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 months ended March 31, 2023. First quarter 2023 highlights:
- Systemwide comparable sales increased 37.6 percent, with strong sales growth in all divisions.
- Consolidated revenues reached USD 990.8 million, growing 25.3 percent in US dollars, or 43.9 percent in constant currency, versus the prior year period.
- Consolidated Adjusted Ebitda of USD 100.5 million rose 28.0 percent, or 42.7 percent in constant currency, versus the prior year quarter.
- Consolidated Adjusted Ebitda margin reached 10.1 percent in the quarter, expanding by 20 basis points, with solid margin performance in Brazil and SLAD compared to the prior year period.
- Net income was USD 37.4 million, up 52.7 percent versus the first quarter of 2022.
- Basic net income per share was USD 0.18 in the quarter, versus USD 0.12 per share in Q1-2022.
- Net Debt to Adjusted Ebitda leverage ratio remained at a healthy 1.0x at the end of Q1-2023.
Chief Executive’s Commentary
CEO Marcelo Rabach: «Arcos Dorados, like the McDonald’s system globally, has been generating consistently strong results for the last couple of years. This is a direct result of our long-term, strategic approach to generating value for our shareholders and we expect the structural competitive advantages of our restaurant portfolio and digital platform to continue to drive value creation for the foreseeable future.
«Our guests have left no doubt we are operating the most beloved brand in the QSR industry in Latin America and the Caribbean. They recognize the value we offer in our restaurants on a daily basis and the positive impact we make in our communities every year. This is why restaurant volumes continue to grow and brand trust metrics are at all-time highs.
«Each restaurant opening brings McDonald’s favorite menu items closer to our guests while also creating new job opportunities for young people and investing in the economic development of local communities. Latin America and the Caribbean is a widely underpenetrated region for the quick service restaurant industry, which represents a significant growth opportunity for Arcos Dorados. Against that backdrop, we are working to support a sustainable future for our business and the communities where we operate as we capture the vast potential that lies in front of us.
«We have certainly strengthened the Brand through our marketing and communications campaigns. But true brand strength comes from the experience we deliver to more than four million guests every day in a modernized restaurant portfolio and with a “Coolture” of Service mentality. The Three D’s strategy provides guests the opportunity to choose the experience that best fits their individual needs and the value we are offering today makes the Brand more accessible than ever. To sustain the business model and brand trust, we must operate responsibly. This is why we have the industry’s leading environmental, social and governance platform. Our Recipe for the Future includes ambitious initiatives and goals, designed to benefit the business, the communities we serve and the planet we all share.»