Q1 2025 Arcos Dorados Holdings Inc Earnings Call Transcript

May 14, 2025 / 02:00 PM GMT

Release Date Price: €7.22 (+1.83%)

Transcript

Key Points

Positve

Arcos Dorados Holdings Inc (ARCO) reported total revenue of $1.1 billion, maintaining levels from the previous year despite challenging conditions.
Digital sales accounted for almost 60% of system-wide sales in the first quarter, with notable strength in loyalty programs and mobile order and pay.
The company saw a strong rebound in Argentina, contributing to a 38.7% rise in comparable sales in the SLAT division.
Arcos Dorados Holdings Inc (ARCO) has a robust marketing plan for the remainder of the year, which is expected to improve sales performance.
The company has a strong balance sheet with an investment-grade rating from Fitch and no material debt maturities until 2029.

Negative

First quarter consolidated adjusted EBITDA was $91.3 million, down from the previous year due to weaker local currencies and margin pressure in Brazil.
Brazil's margin contraction was mainly due to higher food and paper costs from rising beef prices.
The QSR industry in Brazil and NOLAD experienced reduced traffic, attributed to lower consumer purchasing power.
The company faced significant headwinds from calendar effects, including Leap Day and Holy Week, impacting sales comparisons.
There was a decline in first-quarter EBITDA margin due to higher food, paper, occupancy, and other expenses as a percentage of revenue.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ARCO.N - Arcos Dorados Holdings Inc
Q1 2025 Arcos Dorados Holdings Inc Earnings Call
May 14, 2025 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning everyone and thank you for joining our first quarter of 2025 earnings webcast. With us today are Marcelo Raba, our Chief Executive Officer, Luisagannao, our Chief Operating Officer, and Mariana Tannenbaum, our Chief Financial Officer.

Today's webcast, which is being recorded, will consist of prepared remarks from our leadership team, which will be accompanied by a slide presentation also available in the investor section of our website IR. Arkrosdoraos dotcom.

To better follow the presentation, please note that you can set your view to full screen on the webcast platform. Additionally, you can submit your questions at any time during the presentation using the Q&A function on the bottom

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