Arcos Dorados Reports Third Quarter Financial Results
Arcos Dorados (NYSE: ARCO) reported strong Q3 2024 financial results with total revenues reaching $1.1 billion, setting a new third-quarter record. Systemwide comparable sales grew 32.1% year-over-year, driven by positive average check and guest volume. Digital channel sales increased 16%, representing 58% of systemwide sales. The company achieved Adjusted EBITDA of $125.0 million with an 11.0% margin and Net Income of $35.2 million ($0.17 per share). The company opened 19 Experience of the Future restaurants in Q3, maintaining a strong 1.2x Net Debt to Adjusted EBITDA ratio. Their Loyalty Program expanded to 12.9 million registered members across three markets.
Arcos Dorados (NYSE: ARCO) ha riportato solidi risultati finanziari per il terzo trimestre del 2024, con ricavi totali che hanno raggiunto 1,1 miliardi di dollari, stabilendo un nuovo record per il terzo trimestre. Le vendite comparabili a livello di sistema sono cresciute del 32,1% rispetto all'anno precedente, grazie a un aumento della spesa media e del volume degli ospiti. Le vendite attraverso canali digitali sono aumentate del 16%, rappresentando il 58% delle vendite totali. L'azienda ha ottenuto un EBITDA rettificato di 125,0 milioni di dollari con un margine dell'11,0% e un utile netto di 35,2 milioni di dollari (0,17 dollari per azione). Sono stati aperti 19 ristoranti Esperienza del Futuro nel terzo trimestre, mantenendo un solido rapporto di 1,2x tra Debito Netto e EBITDA rettificato. Il loro Programma di Fedeltà si è ampliato a 12,9 milioni di membri registrati in tre mercati.
Arcos Dorados (NYSE: ARCO) reportó sólidos resultados financieros para el tercer trimestre de 2024, con ingresos totales alcanzando 1.1 mil millones de dólares, estableciendo un nuevo récord para el tercer trimestre. Las ventas comparables a nivel del sistema crecieron un 32.1% interanualmente, impulsadas por un aumento en el ticket promedio y el volumen de clientes. Las ventas por canales digitales aumentaron un 16%, representando el 58% de las ventas totales. La compañía logró un EBITDA ajustado de 125.0 millones de dólares con un margen del 11.0% y ingreso neto de 35.2 millones de dólares (0.17 dólares por acción). La compañía abrió 19 restaurantes Experiencia del Futuro en el tercer trimestre, manteniendo una sólida relación de 1.2x entre Deuda Neta y EBITDA ajustado. Su Programa de Lealtad se expandió a 12.9 millones de miembros registrados en tres mercados.
아르코스 도라도스 (NYSE: ARCO)는 2024년 3분기 재무 결과에서 총 수익 11억 달러를 기록하며 3분기 신기록을 세웠습니다. 시스템 전반의 비교 가능한 매출이 전년 대비 32.1% 증가했습니다, 이는 평균 체크와 고객 수의 증가에 힘입은 것입니다. 디지털 채널의 매출이 16% 증가했습니다, 전체 매출의 58%를 차지합니다. 회사는 조정된 EBITDA 1억 2500만 달러를 달성했으며, 마진은 11.0%이고 순이익 3520만 달러 (주당 0.17달러)입니다. 3분기 동안 19개의 미래 경험 레스토랑을 열었으며, 조정된 EBITDA에 대한 순부채 비율은 1.2배로 유지했습니다. 그들의 로열티 프로그램은 세 시장에서 등록된 1290만 회원으로 확대되었습니다.
Arcos Dorados (NYSE: ARCO) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus totaux atteignant 1,1 milliard de dollars, établissant un nouveau record pour ce trimestre. Les ventes comparables à l'échelle du système ont augmenté de 32,1% d'une année sur l'autre, soutenues par un ticket moyen positif et un volume de clients en hausse. Les ventes par canaux digitaux ont augmenté de 16%, représentant 58% des ventes globales. L'entreprise a réalisé un EBITDA ajusté de 125,0 millions de dollars avec une marge de 11,0% et un revenu net de 35,2 millions de dollars (0,17 dollar par action). L'entreprise a ouvert 19 restaurants Expérience du Futur au cours du troisième trimestre, maintenant un solide ratio de 1,2x entre les dettes nettes et l'EBITDA ajusté. Leur programme de fidélité s'est élargi à 12,9 millions de membres enregistrés dans trois marchés.
