Arcos Dorados Reports Strong First Quarter Financial Results
Arcos Dorados (NYSE: ARCO), the largest McDonald's franchisee in Latin America and the Caribbean, reported a strong financial performance for the first quarter of 2024.
Total revenues reached $1.1 billion, marking a 9.1% increase year-over-year. Systemwide comparable sales grew by 38.6%, highlighting the company's continued guest volume growth for the twelfth consecutive quarter. Digital channels, including mobile app and kiosks, contributed to 55% of systemwide sales.
The company's loyalty program saw significant growth, with 8 million members, doubling the previous year-end total.
Consolidated Adjusted EBITDA increased by 8.4% to $108.9 million, while net income was $28.5 million, or $0.14 per share. The company also opened 22 new restaurants in Q1 2024.
Despite challenges in Argentina, Arcos Dorados maintained a solid Adjusted EBITDA margin in Brazil and North Latin America Division (NOLAD). However, the South Latin American Division (SLAD) faced difficulties due to hyperinflation in Argentina and social unrest in Ecuador.
Looking forward, Arcos Dorados plans to continue its growth strategy, focusing on digital channels and sustainable profitability.
- Total revenues increased by 9.1% year-over-year to $1.1 billion.
- Systemwide comparable sales grew by 38.6%.
- Digital channels contributed 55% of systemwide sales.
- Loyalty program membership doubled to 8 million.
- Consolidated Adjusted EBITDA increased by 8.4% to $108.9 million.
- Net income was $28.5 million, or $0.14 per share.
- Opened 22 new restaurants in Q1 2024.
- Adjusted EBITDA margin expanded in Brazil (90 basis points) and NOLAD (30 basis points).
- Digital sales rose by 30% year-over-year.
- Moody's upgraded outlook to Positive for Arcos Dorados' rating.
- Net income decreased by 23.8% year-over-year.
- Adjusted EBITDA margin contracted by 390 basis points in SLAD.
- SLAD faced significant challenges due to hyperinflation in Argentina and social unrest in Ecuador.
- Net financial debt increased to $577.5 million from $481.3 million at the end of 2023.
- Cash balance decreased significantly, with total cash & cash equivalents down to $162.5 million.
Insights
Arcos Dorados' first-quarter results show substantial improvements, with total revenue increasing 9.1% to $1.1 billion and systemwide comparable sales rising 38.6% compared to the previous year. This highlights a strong demand rebound and an effective business strategy, particularly evident through their 12th consecutive quarter of growing guest volumes. Digital channels account for a notable 55% of systemwide sales, indicating a successful integration of technology into their operations.
Adjusted EBITDA grew by 8.4% to arrive at $108.9 million, reflecting efficient cost management despite challenging economic conditions. The EBITDA margin expansion in Brazil and NOLAD divisions further demonstrates local market strength. However, the net income of $28.5 million, down from $37.4 million year-over-year, could be a slight concern, although the company attributes this to specific regional difficulties, such as Argentina's hyperinflation.
The balance sheet remains robust, with a net debt to adjusted EBITDA leverage ratio at 1.2x, showcasing strong financial health. The continued restaurant openings and modernization suggest long-term growth prospects. Overall, the financial data underscores solid performance, though regional issues may present short-term challenges.
The increase in loyalty program members to 8 million and over 123 million app downloads indicate strong customer engagement, essential for sustained growth. The agreement to sponsor Formula One can significantly enhance brand visibility and appeal, particularly in Latin America where the sport is seeing rising popularity. This strategy aligns well with their broader 'Three-Ds' strategy (Digital, Delivery and Drive-thru).
Despite economic challenges in some regions, the company's diversified geographic footprint mitigates risks effectively. The strong performance in Brazil, NOLAD and other emerging markets showcases a well-balanced approach. The focus on digital transformation through app-based sales, kiosks and delivery positions Arcos Dorados as a leader in quick service restaurant innovation.
Moreover, the company's efforts in community support, especially during disasters, strengthen its brand image, critical for long-term customer loyalty and market share gains. This multifaceted approach, combining digital advancements with community engagement, sets Arcos Dorados apart from competitors.
