- Systemwide comparable sales¹ grew 31.5% year-over-year, with
strong sales and market share performance in all divisions
- Total revenues reached $1.04 billion in the quarter, up
17.2% in US dollars and 36.2% in constant currency, versus the
prior year period
- Digital channel sales (Delivery, Mobile App and Self-order
Kiosks), reached $665.9 million, representing 49% of systemwide
sales in the second quarter
- Consolidated Adjusted EBITDA¹ was $110.1 million, up 20.5%
in US dollars and 31.0% in constant currency
- Net Income in the quarter grew to $28.4 million, or $0.13
per share, almost doubling the prior year result
Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or
the “Company”), Latin America’s largest restaurant chain and the
world’s largest independent McDonald’s franchisee, today reported
unaudited results for the three and six months ended June 30,
2023.
Second Quarter 2023 Highlights
- Systemwide comparable sales¹ increased 31.5%, rising 1.3 times
blended inflation.
- Consolidated revenues reached $1.04 billion, growing 17.2% in
US dollars and 36.2% in constant currency, versus the prior year
period.
- Consolidated Adjusted EBITDA¹ of $110.1 million rose 20.5% in
US dollars versus the prior year result, and 31.0% in constant
currency.
- Consolidated Adjusted EBITDA margin reached 10.6% in the
quarter, expanding by 30 basis points versus the prior year
period.
- Basic net income per share was $0.13 in the quarter, almost
double the net income per share of $0.07 in the prior year
quarter.
- The Company opened 10 restaurants in the period, including 8
free-standing units.
- Surpassed 100 million cumulative downloads of the Company’s
Mobile App.
Message from Marcelo Rabach, Chief Executive Officer
For the last several years, Arcos Dorados has made the most of
its unique position in the Latin American QSR industry. We are
operating the industry’s favorite Brand and leveraging structural
competitive advantages to capture the McDonald’s Brand’s full
growth potential.
Our “Three D’s” strategy, of Digital, Delivery and Drive-thru,
provides the framework and tools for strong, sustainable sales
growth. Restaurant level execution has also been a key success
factor. By offering guests an unmatched experience through a
combination of value, quality and service, we are generating
consistent transaction volume growth on a comparable basis.
This approach to building topline has led to sales growth well
above inflation that, in turn, generates fixed cost leverage and
improved profitability. Importantly, the strong performance has
been consistent across all three divisions. The geographic
diversification we envisioned when Arcos Dorados was formed sixteen
years ago has been an important success factor in recent years.
There have been a series of actions and initiatives across the
organization within a long-term, strategic framework that are
driving these results. From restaurant operations to digital
capabilities and investment decisions, we are working hard to
generate value for all stakeholders.
We understand the importance of efficient capital allocation,
which is why we have focused our investments on modernizing
existing restaurants and opening primarily free-standing locations
to capitalize on the flexibility and adaptability of this
restaurant format. Fortunately, the investments of the last three
years have delivered above average returns on openings,
modernizations and digital capabilities, among others.
These investments provide more than just financial returns. They
also make us the largest generators of first-time jobs for young
people in the region. In addition to restaurant training, we offer
personal and professional development opportunities that will serve
them for the rest of their lives. In fact, more than 110 thousand
people have enrolled for free certificate courses on a broad range
of topics through Hamburger University’s MCampus online education
platform.
I hope we can inspire even more young people to join the Arcos
Dorados family and build a better future for their families,
communities and the planet.
Consolidated Results
Figure 1. AD Holdings Inc Consolidated: Key Financial
Results(In millions of U.S. dollars, except as noted)
2Q22(a) Currency Translation(b)
ConstantCurrencyGrowth(c) 2Q23(a+b+c) % As
Reported % Constant Currency Total Restaurants
(Units)
2,286
2,317
Sales by Company-operated Restaurants
848.4
(163.4)
309.6
994.5
17.2%
36.5%
Revenues from franchised restaurants
39.5
(5.6)
12.0
46.0
16.3%
30.3%
Total Revenues
887.9
(169.0)
321.6
1,040.5
17.2%
36.2%
Systemwide Comparable Sales
31.5%
Adjusted EBITDA
91.4
(9.6)
28.3
110.1
20.5%
31.0%
Adjusted EBITDA Margin
10.3%
10.6%
0.3 p.p.
