Arcos Dorados (ARCO) Q4 2025 Earnings Transcript

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Thu, March 19, 2026 astatine 11:01 AM CDT 32 min read

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Thursday, March 19, 2026 astatine 10:00 a.m. ET

• Chief Executive Officer — Luis Raganato

• Chief Financial Officer — Mariano Tannenbaum

• Head of Investor Relations — Dan Schleiniger

Luis Raganato: Thank you, Dan, and bully morning, everyone. The 2025 marked a coagulated decorativeness to the twelvemonth with double-digit gross growth, expanded margins, and beardown adjusted EBITDA maturation contempt ongoing outgo and user pressures successful definite markets. Importantly, we exited the twelvemonth with improving trends, peculiarly successful Brazil, arsenic good arsenic continued momentum successful Mexico and SLAD. Mariano and I volition instrumentality you done the highlights of the fiscal results for the 4th fourth and afloat twelvemonth 2025, arsenic good arsenic however we spot 2026 developing.

As I person mentioned successful anterior calls, our absorption remains centered connected 3 priorities: optimizing the show of today’s business, maximizing returns connected superior investments—especially those related to growth—and preparing the institution for tomorrow’s concern trends. The 4th fourth demonstrated advancement crossed each 3 areas. Our teams executed with subject connected pricing, outgo control, and selling relevance portion continuing to put successful high-return edifice improvement and integer capabilities. Total gross reached $1.3 billion, representing 10.7% growth. Revenue maturation was supported by 16% higher systemwide comparable sales, successful enactment with the blended ostentation of the 21 markets successful the Arcos Dorados Holdings Inc. footprint.

Comparable income maturation was chiefly driven by mean check, reflecting disciplined pricing, effectual promotional execution, and the continued spot of our integer and loyalty platforms. Guest postulation trends were mostly unchangeable compared with the 3rd quarter. Adjusted EBITDA totaled $172.7 million, up 17.2% twelvemonth implicit year, representing an 80 ground constituent enlargement of the adjusted EBITDA margin. This included a nett taxes payment successful Brazil that Mariano volition explicate successful much detail. For the afloat year, systemwide comparable income maturation was successful enactment with the company’s blended ostentation rate, with peculiarly beardown show successful Mexico, Argentina, and respective different SLAD markets.

Brazil and a mates of NOLAD markets faced a challenging depletion situation past year, but we began to spot immoderate improving trends toward the extremity of the year. Total gross successful 2025 grew by astir 5% successful U.S. dollars. Full twelvemonth adjusted EBITDA was the highest successful the company’s history. Boosted by the nett taxation benefits we recognized, unneurotic with beardown U.S. dollar maturation successful some SLAD and NOLAD, this taxation payment much than offset the interaction of higher nutrient and insubstantial costs, and little depletion successful the Brazilian market. The spot of our marketing, digital, and loyalty platforms has helped differentiate america from the contention by enhancing the marque acquisition crossed each channels.