-
Total revenues of
$1.1 billion 9.1% versus the prior year. -
Systemwide comparable sales¹ grew
38.6% in the first quarter, supported by the twelfth consecutive quarter of guest volume growth. -
Digital channels (Mobile App, Delivery and Self-order Kiosks) generated
55% of systemwide sales in the period, including22% identified sales. - Loyalty Program reached 8 million registered members, more than double the year-end 2023 total.
-
Consolidated Adjusted EBITDA¹ was
$108.9 million 8.4% year-over-year. -
Net Income was
$28.5 million $0.14
First Quarter 2024 Highlights
-
Consolidated revenues totaled
$1.1 billion 9.1% in US dollars versus the prior year period. -
Systemwide comparable sales¹ increased
38.6% versus the first quarter of 2023, supported by positive guest traffic at the consolidated level, which grew for the twelfth consecutive quarter. -
Consolidated Adjusted EBITDA¹ of
$108.9 million 8.4% in US dollars versus the prior year period, with strong performances in bothBrazil and the North Latin American Division (NOLAD). -
Adjusted EBITDA margin expanded 90 basis points in
Brazil and 30 basis points in NOLAD. -
Net income was
$ 28.5 million $0.14 - Net Debt to Adjusted EBITDA leverage ratio ended the first quarter at 1.2x.
- The Company opened 22 restaurants in the quarter, including 19 free-standing locations.
1 For definitions, please refer to pages 15 and 16 of this document. |
Message from Marcelo Rabach, Chief Executive Officer
The strength of these results demonstrate how far we have come as a company over the last decade. The Arcos Dorados business model delivered solid US dollar growth to start 2024, despite a challenging economic environment in one of our main markets. Importantly, by operating responsibly and managing the business with a long-term mindset, we built our strongest ever Brand reputation among Latin America’s quick service restaurant (QSR) customers.
Over the last ten years we diversified our business to reduce our exposure to any single country. While
The business model and the Three-D’s strategy (Digital, Delivery and Drive-thru) are working well together. We are focused on generating sustainable profitability growth over the long term. Our balanced approach to managing pricing, product mix and guest volumes is driving above-inflation comparable sales growth throughout our operations. Guest volumes are key to driving sustainable sales growth, and the McDonald’s Brand captures the highest volume per restaurant in our region.
We see significant growth potential in
Before closing, I want to express how saddened we are by the severe flooding in
Our efforts are focused on our employees and their families, including by providing basic necessities and by guaranteeing their job security during this difficult period. We have also begun distributing food within the communities we serve as well as to first responders. Our restaurant spaces have been made available to people seeking shelter, food or even just a place to charge their cell phones. Moving forward we will be working on several initiatives, in coordination with local governments and NGO’s to continue supporting our people and to aid in reconstruction.
Finally, as we think about the future of Arcos Dorados, we believe all the levers we pulled to generate the strong results of the first quarter and, indeed, the last several years, will continue to drive results into the future. This is why we are confident we will be able to generate significant shareholder value for many more years to come.
Thank you for your continued support of Arcos Dorados.