Arcos Dorados (NYSE: ARCO) meldete starke Finanzzahlen für das dritte Quartal 2024, mit Gesamtumsätzen von 1,1 Milliarden Dollar, was einen neuen Rekord für das dritte Quartal darstellt. Die vergleichbaren Umsätze auf Systemebene wuchsen um 32,1% im Jahresvergleich, was auf einen positiven durchschnittlichen Bestellwert und Gästevolumen zurückzuführen ist. Die Umsätze über digitale Kanäle stiegen um 16%, was 58% des Gesamtumsatzes ausmacht. Das Unternehmen erreichte bereinigtes EBITDA von 125,0 Millionen Dollar mit einer Marge von 11,0% und netto Einkommen von 35,2 Millionen Dollar (0,17 Dollar pro Aktie). Im dritten Quartal wurden 19 Restaurants der Experience of the Future eröffnet, während das Verhältnis von Netto-Schulden zu bereinigtem EBITDA bei 1,2x blieb. Ihr Loyalitätsprogramm wuchs auf 12,9 Millionen registrierte Mitglieder in drei Märkten.
- Record Q3 revenue of $1.1 billion
- 32.1% growth in systemwide comparable sales
- 16% increase in digital channel sales, reaching 58% of systemwide sales
- Adjusted EBITDA of $125.0 million with 11.0% margin
- Strong balance sheet with 1.2x Net Debt to Adjusted EBITDA ratio
- Expansion with 19 new Experience of the Future restaurants
- Net Income decreased 41% year-over-year to $35.2 million
- Adjusted EBITDA margin declined 0.5 percentage points to 11.0%
- EPS decreased from $0.28 to $0.17 year-over-year
Insights
Strong Q3 financial performance with
The balance sheet remains solid with a 1.2x Net Debt/EBITDA ratio. Notable market share gains and expansion continue with 19 new EOTF restaurants opened. The recent Moody's upgrade to Ba1 reflects strengthening financial position.
However, margin pressure exists in SLAD division due to Argentina's macroeconomic challenges and currency headwinds impacted reported results across regions. The
The Four D's strategy (Digital, Delivery, Drive-thru, Development) is driving significant competitive advantages. Digital transformation shows strong results with
The Latin American QSR market remains underpenetrated, offering substantial growth potential. Strong performance in Brazil, with
-
Total revenues of
established a new high for a third quarter.$1.1 billion -
Systemwide comparable sales1 grew
32.1% year-over-year, with positive average check and guest volume contributing to the result. -
Digital channel sales (from Mobile App, Delivery and Self-order Kiosks) rose
16% versus the prior year period and represented58% of systemwide sales in third quarter. - Loyalty Program implemented in three markets, grew to 12.9 million registered members2.
-
Consolidated Adjusted EBITDA1 was
, with an$125.0 million 11.0% margin. -
Net Income was
in the quarter, or$35.2 million per share.$0.17
Third Quarter 2024 Highlights
-
Consolidated revenues totaled
, rising in US dollars despite weaker local currencies.$1.1 billion -
Systemwide comparable sales1 rose
32.1% versus the third quarter of 2023, including the impact of high inflation inArgentina over the last 12 months. -
Consolidated Adjusted EBITDA1 reached
, with an$125.0 million 11.0% margin. -
Net Income was
, with a$35.2 million 3.1% margin. - Net Debt to Adjusted EBITDA leverage ratio ended the third quarter at 1.2x, unchanged from the end of the previous quarter.
-
The Company opened 19 Experience of the Future (EOTF) restaurants in the quarter, all of them free-standing, including 11 in
Brazil . -
Digital channel sales grew
16% , including strong performances in Mobile App and Delivery as well as the continued growth of the Loyalty Program.