Net income (loss) attributable to AD
14.5
(4.3)
18.2
28.4
95.9%
125.7%
No. of shares outstanding (thousands)
210,540
210,626
EPS (US$/Share)
0.07
0.13
Arcos Dorados’ total revenues reached $ 1.04 billion, up 17.2%
in US dollars and 36.2% in constant currency versus the prior year
quarter. Guest traffic and sales growth were driven mainly by a
strong performance in front counter, dessert center and Delivery
sales together with further Digital sales penetration. Systemwide
comparable sales in the second quarter grew 31.5%, or about 1.3
times blended inflation, including 2.5x in Brazil and 2.8x in
NOLAD.
Second quarter 2023 front counter sales, which includes
self-order kiosks, grew 37% in constant currency versus the prior
year and generated 57% of systemwide sales. Delivery sales also
grew strongly, up 41% in constant currency on top of robust growth
in the prior year, reflecting industry-leading operational
execution and significant brand preference. Drive-thru sales grew
12% in constant currency, despite the continued normalization of
front counter sales.
Digital channel sales, which includes Delivery, Mobile App and
Self-order kiosks, grew 41% versus the prior year and reached
$665.9 million, representing 49% of systemwide sales in the second
quarter. The Company’s Mobile App surpassed 100 million cumulative
downloads, with more than 16 million average monthly active users,
and the Company’s customer relationship management (CRM) platform
had over 70 million unique registered users at the end of June
2023.
The Mobile App leverages guest data and increases visit
frequency, especially when the sale is identified to an individual
guest. During the second quarter, identified sales represented
about 20% of consolidated sales and 25% of total sales in
Brazil.
Notable items in the Adjusted EBITDA reconciliation
Included in Adjusted EBITDA: The
positive variation in other operating income / (expense) is mainly
explained by a $4.0 million gain from the sale of restaurants to a
sub-franchisee in Chile in the second quarter of 2023.
Excluded from Adjusted EBITDA:
There were no notable items excluded from Adjusted EBITDA in either
the second quarter of 2023 or the second quarter of 2022.
Adjusted EBITDA
2Q23 Adjusted EBITDA Bridge
($ million)
Second quarter consolidated Adjusted EBITDA reached $110.1
million, up 20.5% in US dollars and 31.0% in constant currency over
the prior year quarter, with continued US dollar growth in all
divisions. Consolidated Adjusted EBITDA margin reached 10.6%,
expanding 30 basis points versus the prior year, but down 10 basis
points when adjusted for the $4.0 million gain from the sale of
restaurants to a sub-franchisee in Chile.
Margin performance was highlighted by significant operating
leverage in both Payroll and Occupancy & Other Operating
expenses due to strong sales growth across all divisions. Food and
Paper (F&P) costs also declined as a percentage of revenue
compared with the prior year due to a better gross margin in NOLAD
and SLAD. These more than offset moderately higher G&A expenses
and the impact of the final step up of the Company’s royalty rate,
which became effective as of August 3, 2022.
Non-operating Results
Arcos Dorados’ non-operating results for the second quarter
included a $4.5 million gain from non-cash foreign exchange and
derivative instruments.
Net interest expense and other financing results totaled $12.1
million in the quarter versus $24.2 million in the same period last
year. The second quarter 2022 result included $10.6 million in
expenses related to the liability management transaction executed
during that quarter when the Company issued its 2029 Senior Notes,
the first Sustainability Linked Bond (SLB) in the QSR industry.
In the second quarter, the Company recorded an income tax
expense of $38.8 million, compared to an income tax expense of
$15.6 million in the prior-year period.
Second quarter net income attributable to the Company totaled
$28.4 million, compared to net income of $14.5 million in the same
period of 2022. Earnings per share were $0.13 in the second quarter
of 2023, versus $0.07 per share generated in the prior year
quarter.