Consolidated Results
Figure 1. AD Holdings Inc Consolidated: Key Financial Results
(In millions of |
||||||
| 1Q23 (a) |
Currency Translation (b) |
Constant Currency Growth (c) |
1Q24 (a+b+c) |
% As Reported |
% Constant Currency |
|
| Total Restaurants (Units) | 2,312 |
2,381 |
||||
| Sales by Company-operated Restaurants | 946.4 |
(365.5) |
450.5 |
1,031.4 |
|
|
| Revenues from franchised restaurants | 44.4 |
(8.1) |
13.6 |
49.9 |
|
|
| Total Revenues | 990.8 |
(373.6) |
464.1 |
1,081.4 |
|
|
| Systemwide Comparable Sales |
|
|||||
| Adjusted EBITDA | 100.5 |
6.9 |
1.6 |
108.9 |
|
|
| Adjusted EBITDA Margin |
|
|
- |
|||
| Net income (loss) attributable to AD | 37.4 |
1.8 |
(10.7) |
28.5 |
- |
- |
| No. of shares outstanding (thousands) | 210,595 |
210,656 |
||||
| EPS (US$/Share) | 0.18 |
0.14 |
||||
Arcos Dorados’ total revenues reached
Off-premise sales (Delivery and Drive-thru) increased
Digital channel sales rose
The Company’s Digital platform drove visit frequency by offering an increasingly personalized experience to guests. As of the end of March 2024, Arcos Dorados’ Customer Relationship Management platform had about 85 million unique registered users and the Company’s Mobile App surpassed 123 million cumulative downloads, reaching more than 19 million monthly active users in the quarter. During the quarter, identified sales represented
Notably, in the first quarter of 2024 the Company signed an agreement to become a regional sponsor of Formula One in
Adjusted EBITDA
1Q24 Adjusted EBITDA Bridge
($ million)
First quarter consolidated Adjusted EBITDA reached
Consolidated margin performance included lower Food and Paper (F&P) costs as a percentage of revenue, driven by a better gross margin in
Notable items in the Adjusted EBITDA reconciliation
Included in Adjusted EBITDA: There were no notable items included in Adjusted EBITDA in either the first quarter of 2024 or the first quarter of 2023.
Excluded from Adjusted EBITDA: There were no notable items excluded from Adjusted EBITDA in either the first quarter of 2024 or the first quarter of 2023.
Non-operating Results
Arcos Dorados’ non-operating results for the first quarter included net interest expenses of
Net income attributable to the Company totaled
Divisional Results
Brazil Division
| Figure 2. Brazil Division: Key Financial Results (In millions of |
||||||
| 1Q23 (a) |
Currency Translation (b) |
Constant Currency Growth (c) |
1Q24 (a+b+c) |
% As Reported |
% Constant Currency |
|
| Total Restaurants (Units) | 1,091 |
1,141 |
||||
| Total Revenues | 374.2 |
20.8 |
54.0 |
448.9 |
|
|
| Systemwide Comparable Sales |
|
|||||
| Adjusted EBITDA | 59.5 |
3.5 |
12.5 |
75.4 |
|
|
| Adjusted EBITDA Margin |
|
|
0.9 p.p. | |||
Brazil’s revenues increased
Guest traffic and sales growth were driven by a strong performance of Digital channels. Digital sales rose
The Loyalty program “Meu Méqui” continues to grow and had more than 8 million registered members at the end of April 2024, up from 3.2 million at the end of 2023. The program continued driving improvements in guest frequency, average check and redemption rates.
Brazil’s marketing plans and campaigns included the continuation of the successful “Méqui Me Pega” campaign and the launch of the “Big Tasty Turbo Cheese” sandwich. The market engaged with Generation Z customers by continuing its sponsorship of the region’s most popular music festival, Lollapalooza, in São Paulo as well as the country’s most popular primetime television program, Big Brother Brazil. The division also drove brand excitement and customer engagement across all sales channels by bringing back the McFish sandwich as a limited time offer, selling out in a short time. In the dessert category,
The
As reported Adjusted EBITDA in the division reached
North Latin American Division (NOLAD)
| Figure 3. NOLAD Division: Key Financial Results (In millions of |
||||||
| 1Q23 (a) |
Currency Translation (b) |
Constant Currency Growth (c) |
1Q24 (a+b+c) |
% As Reported |
% Constant Currency |
|
| Total Restaurants (Units) | 639 |
647 |
||||
| Total Revenues | 259.3 |
14.9 |
