Arcos Dorados Holdings(DE:AD8)
€6.26+0.18 (+2.96%)
DE:AD8
Arcos Dorados Holdings earnings date
€6.26
At close:+0.18 (+2.96%)
Arcos Dorados Holdings (AD8) Q3 2026 Earnings Report
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DE:AD8 Q3 2026 EPS Results
- Actual EPS
- EUR 0.14
- Consensus EPS
- EUR 0.13
- Beat/Miss
- Beat by +EUR 0.01
- One Year Ago EPS
- EUR 0.64
DE:AD8 Q3 2026 Revenue Results
- Actual Revenue
- EUR 1.20B
- Expected Revenue
- EUR 1.20B
- Beat/Miss
- Beat by +EUR 5.99M
- YoY Revenue Growth
- +11.33%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/12/2026
- Time
- Before Open
- Conference Call
- Thursday, November 12, 2026
DE:AD8 Upcoming Earnings
Arcos Dorados Holdings's next earnings date is estimated for March 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:AD8 Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive. Highlights significantly outweighed the lowlights, with double-digit revenue growth, 15.5% comparable-sales growth, underlying EBITDA growth, expanding market share, strong digital and loyalty adoption, improving food-and-paper costs, healthy free cash flow and a 1.3x net-leverage ratio. Management acknowledged cautious consumers, flat NOLAD comparable sales, labor and operating-cost pressures, and unresolved regulatory impacts in Brazil, but described the fourth-quarter start as solid and expressed confidence in the business model and long-term growth plans.
Company Guidance
Long-term growth objectives are mid- to high single-digit annual total revenue growth, high single to low double-digit annual adjusted EBITDA growth, 550 to 600 restaurant openings from 2027 to 2030, and $1.3 billion to $1.5 billion in total capital expenditures from 2027 to 2030; these reflect an average growth trend over the long term, are not specific guidance for any single year, and are macro-neutral. The development model is already improving first year returns by 3 to 5 percentage points. Management expects payroll performance to improve sequentially during the fourth quarter of 2026, with payroll costs as a percentage of revenues remaining broadly in line with 2025 for 2026, while Brazil’s margin outlook is slightly positive, cautiously optimistic for the next quarter and the beginning of next year. The fourth quarter is off to a solid start, and the company authorized repurchases of up to $25 million of Class A Arcos Dorados stock in the open market over the next 6 months.
- Strong Third-Quarter Revenue and Comparable Sales GrowthTotal revenue reached $1.3 billion, up more than 11% versus the prior-year quarter in U.S. dollars. System-wide comparable sales grew 15.5%, driven by higher average check, positive guest traffic and contributions from new restaurants.
- Underlying EBITDA Growth and Margin PerformanceUnderlying adjusted EBITDA rose 9% in U.S. dollars versus the prior-year quarter, excluding the net impact of the $85.6 million federal tax credit recognized in Brazil in the third quarter of last year. Adjusted EBITDA totaled $125.9 million with a 9.5% consolidated margin.
- Third Consecutive Quarter of Food and Paper ImprovementBetter pricing and product mix, together with supply chain initiatives, drove a 90-basis-point improvement in food and paper as a percentage of revenues. All three divisions contributed, marking the third consecutive quarter of gross margin expansion.
- Net Income and Free Cash Flow GrowthNet income attributable to Arcos Dorados was $31.2 million, or $0.15 per share. Excluding last year's federal tax credit, net income grew almost 24% and net income margin expanded 20 basis points to 2.3%. Adjusted free cash flow for the last 12 months reached $156 million, about three times the level of a year ago and more than $100 million higher than the prior comparable period.
- Market Share Leadership ExpandedThe McDonald's brand continued to command the highest market share across Latin America's QSR industry, almost double the nearest competitor. Arcos Dorados expanded regional market share during the first nine months of 2026, with solid guest-traffic market share in all main markets.
- Digital and Loyalty Ecosystem ExpansionSales through digital channels grew about 22% year over year and generated about two-thirds of total system-wide sales. In NOLAD, about half of system-wide sales are now digital. Identified sales reached a new high of 29% of total sales, while loyalty membership grew 60% year over year to almost 38 million registered users.
- Restaurant Expansion and Improving ReturnsThe company ended the quarter with more than 100 additional locations compared with a year ago. It opened 35 restaurants during the quarter and 70 during the first nine months of the year, with more than $70 million in quarterly capital expenditures and $156 million invested through the first nine months. Returns on investment continued to improve, and the remaining restaurants needed to meet the year's opening target had either opened or were under construction.
- Updated Development Model Improved First-Year ReturnsThe company updated its development model to reduce average investment per new restaurant without sacrificing sales and cash flow. This is already improving first-year returns by 3 to 5 percentage points.
