Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q1 2022 Earnings Presentation
25 slides from Arcos Dorados's earnings presentation, May 18, 2022
Slide 1: 1Q 2022 Earnings
ARCO 1Q 2022 Earnings May 18, 2022
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 Results Divisional Profitability Balance Sheet & Expansion Sustainability-Linked Bond Wrap Up Questions & Answers 03
Slide 4: Key Highlights: 1st Quarter 2022 Results
Key Highlights 1st Quarter 2022 Results
Slide 5: First Quarter 2022 Key Highlights
First Quarter 2022 Key Highlights Total Systemwide Strong Topline Performance Revenue Comparable Sales • More than $1.0 billion in systemwide sales • Volume growth drove topline results $787.3m +42.0% • Market share gains in a consolidating marketplace Adjusted Record Quarterly Digital Sales EBITDA
Slide 6: Sales Highlights
Sales Highlights Divisional and Segment Sales Performance
Slide 7: Sales Performance, by Division
Sales Performance, by Division Systemwide comparable sales growth (%) BRAZIL 39.0% NOLAD 24.1% SLAD (Ex- Venezuela) 64.3% ($million) ($million) ($million) 68.3% 46.1% 19.6% 53.5% 48.5% 17.3% 203.3 312.0 297.0 173.8 203.9 207.8 182.8 271.5 307.8 1Q21 1Q22 1Q22 1Q21 1Q22 1Q22 1Q21 1Q22 1Q22 (as report
Slide 8: Digital Sales: Delivery / Self-Order Kiosk / Mobile App
Digital Sales: Delivery / Self-Order Kiosk / Mobile App Digital Sales % of Systemwide Sales >69 mn >29.0% 36% 38% 33% 35% 19% Mobile App 11% Delivery Sales downloads Growth1 2018 2019 2020 2021 1Q21 1Q22 Delivery US$ Self-Order Kiosk Order Ahead Record US$ US$ Record Record 1Q20 2Q20 3Q20 4Q20 1Q21
Slide 9: McDonald's Drive-thru is Unmatched in Latin America
McDonald’s Drive-thru is Unmatched in Latin America Segment sales remain sticky, even with recovering on-premise sales segments • 13% sales growth in constant currency versus the prior year quarter. • Comprehensive Loyalty Program to be launched later in 2022. Drive-thru Sales Club VIP Automac Sales
Slide 10: Profitability Highlights
Profitability Highlights Divisional Profitability
Slide 11: Adjusted EBITDA Performance, by Division
Adjusted EBITDA Performance, by Division Adjusted EBITDA margin (%) BRAZIL NOLAD SLAD (Ex- Venezuela) 14.8% 10.5% 11.6% ($million) ($million) ($million) 223.2% 59.2% 252.9% 240.0% 54.7% 202.0% 13.5 46.0 43.8 13.8 21.4 22.0 10.4 31.5 36.8 1Q21 1Q22 1Q22 1Q21 1Q22 1Q22 1Q21 1Q22 1Q22 (as reported) (in
Slide 12: Margin Expansion with Significant Operating Leverage
Margin Expansion with Significant Operating Leverage Consolidated Adjusted EBITDA Margin Bridge Total G&A Expenses vs. 1Q 2021 ($ million) Franchised 1Q21 Occupancy Restaurants Other 1Q22 5.3% of Systemwide Sales Adjusted Payroll & & Other - Operating Adjusted EBITDA Food & Employee Operating Royalt
Slide 13: Balance Sheet & Expansion
Balance Sheet & Expansion Capital Structure & Investments
Slide 14: Cash Flow Generation & Strong Balance Sheet to Support Growth
Cash Flow Generation & Strong Balance Sheet to Support Growth Cash Flow from Operations* Key Debt Metrics* ($ million) Leverage Ratio 1.7x 7.6x 1.4x 1.3x 35 ($ million) 519 484 426 379 7 606 122 685 166 658 279 706 280 1Q21 1Q22 2019 2020 2021 1Q22 Total Debt Cash & Equivalents Net Debt Notes: 1) To
Slide 15: Strong Restaurant Opening Pace to Start the Year
Strong Restaurant Opening Pace to Start the Year 1Q 2022 QUARTER-END FOOTPRINT STORE TYPE TOTAL DESSERT DIVISION MCCAFES RESTAURANTS CENTERS FS & IS MS & FC BRAZIL 601 460 1,061 104 1,977 NOLAD 432 193 625 14 533 SLAD 364 223 587 162 715 TOTAL 1,397 876 2,273 280 3,225 1Q 2022 – On Track • 16 restau
Slide 16: Liability Management: Sustainability-Linked Bond
Liability Management Sustainability- Linked Bond
Slide 17: Long-Term Debt Profile as of March 31, 2022
Long-Term Debt Profile as of March 31, 2022 Securities Coupon Outstanding Principal Amount (USD) 2023 Notes 6.625% 201,763,000 2027 Notes 5.875% 535,986,000 Currency Exposure 536 ($ million) 202 2022 2023 2024 2025 2026 2027 2023 Notes 2027 Notes Others BRL USD 17
Slide 18: Liability Management – Pro Forma Long-Term Debt Profile
Liability Management – Pro Forma Long-Term Debt Profile Securities Coupon Outstanding Principal Amount (USD) 2023 Notes 6.625% 19,524,000 2027 Notes 5.875% 385,986,000 2029 Notes 6.125% 350,000,000 ($ million) 386 350 Moody’s: Ba2 (Stable Outlook) Fitch: BB (Stable Outlook) 20 2022 2023 2024 2025 20
Slide 19: Sustainability-Linked Bond (SLB)
Sustainability-Linked Bond (SLB) 1st Quick Service Restaurant (QSR) in the World to issue an SLB, linking financial strategy to ESG objectives KPI Measurement Sustainability Performance Target (SPT) KPI 1: Scope 1 & Scope 2: SPT 1: 15% reduction of absolute greenhouse gas (GHG) emissions Absolute GH
Slide 20: ESG – Good for Business & The Right Thing to Do
ESG – Good for Business & The Right Thing to Do www.recipeforthefuture.com SPT 1: Scopes 1 & 2 (5.7% of GHG emissions) ✓ 25 Sustainability initiatives in all restaurant openings and modernizations ✓ LED lighting in all restaurants and offices ✓ Converting to high-efficiency air conditioning systems
Slide 21: Recipe for the Future
Recipe for the Future OUR PILLARS We are the largest, first formal job opportunity Youth provider for young people in Latin America Opportunity and the Caribbean We take action to reduce the environmental Climate impact of our operation, including Change greenhouse gas emissions Sustainable We work
Slide 22: Wrap Up: Closing Remarks
Wrap Up Closing Remarks
Slide 23: Closing Remarks
Closing Remarks 2022 is off to a great start ✓ 3rd consecutive record EBITDA quarter ✓ Highest-ever Trailing Twelve Month Adjusted EBITDA, in US dollars ✓ Broad-based, strong performance going into the 2Q 2022 ✓ Robust cash flow and strong balance sheet to support growth ✓ Strong restaurant opening
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@ar.mcd.com Leticia Santiago Senior Manager Investor Relations leticia.santiago@br.mcd.com Follow us on:
Arcos Dorados Holdings — Q1 2022 Earnings Presentation on 6ix