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Arcos Dorados Beats Estimates and Posts Record First-Quarter EBITDA

Management says stronger traffic, higher checks, accelerating digital sales, delivery partnerships, restaurant modernization, licensing are driving margin expansion as cash builds.

Overview

  • Arcos Dorados reported revenue of $1.22 billion and earnings of $0.17 per share, beating analyst expectations and reflecting systemwide comparable sales growth of 16 percent.
  • Adjusted EBITDA reached a first-quarter record of $118 million, a 29.3 percent year‑over‑year increase, and EBITDA margin expanded 120 basis points to 9.7 percent.
  • Digital channel revenue rose 21 percent and accounted for 64 percent of systemwide sales, driven by self‑order kiosks, delivery partnerships and loyalty programs.
  • The company opened 19 restaurants in the quarter, said 75 percent of its estate is modernized, and finished the period with $255.6 million in cash and cash equivalents.
  • CEO Luis Raganato emphasized value marketing, core menu focus, licensing deals and continued digital investment to convert market share into sustained profit growth, and shares jumped about 9 percent after the results.