Total weighted average shares for the second quarter of 2023
were 210,625,859 compared to 210,539,537 in the second quarter of
2022.
For reference:
Figure 2. AD Holdings Inc Consolidated - Excluding Venezuela:
Key Financial Results(In millions of U.S. dollars, except as
noted)
2Q22(a) Currency Translation(b)
ConstantCurrencyGrowth(c) 2Q23(a+b+c) % As
Reported % Constant Currency Total Restaurants
(Units)
2,186
2,227
Sales by Company-operated Restaurants
844.8
(139.3)
283.4
989.0
17.1%
33.6%
Revenues from franchised restaurants
39.1
(3.2)
9.6
45.5
16.3%
24.5%
Total Revenues
883.9
(142.5)
293.0
1,034.4
17.0%
33.2%
Systemwide Comparable Sales
27.7%
Adjusted EBITDA
92.4
(15.2)
34.4
111.6
20.8%
37.2%
Adjusted EBITDA Margin
10.5%
10.8%
0.3 p.p.
Net income (loss) attributable to AD
15.6
(10.3)
24.7
29.9
92.1%
158.4%
No. of shares outstanding (thousands)
210,540
210,626
EPS (US$/Share)
0.07
0.14
Divisional Results
Brazil Division
Figure 3. Brazil Division: Key Financial Results(In millions
of U.S. dollars, except as noted)
2Q22(a) Currency
Translation(b) ConstantCurrencyGrowth(c)
2Q23(a+b+c) % As Reported % Constant Currency
Total Restaurants (Units)
1,070
1,098
Total Revenues
358.1
(2.7)
49.9
405.2
13.2%
13.9%
Systemwide Comparable Sales
9.6%
Adjusted EBITDA
52.7
(0.3)
16.7
69.1
31.2%
31.7%
Adjusted EBITDA Margin
14.7%
17.1%
2.3 p.p.
Brazil’s revenues increased 13.2% year-over-year, reaching
$405.2 million. Systemwide comparable sales rose 9.6%
year-over-year, or 2.5x inflation in the period, with visit share
more than double the market’s nearest competitor.
Digital channel sales were up 30% versus the prior year, boosted
by the “Méqui Fest” campaign, with a "festival” of offers designed
to generate mobile app downloads and usage. Total digital sales
generated 61% of systemwide sales in Brazil, including 25%
identified sales in the quarter. Delivery demonstrated its
continued popularity among guests and the Company consolidated its
market leadership in this channel. Delivery sales rose 25% in
constant currency versus the prior year period, representing 19% of
systemwide sales in the quarter.
The quarter also included a new menu item in the premium beef
segment with the introduction of the “Big Tasty Bacon Barbecue”,
while a campaign to celebrate the 40th anniversary of Chicken
McNuggets strengthened the strategically important chicken
category.
As reported Adjusted EBITDA in the division reached $69.1
million in the quarter, rising 31.2% versus the prior year in US
dollars. Adjusted EBITDA margin was 17.1%, or 230 basis points
higher than the prior year quarter. Sales growth above inflation
and significant operating leverage more than offset moderately
higher F&P costs as a percentage of revenue.
North Latin American Division (NOLAD)
Figure 4. NOLAD Division: Key Financial Results(In millions
of U.S. dollars, except as noted)
2Q22(a) Currency
Translation(b) ConstantCurrencyGrowth(c)
2Q23(a+b+c) % As Reported % Constant Currency
Total Restaurants (Units)
628
639
Total Revenues
222.7
20.8
34.1
277.6
24.6%
15.3%
Systemwide Comparable Sales
10.4%
Adjusted EBITDA
23.3
2.2
2.7
28.2
21.3%
11.7%
Adjusted EBITDA Margin
10.4%
10.2%
-0.2 p.p.
As reported revenues totaled $277.6 million, up 24.6% in US
dollars and 15.3% in constant currency versus the prior year
quarter. Systemwide comparable sales rose 10.4% year-over-year, or
2.8x the division’s blended inflation in the period, with sales
increasing above inflation in most markets and particularly strong
volume growth in Mexico.
