Arcos Dorados Reports Supplemental Historical Information

Rhea-AI Summary

Arcos Dorados Holdings, Inc. (NYSE: ARCO) announced restated quarterly financials for 2019-2021 due to a divisional reorganization effective October 1, 2021. The restructuring aims to improve operational efficiency, creating three divisions: Brazil, North Latin America (NOLAD), and South Latin America (SLAD). In 2021, total revenues reached $2.66 billion, with NOLAD and SLAD showing significant growth in comparable sales, particularly SLAD, which recorded growth of 117.1% overall. Operating income for 2021 was $139.5 million, reflecting a recovery in performance across divisions.

Positive

• 2021 total revenues increased to $2.66 billion.
• NOLAD and SLAD divisions saw strong comparable sales growth, with SLAD at 117.1%.
• Operating income improved to $139.5 million in 2021.

Negative

• The Brazil division experienced a significant decline of -10.0% in 1Q21.

MONTEVIDEO, Uruguay--(BUSINESS WIRE)-- Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, is providing restated quarterly financial information for the years 2019, 2020 and 2021, reflecting the Company’s recently-announced divisional reorganization, in order to facilitate the historical analysis of its performance:

Divisional Reorganization

Effective October 1, 2021, the Company made certain changes in its internal management structure, in order to gain operational agility, leading the Company to reorganize its operation into three geographic divisions, as follows:

1. Brazil division;
2. North Latin American division, or “NOLAD,” which is now comprised of Mexico, Puerto Rico, Costa Rica, Panama, Martinique, Guadeloupe, French Guiana, St. Croix and St. Thomas; and
3. South Latin American division, or “SLAD,” which is now comprised of Argentina, Chile, Colombia, Ecuador, Peru, Uruguay, Venezuela, Aruba, Curaçao and Trinidad & Tobago.

Follow us on:

LinkedIn

Twitter

2021 Key Metrics by Division
(In thousands of U.S. dollars, except percentages)
		1Q21			2Q21			3Q21			4Q21			2021
Systemwide comparable sales growth
Brazil		-10.0	%		65.6	%		36.2	%		18.3	%		20.4	%
NOLAD		6.7	%		84.5	%		38.7	%		23.6	%		33.2	%
SLAD		51.8	%		292.1	%		161.8	%		91.1	%		117.1	%
SLAD - Excl. Venezuela		24.9	%		229.4	%		121.2	%		75.1	%		86.8	%
TOTAL - Excl. Venezuela		2.1	%		98.7	%		56.6	%		33.6	%		38.8	%
Total Revenues
Brazil		203,251			225,740			275,229			298,561			1,002,781
NOLAD		173,754			193,271			204,670			209,171			780,866
SLAD		184,111			173,685			245,938			272,560			876,294
SLAD - Excl. Venezuela		182,831			172,266			243,462			269,398			867,957
TOTAL		561,116			592,696			725,837			780,292			2,659,941
TOTAL - Excl. Venezuela		559,836			591,277			723,361			777,130			2,651,604
Operating Income (loss)
Brazil		180			19,995			36,925			60,787			117,887
NOLAD		5,141			8,916			12,487			22,241			48,785
SLAD		1,852			5,631			18,718			22,413			48,614
SLAD - Excl. Venezuela		3,727			6,129			19,093			23,905			52,853
Corporate and Other		(13,981	)		(16,724	)		(17,389	)		(27,673	)		(75,767	)
TOTAL		(6,808	)		17,818			50,741			77,768			139,519
TOTAL - Excl. Venezuela		(4,933	)		18,316			51,116			79,260			143,758
Adjusted EBITDA (1)
Brazil		13,540			33,819			52,188			76,056			175,603
NOLAD		13,836			19,039			22,273			30,175			85,323
SLAD		9,604			11,083			26,409			30,477			77,573
SLAD - Excl. Venezuela		10,418			12,231			26,691			31,516			80,856
Corporate and Other		(13,050	)		(16,785	)		(11,583	)		(25,323	)		(66,741	)
TOTAL		23,930			47,156			89,287			111,385			271,758
TOTAL - Excl. Venezuela		24,744			48,304			89,569			112,424			275,041
Adjusted EBITDA Margin (2)
Brazil		6.7	%		15.0	%		19.0	%		25.5	%		17.5	%
NOLAD		8.0	%		9.9	%		10.9	%		14.4	%		10.9	%
SLAD		5.2	%		6.4	%		10.7	%		11.2	%		8.9	%
SLAD - Excl. Venezuela		5.7	%		7.1	%		11.0	%		11.7	%		9.3	%
TOTAL		4.3	%		8.0	%		12.3	%		14.3	%		10.2	%
TOTAL - Excl. Venezuela		4.4	%		8.2	%		12.4	%		14.5	%		10.4	%

