Arcos Dorados (ARCO) investor relations material

Executive summary

• Achieved record quarterly revenue of $1.3 billion in Q2 2026, up over 14% year-over-year, with systemwide comparable sales growth of 15.3% and strong guest volume and digital sales growth.

• Adjusted EBITDA rose 15.2% to $126.8 million, with a 9.7% margin; net income doubled to $45.0 million ($0.22 per share), both setting second quarter records.

• Digital sales penetration reached 66% of total sales, growing over 25% year-over-year, with loyalty program members visiting 5x more frequently and membership reaching 34.3 million.

• Opened 16 new restaurants in Q2, totaling 35 for the first half, with a focus on both organic and inorganic growth drivers.

• Exclusive FIFA World Cup sponsorship drove strong marketing campaigns, record digital engagement, and premium product sales.

Financial highlights

• Total revenues: $1.3 billion, up 14.3% year-over-year; company-operated sales: $1.25 billion; franchised revenues: $59.1 million.

• Adjusted EBITDA: $126.8 million (9.7% margin), up 15.2% year-over-year, with a 70-basis point margin expansion (excluding prior-year one-time gain).

• Net income: $45.0 million (3.4% margin), up 99.3% year-over-year; EPS: $0.22 vs. $0.11 last year.

• Adjusted Free Cash Flow (LTM): $143.4 million, up from $16.1 million in the prior period.

• Net leverage improved to 1.1x at quarter end.

Outlook and guidance

• Expect dynamic conditions to persist in the second half of 2026 but remain confident in plans, operating agility, and financial discipline.

• Focused on maximizing full-year results, digital platform expansion, and strengthening the foundation for future growth.

• Optimistic for continued positive trends in Brazil, NOLAD, and SLAD into the third quarter, with solid marketing plans and operational execution.