Arcos Dorados ( (ARCO) ) has released its Q2 earnings. Here is a breakdown of the information Arcos Dorados presented to its investors.
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Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating over 2,400 restaurants across Latin America and the Caribbean. The company is a major player in the quick service restaurant sector, known for its commitment to community development and environmental sustainability.
In the second quarter of 2025, Arcos Dorados reported total revenues of $1.1 billion, marking a 2.8% increase compared to the previous year. The company saw a significant rise in digital channel sales, which contributed to over 60% of total sales, and expanded its loyalty program to 21.5 million members.
Key financial metrics included a consolidated adjusted EBITDA of $110.1 million and a net income of $22.6 million. The company maintained a net debt to adjusted EBITDA leverage ratio of 1.4x, supported by a ‘BBB-‘ investment grade rating from S&P. Arcos Dorados also opened 20 new Experience of the Future restaurants, enhancing its footprint in the region.
Despite challenges in Brazil, the company’s diversified business model and strategic marketing initiatives, such as the Big Fest and Formula One promotions, bolstered brand preference and market share across its divisions. The company’s focus on digital engagement and value offerings has been instrumental in driving growth.
Looking ahead, Arcos Dorados remains optimistic about its growth potential, with plans to expand its market presence and continue enhancing its brand strength. The company’s leadership changes, including the appointment of a new CEO, underscore its commitment to strategic growth and operational excellence.