1 For definitions, please refer to page 15 of this document. |
2 As of September 30, 2024. |
Message from Marcelo Rabach, Chief Executive Officer
Third quarter 2024 results demonstrate the resilience of Arcos Dorados’ business model. Sales and profitability were strong, as US dollar revenue set a new high for a third quarter and Adjusted EBITDA was the second highest for a third quarter. Notably, comparable guest counts rose for the 14th consecutive quarter, with broad-based traffic increases in the region. This helped drive systemwide comp sales growth in all three divisions, despite more challenging economic and consumer environments.
Our strategy, built around Digital, Delivery and Drive-thru, remained an unmatched structural competitive advantage across all markets. In line with McDonald’s global growth strategy, we expect our restaurant opening pipeline to unlock even more shareholder value, as we capture the significant expansion opportunity over the next several years. Our balance sheet is as strong as ever, which allows us to continue ramping up on the Fourth “D” of our strategy: Development. With that in mind, moving forward, we will begin referring to our Four D’s Strategy.
For the year-to-date through September, we opened 56 Experience of the Future restaurants, including 32 openings in
I believe there are so many reasons to be excited about the future for Arcos Dorados and its shareholders, including: operating the world’s most beloved QSR Brand, executing the successful Four D’s Strategy, the largest market share in the region’s quick service restaurant (QSR) industry, by far, and a strong balance sheet to support future growth. In addition, we operate the region’s most modernized restaurant portfolio with the highest number of free-standing locations that we believe will continue to be a structural competitive advantage for the foreseeable future.
Finally, we believe we are operating in the world’s best ZIP code.
It will be our job to capitalize on these opportunities in the years to come.
Consolidated Results
Figure 1. AD Holdings Inc Consolidated: Key Financial Results (In millions of |
||||||
3Q23 (a) |
Currency Translation (b) |
Constant Currency Growth (c) |
3Q24 (a+b+c) |
% As Reported | % Constant Currency | |
Total Restaurants (Units) | 2,339 |
2,410 |
||||
Sales by Company-operated Restaurants | 1,075.3 |
(416.5) |
424.6 |
1,083.4 |
|
|
Revenues from franchised restaurants | 49.8 |
(14.1) |
14.6 |
50.2 |
|
|
Total Revenues | 1,125.1 |
(430.7) |
439.2 |
1,133.7 |
|
|
Systemwide Comparable Sales |
|
|||||
Adjusted EBITDA | 129.1 |
(33.7) |
29.6 |
125.0 |
- |
|
Adjusted EBITDA Margin |
|
|
-0.5 p.p. | |||
Net income (loss) attributable to AD | 59.7 |
2.8 |
(27.3) |
35.2 |
- |
- |
Net income attributable to AD Margin |
|
|
-2.2 p.p. | |||
No. of shares outstanding (thousands) | 210,655 |
210,663 |
||||
EPS (US$/Share) | 0.28 |
0.17 |
Arcos Dorados’ total revenues of
The Three-D’s strategy (Digital, Delivery and Drive-thru), which has been a key component of the Company’s success in recent years, continues to be a structural competitive advantage across all markets, leading to continued market share gains throughout the Company’s footprint. According to the Company’s proprietary research, McDonald’s brand gained five points of value share across its operating footprint in the third quarter compared with the prior year period.
Sales from Arcos Dorados’ Digital platform rose
As of September 30, 2024, the Company’s customer relationship management (CRM) platform had approximately 94 million unique registered users. As of the end of October 2024, the Loyalty Program reached almost 14 million registered members across three markets. The Loyalty Program has become a key driver of customer engagement, including an increase of
Adjusted EBITDA Bridge
($ million)
Third quarter consolidated Adjusted EBITDA reached
Consolidated Adjusted EBITDA margin was
Notable items in the Adjusted EBITDA reconciliation
Included in Adjusted EBITDA: The result for the third quarter of 2024 included a
Excluded from Adjusted EBITDA: There were no notable items excluded from Adjusted EBITDA in either the third quarter of 2024 or the third quarter of 2023.