NOLAD’s markets captured additional market share in the quarter
with consistent, positive momentum in brand attributes across the
division. In April, the Company continued the roll out of Best
Burger, extending the platform to Puerto Rico, where sales
responded strongly in May and June. New menu items included the
launch of the McCrispy CBO sauce in Mexico, strengthening the
chicken portfolio in the country. The 40th Anniversary of the
Chicken McNuggets was also celebrated in most countries,
highlighting this core menu favorite among guests.
As reported Adjusted EBITDA in the division reached $28.2
million in the quarter, rising 21.3% versus the prior year in US
dollars. Adjusted EBITDA margin declined by 20 basis points versus
the prior year period, primarily due to the impact of the final
step-up in the Company’s royalty rate as well as higher Payroll and
G&A expenses as a percentage of revenue. These were almost
entirely offset by lower F&P costs as a percentage of revenue
and operating leverage in other cost and expense line items.
Notably, NOLAD generates its results in hard or relatively
stable currencies: US dollar, euro, Mexican peso and Costa Rican
colón.
South Latin American Division (SLAD)
Figure 5. SLAD Division: Key Financial Results(In millions
of U.S. dollars, except as noted)
2Q22(a) Currency
Translation(b) ConstantCurrencyGrowth(c)
2Q23(a+b+c) % As Reported % Constant Currency
Total Restaurants (Units)
588
580
Total Revenues
307.1
(187.0)
237.6
357.7
16.5%
77.4%
Systemwide Comparable Sales
82.4%
Adjusted EBITDA
32.9
(17.3)
21.2
36.9
12.0%
64.4%
Adjusted EBITDA Margin
10.7%
10.3%
-0.4 p.p.
Revenues in SLAD reached $357.7 million, rising 16.5% in US
dollars, driven by an 82.4% increase in systemwide comparable sales
versus the prior year, or 1.2x the division’s blended inflation
rate, with Argentina, Colombia and Chile driving topline
growth.
SLAD reached some of its highest ever market share levels,
backed by positive brand attribute trends. Menu innovations across
the region, included the launch of flavorful and abundant products
in the beef and chicken categories such as the “Signature Tasty
Turbo Bacon” in Chile, “Bacon Cheddar McMelt” in Argentina and
“McCrispy BLT” in Colombia with localized campaigns that
contributed to improved scores in quality attributes and brand
preference in these markets. Digital channel and identified sales
penetration rose to record levels in the division, including strong
growth in the Mobile Order and Pay functionality on the mobile
app.
As reported Adjusted EBITDA in the division totaled $36.9
million in the second quarter and Adjusted EBITDA margin contracted
40 basis points versus the prior year quarter. Adjusted EBITDA
margin in the quarter benefited from a $4.0 million gain from the
sale of restaurants in Chile. Excluding this effect, the margin
declined by 150 basis points versus the prior year.
The division’s Adjusted EBITDA was primarily impacted by the
final step-up in the Company’s royalty rate, as well as a moderate
increase in G&A and payroll expenses as a percentage of
revenue. These were partially offset by lower F&P costs as a
percentage of revenue generated by a favorable sales mix and strong
sales growth.
For reference:
Figure 6. SLAD Division - Excluding Venezuela: Key Financial
Results(In millions of U.S. dollars, except as noted)
2Q22(a) Currency Translation(b)
ConstantCurrencyGrowth(c) 2Q23(a+b+c) % As
Reported % Constant Currency Total Restaurants
(Units)
488
490
Total Revenues
303.1
(160.5)
209.0
351.6
16.0%
69.0%
Systemwide Comparable Sales
70.8%
Adjusted EBITDA
34.0
(22.9)
27.3
38.4
13.1%
80.4%
Adjusted EBITDA Margin
11.2%
10.9%
-0.3 p.p.