- Healthy Balance Sheet and Increased Shareholder ReturnsNet debt to adjusted EBITDA ended the quarter at a healthy 1.3x, and net debt was about in line with the end of 2025. The company maintains an investment-grade debt rating, has increased or maintained its dividend every year since 2022, and authorized a program to repurchase and cancel up to $25 million of Class A stock over the next six months.
- Long-Term Growth ObjectivesManagement outlined long-term objectives of mid- to high single-digit annual total revenue growth, high single- to low double-digit annual adjusted EBITDA growth, 550 to 600 restaurant openings from 2027 to 2030, and $1.3 billion to $1.5 billion in total capital expenditures from 2027 to 2030. Management stated that meeting these objectives implies additional free cash flow generation.
- Brazil Revenue and EBITDA GrowthBrazil comparable sales grew 3.5% with positive guest-traffic growth. Together with 70 more restaurants than a year ago and a stronger Brazilian real, this drove U.S.-dollar revenue growth of more than 15%. Brazil adjusted EBITDA grew about 10% in U.S. dollars to $68.1 million, supported by comparable sales, new restaurant openings, better gross margin, G&A leverage and currency appreciation.
- Brazil Food and Paper and Margin ProgressBrazil food and paper costs improved for the fourth consecutive quarter year over year, supported by better pricing, product mix, supply chain initiatives, lower chicken, potato and ice cream costs, and currency appreciation. Brazil year-to-date EBITDA margin was 50 basis points above the prior year excluding the tax credit.
- NOLAD Margin ExpansionNOLAD adjusted EBITDA grew nearly double digits, with margin expansion of 20 basis points. Management attributed the result to the effectiveness of value platforms and said the division was rebalancing volume and average-check growth to rebuild margin over time.
- SLAD Growth and Gross Margin SupportArgentina and Venezuela continued to drive SLAD comparable-sales growth, while Colombia, Peru and Uruguay delivered solid third-quarter top-line performance. SLAD food and paper costs decreased meaningfully, supported by input-cost inflation in Argentina and Chile remaining below general inflation and a more profitable product mix.
- Marketing, Product and Brand InitiativesThe company launched Best Burger in several SLAD markets, maintained value platforms offering meals for less than $5, achieved its best-ever McFish limited-time-offer unit sales in Brazil, and ran region-wide Demon Hunters and Formula 1 campaigns. The Formula 1 program included a limited-edition Quarter Pounder with Cheese, collectible car, Red Bull Racing beverage and KitKat McFlurry, with local driver sponsorships in Mexico and Argentina.
- Cost Discipline and G&A EfficiencyG&A rose well below blended inflation due to restructuring implemented at the end of last year. Management said all three divisions now have leaner and more agile cost structures, and G&A improvements were observed across Brazil, NOLAD and SLAD.
- Positive Fourth-Quarter Start and Margin OpportunitiesManagement said the fourth quarter was off to a solid start, with comparable-sales trends continuing to normalize in October. The company expects targeted marketing campaigns, partnerships and product launches to support comparable-sales growth, while technology implementation and continued cost discipline provide margin opportunities.
- Mexico Resilience and Market-Share GainsDespite a challenging operating environment and pressure on family disposable income, Mexico outperformed both the foodservice sector and the QSR segment, delivered positive comparable-value growth and gained market share. Sales were mostly driven by volume, with notable gross-margin improvement, healthy digital-sales growth and continued loyalty-program growth.
- Confidence in Mexico Wage and Tax Reform AbsorptionManagement said it did not expect material changes in Mexico's performance from the minimum-wage increase, citing prior years of encouraging EBITDA and sales growth and the ability to offset payroll impacts through higher sales and efficiencies. Management also said it was not seeing a material consolidated income-tax impact from Mexico's tax reform.
DE:AD8 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 17, 2027 | 2026 (Q4) | 0.20- | 0.11 | ― | ― |
| Nov 12, 2026 | 2026 (Q3) | 0.130.14 | 0.64 | -78.87% (-0.51) | |
| Aug 13, 2026 | 2026 (Q2) | 0.130.20 | 0.1 | 100.00% (+0.10) | |
| May 20, 2026 | 2026 (Q1) | 0.100.15 | 0.06 | 142.86% (+0.09) | |
| Mar 19, 2026 | 2025 (Q4) | 0.180.11 | 0.25 | -57.14% (-0.15) | |
| Nov 12, 2025 | 2025 (Q3) | 0.130.64 | 0.15 | 317.65% (+0.49) | |
| Aug 13, 2025 | 2025 (Q2) | 0.070.10 | 0.12 | -15.38% (-0.02) | |
| May 14, 2025 | 2025 (Q1) | 0.100.06 | 0.13 | -50.00% (-0.06) | |
| Mar 12, 2025 | 2024 (Q4) | 0.190.25 | 0.24 | 7.69% (+0.02) | |
| Nov 13, 2024 | 2024 (Q3) | 0.150.15 | 0.25 | -39.29% (-0.10) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
