Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q1 2025 Earnings Presentation
27 slides from Arcos Dorados's earnings presentation, May 14, 2025
Slide 1: First Quarter 2025 Results
Arcos Dorados First Quarter 2025 Results May 14, 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 1st Quarter 2025
Slide 5: First Quarter 2025 Key Highlights
First Quarter 2025 Key Highlights 1Q 2025 Systemwide Total Revenue Comparable Sales Systemwide Comparable Sales and Total Revenue $1.1b 11.1% • Comp sales growth of 11.1%, in-line with blended inflation for the period • Total revenue grew 14.1% in constant currency, despite: • QSR industry guest vis
Slide 6: Sales & Profitability
2 Sales & Profitability Divisional Sales Performance
Slide 7: Brazil Division Sales Performance
First Quarter 2025 Brazil Division BRAZIL 2.9% Sales Performance ($million) Systemwide comparable 5.5% sales growth (10.8)% 448.9 400.3 473.4 1Q24 1Q25 1Q25 (as reported) (in constant currency) • Comparable sales remained resilient, despite tougher comparisons. • Market share reached an all-time hig
Slide 8: North Latin American Division Sales Performance
First Quarter 2025 North Latin American Division Sales Performance NOLAD (1.6)% ($million) Systemwide comparable (0.4)% sales growth (6.9)% 302.7 281.7 301.6 1Q24 1Q25 1Q25 (as reported) (in constant currency) • Mexico had solid growth, despite tough comps, but NOLAD’s comparable sales declined due
Slide 9: South Latin American Division Sales Performance
First Quarter 2025 South Latin American Division Sales Performance SLAD 38.7% ($million) Systemwide comparable sales growth 39.1% 19.7% 329.7 394.6 458.6 1Q24 1Q25 1Q25 (as reported) (in constant currency) • Comparable sales growth rebounded strongly. • Digital channels represented 60% of total sale
Slide 10: Consolidated Adjusted EBITDA Growth & Margin Bridge
First Quarter 2025 Consolidated Adjusted EBITDA Growth & Margin Bridge 1Q25 – Adj. EBITDA Margin Performance 1Q25 – Consolidated 8.5% (% of total revenue) Adj. EBITDA margin ($million) 1Q24 Occupancy Franchised Other 1Q25 Adjusted Payroll & & Other Restaurants Operating Adjusted (4.2)% EBITDA Food &
Slide 11: Divisional Profitability
First Quarter 2025 Divisional Profitability BRAZIL 12.4% NOLAD 9.3% SLAD 9.9% ($million) ($million) ($million) Adj. EBITDA Adj. EBITDA Adj. EBITDA margin margin margin (22.2)% (34.3)% (3.6)% 79.7% (8.3)% 57.9% 75.4 49.6 58.7 28.6 26.2 27.6 24.7 39.1 44.5 1Q24 1Q25 1Q25 1Q24 1Q25 1Q25 1Q24 1Q25 1Q25
Slide 12: Digital, Delivery & Drive-thru
3 Digital, Delivery & Drive-thru Organic Sales Drivers
Slide 13: Digital Sales Grew More than 23% in Constant Currency
Digital Sales1 Grew more than 23% in Constant Currency Loyalty, Self-order Kiosks, MOP and Own Delivery led the way Total Digital Sales Penetration 55% 59% >150 m Mobile APP 1Q 2024 1Q 2025 Downloads Identified Sales Penetration >100 m ~19 m Unique Registered Average Monthly 22% 25% Users Active Use
Slide 14: Off-Premise Channels
Off-Premise Channels1 Long-term growth drivers Systemwide Off-Premise Sales (US dollars) ~19% of systemwide sales 2021 2022 2023 2024 March '25 TTM ~24% of systemwide sales 14 ¹Delivery and Drive-thru
Slide 15: Loyalty Program: MiMcDonald's / Meu Méqui
Loyalty Program: MiMcDonald’s / Meu Méqui Now available in 6 markets and 67% of all restaurants Registered Members (million) • Available in Brazil, Costa Rica and Uruguay to start 18.8 the year, where members generated 19% of sales. • Introduced in Argentina and Colombia during the 1st quarter, with
Slide 16: Balance Sheet & Development
4 Balance Sheet & Development Capital Structure & Investments
Slide 17: Strong Balance Sheet and Long-Term Debt Ratings
Strong Balance Sheet and Long-Term Debt Ratings No material debt maturities until 2029 Key Debt Metrics – at period end Long-term Debt Profile – Pro Forma1 ($million) ($million) Leverage Ratio 1.0x 1.0x 1.1x 1.4x BBB- Stable 602.8 669 569 335.1 481 370 674 304 728 247 708 1,163 495 Ba1 2.6 0.8 0.8 0
Slide 18: Development & Capital Allocation
Development & Capital Allocation Investing in Long-term Growth 1Q 2025 Quarter-end Restaurant Footprint Store Type Total Dessert Division McCafé Freestanding In Store MS & FC Restaurants Centers BRAZIL 630 90 459 1,179 146 2,020 NOLAD 414 47 196 657 19 523 SLAD 262 124 217 603 222 738 TOTAL 1,306 26
Slide 19: Wrap Up
5 Wrap Up Final Thoughts
Slide 20: Closing Remarks
Closing Remarks Recipe for the Future Short-term Headwinds • 2024 Report to be published in coming weeks. • QSR industry guest visits under pressure. • Update on progress in Program’s six pillars. • Challenging calendar comparisons. • Download from ir.arcosdorados.com or from • Weaker currencies in
Slide 21: Questions & Answers
Questions & Answers
Slide 22: Supplemental Information
6 Supplemental Information
Slide 23: Consolidated Net Income Growth & Margin Bridge
First Quarter 2025 Consolidated Net Income Growth & Margin Bridge 1Q25 – Net Income Margin Performance 1Q25 – Net Income 1.3% (% of total revenue) ($million) margin Net Interest Other Net Income 1Q24 Operating Expense & Gain / (Loss) Foreign Non- attributable to 1Q25 Net Depreciation Charges Other f
Slide 24: Net Debt to Net Income
Net Debt to Net Income Key Debt Metrics – at period end ($million) Leverage Ratio 2.6x 2.7x 3.8x 5.0x 669 569 481 370 674 304 728 247 708 1163 495 139 2022 2023 2024 1Q25 Total Debt Cash & Equivalents Net Debt • Total financial debt includes short-term debt, long-term debt, accrued interest payable
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For Three-Months ended March 31, ($million) 2025 2024 Adjusted EBITDA Reconciliation Net income attributable to Arcos Dorados Holdings Inc. 13,930 28,509 Net income attributable to non-controlling interests 147 283 Income tax expense, net 12,505 18,961 Other non-operat
Slide 26: 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 27: 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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