Non-operating Results
Arcos Dorados’ non-operating results for the third quarter included a net interest expense of
Net income attributable to the Company totaled
Divisional Results
Brazil Division
Figure 2. Brazil Division: Key Financial Results
(In millions of |
||||||
3Q23 (a) |
Currency Translation (b) |
Constant Currency Growth (c) |
3Q24 (a+b+c) |
% As Reported | % Constant Currency | |
Total Restaurants (Units) | 1,113 |
1,160 |
||||
Total Revenues | 439.2 |
(58.7) |
50.9 |
431.5 |
- |
|
Systemwide Comparable Sales |
|
|||||
Adjusted EBITDA | 77.8 |
(10.6) |
11.7 |
79.0 |
|
|
Adjusted EBITDA Margin |
|
|
0.6 p.p. |
Brazil’s revenues totaled
Digital sales generated almost
Based on Company research,
These results reflect strong marketing activities during the quarter. The launch of the “Why I call Méqui, Méqui” campaign increased guests’ emotional connection with the McDonald’s Brand. Core product sales benefitted from the “Piscininha de Cheddar” that leveraged Brazilians’ love for melted cheddar. New flavors in cones, McFlurry and McShake brought innovation to the Dessert category in the quarter. The family business also benefitted from Happy Meal licenses such as “Despicable Me 4”, which featured an exclusive menu and special activations in restaurants.
As reported Adjusted EBITDA in the division totaled
North Latin American Division (NOLAD)
Figure 3. NOLAD Division: Key Financial Results
(In millions of |
||||||
3Q23 (a) |
Currency Translation (b) |
Constant Currency Growth (c) |
3Q24 (a+b+c) |
% As Reported | % Constant Currency | |
Total Restaurants (Units) | 638 |
649 |
||||
Total Revenues | 295.6 |
(10.2) |
24.3 |
309.7 |
|
|
Systemwide Comparable Sales |
|
|||||
Adjusted EBITDA | 32.3 |
(0.9) |
(0.8) |
30.7 |
- |
- |
Adjusted EBITDA Margin |
|
|
-1.0 p.p. |
As reported revenues in NOLAD totaled
The Company has been investing in the modernization and digitalization of its restaurants in the division. As a result, digital sales continued to grow, and increased
In
NOLAD’s marketing campaigns focused on menu items designed for families, with Happy Meal licenses featuring “Yu-Gi-Oh and Hello Kitty”. Arcos Dorados also developed a collaboration with Korean pop group BTS to enhance its chicken credentials with Gen Z customers. The collaboration introduced a variety of Asian-inspired sauces, special packaging and collectible characters for the iconic Chicken McNuggets. In
As reported Adjusted EBITDA in the division was
South Latin American Division (SLAD)
Figure 4. SLAD Division: Key Financial Results
(In millions of |
||||||
3Q23 (a) |
Currency Translation (b) |
Constant Currency Growth (c) |
3Q24 (a+b+c) |
% As Reported | % Constant Currency | |
Total Restaurants (Units) | 588 |
601 |
||||
Total Revenues | 390.3 |
(361.8) |
364.0 |
392.5 |
|
|
Systemwide Comparable Sales |
|
|||||
Adjusted EBITDA | 41.8 |
(41.5) |
35.5 |
35.7 |
- |
|
Adjusted EBITDA Margin |
|
|
-1.6 p.p. |
As reported revenues in SLAD totaled
Results in the third quarter reflect a more challenging consumer environment, as well as significant macroeconomic and currency headwinds in
Digital sales represented
In
The Company continued to strengthen the connection with its key consumer targets through the Copa America soccer tournament, with special edition sandwiches and campaigns supporting its sponsorship of national teams. In
As reported Adjusted EBITDA totaled
New Unit Development
Figure 5. Total Restaurants (end of period)* | |||||
September 2024 |
June 2024 |
March 2024 |
December 2023 |
September 2023 |
|
1,160 |
1,150 |
1,141 |
1,130 |
1,113 |
|
NOLAD | 649 |
649 |
647 |
647 |
638 |
SLAD | 601 |
596 |
593 |
584 |
588 |
TOTAL | 2,410 |
2,395 |
2,381 |
2,361 |
2,339 |
* Considers Company-operated and franchised restaurants at period-end |
Figure 6. Footprint as of September 30, 2024 | ||||||||
Store Type* | Total Restaurants |
Ownership | McCafes | Dessert Centers |
||||
FS | IS | MS & FC | Company Operated |
Franchised | ||||
610 |
91 |
459 |
1,160 |
713 |
447 |
124 |
2,003 |
|
NOLAD | 408 |
47 |
194 |
649 |
495 |
154 |
19 |
524 |
SLAD | 257 |
124 |
220 |
601 |
507 |
94 |
205 |
734 |
TOTAL | 1,275 |
262 |
873 |
2,410 |
1,715 |
695 |
348 |
3,261 |
* FS: Free-Standing; IS: In-Store; MS: Mall Store; FC: Food Court. |
The Company opened 19 Experience of the Future (EOTF) restaurants in the third quarter of 2024, all of them freestanding units, including 11 restaurants in
Arcos Dorados continued modernizing existing restaurants and, as of the end of September 2024, there were 1,560 EOTF restaurants making up
The restaurant development plan remains on track and the Company expects to meet its full year guidance of 80 to 90 restaurant openings in 2024.
