj. EBITDA margin Total G&A Expenses vs. Prior Year (26.2)% (% of total revenue) ($ million) G&A weighted inflation 10.0% 7.4% (7.4)% 51.4 47.8 44.3 1Q20 1Q21 1Q21 (as reported) (in constant cur
Slide 11: Positive Operating Cash Flows and Strong Balance Sheet
Positive Operating Cash Flows and Strong Balance Sheet ➢ Cash from operations positive again, despite seasonality and ongoing operating restrictions. ➢ Cash position remains strong even after paying interest and royalties deferred from the prior year. ➢ No material short-term and lower long-term deb
Slide 12: Optimized Restaurant Portfolio to Support Future Growth
Optimized Restaurant Portfolio to Support Future Growth 1Q 2021 QUARTER-END FOOTPRINT STORE TYPE TOTAL DESSERT DIVISION MCCAFES RESTAURANTS CENTERS FS & IS MS & FC 767 BRAZIL 562 468 1,030 75 2,009 353 Company Operated NOLAD 314 193 507 13 576 154 Sub-Franchised SLAD 229 162 391 122 393 CARIBBEAN 24
Slide 13: Menu Innovation and Brand-Focused Marketing
Menu Innovation and Brand-Focused Marketing Introducing New Flavors, Bringing Back Favorites and Making Brand Connections Boosting Three D’s with High Profile Sponsorships and Record Merchandising Global Campaigns with a Local Flavor LATAM 13
Slide 14: Social Impact and Sustainable Development Report
Social Impact and Sustainable Development Report ➢ Audited by EY and prepared in accordance with GRI and SASB. ➢ ESG Initiatives focused on Youth Opportunity, Sustainable Sourcing, Climate Change, Packaging & Recycling and Commitment to Families. ➢ Happy Meals are the most nutritious and healthiest
Slide 15: Questions & Answers
Questions & Answers 15
Slide 16: IR Contacts
IR Contacts www.arcosdorados.com/ir Dan Schleiniger Patricio “Iñaki” Esnaola Vice President Director Investor Relations Investor Relations daniel.schleiniger@ar.mcd.com patricio.esnaola@ar.mcd.com Follow us on:
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