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Sep 30, 2025
Arcos Dorados Q3 2025 Earnings Report
Arcos Dorados reported strong third quarter results, driven by a significant tax credit in Brazil and solid revenue growth across its divisions.
Key Takeaways
Arcos Dorados delivered strong Q3 2025 results with a notable surge in net income, primarily supported by a $125M tax credit in Brazil. Revenue climbed to $1.2B and adjusted EBITDA rose significantly year-over-year. Digital channels and loyalty programs continued contributing significantly to performance.
Net income surged to $150.4M, helped by a $125.2M tax credit in Brazil.
Total revenue reached $1.2B, up from $1.13B in Q3 2024.
Digital sales made up 61% of systemwide sales.
Loyalty program members grew to 23.6 million, up nearly 50% YoY.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Arcos Dorados aims to finish 2025 strongly, focusing on operational efficiency, sustainable growth, and cash generation despite mixed macroeconomic dynamics.
Positive Outlook
- Federal tax credit expected to benefit future cash flow starting 2026
- Digital and marketing strategy helping expand market share
- High rate of restaurant modernization (72%)
- 22 new restaurants opened in Q3, including 19 free-standing
- Strong growth in loyalty program across 7 countries
Challenges Ahead
- Food and paper costs remain elevated year-over-year
- Comparable sales growth slowed significantly from prior year (12.7% vs 32.1%)
- Brazil’s comparable sales growth decelerated to 1.0%
- NOLAD operating income declined YoY
Historical Earnings Impact
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Avg. Return Before/After Earnings
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