Arcos Dorados (ARCO) investor relations material

Strategic priorities and outlook

• Growth plan centers on operational excellence, digital innovation and sustainable value creation, with high-return investment choices and adaptability to market conditions.

• Modernized omnichannel restaurants and digital capabilities support a new growth phase across 21 markets; meritocracy, local management expertise and workplace culture remain priorities.

• Priorities include organic sales through omnichannel and modernized restaurants, comparable sales at least in line with inflation, technology-led margin opportunities and disciplined costs.

• Macro-neutral outlook targets mid- to high-single-digit revenue growth and high-single- to low-double-digit adjusted EBITDA growth.

Scale and financial performance

• 2,500+ restaurants across 21 markets, with 120,000+ people in the system and 200M+ app downloads.

• Net revenue grew from $2.66bn in 2021 to $4.68bn in 2025, with >15% CAGR; sales per store rose 60%, traffic per store 31% and average check 21%.

• Adjusted EBITDA more than doubled from $272M in 2021 to $575M in 2025; margin increased from 10.2% to 12.3%.

• Adjusted free cash flow was $143M LTM 2Q26, versus $49M in 2025 and negative $30M in 2024.

• Payroll fell from 22.5% to 18.9% of sales and G&A from 8.3% to 6.4% of revenues, supported by technology and cost discipline.

Digital, brand and menu growth

• Digital ecosystem represents 65% of system-wide sales; digital sales mix rose from 15% in 2019 to 29% in 2026 across six channels.

• Loyalty exceeded 36M members; identified sales penetration reached 28.8% LTM 2Q26, and loyalty members had 5x higher customer lifetime value.

• AI and proprietary technology support personalization, forecasting, inventory and labor optimization, automated workflows and decision support on a unified platform across 21 markets.

• Brand preference rose 5.6 pp from 2Q21 to 2Q26, widening the gap over the main competitor from 5.0 pp to 10.6 pp.

• Chicken, led by McCrispy, and crafted beverages are positioned as higher-margin growth opportunities; chicken ambition is 25% of sales.