•
Dec 31, 2024

Arcos Dorados Q4 2024 Earnings Report

Arcos Dorados reported strong growth in local currency revenue but faced challenges due to currency depreciation.

Key Takeaways

Arcos Dorados posted total revenues of $1.1 billion for Q4 2024, driven by a 21.5% increase in systemwide comparable sales. Adjusted EBITDA reached $147.4 million, up 11.1% year-over-year. Net income stood at $58.4 million with an EPS of $0.28. The company continued expanding its digital sales channels, with 57% of systemwide sales coming from digital platforms.

Total revenues reached $1.1 billion, reflecting a 21.5% increase in systemwide comparable sales.

Adjusted EBITDA grew 11.1% to $147.4 million, with a 12.9% margin.

Net income was $58.4 million, translating to an EPS of $0.28.

Digital sales accounted for 57% of systemwide sales in Q4.

Total Revenue
$1.14B
Previous year: $1.18B
-2.7%
EPS
$0.28
Previous year: $0.26
+7.7%
Adjusted EBITDA
$147M
Previous year: $133M
+11.1%
Adjusted EBITDA Margin
12.9%
Previous year: 11.3%
+14.2%
Systemwide Comparable Sales Growth
21.5%
Cash and Equivalents
$139M
Previous year: $247M
-43.8%
Total Assets
$2.89B
Previous year: $3.02B
-4.2%

Arcos Dorados

Arcos Dorados

Arcos Dorados Revenue by Segment

Arcos Dorados Revenue by Geographic Location

Forward Guidance

Arcos Dorados remains focused on expansion, targeting 90 to 100 new restaurant openings and capital expenditures of $300M to $350M in 2025. The company expects continued growth in digital sales and loyalty program participation while navigating macroeconomic challenges.

Positive Outlook

  • Targeting 90-100 new restaurant openings in 2025.
  • Expecting $300M to $350M in capital expenditures.
  • Continued growth in digital sales and loyalty program participation.
  • Strong brand leadership and market share expansion.
  • Investment in modernization and digital platforms to drive growth.

Challenges Ahead

  • Currency depreciation in key markets remains a challenge.
  • Macroeconomic headwinds impacting consumer spending.
  • Higher operating costs in certain regions.
  • Inflationary pressures affecting profitability.
  • Geopolitical uncertainties could affect regional operations.