28.6 |
302.7 |
|
|
| Systemwide Comparable Sales |
|
|||||
| Adjusted EBITDA | 23.7 |
1.5 |
3.4 |
28.6 |
|
|
| Adjusted EBITDA Margin |
|
|
0.3 p.p. | |||
As reported revenues in NOLAD reached
Digital channels drove topline growth in the first quarter as the Company continued to invest in the modernization of its restaurants and the digitalization of the division. Digital sales reached
NOLAD’s key marketing activities included the launch of a new value platform “Elige tu Fav” in
As reported Adjusted EBITDA in the division reached
South Latin American Division (SLAD)
| Figure 4. SLAD Division: Key Financial Results (In millions of |
||||||
| 1Q23 (a) |
Currency Translation (b) |
Constant Currency Growth (c) |
1Q24 (a+b+c) |
% As Reported |
% Constant Currency |
|
| Total Restaurants (Units) | 582 |
593 |
||||
| Total Revenues | 357.3 |
(409.2) |
381.6 |
329.7 |
- |
|
| Systemwide Comparable Sales |
|
|||||
| Adjusted EBITDA | 40.7 |
(28.4) |
12.5 |
24.7 |
- |
|
| Adjusted EBITDA Margin |
|
|
-3.9 p.p. | |||
As reported revenues in SLAD totaled
The division’s results were primarily impacted by the ongoing hyperinflationary environment in
Digital sales, which accounted for
The SLAD division strengthened brand affinity among younger consumers, by sponsoring the most relevant music festivals in the region, including Lollapalooza in
Despite some challenging economic conditions, many of SLAD’s main markets continued gaining market share against their main competitors, a clear reflection of consumer preference for the McDonald’s Brand across the division. This includes
As reported Adjusted EBITDA totaled
New Unit Development
| Figure 5. Total Restaurants (end of period)* | ||||||
| March 2024 |
December 2023 |
September 2023 |
June 2023 |
March 2023 |
||
1,141 |
1,130 |
1,113 |
1,098 |
1,091 |
||
| NOLAD | 647 |
647 |
638 |
639 |
639 |
|
| SLAD | 593 |
584 |
588 |
580 |
582 |
|
| TOTAL | 2,381 |
2,361 |
2,339 |
2,317 |
2,312 |
|
| * Considers Company-operated and franchised restaurants at period-end | ||||||
| Figure 6. Footprint as of March 31, 2024 | |||||||||
| Store Type* | Total Restaurants |
Ownership | McCafes | Dessert Centers |
|||||
| FS | IS | MS & FC | Company Operated |
Franchised | |||||
589 |
91 |
461 |
1,141 |
699 |
442 |
108 |
2,011 |
||
| NOLAD | 406 |
48 |
193 |
647 |
494 |
153 |
19 |
518 |
|
| SLAD | 247 |
125 |
221 |
593 |
503 |
90 |
199 |
726 |
|
| TOTAL | 1,242 |
264 |
875 |
2,381 |
1,696 |
685 |
326 |
3,255 |
|
| * FS: Free-Standing; IS: In-Store; MS: Mall Store; FC: Food Court. | |||||||||
During the first quarter of 2024, the Company opened 22 Experience of the Future (EOTF) restaurants, including 19 free-standing units. The
At the end of the quarter,
Arcos Dorados also continued the modernization of its existing restaurants in the quarter and, as of the end of March 2024, there were 1,430 EOTF restaurants making up
Balance Sheet & Cash Flow Highlights
| Figure 7. Consolidated Debt and Financial Ratios (In thousands of |
||
March 31, |
December 31, |
|
2024 |
2023 |
|
| Total Cash & cash equivalents (i) | 162,473 |
246,767 |
| Total Financial Debt (ii) | 740,015 |
728,093 |
| Net Financial Debt (iii) | 577,542 |
481,326 |
| LTM Adjusted EBITDA | 480,735 |
472,304 |
| Total Financial Debt / LTM Adjusted EBITDA ratio | 1.5 |
1.5 |
| Net Financial Debt / LTM Adjusted EBITDA ratio | 1.2 |
1.0 |
| (i) Total cash & cash equivalents includes short-term investment | ||
| (ii)Total financial debt includes short-term debt, long-term debt, accrued interest payable and derivative instruments (including the asset portion of derivatives amounting to |
||
| (iii) Net financial debt equals total financial debt less total cash & cash equivalents. | ||
As of March 31, 2024, total cash and cash equivalents were
The net debt to Adjusted EBITDA leverage ratio ended the quarter at a healthy 1.2x.
Net cash used in operating activities for the three months ended March 31, 2024, totaled
Recent Developments
2024 Annual General Shareholders Meeting (AGM)
The Company held its AGM on April 26, 2024. All proposals were approved at the meeting.
