Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q4 2022 Earnings Presentation
25 slides from Arcos Dorados's earnings presentation, Mar 15, 2023
Slide 1: 4Q & Full Year 2022 Earnings
Arcos Dorados 4Q & Full Year 2022 Earnings March 15, 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 Divisional Profitability Balance Sheet & Growth Investor Update Recap Recipe for the Future Wrap Up 03
Slide 4: Key Highlights
Key Highlights 4Q22 and Full Year 2022
Slide 5: Fourth Quarter and Full Year 2022 Key Highlights
Fourth Quarter and Full Year 2022 Key Highlights Systemwide Comparable Sales – 2.4x blended inflation in FY 2022 4Q 2022 FY 2022 • All Divisions generated growth significantly above inflation. Total Revenue Total Revenue • Restaurant volumes rose 25% versus 2021. $1.0b $3.6b • Market Share1 rose mor
Slide 6: Consolidated Market Share gains in 2022 across Latin America and the Caribbean
Consolidated Market Share gains in 2022 across the Arcos Dorados footprint in Latin America and the Caribbean QSR Visit Share México Latin America +3.1pp Puerto Rico +2.6pp (1.9)pp YoY Colombia +5.3pp (0.8)pp YoY Brazil +3.8pp +4.1pp Chile YoY +5.1pp Argentina +2.9pp FY 21 FY 22 McDonald's Competito
Slide 7: Sales Highlights
Sales Highlights Divisional Sales Performance
Slide 8: 4Q22 Systemwide Comparable Sales grew 1.9x blended inflation
4Q22 Systemwide Comparable Sales grew 1.9x blended inflation Systemwide comparable sales growth (%) BRAZIL 21.9% NOLAD 19.6% SLAD (Ex- Venezuela) 70.7% ($million) ($million) ($million) 28.2% 71.2% 36.1% 23.4% 28.3% 24.7% 298.6 406.3 382.9 209.2 260.8 258.1 269.4 345.8 461.2 4Q21 4Q22 4Q22 4Q21 4Q22
Slide 9: Profitability Highlights
Profitability Highlights Divisional Profitability
Slide 10: Underlying Adj. EBITDA Grew 21.3% versus 4th Quarter 2021
Underlying Adj. EBITDA Grew 21.3% versus the 4th Quarter 20211 4th Quarter 2022 Adj. EBITDA2 Full Year 2022 Adj. EBITDA2 ($million) ($million) 11.4% 47.6% 10.8% 41.8% Adj. EBITDA Adj. EBITDA margin (%) margin (%) 3.1% 2.3% 112.4 115.1 115.9 275.0 390.1 405.9 4Q21 4Q22 4Q22 FY2021 FY2022 FY2022 (as r
Slide 11: Strong Underlying EBITDA Growth in All Divisions
Strong Underlying EBITDA Growth in All Divisions Adjusted EBITDA margin (%) BRAZIL NOLAD SLAD (Ex- Venezuela) 20.0% 10.7% 9.3% ($million) ($million) ($million) 0.5% (7.4)% 45.4% 6.8% (7.6)% 2.6% 76.1 81.2 76.4 30.2 27.9 27.9 31.5 32.3 45.8 4Q21 4Q22 4Q22 4Q21 4Q22 4Q22 4Q21 4Q22 4Q22 (as reported) (
Slide 12: Investor Update Recap
Investor Update Recap Digital, Delivery, Drive-thru & Development
Slide 13: The Leading Digital Platform in Latin America's QSR Industry
The Leading Digital Platform in Latin America’s QSR Industry Systemwide Digital Sales Average Revenue per Active User (ARPU) ($USD) (Total Annual Identifiable Sales / Average Monthly Active Users - $USD) $55 $44 2022 $38 2021 2020 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Total Digital Identified Sale
Slide 14: McDelivery Sales Growth and Market Share Gains were Strong
McDelivery Sales Growth and Market Share Gains were Strong… >52% +3.4 pp Delivery Increased Sales Growth in 4Q221 Market Share Gap2 McDelivery Sales McDelivery Visit Share Gap McDonald's 5.1 pp 8.5 pp Main Competitor 2019 2020 2021 2022 2021 2022 1in constant currency versus 4Q 2021 2proprietary res
Slide 15: Strong Drive-thru Sales and Market Share Gains as well
…with Strong Drive-thru Sales and Market Share Gains as well >17% +11.7 pp Drive-thru Increased Sales Growth in 4Q221 Market Share Gap2 Drive-thru Sales Drive-thru Visit Share Gap 35.8 pp McDonald's 24.1 pp Main Competitor 2019 2020 2021 2022 2021 2022 1in constant currency versus 4Q 2021 2proprieta
Slide 16: "Best in Class" Development Tools, Processes and Team
“Best in Class” Development Tools, Processes and Team Investigate Investigate Acquire Develop Support the market the site the site the site the site 1-2 years 16
Slide 17: Balance Sheet & Growth
Balance Sheet & Growth Capital Structure & Investments
Slide 18: Strong Cash Flow & Balance Sheet to Support Accelerated Growth
Strong Cash Flow & Balance Sheet to Support Accelerated Growth Cash Flow from Operating Activities* Key Debt Metrics* ($ million) Leverage Ratio 1.7x 7.6x 1.4x 1.0x ($ million) 519 484 BB+ 379 370 Stable 258.0 345.4 606 122 685 166 658 279 674 304 Ba2 2021 2022 2019 2020 2021 2022 Stable Total Debt
Slide 19: Exceeding Growth Expectations
Exceeding Growth Expectations 4Q 2022 QUARTER-END RESTAURANT FOOTPRINT STORE TYPE TOTAL DESSERT DIVISION MCCAFES RESTAURANTS CENTERS FS & IS MS & FC BRAZIL 627 457 1,084 123 1,976 NOLAD 442 196 638 12 521 SLAD 366 224 590 165 701 TOTAL 1,435 877 2,312 300 3,198 2022 Exceeding Growth Expectations • 6
Slide 20: Recipe for the Future
Recipe for the Future ESG Platform
Slide 21: Impactful Programs and Initiatives
Impactful Programs and Initiatives Recipe for the Future ✓ Six pillars making a difference for the environment and the communities we serve. ✓ www.recipeforthefuture.com 2022 Social Commitment and Sustainable Development Report ✓ Early May 2023 publication. ✓ The only ESG report with audited content
Slide 22: Wrap Up
Wrap Up Closing Remarks
Slide 23: Closing Remarks
Closing Remarks Outstanding Financial Results with Sustainable, Long-term Business Trends ✓ Guest habits changed and paradigms have shifted. ✓ Structural competitive advantages that will last for years. The McDonald’s Brand has never been Stronger in Latin America and the Caribbean ✓ Gained more tha
Slide 24: Questions & Answers
Questions & Answers
Slide 25: 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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