New Unit Development
Figure 7. Total Restaurants (eop)* June2023
March2023 December2022 September2022
June2022 Brazil
1,098
1,091
1,084
1,077
1,070
NOLAD
639
639
638
631
628
SLAD
580
582
590
589
588
TOTAL
2,317
2,312
2,312
2,297
2,286
* Considers Company-operated and franchised restaurants at
period-end
Figure 8. Footprint as of June 30, 2023 Store
Type* Total Restaurants Ownership McCafes
Dessert Centers FS IS MS & FC
Company Operated Franchised Brazil
550
91
457
1,098
662
436
137
1,975
NOLAD
392
51
196
639
484
155
13
519
SLAD
229
128
223
580
494
86
166
704
TOTAL
1,171
270
876
2,317
1,640
677
316
3,198
* FS: Free-Standing; IS: In-Store; MS: Mall Store; FC: Food Court.
During the second quarter of 2023, the Company opened 10
restaurants, including 9 restaurants in Brazil and 8 free-standing
units. More than half the Company’s footprint is made up of
free-standing units, the region’s largest free-standing portfolio,
which provides a structural competitive advantage given the
versatility of this format.
As of the end of June, there were 1,128 Experience of the Future
restaurants, the most modern format in the global McDonald’s
system, making up 49% of the Company’s total footprint.
The Company’s restaurant development plan remains on track, with
a strong pipeline of restaurant openings and modernizations
underway in the second semester of 2023. All ground breaks on new
restaurant construction for 2023 have been made and the Company
expects to meet its full year openings guidance of 75 to 80
restaurants and about 250 modernizations.
Balance Sheet & Cash Flow Highlights
Figure 9. Consolidated Financial Ratios(In thousands of U.S.
dollars, except ratios)
June 30, December 31,
2023
2022
Total Cash & cash equivalents
(i)
223,953
304,396
Total Financial Debt (ii)
695,494
674,401
Net Financial Debt (iii)
471,541
370,005
LTM Adjusted EBITDA
427,264
386,564
Total Financial Debt / LTM
Adjusted EBITDA ratio
1.6
1.7
Net Financial Debt / LTM Adjusted
EBITDA ratio
1.1
1.0
(i)
Total cash & cash equivalents include
short-term investment.
(ii)
Total financial debt includes short-term
debt, long-term debt, accrued interest payable and derivative
instruments (including the asset portion of derivatives amounting
to $72.0 million and $92.9 million as a reduction of financial debt
as of June 30, 2023 and December 31, 2022, respectively).
(iii)
Net financial debt equals total financial
debt less total cash & cash equivalents.
As of June 30, 2023, total cash and cash equivalents were $224.0
million and total financial debt (including the net derivative
instrument position) was $695.5 million. Net debt (total financial
debt minus total cash and cash equivalents) was $471.5 million, up
from $370.0 million at the end of 2022, due to lower cash balances
and lower net value of the Brazilian-real linked derivative
instruments used to hedge the US dollar debt.
The net debt to Adjusted EBITDA leverage ratio ended the quarter
at a healthy 1.1x.
Net cash generated from operating activities for the six months
ended June 30, totaled $84.3 million versus $121.9 million in the
same period last year. Cash used in net investing activities
totaled $109.0 million, with capital expenditures of $123.1
million. Net cash used in financing activities was $27.9 million,
which included $21.1 million corresponding to the first two
installments of the 2023 dividend.
Supplemental Information
Second Quarter 2023 Earnings Webcast
A webcast to discuss the information contained in this press
release will be held today, August 17, 2023, at 10:00 a.m. ET. In
order to access the webcast, members of the investment community
should follow this link: Arcos Dorados Second Quarter 2023 Results
Webcast.
A replay of the webcast will be available later today in the
investor section of the Company’s website:
www.arcosdorados.com/ir.
Definitions
Systemwide comparable sales growth: refers to the change,
measured in constant currency, in our Company-operated and
franchised restaurant sales in one period from a comparable period
for restaurants that have been open for thirteen months or longer
(year-over-year basis). While sales by our franchisees are not
recorded as revenues by us, we believe the information is important
in understanding our financial performance because these sales are
the basis on which we calculate and record franchised revenues and
are indicative of the financial health of our franchisee base.