Moody’s Rating Action
In May 2024, Moody’s re-affirmed Arcos Dorados’ corporate and senior debt rating at Ba2 and upgraded the outlook from Stable to Positive based on the Company's liquidity condition and latest operating performance, following Brazil’s sovereign rating action.
First Quarter 2024 Earnings Webcast
A webcast to discuss the information contained in this press release will be held today, May 15, 2024, at 10:00 a.m. ET. In order to access the webcast, members of the investment community should follow this link: Arcos Dorados First Quarter 2024 Earnings Webcast.
A replay of the webcast will be available later today in the investor section of the Company’s website: www.arcosdorados.com/ir.
Definitions
In analyzing business trends, management considers a variety of performance and financial measures which are considered to be non-GAAP including: Adjusted EBITDA, Constant Currency basis, Systemwide sales, and Systemwide comparable sales growth.
Adjusted EBITDA: In addition to financial measures prepared in accordance with the general accepted accounting principles (GAAP), this press release and the accompanying tables use a non-GAAP financial measure titled ‘Adjusted EBITDA’. Management uses Adjusted EBITDA to facilitate operating performance comparisons from period to period.
Adjusted EBITDA is defined as the Company’s operating income plus depreciation and amortization plus/minus the following losses/gains included within other operating income (expenses), net, and within general and administrative expenses on the statement of income: gains from sale or insurance recovery of property and equipment, write-offs of long-lived assets, and impairment of long-lived assets.
Management believes Adjusted EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures (affecting net interest expense and other financing results), taxation (affecting income tax expense) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for different companies for reasons unrelated to operating performance. Figure 8 of this earnings release includes a reconciliation for Adjusted EBITDA. For more information, please see Adjusted EBITDA reconciliation in Note 9 – Segment and geographic information – of our financial statements (6-K Form) filed today with the S.E.C.
Constant Currency basis: refers to amounts calculated using the same exchange rate over the periods under comparison to remove the effects of currency fluctuations from this trend analysis. To better discern underlying business trends, this release uses non-GAAP financial measures that segregate year-over-year growth into two categories: (i) currency translation and (ii) constant currency growth. (i) Currency translation reflects the impact on growth of the appreciation or depreciation of the local currencies in which the Company conducts its business against the US dollar (the currency in which the Company’s financial statements are prepared). (ii) Constant currency growth reflects the underlying growth of the business excluding the effect from currency translation. The Company also calculates variations as a percentage in constant currency, which are also considered to be non-GAAP measures, to provide a more meaningful analysis of its business by identifying the underlying business trends, without distortion from the effect of foreign currency fluctuations.
Systemwide sales: Systemwide sales represent measures for both Company-operated and sub-franchised restaurants. While sales by sub-franchisees are not recorded as revenues by the Company, management believes the information is important in understanding its financial performance because these sales are the basis on which it calculates and records sub-franchised restaurant revenues and are indicative of the financial health of its sub-franchisee base.
Systemwide comparable sales growth: this non-GAAP measure, refers to the change, on a constant currency basis, in Company-operated and sub-franchised restaurant sales in one period from a comparable period for restaurants that have been open for thirteen months or longer (year-over-year basis) including those temporarily closed. Management believes it is a key performance indicator used within the retail industry and is indicative of the success of the Company’s initiatives as well as local economic, competitive and consumer trends. Sales by sub-franchisees are not recorded as revenues by the Company.
About Arcos Dorados
Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating the largest quick service restaurant chain in
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements. The forward-looking statements contained herein include statements about the Company’s business prospects, its ability to attract customers, its expectation for revenue generation and its outlook and guidance for 2024. These statements are subject to the general risks inherent in Arcos Dorados' business. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, Arcos Dorados' business and operations involve numerous risks and uncertainties, many of which are beyond the control of Arcos Dorados, which could result in Arcos Dorados' expectations not being realized or otherwise materially affect the financial condition, results of operations and cash flows of Arcos Dorados. Additional information relating to the uncertainties affecting Arcos Dorados' business is contained in its filings with the Securities and Exchange Commission. The forward-looking statements are made only as of the date hereof, and Arcos Dorados does not undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events.
