Arcos Dorados ( (ARCO) ) has released its Q3 earnings. Here is a breakdown of the information Arcos Dorados presented to its investors.
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Arcos Dorados Holdings Inc. is the largest independent McDonald’s franchisee in the world, operating over 2,400 restaurants across Latin America and the Caribbean, with a focus on delivering value and modernizing its operations.
In the third quarter of 2024, Arcos Dorados reported a record $1.1 billion in revenues, marking a new high for this period despite economic challenges in the region. The company’s systemwide comparable sales rose by 32.1%, supported by increased average check sizes and guest volumes.
Key highlights include the growth of digital channel sales to 58% of systemwide sales and the implementation of a loyalty program that attracted 12.9 million members. Consolidated adjusted EBITDA reached $125 million with an 11% margin, though net income saw a decline to $35.2 million compared to the same period last year. Arcos Dorados also strengthened its presence by opening 19 new Experience of the Future restaurants, mainly in Brazil.
The company’s strategic focus on digital, delivery, and drive-thru channels has proven advantageous, contributing to market share gains. Despite currency depreciation challenges, particularly in Brazil and Argentina, the company maintained a stable leverage ratio and continued to invest in new restaurant openings, aligning with its growth strategy.
Looking forward, Arcos Dorados plans to capitalize on its strong market positioning and expansion opportunities, driven by its Four D’s Strategy, despite the macroeconomic uncertainties in the region.