Constant currency basis: refers to amounts calculated
using the same exchange rate over the periods under comparison to
remove the effects of currency fluctuations from this trend
analysis. To better discern underlying business trends, this
release uses non-GAAP financial measures that segregate
year-over-year growth into two categories: (i) currency
translation, (ii) constant currency growth. (i) Currency
translation reflects the impact on growth of the appreciation or
depreciation of the local currencies in which we conduct our
business against the US dollar (the currency in which our financial
statements are prepared). (ii) Constant currency growth reflects
the underlying growth of the business excluding the effect from
currency translation.
Adjusted EBITDA: In addition to financial measures
prepared in accordance with the general accepted accounting
principles (GAAP), within this press release and the accompanying
tables, we use a non-GAAP financial measure titled ‘Adjusted
EBITDA’. We use Adjusted EBITDA to facilitate operating performance
comparisons from period to period.
Adjusted EBITDA is defined as our operating income plus
depreciation and amortization plus/minus the following losses/gains
included within other operating income (expenses), net, and within
general and administrative expenses in our statement of income:
gains from sale, equity method investments, or insurance recovery
of property and equipment; write-offs of property and equipment;
impairment of long-lived assets; and reorganization and
optimization plan expenses.
We believe Adjusted EBITDA facilitates company-to-company
operating performance comparisons by backing out potential
differences caused by variations such as capital structures
(affecting net interest expense and other financing results),
taxation (affecting income tax expense) and the age and book
depreciation of facilities and equipment (affecting relative
depreciation expense), which may vary for different companies for
reasons unrelated to operating performance. Figure 10 of this
earnings release include a reconciliation for Adjusted EBITDA. For
more information, please see Adjusted EBITDA reconciliation in Note
9 – Segment and geographic information – of our financial
statements (6-K Form) filed today with the S.E.C.
About Arcos Dorados
Arcos Dorados is the world’s largest independent McDonald’s
franchisee, operating the largest quick service restaurant chain in
Latin America and the Caribbean. It has the exclusive right to own,
operate and grant franchises of McDonald’s restaurants in 20 Latin
American and Caribbean countries and territories with more than
2,300 restaurants, operated by the Company or by its
sub-franchisees, that together employ over 95 thousand people (as
of 06/30/2023). The Company is also committed to the development of
the communities in which it operates, to providing young people
their first formal job opportunities and to utilize its Recipe for
the Future to achieve a positive environmental impact. Arcos
Dorados is listed for trading on the New York Stock Exchange (NYSE:
ARCO). To learn more about the Company, please visit the Investors
section of our website: www.arcosdorados.com/ir.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements. The
forward-looking statements contained herein include statements
about the Company’s business prospects, its ability to attract
customers, its affordable platform, its expectation for revenue
generation and its outlook and guidance for growth and investments
in 2023. These statements are subject to the general risks inherent
in Arcos Dorados' business. These expectations may or may not be
realized. Some of these expectations may be based upon assumptions
or judgments that prove to be incorrect. In addition, Arcos
Dorados' business and operations involve numerous risks and
uncertainties, many of which are beyond the control of Arcos
Dorados, which could result in Arcos Dorados' expectations not
being realized or otherwise materially affect the financial
condition, results of operations and cash flows of Arcos Dorados.
Additional information relating to the uncertainties affecting
Arcos Dorados' business is contained in its filings with the
Securities and Exchange Commission. The forward-looking statements
are made only as of the date hereof, and Arcos Dorados does not
undertake any obligation to (and expressly disclaims any obligation
to) update any forward-looking statements to reflect events or
circumstances after the date such statements were made, or to
reflect the occurrence of unanticipated events.
