Arcos Dorados ( (ARCO) ) has released its Q3 earnings. Here is a breakdown of the information Arcos Dorados presented to its investors.
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Arcos Dorados Holdings Inc., the world’s largest independent McDonald’s franchisee, operates the largest quick service restaurant chain in Latin America and the Caribbean, with nearly 2,500 locations across 21 countries.
In the third quarter of 2025, Arcos Dorados reported robust financial results with total revenues reaching $1.2 billion, marking a 5.2% increase from the previous year. The company also highlighted significant growth in digital sales and the expansion of its restaurant network.
Key financial metrics included a 12.7% increase in systemwide comparable sales, driven by strong performances in Argentina and Mexico. The company’s digital strategy contributed to 61% of systemwide sales, while Adjusted EBITDA rose to $201.1 million, bolstered by a $125.2 million federal tax credit in Brazil. Additionally, Arcos Dorados opened 22 new restaurants in the quarter.
The company’s net income surged to $150.4 million, or $0.71 per share, reflecting the impact of the tax credit and operational efficiencies. The net debt to Adjusted EBITDA leverage ratio remained stable at 1.2x, indicating a strong financial position.
Looking ahead, Arcos Dorados aims to sustain its growth momentum by focusing on digital innovation and market expansion, while leveraging its competitive advantages to enhance profitability and shareholder value.