Montevideo / UY. (arc) Arcos Dorados Holdings Inc., Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, reported unaudited financial results for the three and six months ended June 30, 2022.
Second Quarter 2022 Highlights – Excluding Venezuela
- Systemwide comparable sales increased 47.9 percent versus the prior year quarter, rising more than three times blended inflation on the back of robust volume growth in all divisions.
- Consolidated revenues totaled USD 883.9 million, rising 49.5 percent, or 54.3 percent in constant currency, versus the prior year period.
- Consolidated Adjusted Ebitda of USD 92.4 million almost doubled versus the prior year.
- Consolidated Adjusted Ebitda margin reached 10.5 percent in the quarter, exceeding pre-pandemic Ebitda margin in all divisions.
- Basic net income per share was USD 0.07, compared to basic net income per share of USD 0.03 in the prior year quarter.
- Net Debt to Adjusted Ebitda leverage ratio improved to 1.1x at the end of the second quarter of 2022.
- Gross restaurant openings reached 14 new units in the quarter, including 12 freestanding units and 9 new restaurants in Brazil.
Message from Marcelo Rabach, Chief Executive Officer
«We have recaptured the operating momentum we built before the pandemic and leveraged the strength of the McDonald’s Brand, our unmatched free-standing restaurant portfolio and the Three D’s Strategy to sustain strong sales and profitability trends over the last several quarters.
«We started building the foundation for these results fifteen years ago, when Arcos Dorados began operating on August 3, 2007. Since then, our restaurant foot print has grown to almost 2,300 locations across twenty countries and territories. We have generated consistent unit sales growth in local currency, navigated some very challenging economic periods and improved operating results, even in the face of stiffer competition in the region’s underpenetrated QSR industry.
«Today we have the industry’s leading Digital platform, which generated more than 40 percent of our sales in the most recent quarter. It includes the most downloaded and used Mobile App, almost 900 Experience of the Future locations offering guests the convenience of self-order kiosks and a Delivery segment that continues to grow, despite the normalization of on-premise channels.
«The McDonald’s Brand is as strong as it has ever been, with more than double the market share of the nearest competitor brands in our operating footprint. Both Favorite Brand and Top of Mind indicators also place the McDonald’s Brand at the top of the list, including an expanding favorable gap versus our nearest competitor in Brazil.
«There were no shortcuts to getting here, and keeping the momentum going will require us to further improve our execution. We have a saying that «It’s not real, if it’s not real in the restaurants.» In my view, that is what it means to execute well – making it real in the restaurants. Today we offer the best restaurant experience in Latin America and the Caribbean with great service, delicious food and plenty of options for guests to order and enjoy their favorite McDonald’s menu items.
«We have always believed in operating responsibly for the benefit of Latin American and Caribbean societies. This includes the current menu price architecture we are using to avoid contributing to the problem of high consumer inflation in the region. Instead of significant price increases, we chose to offer our guests a good value proposition to build long-term loyalty while using other tools to manage through a challenging cost environment.
«Our Recipe for the Future ESG platform consolidates all our efforts to have a positive impact on the environment and the communities we serve. During the second quarter, we were recognized for initiatives and workplaces that promote diversity and inclusion in Argentina, Ecuador and Uruguay. During the quarter, we also became the first QSR operator in the world to issue a Sustainability Linked Bond, aligning our financial strategy with our long-term targets for greenhouse gas emission reduction in our business and that of our suppliers.
«We remain confident about the future growth of our business because we believe there are still many opportunities to improve execution and generate additional value for our people, communities and shareholders for years to come.»
For additional information please read the company’s PDF file below (494 KB):20220812-ARCOS-DORADOS-Q2-2022