Description

Arcos Dorados: Expanding in Brazil & Mexico with a Flexible Investment Playbook to Protect Returns and Preserve Cash Flow!

Arcos Dorados Holdings Inc., the largest independent McDonald’s franchisee in the world, posted its third quarter 2025 financial performance, showcasing several positive developments along with some areas for improvement. The company achieved its highest quarterly revenue of $1.2 billion, propelled by balanced U.S. dollar growth across its three divisions and a 12.7% increase in system-wide comparable sales, aligning with the inflation rate. Despite these positive revenue figures, the company faced ongoing challenges due in part to the volatile economic environment in some of its key markets like Brazil, where input cost pressures, particularly concerning beef prices, put a dent in profitability. Adjusted EBITDA, excluding the beneficial impact of a federal tax credit in Brazil, showed a decline of approximately 3% due to these cost pressures. Significantly, the company achieved adjusted EBITDA of over $200 million, bolstered by an $85.6 million federal tax credit net benefit in Brazil.