Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America and the Caribbean’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, today reported unaudited results for the three and six months ended June 30, 2026.

Message from Luis Raganato, Chief Executive Officer

Over the last several quarters, we have taken important steps to improve the resilience of the Arcos Dorados business model and monetize our significant market share advantage. Total Revenues, Adjusted EBITDA and Net Income all grew strongly in US dollars, despite challenging consumer dynamics in the second quarter of 2026. In fact, total revenues of $1.3 billion were our highest-ever quarterly revenues, supported by the best guest volume performance of the last six quarters. Adjusted EBITDA, net income and earnings per share all set second quarter records.

Adjusted EBITDA reached $126.8 million, up 15.2% year over year and up more than 20%, excluding gains from a sub-franchisee transaction from last year’s result. Stronger operating performance, better results below the operating line and a lower effective tax rate led to a doubling of earnings per share as well as solid sequential growth in adjusted Free Cash Flow.

The exclusive, global sponsorship of the FIFA World Cup allowed us to execute marketing campaigns and activations in all sales channels. Digital sales penetration and identified sales were the highest ever and we measured market share gains across the region as well. The loyalty program continued to increase guest frequency among its most active members and guests also continued to respond positively to our compelling value platforms throughout the region.

Leading Market Share and unmatched Brand Attributes are a testament to the enduring connection we have with people across Latin America and the Caribbean. Both sets of indicators improved in the second quarter, and we intend to continue monetizing this connection with guests moving forward.

AD Holdings Inc. – Consolidated Key Financial Results
Figure 1.
(In millions of U.S. dollars, except as noted)
2Q25
(a)
Currency Translation
(b)
 Constant
Currency
Growth (c)		 2Q26
(a+b+c)		 % As
Reported		 % Constant Currency
Total Restaurants (Units)

2,457

 

2,548

 
 
Sales by Company-operated Restaurants

1,091.1

 

(45.4

)

200.8

1,246.6

 

14.2

%

18.4

%
Revenues from franchised Restaurants

51.2

 

(3.1

)

11.0

59.1

 

15.4

%

21.5

%
Total Revenues

1,142.3

 

(48.5

)

211.8

1,305.6

 

14.3

%

18.5

%
Systemwide Comparable Sales

15.3

%
Adjusted EBITDA

110.1

 

1.5

 

15.2

126.8

 

15.2

%

13.8

%
Adjusted EBITDA Margin

9.6

%

9.7

%

 0.1 p.p.
Net income attributable to AD

22.6

 

2.9

 

19.5

45.0

 

99.3

%

86.4

%
Net income attributable to AD Margin

2.0

%

3.4

%

 1.5 p.p.
No. of shares outstanding (thousands)

210,663

 

210,663

 
EPS (US$/Share)

0.11

 

0.22

 

Arcos Dorados’ total revenues reached $1.3 billion, up 14.3% in US dollars versus the prior year quarter. The Company’s systemwide comparable sales rose 15.3% in the quarter, driven by guest traffic growth across all three divisions and higher average check in Brazil and SLAD.

Digital channel sales rose by about 25% in the period and represented 66% of the second quarter’s systemwide sales. Performance remained notably strong in Self-order kiosk, Delivery and Loyalty sales versus the prior year. Self-order kiosk sales growth continued to benefit from the increasingly modernized restaurant base and higher customer adoption, while Delivery remained a strong growth driver, with solid year-over-year sales growth supported by increasing penetration across the region.

The Company’s Loyalty Program is available in all main markets and grew to 34.3 million registered members as of the end of the quarter. The growing member base continued to enhance customer engagement, while active redeeming members visited the restaurants roughly five times as frequently as non-members, reinforcing the program’s long-term value potential.

Market share expanded and brand attributes strengthened across the region, according to Company research. Guest traffic performance was the strongest of the last six quarters, with the number of transactions up in all three divisions supporting the market share gains.

The exclusive, global sponsorship of the FIFA World Cup allowed the Company to capitalize on the region’s passion for soccer and execute unique marketing campaigns and activations across all its sales channels. Most markets launched tournament-themed sandwiches early in the quarter, generating meaningful incremental sales before the start of the event. Several other local, regional and global campaigns associated with the global FIFA World Cup sponsorship, such as the Panini sticker books and collectible cups, also helped strengthen the connection with guests.

The Company also continued reinforcing its value platforms, maintaining compelling offers for its most price-sensitive guests and other value seekers across key markets.

To appeal to families and young people, the Company ran multi-channel campaigns including brand favorites such as the Grimace shake or compelling licenses such as Super Mario Galaxy and Stranger Things. Finally, within the desserts category, several markets drove innovation and indulgence with new flavors in the McFlurry and Sundae platforms.

Consolidated Adjusted EBITDA margin was 9.7%, up 10 basis points versus the prior year period, or up 70 basis points when excluding the gain from the sub-franchisee restaurant transactions in Mexico from the second quarter of 2025 result. Margin expansion was driven by lower Food & Paper costs and G&A expenses as a percentage of revenues, partially offset by higher Payroll and Occupancy & Other Operating Expenses.

Net income margin attributable to the Company was 3.4%, or 150 basis points higher versus the second quarter of 2025, mainly driven by better results in net interest expense and other financing results and foreign currency exchange results, as well as a lower effective tax rate.

Arcos Dorados recorded earnings of $0.22 per share in the second quarter of 2026 compared to $0.11 per share in the prior year period. Total weighted average shares were 210,663,057 in both periods.