Restaurant Footprint as of December 31, 2021
		Ownership				Total Restaurants
		Company Operated		Franchised
Brazil		631		420		1,051
NOLAD		453		172		625
SLAD		495		90		585
TOTAL		1,579		682		2,261

(1)		Adjusted EBITDA is a measure of our performance that is reviewed by our management. Adjusted EBITDA does not have a standardized meaning and, accordingly, our definition of Adjusted EBITDA may not be comparable to Adjusted EBITDA as used by other companies. Total Adjusted EBITDA is a non-GAAP measure. For our definition of Adjusted EBITDA, see “Item 5. Operating and Financial Review and Prospects - A. Operating Results - Key Business Measures.”
(2)		Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenues, expressed as a percentage.

2020 Key Metrics by Division
(In thousands of U.S. dollars, except percentages)
		1Q20			2Q20			3Q20			4Q20			2020
Systemwide comparable sales growth
Brazil		-6.0	%		-46.3	%		-26.2	%		-10.6	%		-21.8	%
NOLAD		-6.7	%		-43.7	%		-21.2	%		-7.8	%		-19.8	%
SLAD		31.0	%		-60.1	%		-22.1	%		28.8	%		-6.0	%
SLAD - Excl. Venezuela		0.6	%		-67.0	%		-34.6	%		-1.0	%		-25.8	%
TOTAL - Excl. Venezuela		-4.5	%		-51.0	%		-27.2	%		-7.9	%		-22.3	%
Total Revenues
Brazil		284,382			132,234			192,402			253,730			862,748
NOLAD		155,531			102,226			149,279			177,610			584,646
SLAD		177,591			58,064			125,118			176,052			536,825
SLAD - Excl. Venezuela		175,994			57,739			124,225			174,373			532,330
TOTAL		617,504			292,524			466,799			607,392			1,984,219
TOTAL - Excl. Venezuela		615,907			292,199			465,906			605,713			1,979,725
Operating Income (loss)
Brazil		11,088			(21,135	)		7,676			18,492			16,121
NOLAD		2,653			(9,510	)		972			5,915			30
SLAD		(7,382	)		(34,784	)		(777	)		14,101			(28,842	)
SLAD - Excl. Venezuela		(5,539	)		(32,388	)		774			16,023			(21,130	)
Corporate and Other		(13,494	)		(11,849	)		(11,932	)		(16,788	)		(54,063	)
TOTAL		(7,135	)		(77,278	)		(4,061	)		21,720			(66,754	)
TOTAL - Excl. Venezuela		(5,292	)		(74,882	)		(2,510	)		23,642			(59,042	)
Adjusted EBITDA (1)
Brazil		29,171			(7,099	)		21,507			32,576			76,155
NOLAD		13,415			(2,214	)		10,874			19,421			41,496
SLAD		(1,822	)		(22,687	)		3,572			21,767			830
SLAD - Excl. Venezuela		(332	)		(21,460	)		4,355			22,682			5,245
Corporate and Other		(12,241	)		(10,907	)		(10,919	)		(16,303	)		(50,370	)
TOTAL		28,523			(42,907	)		25,034			57,461			68,111
TOTAL - Excl. Venezuela		30,013			(41,680	)		25,817			58,376			72,526
Adjusted EBITDA Margin (2)
Brazil		10.3	%		-5.4	%		11.2	%		12.8	%		8.8	%
NOLAD		8.6	%		-2.2	%		7.3	%		10.9	%		7.1	%
SLAD		-1.0	%		-39.1	%		2.9	%		12.4	%		0.2	%
SLAD - Excl. Venezuela		-0.2	%		-37.2	%		3.5	%		13.0	%		1.0	%
TOTAL		4.6	%		-14.7	%		5.4	%		9.5	%		3.4	%
TOTAL - Excl. Venezuela		4.9	%		-14.3	%		5.5	%		9.6	%		3.7	%

Restaurant Footprint as of December 31, 2020
		Ownership				Total Restaurants
		Company Operated		Franchised
Brazil		610		410		1,020
NOLAD		475		154		629
SLAD		491		96		587
TOTAL		1,576		660		2,236

(1)		Adjusted EBITDA is a measure of our performance that is reviewed by our management. Adjusted EBITDA does not have a standardized meaning and, accordingly, our definition of Adjusted EBITDA may not be comparable to Adjusted EBITDA as used by other companies. Total Adjusted EBITDA is a non-GAAP measure. For our definition of Adjusted EBITDA, see “Item 5. Operating and Financial Review and Prospects - A. Operating Results - Key Business Measures”.
(2)		Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenues, expressed as a percentage.