Second Quarter 2023 Consolidated Results
Figure 10. Second Quarter 2023 Consolidated Results(In
thousands of U.S. dollars, except per share data)
For
Three-Months ended For Six-Months ended June 30,
June 30,
2023
2022
2023
2022
REVENUES Sales by Company-operated restaurants
994,530
848,350
1,940,884
1,603,644
Revenues from franchised restaurants
45,991
39,545
90,429
74,932
Total Revenues
1,040,521
887,895
2,031,313
1,678,576
OPERATING COSTS AND EXPENSES Company-operated restaurant expenses:
Food and paper
(351,745)
(301,028)
(685,611)
(564,436)
Payroll and employee benefits
(194,065)
(169,441)
(379,382)
(321,669)
Occupancy and other operating expenses
(278,997)
(244,747)
(542,720)
(464,874)
Royalty fees
(58,520)
(44,061)
(115,259)
(82,677)
Franchised restaurants - occupancy expenses
(20,420)
(16,855)
(38,629)
(32,863)
General and administrative expenses
(69,526)
(54,996)
(135,118)
(110,534)
Other operating income, net
7,644
3,879
6,583
7,470
Total operating costs and expenses
(965,629)
(827,249)
(1,890,136)
(1,569,583)
Operating income
74,892
60,646
141,177
108,993
Net interest expense and other financing results
(12,128)
(24,161)
(21,987)
(34,820)
Loss from derivative instruments
(9,191)
(1,144)
(14,120)
(12,836)
Foreign currency exchange results
13,662
(5,045)
20,945
10,782
Other non-operating income / (expenses), net
116
(83)
6
(108)
Income before income taxes
67,351
30,213
126,021
72,011
Income tax expense
(38,824)
(15,638)
(59,850)
(32,807)
Net income
28,527
14,575
66,171
39,204
Net income attributable to non-controlling interests
(159)
(94)
(396)
(220)
Net income attributable to Arcos Dorados Holdings Inc.
28,368
14,481
65,775
38,984
Earnings per share information ($ per share): Basic net
income per common share
$ 0.13
$ 0.07
$ 0.31
$ 0.19
Weighted-average number of common shares outstanding-Basic
210,625,859
210,539,537
210,610,288
210,509,099
Adjusted EBITDA Reconciliation Operating income
74,892
60,646
141,177
108,993
Depreciation and amortization
35,000
30,504
68,520
60,640
Operating charges excluded from EBITDA computation
164
212
863
227
Adjusted EBITDA
110,056
91,362
210,560
169,860
Adjusted EBITDA Margin as % of total revenues
10.6 %
10.3 %
10.4 %
10.1 %
Second Quarter 2023 Results by Division
Figure 11. Second Quarter 2023 Consolidated Results by
Division(In thousands of U.S. dollars)
For Three-Months
ended as Constant For Six-Months ended
as Constant June 30, reported
Currency June 30, reported Currency
2023
2022
Incr/(Decr)% Incr/(Decr)%
2023
2022
Incr/(Decr)% Incr/(Decr)% Revenues Brazil
405,199
358,069
13.2 %
13.9%
779,397
670,048
16.3%
16.4%
NOLAD
277,590
222,726
24.6 %
15.3%
536,856
426,578
25.9%
18.2%
SLAD
357,732
307,100
16.5 %
77.4%
715,060
581,950
22.9%
82.6%
SLAD - Excl. Venezuela
351,615
303,083
16.0 %
69.0%
703,641
574,553
22.5%
74.6%
TOTAL
1,040,521
887,895
17.2 %
36.2%
2,031,313
1,678,576
21.0%
39.8%
TOTAL - Excl. Venezuela
1,034,404
883,878
17.0 %
33.2 %
2,019,894
1,671,179
20.9%
36.9%
Operating Income (loss)
Brazil
52,912
38,024
39.2 %
39.5%
97,002
70,045
38.5%
38.4%
NOLAD
18,410
14,854
23.9 %
13.6%
32,357
28,087
15.2%
7.9%
SLAD
29,452
26,845
9.7 %
75.4%
62,914
50,671
24.2%
103.5%
SLAD - Excl. Venezuela
31,345
28,185
11.2 %
95.1%
66,222
53,422
24.0%
112.0%
Corporate and Other
(25,882)
(19,077)
-35.7%
-68.3%
(51,096)
(39,810)
-28.3%
-68.8%
TOTAL
74,892
60,646
23.5 %
40.0%
141,177
108,993
29.5%
49.7%
TOTAL - Excl. Venezuela
76,785
61,986
23.9 %
49.7%
144,485
111,744
29.3%
55.0%
Adjusted EBITDA Brazil
69,129
52,706
31.2 %
31.7%