First Quarter 2024 Consolidated Results
| Figure 8. First Quarter 2024 Consolidated Results (In thousands of |
||||||
For Three-Months ended |
||||||
March 31, |
||||||
|
2024 |
|
|
2023 |
|
|
| REVENUES | ||||||
| Sales by Company-operated restaurants |
|
1,031,422 |
|
|
946,354 |
|
| Revenues from franchised restaurants |
|
49,934 |
|
|
44,438 |
|
| Total Revenues |
|
1,081,356 |
|
|
990,792 |
|
| OPERATING COSTS AND EXPENSES | ||||||
| Company-operated restaurant expenses: | ||||||
| Food and paper |
|
(360,987 |
) |
|
(333,866 |
) |
| Payroll and employee benefits |
|
(201,960 |
) |
|
(185,317 |
) |
| Occupancy and other operating expenses |
|
(299,053 |
) |
|
(263,723 |
) |
| Royalty fees |
|
(65,003 |
) |
|
(56,739 |
) |
| Franchised restaurants - occupancy expenses |
|
(21,990 |
) |
|
(18,209 |
) |
| General and administrative expenses |
|
(68,658 |
) |
|
(65,592 |
) |
| Other operating income (expense), net |
|
3,846 |
|
|
(1,061 |
) |
| Total operating costs and expenses |
|
(1,013,805 |
) |
|
(924,507 |
) |
| Operating income |
|
67,551 |
|
|
66,285 |
|
| Net interest expense and other financing results |
|
(16,438 |
) |
|
(9,859 |
) |
| Loss from derivative instruments |
|
(1,933 |
) |
|
(4,929 |
) |
| Foreign currency exchange results |
|
(998 |
) |
|
7,283 |
|
| Other non-operating expenses, net |
|
(429 |
) |
|
(110 |
) |
| Income before income taxes |
|
47,753 |
|
|
58,670 |
|
| Income tax expense, net |
|
(18,961 |
) |
|
(21,026 |
) |
| Net income |
|
28,792 |
|
|
37,644 |
|
| Less: Net income attributable to non-controlling interests |
|
(283 |
) |
|
(237 |
) |
| Net income attributable to Arcos Dorados Holdings Inc. |
|
28,509 |
|
|
37,407 |
|
| Earnings per share information ($ per share): | ||||||
| Basic net income per common share | $ |
0.14 |
|
$ |
0.18 |
|
| Weighted-average number of common shares outstanding-Basic |
|
210,655,747 |
|
|
210,594,545 |
|
| Adjusted EBITDA Reconciliation | ||||||
| Operating income |
|
67,551 |
|
|
66,285 |
|
| Depreciation and amortization |
|
43,091 |
|
|
33,520 |
|
| Operating charges excluded from EBITDA computation |
|
(1,707 |
) |
|
699 |
|
| Adjusted EBITDA |
|
108,935 |
|
|
100,504 |
|
| Adjusted EBITDA Margin as % of total revenues |
|
10.1 |
% |
|
10.1 |
% |
First Quarter 2024 Results by Division
| Figure 9. First Quarter 2024 Consolidated Results by Division (In thousands of |
||||
For Three-Months ended |
as
|
Constant
|
||
March 31, |
||||
2024 |
2023 |
Incr/(Decr)% |
Incr/(Decr)% |
|
| Revenues | ||||
448,937 |
374,198 |
20.0 % |
|
|
| NOLAD | 302,721 |
259,266 |
16.8 % |
|
| SLAD | 329,698 |
357,328 |
- |
|
| TOTAL | 1,081,356 |
990,792 |
9.1 % |
|
| Operating Income (loss) | ||||
57,042 |
44,090 |
29.4 % |
|
|
| NOLAD | 17,983 |
13,947 |
|
|
| SLAD | 14,442 |
33,462 |
- |
- |
| Corporate and Other | (21,916) |
(25,214) |
|
- |
| TOTAL | 67,551 |
66,285 |
1.9 % |
- |
| Adjusted EBITDA | ||||
75,446 |
59,473 |
26.9 % |
|
|
| NOLAD | 28,602 |
23,700 |
20.7 % |
|
| SLAD | 24,741 |
40,716 |
- |
|
| Corporate and Other | (19,854) |
(23,385) |
|
- |
| TOTAL | 108,935 |
100,504 |
8.4 % |
1.6 % |
| Figure 10. Average Exchange Rate per Quarter* | |||
1Q24 |
4.95 |
16.97 |
834.32 |
1Q23 |
5.19 |
18.66 |
192.33 |
| * Local $ per |
|||
Summarized Consolidated Balance Sheet