Balance Sheet & Cash Flow Highlights
Figure 7. Consolidated Debt and Financial Ratios (In thousands of |
||
September 30, |
December 31, |
|
2024 |
2023 |
|
Total Cash & cash equivalents (i) | 120,807 |
246,767 |
Total Financial Debt (ii) | 719,068 |
728,093 |
Net Financial Debt (iii) | 598,261 |
481,326 |
LTM Adjusted EBITDA | 485,340 |
472,304 |
Total Financial Debt / LTM Adjusted EBITDA ratio | 1.5 |
1.5 |
Net Financial Debt / LTM Adjusted EBITDA ratio | 1.2 |
1.0 |
LTM Net income attributable to AD | 146,133 |
181,274 |
Total Financial Debt / LTM Net income attributable to AD ratio | 4.9 |
4.0 |
Net Financial Debt / LTM Net income attributable to AD ratio | 4.1 |
2.7 |
(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 September 30, 2024, total cash and cash equivalents were
The net debt to Adjusted EBITDA leverage ratio ended the quarter at 1.2x, unchanged from the end of the second quarter 2024.
Net cash generated from operating activities for the nine months ended September 30, 2024, totaled
Recent Developments
Moody’s Rating Action
In October 2024, Moody’s upgraded Arcos Dorados’ corporate and senior debt rating to Ba1 from Ba2, following Brazil’s sovereign debt rating action. To support the upgrade, Moody’s cited the Company's solid marketing position in
Letter of Credit
On October 25, 2024, the Company signed a letter of credit with Banco Bilbao Vizcaya Argentaria (“BBVA”) of
Revolving Credit Facility
On October 31, 2024, Arcos Dorados signed a
Third Quarter 2024 Earnings Webcast
A webcast to discuss the information contained in this press release will be held today, November 13, 2024, at 10:00 a.m. ET. In order to access the webcast, members of the investment community should follow this link: Arcos Dorados Third 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, its outlook and guidance for 2024 and the renewal of its Master Franchise Agreement with McDonald’s. 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.
Third Quarter 2024 Consolidated Results
Figure 8. Third Quarter 2024 Consolidated Results
(In thousands of |
||||||||
For Three-Months ended | For Nine-Months ended | |||||||
September 30, | September 30, | |||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
REVENUES | ||||||||
Sales by Company-operated restaurants |
|
1,083,447 |
|
1,075,328 |
|
3,175,578 |
|
3,016,212 |
Revenues from franchised restaurants |
|
50,238 |
|
49,782 |
|
150,364 |
|
140,211 |
Total Revenues |
|
1,133,685 |
|
1,125,110 |
|
3,325,942 |
|
3,156,423 |
OPERATING COSTS AND EXPENSES | ||||||||
Company-operated restaurant expenses: | ||||||||
Food and paper |
|
(381,175) |
|
(376,023) |
|
(1,115,088) |
|
(1,061,634) |
Payroll and employee benefits |
|
(207,894) |
|
(200,904) |
|
(603,392) |
|
(580,286) |
Occupancy and other operating expenses |
|
(315,571) |
|
(300,456) |
|
(930,182) |
|
(843,176) |
Royalty fees |
|
(67,163) |
|
(65,058) |
|
(198,527) |
|
(180,317) |
Franchised restaurants - occupancy expenses |
|
(20,720) |
|
(21,424) |
|
(62,995) |
|
(60,053) |
General and administrative expenses |
|
(68,070) |
|
(67,806) |
|
(209,682) |
|
(202,924) |
Other operating income (expenses), net |