128,602
98,744
30.2%
30.2%
NOLAD
28,210
23,258
21.3 %
11.7%
51,910
44,660
16.2%
9.1%
SLAD
36,874
32,937
12.0 %
64.4%
77,590
63,253
22.7%
85.0%
SLAD - Excl. Venezuela
38,402
33,961
13.1 %
80.4%
80,227
65,421
22.6%
92.9%
Corporate and Other
(24,157)
(17,539)
-37.7%
-70.1%
(47,542)
(36,797)
-29.2%
-70.1%
TOTAL
110,056
91,362
20.5 %
31.0%
210,560
169,860
24.0%
36.4%
TOTAL - Excl. Venezuela
111,584
92,386
20.8 %
37.2%
213,197
172,028
23.9%
40.0%
Figure 12. Average Exchange Rate per Quarter*
Brazil Mexico Argentina
2Q23
4.95
17.68
231.76
2Q22
4.92
20.02
117.88
* Local $ per 1 US$
Summarized Consolidated Balance Sheets
Figure 13. Summarized Consolidated Balance Sheets(In
thousands of U.S. dollars)
June 30,
December 31,
2023
2022
ASSETS
Current assets Cash and cash equivalents
201,492
266,937
Short-term investment
22,461
37,459
Accounts and notes receivable, net
127,856
124,273
Other current assets (1)
213,667
196,873
Derivative instruments
49,211
58,821
Total current assets
614,687
684,363
Non-current assets Property and equipment, net
981,051
856,085
Net intangible assets and goodwill
65,706
54,569
Deferred income taxes
92,234
87,972
Derivative instruments
22,806
34,088
Equity method investments
17,566
14,708
Leases right of use assets, net
907,323
820,683
Other non-current assets (2)
101,351
84,162
Total non-current assets
2,188,037
1,952,267
Total assets
2,802,724
2,636,630
LIABILITIES AND EQUITY
Current liabilities Accounts payable
307,995
353,468
Taxes payable (3)
172,070
146,682
Accrued payroll and other liabilities
147,928
115,327
Royalties payable to McDonald´s Corporation
15,981
21,280
Provision for contingencies
2,299
2,272
Interest payable
7,788
7,906
Financial debt (4)
32,085
29,566
Operating lease liabilities
89,626
82,911
Total current liabilities
775,772
759,412
Non-current liabilities Accrued payroll and other
liabilities
23,291
28,781
Provision for contingencies
49,685
42,567
Financial debt (5)
727,638
729,838
Deferred income taxes
5,824
3,931
Operating lease liabilities
816,165
747,674
Total non-current liabilities
1,622,603
1,552,791
Total liabilities
2,398,375
2,312,203
Equity Class A shares of common stock
389,907
389,393
Class B shares of common stock
132,915
132,915
Additional paid-in capital
8,719
9,206
Retained earnings
450,689
424,936
Accumulated other comprehensive loss
(559,229)
(613,460)
Common stock in treasury
(19,367)
(19,367)
Total Arcos Dorados Holdings Inc shareholders’ equity
403,634
323,623
Non-controlling interest in subsidiaries
715
804
Total equity
404,349
324,427
Total liabilities and equity
2,802,724
2,636,630
(1)
Includes "Other receivables",
"Inventories" and "Prepaid expenses and other current assets”.
(2)
Includes "Miscellaneous", "Collateral
deposits", and "McDonald’s Corporation indemnification for
contingencies".
(3)
Includes "Income taxes payable" and "Other
taxes payable".
(4)
Includes "Short-term debt”, “Current
portion of long-term debt" and "Derivative instruments”.
(5)
Includes "Long-term debt, excluding
current portion" and "Derivative instruments".
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230817453821/en/
Investor Relations Contact Dan Schleiniger VP of Investor
Relations Arcos Dorados daniel.schleiniger@mcd.com.uy Media
Contact David Grinberg VP of Corporate Communications Arcos
Dorados david.grinberg@mcd.com.uy Follow us on: LinkedIn
Twitter
Arcos Dorados (NYSE:ARCO)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Arcos Dorados (NYSE:ARCO)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024