NYSE$ARCO

Arcos Dorados Holdings Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Arcos Dorados reported mixed performance in Q1 2025, with resilient digital and loyalty growth offsetting FX pressures and lower profitability.

The company maintained steady revenue in U.S. dollars despite FX headwinds, with strong growth in digital engagement and loyalty members. Profitability declined year-over-year due to margin pressures, particularly in Brazil, although SLAD showed notable recovery.

  • Revenue was flat YoY at $1.1 billion, but up 14.1% in constant currency.
  • Adjusted EBITDA dropped to $91.3 million from $108.9 million in Q1 2024.
  • Digital sales accounted for nearly 60% of systemwide sales.
  • Loyalty Program members reached 18.8 million, up from 15.3 million a year ago.

Headline financials

Total Revenue

$1.08B

Previous: $1.08B-0.4%
EPS (adj)

$0.07

Previous: $0.14-50.0%
Adjusted EBITDA

$91.3M

No prior period
Adj. EBITDA Margin

8.5%

No prior period
Systemwide Comp Sales

11.1%

No prior period
Digital Sales Share

60.0%

No prior period
Loyalty Members

18.8M

No prior period
Net Income

$13.9M

Previous: $28.5M-51.1%
Operating Income

$45.1M

Previous: $64.4M-29.9%
Gross Profit

$119M

Previous: $133M-10.5%

Revenue & EPS history

Arcos Dorados · Revenue · Quarterly

$1.08B

Q1 2025-0.4%vs Q1 2024
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Arcos Dorados · $1.22B total across 3 segments · Q1 2026

  • Brazil
    $471M
  • SLAD
    $422M
  • NOLAD
    $323M

Forward guidance

Management expects improved results over the rest of the year, citing March momentum, expanded loyalty coverage, and omnichannel strength.

Tailwinds

  • Loyalty Program expanded to 67% of restaurants with plans for full coverage in main markets by year-end.
  • Strong digital engagement with 19 million monthly average app users.
  • March performance indicated a turnaround in operating metrics.
  • SLAD region showed improved profitability and strong local currency performance.
  • Modernization efforts (EOTF restaurants) continued with 12 new openings.

Headwinds

  • FX depreciation in Brazil, Mexico, and Argentina weighed on reported results.
  • Adjusted EBITDA margin fell 160 basis points YoY.
  • Brazil’s profitability was pressured by input cost inflation and slower traffic.
  • NOLAD faced challenging macro conditions, especially in Costa Rica and Panama.
  • Operating income declined 33% YoY due to cost pressures and currency headwinds.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+1.0%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.6%

Avg return

30 days after

51%

30 / 59 earnings

Positive

+22.0%

Q4 2016

Best reaction

-19.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.0%+8.3%+5.7%
Q4 2026-0.4%+5.4%+0.1%
Q3 2025+5.3%+0.4%+3.7%
Q2 2025+9.8%+6.2%-2.3%
Q1 2025-5.6%-6.0%-7.4%
Q4 2024+5.4%+7.9%-7.4%
Q3 2024+4.8%+4.3%-6.0%
Q2 2024-5.2%-6.9%-16.0%
Q1 2024-6.7%-8.3%-18.7%
Q4 2023-1.3%-8.6%-7.9%
Q3 2023+7.1%+8.6%+15.6%
Q2 2023-6.6%-5.8%-4.0%
Q1 2023+8.7%+7.0%+8.2%
Q4 2022-1.1%-4.0%-3.9%
Q3 2022+2.9%-0.3%+3.3%
Q2 2022-6.7%-5.6%-4.2%
Q1 2022+1.9%+0.1%-6.4%
Q4 2021+2.9%+6.7%+3.5%
Q3 2021+10.2%+8.4%+12.1%
Q2 2021-1.5%-3.7%-9.0%
Q1 2021-5.6%-3.2%-2.1%
Q4 2020-2.7%-2.7%+3.2%
Q3 2020-0.7%+3.2%+14.3%
Q2 2020-0.4%-3.3%-14.0%
Q1 2020-10.1%-4.4%+21.7%
Q4 2019-19.0%-18.5%-5.9%
Q3 2019+4.4%+4.6%+7.6%
Q2 2019+2.6%-8.9%-13.9%
Q1 2019-4.2%-8.1%+4.9%
Q4 2018-3.3%-4.0%-9.0%
Q3 2018+4.8%+6.5%+12.2%
Q2 2018-1.5%-2.9%-2.9%
Q1 2018+4.9%-4.3%-9.3%
Q4 2017-0.5%-7.8%-3.1%
Q3 2017+5.4%+2.4%-3.1%
Q2 2017-2.2%+0.5%+0.0%
Q1 2017+7.0%+5.8%+4.1%
Q4 2016+22.0%+14.2%+26.0%
Q3 2016-0.8%+0.0%-1.7%
Q2 2016+8.2%+6.6%-11.1%
Q1 2016+1.1%
Q4 2015+16.7%
Q3 2015+2.0%
Q2 2015-10.1%
Q1 2015-9.8%
Q4 2014+13.9%
Q2 2014-15.2%
Q4 2013+6.5%
Q3 2013+11.3%
Q2 2013+2.0%
Q4 2012+7.4%
Q3 2012-0.5%
Q4 2010-2.9%
Q4 2009-2.9%
Q4 2011-2.9%
Q2 2012+2.6%
Q1 2012+2.6%
Q3 2011-5.4%
Q2 2011+1.2%
Q1 2011
Q3 2010
Q2 2010
Q1 2010

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