2019 Key Metrics by Division
(In thousands of U.S. dollars, except percentages)
		1Q19			2Q19			3Q19			4Q19			2019
Systemwide comparable sales growth
Brazil		6.8	%		12.1	%		10.8	%		9.5	%		9.7	%
NOLAD		1.7	%		5.1	%		2.8	%		4.9	%		3.7	%
SLAD		31537.2	%		7543.8	%		485.1	%		374.6	%		11963.2	%
SLAD - Excl. Venezuela		20.8	%		24.3	%		23.8	%		16.9	%		21.5	%
TOTAL - Excl. Venezuela		10.0	%		14.2	%		12.7	%		10.4	%		11.8	%
Total Revenues
Brazil		340,764			329,298			346,201			369,302			1,385,566
NOLAD		157,939			169,158			172,048			177,237			676,382
SLAD		232,296			225,288			231,719			207,827			897,129
SLAD - Excl. Venezuela		229,240			222,569			229,349			205,788			886,947
TOTAL		730,999			723,744			749,968			754,366			2,959,077
TOTAL - Excl. Venezuela		727,943			721,025			747,598			752,327			2,948,895
Operating Income (loss)
Brazil		32,093			28,486			41,633			62,131			164,342
NOLAD		2,542			5,130			7,275			15,008			29,955
SLAD		9,434			7,556			8,882			2,024			27,894
SLAD - Excl. Venezuela		11,094			8,680			10,464			5,897			36,137
Corporate and Other		(12,745	)		(15,428	)		(15,543	)		(18,538	)		(62,255	)
TOTAL		31,324			25,744			42,247			60,625			159,937
TOTAL - Excl. Venezuela		32,984			26,868			43,829			64,498			168,180
Adjusted EBITDA (1)
Brazil		46,904			44,198			57,481			79,262			227,844
NOLAD		10,546			12,825			14,912			25,775			64,059
SLAD		16,207			14,578			18,477			13,781			63,043
SLAD - Excl. Venezuela		17,343			15,364			19,639			15,154			67,500
Corporate and Other		(13,038	)		(15,785	)		(15,905	)		(18,442	)		(63,171	)
TOTAL		60,619			55,816			74,965			100,376			291,775
TOTAL - Excl. Venezuela		61,755			56,602			76,127			101,749			296,232
Adjusted EBITDA Margin (2)
Brazil		13.8	%		13.4	%		16.6	%		21.5	%		16.4	%
NOLAD		6.7	%		7.6	%		8.7	%		14.5	%		9.5	%
SLAD		7.0	%		6.5	%		8.0	%		6.6	%		7.0	%
SLAD - Excl. Venezuela		7.6	%		6.9	%		8.6	%		7.4	%		7.6	%
TOTAL		8.3	%		7.7	%		10.0	%		13.3	%		9.9	%
TOTAL - Excl. Venezuela		8.5	%		7.9	%		10.2	%		13.5	%		10.0	%

Restaurant Footprint as of December 31, 2019
		Ownership				Total Restaurants
		Company Operated		Franchised
Brazil		612		411		1,023
NOLAD		456		199		655
SLAD		512		103		615
TOTAL		1,580		713		2,293

(1)		Adjusted EBITDA is a measure of our performance that is reviewed by our management. Adjusted EBITDA does not have a standardized meaning and, accordingly, our definition of Adjusted EBITDA may not be comparable to Adjusted EBITDA as used by other companies. Total Adjusted EBITDA is a non-GAAP measure. For our definition of Adjusted EBITDA, see “Item 5. Operating and Financial Review and Prospects - A. Operating Results - Key Business Measures”.
(2)		Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenues, expressed as a percentage.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220316005260/en/

Investor Relations Contact

Dan Schleiniger

VP of Investor Relations

Arcos Dorados

daniel.schleiniger@ar.mcd.com

Media Contact

David Grinberg

VP of Corporate Communications

Arcos Dorados

david.grinberg@mcd.com.uy

Source: Arcos Dorados Holdings, Inc.

FAQ

What are the key financial metrics for Arcos Dorados in 2021?

In 2021, Arcos Dorados reported total revenues of $2.66 billion and operating income of $139.5 million.

How did the divisional reorganization affect Arcos Dorados' performance?

The reorganization, effective October 1, 2021, aimed to increase operational efficiency, resulting in notable revenue growth in NOLAD and SLAD divisions.

What was the comparable sales growth for Arcos Dorados in 2021?

The company's overall comparable sales growth in 2021 was 38.8%, with the SLAD division achieving 117.1% growth.

What impact did the reorganization have on Arcos Dorados' divisions?

The reorganization led to the formation of three divisions: Brazil, NOLAD, and SLAD, facilitating a more agile operational structure.

What were the challenges faced by Arcos Dorados in Brazil during 2021?

The Brazil division faced a -10.0% drop in comparable sales in the first quarter of 2021.