Arcos Dorados: Reports Q3-2021 Financial Results

Montevideo / UY. (arc) Arcos Dorados Holdings Inc., Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, reported unaudited results for the three and nine month periods ended September 30, 2021. Third quarter 2021 highlights (excluding Venezuela):

  • Systemwide comparable sales increased 56.6 percent and were up 16.5 percent on a 2-year basis, with positive 2-year comparable sales growth in all divisions.
  • Consolidated revenues totalled USD 723.4 million, rising 55.3 percent in US dollars or 60.1 percent on a constant currency basis versus 2020, and 24.0 percent in constant currency on a 2-year basis.
  • Consolidated Adjusted Ebitda of USD 89.6 million more than tripled the prior-year result and rose 54.8 percent versus the 3Q19 in constant currency.
  • Consolidated Adjusted Ebitda margin reached 12.4 percent in the quarter, benefiting from operating leverage in all line items versus 2020, and up 220 basis points versus 2019.
  • Basic net income per share was USD 0.12, compared to a basic net loss per share1 of USD (0.14) in the prior year quarter.
  • Net Debt to Adjusted Ebitda leverage ratio declined to 2.0x on September 30, 2021.
  • Gross restaurant openings reached 41 new units through September, including 36 free-standing units and 34 new restaurants in Brazil.

«We are beginning to harvest the results of the long-term, strategic investments we made over the last several years as well as the efficiencies we built into the business in the last eighteen months. This was among the best third quarter results in the Company’s history, demonstrating once again that McDonald’s is the region’s favourite QSR brand and Arcos Dorados is its strongest restaurant operator,» said Marcelo Rabach, Chief Executive Officer of Arcos Dorados.

«Brand Trust is near its highest-ever levels, thanks to the efforts we made to take care of our people, guests and the communities we serve. Whether it was protecting our employees’ sources of income or offering Latin America’s safest restaurant experience through the McProtegidos (McSafe) protocols, we built trust with all stakeholders. The Recipe for the Future ESG (Environmental, Social and Governance) platform will ensure that we continue using our Scale for the Good of our communities and the planet.»

«Arcos Dorados operates the region’s largest free-standing restaurant portfolio, which we built deliberately over the course of decades, to ensure our ability to adapt to changes in guest needs and preferences. As we look ahead, we feel confident that we now enjoy structural competitive advantages that cannot be easily matched and that will be further leveraged by the Three D’s strategy of Drive-thru, Delivery and Digital to accelerate sales and profitability performance for many years to come,» Rabach concluded.

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