| Figure 11. Summarized Consolidated Balance Sheets (In thousands of |
|||
| March 31, | December 31, | ||
2024 |
2023 |
||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 127,496 |
196,661 |
|
| Short-term investments | 34,977 |
50,106 |
|
| Accounts and notes receivable, net | 148,745 |
147,980 |
|
| Other current assets (1) | 237,329 |
210,531 |
|
| Derivative instruments | 45 |
— |
|
| Total current assets | 548,592 |
605,278 |
|
| Non-current assets | |||
| Property and equipment, net | 1,124,925 |
1,119,885 |
|
| Net intangible assets and goodwill | 71,073 |
70,026 |
|
| Deferred income taxes | 101,184 |
98,163 |
|
| Derivative instruments | 48,993 |
46,486 |
|
| Equity method investments | 19,031 |
18,111 |
|
| Leases right of use asset | 953,139 |
954,564 |
|
| Other non-current assets (2) | 106,490 |
106,725 |
|
| Total non-current assets | 2,424,835 |
2,413,960 |
|
| Total assets | 2,973,427 |
3,019,238 |
|
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Accounts payable | 322,753 |
374,986 |
|
| Taxes payable (3) | 161,929 |
163,143 |
|
| Accrued payroll and other liabilities | 167,246 |
142,487 |
|
| Royalties payable to McDonald’s Corporation | 22,007 |
21,292 |
|
| Provision for contingencies | 1,480 |
1,447 |
|
| Interest payable | 18,342 |
7,447 |
|
| Financial debt (4) | 40,145 |
37,361 |
|
| Operating lease liabilities | 93,146 |
93,507 |
|
| Total current liabilities | 827,048 |
841,670 |
|
| Non-current liabilities | |||
| Accrued payroll and other liabilities | 27,891 |
27,513 |
|
| Provision for contingencies | 51,015 |
49,172 |
|
| Financial debt (5) | 730,566 |
729,771 |
|
| Deferred income taxes | 1,598 |
1,166 |
|
| Operating lease liabilities | 848,784 |
853,107 |
|
| Total non-current liabilities | 1,659,854 |
1,660,729 |
|
| Total liabilities | 2,486,902 |
2,502,399 |
|
| Equity | |||
| Class A shares of common stock | 389,923 |
389,907 |
|
| Class B shares of common stock | 132,915 |
132,915 |
|
| Additional paid-in capital | 8,703 |
8,719 |
|
| Retained earnings | 544,140 |
566,188 |
|
| Accumulated other comprehensive loss | (571,554) |
(563,081) |
|
| Common stock in treasury | (19,367) |
(19,367) |
|
| Total Arcos Dorados Holdings Inc shareholders’ equity | 484,760 |
515,281 |
|
| Non-controlling interest in subsidiaries | 1,765 |
1,558 |
|
| Total equity | 486,525 |
516,839 |
|
| Total liabilities and equity | 2,973,427 |
3,019,238 |
|
| (1) Includes "Other receivables", "Inventories" and "Prepaid expenses and other current assets". | |||
| (2) Includes "Miscellaneous" and "Collateral deposits". | |||
| (3) Includes "Income taxes payable" and "Other taxes payable". | |||
| (4) Includes "Short-term debt”, “Current portion of long-term debt" and "Derivative instruments”. | |||
| (5) Includes "Long-term debt, excluding current portion" and "Derivative instruments". |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515698616/en/
Investor Relations Contact
Dan Schleiniger
VP of Investor Relations
Arcos Dorados
daniel.schleiniger@mcd.com.uy
Media Contact
David Grinberg
VP of Corporate Communications
Arcos Dorados
david.grinberg@mcd.com.uy
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Source: Arcos Dorados Holdings Inc.
FAQ
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