|
6,733 |
|
(2,364) |
|
15,519 |
|
4,219 |
Total operating costs and expenses |
|
(1,053,860) |
|
(1,034,035) |
|
(3,104,347) |
|
(2,924,171) |
Operating income |
|
79,825 |
|
91,075 |
|
221,595 |
|
232,252 |
Net interest expense and other financing results |
|
(8,480) |
|
(4,973) |
|
(39,059) |
|
(26,960) |
(Loss) gain from derivative instruments |
|
(516) |
|
900 |
|
733 |
|
(13,220) |
Foreign currency exchange results |
|
3,292 |
|
1,286 |
|
(15,823) |
|
22,231 |
Other non-operating income (expenses), net |
|
758 |
|
(106) |
|
106 |
|
(100) |
Income before income taxes |
|
74,879 |
|
88,182 |
|
167,552 |
|
214,203 |
Income tax expense, net |
|
(39,589) |
|
(28,072) |
|
(76,695) |
|
(87,922) |
Net income |
|
35,290 |
|
60,110 |
|
90,857 |
|
126,281 |
Net income attributable to non-controlling interests |
|
(76) |
|
(389) |
|
(502) |
|
(785) |
Net income attributable to Arcos Dorados Holdings Inc. |
|
35,214 |
|
59,721 |
|
90,355 |
|
125,496 |
Net income attributable to Arcos Dorados Holdings Inc. Margin as % of total revenues |
|
|
|
|
|
|
|
|
Earnings per share information ($ per share): | ||||||||
Basic net income per common share | $ |
0.17 |
$ |
0.28 |
$ |
0.43 |
$ |
0.60 |
Weighted-average number of common shares outstanding-Basic |
|
210,663,057 |
|
210,654,969 |
|
210,659,761 |
|
210,625,346 |
Adjusted EBITDA Reconciliation | ||||||||
Net income attributable to Arcos Dorados Holdings Inc. |
|
35,214 |
|
59,721 |
|
90,355 |
|
125,496 |
Net income attributable to non-controlling interests |
|
76 |
|
389 |
|
502 |
|
785 |
Income tax expense, net |
|
39,589 |
|
28,072 |
|
76,695 |
|
87,922 |
Other non-operating income (expenses), net |
|
(758) |
|
106 |
|
(106) |
|
100 |
Foreign currency exchange results |
|
(3,292) |
|
(1,286) |
|
15,823 |
|
(22,231) |
(Loss) gain from derivative instruments |
|
516 |
|
(900) |
|
(733) |
|
13,220 |
Net interest expense and other financing results |
|
8,480 |
|
4,973 |
|
39,059 |
|
26,960 |
Depreciation and amortization |
|
45,411 |
|
37,286 |
|
133,704 |
|
105,806 |
Operating charges excluded from EBITDA computation |
|
(237) |
|
759 |
|
(2,583) |
|
1,622 |
Adjusted EBITDA |
|
124,999 |
|
129,120 |
|
352,716 |
|
339,680 |
Adjusted EBITDA Margin as % of total revenues |
|
11.0 % |
|
11.5 % |
|
10.6 % |
|
10.8 % |
Third Quarter 2024 Results by Division
Figure 9. Third Quarter 2024 Consolidated Results by Division
(In thousands of |
||||||||
For Three-Months ended | as | Constant | For Nine-Months ended | as | Constant | |||
September 30, | reported | Currency | September 30, | reported | Currency | |||
2024 |
2023 |
Incr/(Decr)% | Incr/(Decr)% | 2024 |
2023 |
Incr/(Decr)% | Incr/(Decr)% | |
Revenues | ||||||||
431,473 |
439,213 |
- |
|
1,322,400 |
1,218,610 |
|
|
|
NOLAD | 309,684 |
295,641 |
|
|
922,610 |
832,497 |
|
|
SLAD | 392,528 |
390,256 |
|
|
1,080,932 |
1,105,316 |
- |
|
TOTAL | 1,133,685 |
1,125,110 |
|
|
3,325,942 |
3,156,423 |
|
|
Operating Income (loss) | ||||||||
61,157 |
59,374 |
|
|
186,393 |
156,376 |
|
|
|
NOLAD | 17,337 |
21,779 |
- |
- |
48,511 |
54,136 |
- |
- |
SLAD | 24,175 |
34,187 |
- |
|
58,336 |
97,101 |
