Arcos Dorados Q1 Earnings Call Highlights

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MarketBeat

Wed, May 20, 2026 astatine 11:05 AM CDT 8 min read

Key Points

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Arcos Dorados posted a beardown Q1 2026, with gross up astir 13% to much than $1.2 billion, comparable income up 16%, and adjusted EBITDA hitting a first-quarter grounds of $119 cardinal successful U.S. dollars.
Margins improved acknowledgment chiefly to amended nutrient and insubstantial costs, particularly successful Brazil, portion absorption said it is cautiously optimistic astir costs for the remainder of 2026 contempt immoderate unit from payroll and occupancy expenses.
Digital and loyalty maturation continued to accelerate, with integer income up 21% and accounting for astir 64% of system-wide sales, portion the loyalty programme topped 30 cardinal members and expanded to 10 countries.

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Arcos Dorados (NYSE:ARCO) reported a stronger archetypal 4th of 2026, with absorption saying revenue, adjusted EBITDA and currency travel improved contempt a challenging user situation successful parts of Latin America.

Chief Executive Officer Luis Raganato said full gross roseate astir 13% and exceeded $1.2 cardinal for the archetypal clip successful a archetypal quarter. System-wide comparable income accrued 16%, driven chiefly by mean check, portion impermanent postulation improved successful respective markets. Adjusted EBITDA reached $119 million, which Raganato described arsenic the company’s highest first-quarter effect successful U.S. dollars.

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“The program for 2026 was developed to optimize income maturation drivers implicit the people of the twelvemonth and seizure efficiencies to thrust improved profitability,” Raganato said. He added that the institution is focused connected generating affirmative adjusted escaped currency travel and creating shareholder value.

Margins Expand arsenic Food and Paper Costs Improve

Chief Financial Officer Mariano Tannenbaum said adjusted EBITDA totaled $118 million, up astir 30% successful U.S. dollars from the anterior year. The consolidated adjusted EBITDA borderline expanded by 120 ground points, with 60 ground points of publication from nutrient and insubstantial and different 60 ground points from wide and administrative expenses.

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Tannenbaum said humble unit successful payroll, occupancy and different operating expenses was offset by income from sub-franchisee edifice transactions successful NOLAD and SLAD. Excluding those transactions, consolidated EBITDA borderline inactive expanded by 70 ground points compared with the archetypal 4th of 2025.

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