Arcos Dorados Holdings Inc. · NYSE:ARCO
Arcos Dorados — Q2 2023 Earnings Presentation
21 slides from Arcos Dorados's earnings presentation, Aug 17, 2023
Slide 1: 2nd Quarter 2023 Earnings
Arcos Dorados 2 Quarter nd 2023 Earnings August 17, 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: Agenda
Agenda Key Highlights Divisional Sales & Profitability Three D’s Strategy Balance Sheet & Growth Recipe for the Future Wrap Up 03
Slide 4: Key Highlights
Key Highlights 2nd Quarter 2023
Slide 5: Second Quarter 2023 Key Highlights
Second Quarter 2023 Key Highlights Systemwide Comparable Sales – 1.3x Blended Inflation 2Q 2023 Systemwide • Systemwide comparable sales growth remained strong in all divisions. Total Revenue Comparable Sales • Increased visit share gap versus closest competitors in main markets.1 $1.04b +31.5% • Gr
Slide 6: Sales & Profitability
Sales & Profitability Divisional Sales Performance
Slide 7: 2Q23 – Divisional Sales Growing Strongly
2Q23 – Divisional Sales Growing Strongly Systemwide comparable sales growth (%) BRAZIL 9.6% NOLAD 10.4% SLAD 82.4% ($million) ($million) ($million) 13.9% 77.4% 15.3% 13.2% 16.5% 24.6% 358.1 405.2 407.9 222.7 277.6 256.8 307.1 357.7 544.7 2Q22 2Q23 2Q23 2Q22 2Q23 2Q23 2Q22 2Q23 2Q23 (as reported) (in
Slide 8: 2Q23 – Consolidated Adjusted EBITDA Growth & Margin Bridge
2Q23 – Consolidated Adjusted EBITDA Growth & Margin Bridge Consolidated 10.6% ($million) margin 31.0% 20.5% 91.4 110.1 119.7 2Q22 2Q23 2Q23 (as reported) (in constant currency) • Consolidated Adj. EBITDA margin expanded by 30 basis points, with operating leverage offsetting the higher royalty rate.
Slide 9: 2Q23 – Adj. EBITDA Growth by Division
2Q23 – Adj. EBITDA Growth by Division Adjusted EBITDA margin (%) BRAZIL NOLAD SLAD 17.1% 10.2% 10.3% ($million) ($million) ($million) 31.7% 64.4% 31.2% 11.7% 12.0% 21.3% 52.7 69.1 69.4 23.3 28.2 26.0 32.9 36.9 54.2 2Q22 2Q23 2Q23 2Q22 2Q23 2Q23 2Q22 2Q23 2Q23 (as reported) (in constant (as reported)
Slide 10: Digital, Delivery & Drive-thru
Digital, Delivery & Drive-thru
Slide 11: Total Digital Sales – Driving Consistent Topline Growth
Total Digital Sales1 – Driving Consistent Topline Growth Systemwide Digital Sales ($USD) Total Digital Identifiable Sales Penetration Sales Penetration 41% 49% 16% 20% 2Q 2022 2Q 2023 2Q 2022 2Q 2023 > 100 m 16.2 m Downloads Average Monthly 2Q22 3Q22 4Q22 1Q23 2Q23 Active Users > 70 m Unique Registe
Slide 12: Delivery & Drive-thru: Strong Despite Front Counter Normalization
Delivery & Drive-thru: Strong Despite Front Counter Normalization McDelivery Sales Drive-thru Sales 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 17.0% 26.0% of systemwide sales of systemwide sales 1in constant currency versus 2Q 2022 12
Slide 13: Balance Sheet & Growth
Balance Sheet & Growth Capital Structure & Investments
Slide 14: Cash Flow from Operations & Net Leverage
Cash Flow from Operations & Net Leverage Key Debt Metrics Cash Flow from Operating Activities Leverage Ratio ($ million) 7.6x 1.4x 1.0x 1.1x ($ million) 519 472 BB+ 379 370 Stable 685 166 658 279 674 304 695 224 Ba2 121.9 84.3 2020 2021 2022 1H23 Stable 1H22 1H23 Total Debt Cash & Equivalents Net De
Slide 15: Restaurant Portfolio
Restaurant Portfolio 2Q 2023 QUARTER-END RESTAURANT FOOTPRINT STORE TYPE TOTAL DESSERT DIVISION MCCAFES RESTAURANTS CENTERS Freestanding In Store MS & FC BRAZIL 550 91 457 1,098 137 1,975 NOLAD 392 51 196 639 13 519 SLAD 229 128 223 580 166 704 TOTAL 1,171 270 876 2,317 316 3,198 2Q23 & 1H23 Opening
Slide 16: Recipe for the Future
Recipe for the Future ESG Platform
Slide 17: Recipe for the Future
Recipe for the Future Diversity and Inclusion ✓ Fostering a diverse and inclusive workplace. ✓ 58% of employees identify as women. Youth Opportunity ✓ Over 110 thousand enrollees in free MCampus online certificate courses. ✓ Most socially responsible restaurant company in Brazil according to Merco.
Slide 18: Wrap Up
Wrap Up Closing Remarks
Slide 19: Closing Remarks
Closing Remarks Strong 1st half 2023 results ✓ Resilient growth even as consumer environment softens. ✓ Strategic approach to brand building. Unmatched Strategy and Execution ✓ Well-positioned to navigate short term headwinds. ✓ Expect to sustain profitable growth in the long term. Benefitting from
Slide 20: Questions & Answers
Questions & Answers
Slide 21: 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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