- |
|
Corporate and Other | (22,844) |
(24,265) |
|
- |
(71,645) |
(75,361) |
|
- |
TOTAL | 79,825 |
91,075 |
- |
|
221,595 |
232,252 |
- |
- |
Adjusted EBITDA | ||||||||
79,007 |
77,848 |
|
|
240,621 |
206,450 |
|
|
|
NOLAD | 30,683 |
32,308 |
- |
- |
85,446 |
84,218 |
|
|
SLAD | 35,705 |
41,780 |
- |
|
91,017 |
119,370 |
- |
|
Corporate and Other | (20,396) |
(22,816) |
|
- |
(64,368) |
(70,358) |
|
- |
TOTAL | 124,999 |
129,120 |
- |
|
352,716 |
339,680 |
|
|
Figure 10. Average Exchange Rate per Quarter* | |||
3Q24 |
5.55 |
18.95 |
941.31 |
3Q23 |
4.88 |
17.07 |
312.54 |
* Local $ per |
Summarized Consolidated Balance Sheet
Figure 11. Summarized Consolidated Balance Sheets
(In thousands of |
|||
September 30, | December 31, | ||
2024 |
2023 |
||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | 115,908 |
196,661 |
|
Short-term investments | 4,899 |
50,106 |
|
Accounts and notes receivable, net | 135,059 |
147,980 |
|
Other current assets (1) | 250,123 |
210,531 |
|
Derivative instruments | 266 |
— |
|
Total current assets | 506,255 |
605,278 |
|
Non-current assets | |||
Property and equipment, net | 1,161,066 |
1,119,885 |
|
Net intangible assets and goodwill | 67,942 |
70,026 |
|
Deferred income taxes | 103,964 |
98,163 |
|
Derivative instruments | 67,914 |
46,486 |
|
Equity method investments | 16,457 |
18,111 |
|
Leases right of use asset | 963,296 |
954,564 |
|
Other non-current assets (2) | 74,223 |
106,725 |
|
Total non-current assets | 2,454,862 |
2,413,960 |
|
Total assets | 2,961,117 |
3,019,238 |
|
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Accounts payable | 328,168 |
374,986 |
|
Taxes payable (3) | 152,866 |
163,143 |
|
Accrued payroll and other liabilities | 142,591 |
142,487 |
|
Royalties payable to McDonald’s Corporation | 16,886 |
21,292 |
|
Provision for contingencies | 1,239 |
1,447 |
|
Interest payable | 19,069 |
7,447 |
|
Financial debt (4) | 46,621 |
37,361 |
|
Operating lease liabilities | 96,031 |
93,507 |
|
Total current liabilities | 803,471 |
841,670 |
|
Non-current liabilities | |||
Accrued payroll and other liabilities | 21,913 |
27,513 |
|
Provision for contingencies | 34,912 |
49,172 |
|
Financial debt (5) | 721,558 |
729,771 |
|
Deferred income taxes | 6,082 |
1,166 |
|
Operating lease liabilities | 859,707 |
853,107 |
|
Total non-current liabilities | 1,644,172 |
1,660,729 |
|
Total liabilities | 2,447,643 |
2,502,399 |
|
Equity | |||
Class A shares of common stock | 389,967 |
389,907 |
|
Class B shares of common stock | 132,915 |
132,915 |
|
Additional paid-in capital | 8,659 |
8,719 |
|
Retained earnings | 605,986 |
566,188 |
|
Accumulated other comprehensive loss | (605,957) |
(563,081) |
|
Common stock in treasury | (19,367) |
(19,367) |
|
Total Arcos Dorados Holdings Inc shareholders’ equity | 512,203 |
515,281 |
|
Non-controlling interest in subsidiaries | 1,271 |
1,558 |
|
Total equity | 513,474 |
516,839 |
|
Total liabilities and equity | 2,961,117 |
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/20241113097566/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.
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