NYSE$ARCO

Arcos Dorados Holdings Inc · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

Arcos Dorados reported strong third quarter results, driven by a significant tax credit in Brazil and solid revenue growth across its divisions.

Arcos Dorados delivered strong Q3 2025 results with a notable surge in net income, primarily supported by a $125M tax credit in Brazil. Revenue climbed to $1.2B and adjusted EBITDA rose significantly year-over-year. Digital channels and loyalty programs continued contributing significantly to performance.

  • Net income surged to $150.4M, helped by a $125.2M tax credit in Brazil.
  • Total revenue reached $1.2B, up from $1.13B in Q3 2024.
  • Digital sales made up 61% of systemwide sales.
  • Loyalty program members grew to 23.6 million, up nearly 50% YoY.

Headline financials

Total Revenue

$1.19B

Previous: $1.13B+5.2%
EPS (adj)

$0.71

Previous: $0.17+317.6%
Net Income

$150M

Previous: $35.2M+327.1%
Operating Income

$147M

Previous: $79.5M+85.2%

Revenue & EPS history

Arcos Dorados · Revenue · Quarterly

$1.19B

Q3 2025+5.2%vs Q3 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

Arcos Dorados aims to finish 2025 strongly, focusing on operational efficiency, sustainable growth, and cash generation despite mixed macroeconomic dynamics.

Tailwinds

  • Federal tax credit expected to benefit future cash flow starting 2026
  • Digital and marketing strategy helping expand market share
  • High rate of restaurant modernization (72%)
  • 22 new restaurants opened in Q3, including 19 free-standing
  • Strong growth in loyalty program across 7 countries

Headwinds

  • Food and paper costs remain elevated year-over-year
  • Comparable sales growth slowed significantly from prior year (12.7% vs 32.1%)
  • Brazil’s comparable sales growth decelerated to 1.0%
  • NOLAD operating income declined YoY
  • Free cash flow not explicitly reported, suggesting reinvestment or cash strain

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 Q3 2025

Historical avgQ3 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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