Mar. 12 at 11:48 AM
$ARCO Arcos Dorados reports Q4 EPS 28c, consensus 21c
Reports Q4 revenue
$1.14B, consensus
$1.15B. Systemwide comparable sales increased 21.5%. The company said, "The resilience of the Arcos Dorados business model has been an important theme over the last couple of years. Perhaps 2024 is the best example of how the Company's geographic, economic and operating diversity allow us to outperform in just about any environment. Full year 2024 total revenue of
$4.5 billion was our highest ever, despite a more discerning consumer and challenging macroeconomic conditions, including currency headwinds, in many of our largest markets.
Revenue was supported by systemwide comparable sales growth of 1.7x blended inflation, excluding Argentina, with positive contributions from both average check and guest volume growth in all three divisions. Additionally, Adjusted EBITDA for the full year reached
$500 million, including an 11.2% margin, both representing new highs for Arcos Dorados. This is a notable achievement given the challenging macroeconomic environment we faced in 2024, especially in the second half of the year, when two of the most important currencies in our footprint, the Brazilian real and Mexican peso, depreciated strongly.
Not to mention the material reduction in US dollar EBITDA generated in Argentina due to that country's significant economic correction. We are very proud to have reached these important milestones. The Four D's Strategy leveraged our structural competitive advantages, and each pillar of the strategy still has plenty of potential to drive sales and operating efficiencies into the future. All of this is supported by a strong and stable balance sheet, with a healthy leverage ratio and no significant debt maturities in the next four years.
We are operating from a position of strength in Latin America, with significant market share leadership, an industry benchmark Digital platform, and the most modernized restaurant portfolio in the region's QSR industry. This gives us the strategic flexibility to pull the levers necessary to adapt to any operating environment and to changing consumer preferences. Arcos Dorados and McDonald's share a long-term vision for the future of the Brand in Latin America and the Caribbean, and we are aligned strategically in terms of how to best realize that vision for decades to come."
