Arcos Dorados Holdings Inc. Q3 2025 Earnings Recap

Arcos Dorados Holdings Inc. achieved record quarterly revenue of $1.2 billion in Q3 2025 despite ongoing consumer challenges, while adjusted EBITDA surpassed $200 million, underscoring effective cost management amidst inflationary pressures.

Key Takeaways

• Total revenue grew 4.9%, driven by a 12.7% increase in system-wide comparable sales, maintaining strong market share across Latin American markets.
• Adjusted EBITDA was over $200 million, benefiting from a federal tax credit in Brazil, though underlying EBITDA saw a slight decline of 3%.
• Digital channel sales grew 11%, contributing to 61% of total sales, with continued strength in the loyalty program, which expanded to 23.6 million members.
• The company is on track to open 90 to 100 restaurants in 2025, with over half of the quarter's capital expenditures allocated to new growth initiatives.
• Strong performance in Argentina and selected NOLAD markets, particularly Mexico, indicates potential for normalized growth as macroeconomic conditions improve.