EarningsQ2 2026 Earnings Report
MX:ARCON Q2 2026 EPS Results
Actual EPS$4.00
Consensus EPS$2.69
Beat/MissBeat by +$1.31
One Year Ago EPS$2.00
MX:ARCON Q2 2026 Revenue Results
Actual Revenue$23.71B
Expected Revenue$23.22B
Beat/MissBeat by +$490.32M
YoY Revenue Growth+14.30%
Earnings Announcement Details
QuarterQ2 2026
Date08/13/2026
TimeBefore Open
Conference CallThursday, August 13, 2026
MX:ARCON Upcoming Earnings
Arcos Dorados Holdings's next earnings date is estimated for November 18, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:ARCON Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive message: the company delivered record revenue, adjusted EBITDA, net income and EPS growth, meaningful digital and market-share gains, strong Brazil outperformance, improved leverage (1.1x) and successful capital actions (sustainability-linked bond, note repayment). Headwinds remain—consumer pressure in parts of the footprint (Argentina, Mexico), NOLAD comparability and payroll cost pressure, earthquake disruptions, and an aggressive promotional environment—but management framed these as largely manageable and supported by ongoing revenue management, cost discipline, and operational initiatives. Overall the positive operational and financial momentum outweighs the listed challenges.Company Guidance
Record Quarterly Revenue
Total revenue reached $1.3 billion, the highest ever quarterly revenue, up more than 14% year-over-year.
Strong Profitability and Margin Expansion
Adjusted EBITDA totaled $126.8 million, up >20% year-over-year, with adjusted EBITDA, net income and earnings per share (EPS doubled vs. prior year) all at record second-quarter levels; adjusted EBITDA margin expanded ~70 bps (excluding a prior-year transaction).
Brazil Outperformance
Brazil sales (USD) rose >25% year-over-year; Brazilian adjusted EBITDA increased ~43% in USD and EBITDA margin improved ~180 basis points to 14.6%, driven by lower food & paper costs, G&A discipline, sales above inflation and currency appreciation.
Digital and Loyalty Momentum
Digital sales grew >25% year-over-year and represented ~66% of total sales; identified sales surpassed 28% of total sales and loyalty members who redeem visit ~5x more frequently, supporting increased guest lifetime value.
Market Share and Brand Strength
McDonald's guest-traffic market share rose ~0.5 percentage points versus prior-year quarter and remains >2x the nearest competitor; brand favorability metrics reached all-time highs during the period.
Restaurant Growth and Modernization
Opened 16 restaurants in the quarter and 35 in the first half of 2026; ~77% of the portfolio has been modernized; Q2 CapEx was $49.1 million and YTD CapEx was ~ $86 million.
Balance Sheet and Capital Management
Net leverage improved to ~1.1x at quarter-end; completed liability management including repaying 2029 senior notes and issued the QSR industry's first sustainability-linked bond with ambitious GHG targets (exceeded 2025 commitments).
Improving Cash Generation
Adjusted free cash flow generation (trailing 12 months) improved sequentially, supported by strong operating cash flow and lower capital expenditures in the period.
Operational Resilience Across Divisions
SLAD delivered solid sales growth and EBITDA growth in line with revenue; NOLAD generated modest guest-volume growth despite a tough comp base; company executed effective FIFA World Cup campaigns that drove traffic and premium sandwich sales.
Cost and G&A Discipline
Favorable trends in food & paper and G&A (restructuring benefits) contributed to margin expansion overall and particularly helped Brazil and NOLAD food & paper lines improve for a third consecutive quarter in some markets.
MX:ARCON Earnings History
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