Arcos Dorados Q1 Revenue Hits $1.2B; EBITDA Climbs 29.3% with 120bp Margin Gain
Arcos Dorados posted $1.216 billion in Q1 revenue, up 12.9% year-over-year (19.5% constant currency), with systemwide comparable sales up 16.0%. Adjusted EBITDA rose 29.3% to $118 million, boosting margins by 120 basis points to 9.7%, while digital sales grew 21% and loyalty membership reached 30.4 million.
1. Financial Performance
Arcos Dorados recorded total revenues of $1.216 billion in the first quarter, up 12.9% year-over-year (19.5% on constant currency). Systemwide comparable sales rose 16.0%, driven by higher guest traffic in NOLAD and SLAD, leading to net income of $36.1 million and EPS of $0.17.
2. Margin Expansion
Adjusted EBITDA increased 29.3% to $118 million, with margin improving by 120 basis points to 9.7%. Margin expansion reflected lower Food & Paper costs, reduced G&A expenses as a percentage of revenue, gains from restaurant transactions, and favorable financing and currency effects.
3. Digital and Loyalty Growth
Digital channel sales climbed 21%, accounting for 64% of systemwide sales, with self-order kiosks and delivery partnerships bolstering uptake. The Loyalty Program grew to 30.4 million registered members, enhancing personalized marketing and driving higher frequency and average checks.
4. Restaurant Expansion and Modernization
The company opened 19 new restaurants during the quarter and achieved modern experience rollout in 75% of its units. Improved capital deployment has lowered opening costs per unit, reinforcing market share leadership across Latin America and the Caribbean.