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Mar 31, 2025
Arcos Dorados Q1 2025 Earnings Report
Arcos Dorados reported mixed performance in Q1 2025, with resilient digital and loyalty growth offsetting FX pressures and lower profitability.
Key Takeaways
The company maintained steady revenue in U.S. dollars despite FX headwinds, with strong growth in digital engagement and loyalty members. Profitability declined year-over-year due to margin pressures, particularly in Brazil, although SLAD showed notable recovery.
Revenue was flat YoY at $1.1 billion, but up 14.1% in constant currency.
Adjusted EBITDA dropped to $91.3 million from $108.9 million in Q1 2024.
Digital sales accounted for nearly 60% of systemwide sales.
Loyalty Program members reached 18.8 million, up from 15.3 million a year ago.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Management expects improved results over the rest of the year, citing March momentum, expanded loyalty coverage, and omnichannel strength.
Positive Outlook
- Loyalty Program expanded to 67% of restaurants with plans for full coverage in main markets by year-end.
- Strong digital engagement with 19 million monthly average app users.
- March performance indicated a turnaround in operating metrics.
- SLAD region showed improved profitability and strong local currency performance.
- Modernization efforts (EOTF restaurants) continued with 12 new openings.
Challenges Ahead
- FX depreciation in Brazil, Mexico, and Argentina weighed on reported results.
- Adjusted EBITDA margin fell 160 basis points YoY.
- Brazil’s profitability was pressured by input cost inflation and slower traffic.
- NOLAD faced challenging macro conditions, especially in Costa Rica and Panama.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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