Arcos Dorados Holdings Inc. (ARCO) Earnings Call Transcripts

Arcos Dorados Holdings Inc.'s Latest Earnings Call - Q1 FY2026

In the first quarter of fiscal year 2026, Arcos Dorados Holdings Inc. reported total revenue of $1.2 billion, marking a 13% year-over-year increase, driven by a 16% growth in systemwide comparable sales. Adjusted EBITDA reached $119 million, reflecting strong margin expansion, particularly in Brazil. Management maintained a cautious optimism for the remainder of the year, highlighting improvements in guest traffic and average check, despite a challenging consumer environment. No changes to guidance were noted, but the company emphasized its focus on operational efficiency and cash flow generation.

Reported metrics

Guidance from management

Management maintained a cautious optimism for the remainder of 2026, focusing on operational efficiency and cash flow generation. No specific numerical guidance changes were provided.

What management said

The next question, we're going to stay with Bob Ford from Bank of America. Can you talk about loyalty penetration rates in your bigger markets? And what that's doing to frequency and average ticket? And where are you rolling out loyalty or have yet to lap in terms of the markets, what's already been rolled out. And that one is for you, Luis.

Thanks, Luis. And I actually have a couple more from Bob, both of them will be for you, Mariano, one at a time here. First is what's behind your sub-franchisee acquisitions and sales in NOLAD and Argentina were flat? And how do you think about the optimal balance of corporate versus subfranchise locations these days?

What analysts pressed on

Analysts expressed concerns regarding the competitive environment in Brazil, particularly regarding the pressure on comparable sales and guest traffic. There were also inquiries about the sustainability of margin improvements and the impact of inflation on costs moving forward.

Main topics on the call

• Revenue Growth — Total revenue grew about 13% year-over-year, surpassing $1.2 billion for the first time in Q1. Management noted, "This included 16% growth in systemwide comparable sales, which was driven mainly by average check."
• Adjusted EBITDA Performance — Adjusted EBITDA reached $119 million, representing nearly a 30% increase year-over-year. Management stated, "The $119 million result was driven mainly by strong top line growth combined with very solid margin expansion, ...
• Market Share and Competitive Position — Management highlighted their dominant market share, stating, "We believe that we are managing top line growth in a way that is sustainable over time." They noted improvements in brand equity and visit share, particularly...
• Digital Sales Growth — Digital channels, including mobile app delivery, grew 21% year-over-year, contributing about 64% of system-wide sales. Management emphasized, "55% of sales continue to be generated inside our restaurants," indicating a s...

Read the full Arcos Dorados Holdings Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 29 Arcos Dorados Holdings Inc. earnings call transcripts on record, spanning March 18, 2020 to May 20, 2026. Based on this history, Arcos Dorados Holdings Inc. reports quarterly. The most recent call on file is dated May 20, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

ARCO

Exchange

NYSE

Country

US

Sector

Consumer Discretionary

Industry

Hotels, Restaurants and Leisure

Calls on record

29

First call

March 18, 2020

Most recent

May 20, 2026

Reporting cadence

quarterly