NYSE$ARCO
Arcos Dorados Holdings Inc · Q1 2026 earnings
Q1 2026 earnings · · Before market open · Investor relations
Briefing
Arcos Dorados Q1 2026: $1.22B revenue (+12.9%), adjusted EBITDA $118M (+29%) on 16% comp sales growth
Arcos Dorados, Latin America's largest McDonald's franchisee, delivered record first-quarter results for the period ended March 31, 2026. Total revenues reached $1,216.0 million, up 12.9% in U.S. dollars (19.5% constant currency), supported by 16.0% systemwide comparable sales growth. Consolidated adjusted EBITDA rose 29.3% to $118.0 million, the company's highest Q1 result, with margin expanding 120 bps to 9.7%. Net income attributable to the company was $36.1 million, or $0.17 per share, up from $0.07 a year ago. Digital channels represented 64% of systemwide sales and the loyalty program reached 30.4 million members. The company opened 19 restaurants and completed a liability management transaction, leaving net leverage unchanged at 1.2x LTM adjusted EBITDA.
- Total revenues of $1,216.0 million rose 12.9% as reported and 19.5% in constant currency, with systemwide comparable sales up 16.0%.
- Adjusted EBITDA grew 29.3% to $118.0 million; margin expanded 120 bps to 9.7%, led by Brazil and SLAD.
- Net income attributable to AD was $36.1 million ($0.17 EPS), up from $13.9 million ($0.07 EPS) in Q1 2025.
- Digital sales rose ~21% and accounted for 64% of systemwide sales; loyalty members reached 30.4 million.
- Adjusted free cash flow over the last twelve months improved to $109.2 million from $(3.1) million.
Headline financials
Revenue & EPS history
Arcos Dorados · Revenue · Quarterly
$1.22B
Revenue by segment
Arcos Dorados · $1.22B total across 3 segments · Q1 2026
- Brazil$471M—38.8%
- SLAD$422M—34.7%
- NOLAD$323M—26.5%
Forward guidance
Management highlighted ongoing strategies to monetize market share through value platforms, digital expansion, and efficient new unit development, with an Investor Day planned for October 1, 2026 in New York City.
Tailwinds
- Record Q1 revenue and adjusted EBITDA with broad-based comp sales strength across divisions.
- Digital and loyalty momentum supporting higher average checks and guest engagement.
Headwinds
- Income tax expense rose to $23.8 million from $12.5 million, partially offsetting operating gains.
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 2026
+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
| Quarter | Report date | Reaction (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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