Notable Items

Included in Adjusted EBITDA: there were no notable items included in the Adjusted EBITDA in the second quarter of 2026. The second quarter of 2025 included a $6.9 million gain in Mexico related to restaurant transactions with a sub-franchisee.

Excluded from Adjusted EBITDA: there were no notable items excluded from the Adjusted EBITDA in either the second quarter of 2026 or the second quarter of 2025.

New Unit Development: Total and by Format1
 
Figure 2.

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

Jun. 30,

2025
Brazil

1,250

1,241

1,230

1,202

1,191
NOLAD

670

670

669

666

658
SLAD

628

625

621

611

608
TOTAL

2,548

2,536

2,520

2,479

2,457
1end of period, including company operated and franchised restaurants

Figure 3.

As of
Jun.30, 2026		 Store Format* Total
Restaurants		 Ownership McCafes Dessert
Centers
FS IS MS & FC Company
Operated		 Franchised
Brazil

691

90

469

1,250

777

473

223

2,023
NOLAD

426

48

196

670

535

135

22

506
SLAD

287

124

217

628

518

110

251

738
TOTAL

1,404

262

882

2,548

1,830

718

496

3,267
* FS: Freestanding; IS: In-Store; MS: Mall Store; FC: Food Court.

Arcos Dorados opened 16 restaurants in the second quarter of 2026, including 10 freestanding units. As of the end of June 2026, 77% of its systemwide restaurant portfolio offered the most modernized restaurant experience in the Latin American and Caribbean quick service restaurant industry.

Consolidated Debt and Financial Ratios
Figure 4.
(In thousands of U.S. dollars, except ratios)
June 30, December 31,

2026

2025
Total Cash & cash equivalents (i)

269,990

422,347
Total Financial Debt (ii)

962,450

1,101,739
Net Financial Debt (iii)

692,460

679,392
LTM Adjusted EBITDA

618,647

575,209
Total Financial Debt / LTM Adjusted EBITDA ratio

1.6

1.9
Net Financial Debt / LTM Adjusted EBITDA ratio

1.1

1.2
LTM Net income attributable to AD

256,745

212,116
Total Financial Debt / LTM Net income attributable to AD ratio

3.7

5.2
Net Financial Debt / LTM Net income attributable to AD ratio

2.7

3.2
(i) Total cash & cash equivalents includes short-term investment
(ii)Total financial debt includes short-term debt, long-term debt, accrued interest payable and derivative instruments (including the asset portion of derivatives amounting to $67.9 million and $78.7 million as a reduction of financial debt as of June 30, 2026 and December 31, 2025, respectively).
(iii) Net financial debt equals total financial debt less total cash & cash equivalents.

The Company’s net debt to Adjusted EBITDA leverage ratio ended the second quarter of 2026 at 1.1x, compared with 1.2x at year-end 2025.

Adjusted Free Cash Flow

For the last twelve months ended June 30, 2026, the Company generated Adjusted Free Cash Flow of $143.4 million, compared to $16.1 million in the prior comparable period.

Recent Developments

2029 Sustainability-Linked Senior Notes Redemption

On July 16, 2026, the Company completed the redemption of all remaining 2029 Sustainability-Linked Senior Notes at a redemption price equal to 103.063%, plus accrued and unpaid interest.

2025 Social Impact and Sustainable Development Report

In July 2026, Arcos Dorados published its Social Impact and Sustainable Development Report for 2025. The report includes information audited by EY and provides an update on the progress related to initiatives and implementation of the Company’s “Recipe for the Future” ESG Platform. The full report can be downloaded at https://www.arcosdorados.com/en/recipeforthefuture/.

Second Quarter 2026 Earnings Webcast

A webcast to discuss the information contained in this press release will be held today, August 13, 2026, at 10:00 a.m. ET. In order to access the webcast, members of the investment community should follow this link: Arcos Dorados Second Quarter 2026 Earnings Webcast.

A replay of the webcast will be available later today in the investor section of the Company’s website: https://ir.arcosdorados.com/.

Definitions

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), management analyzes business trends using a variety of performance, financial and liquidity measures, which are considered non-GAAP. This press release and the accompanying tables use the following non-GAAP measures: Adjusted EBITDA, Adjusted net cash provided by operating activities, Adjusted Free Cash Flow, Constant Currency basis, Systemwide sales, and Systemwide comparable sales growth.

Adjusted EBITDA: Management uses Adjusted EBITDA to facilitate operating performance comparisons from period to period.

Adjusted EBITDA is defined as the Company’s operating income plus depreciation and amortization plus/minus the following losses/gains: gains from sale or insurance recovery of property and equipment, write-offs of long-lived assets, impairment of long-lived assets, and reorganization and optimization plan expenses.

Management believes Adjusted EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures (affecting net interest expense and other financing results), taxation (affecting income tax expense) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for different companies for reasons unrelated to operating performance. Figure 5 of this earnings release includes a reconciliation of Adjusted EBITDA to Net income attributable to Arcos Dorados. For more information, please see the Adjusted EBITDA reconciliation in Note 8 – Segment and geographic information – of our financial statements filed today with the Securities and Exchange Commission (the “SEC”) on Form 6-K.

Adjusted net cash provided by operating activities and Adjusted Free Cash Flow: Management uses Adjusted net cash provided by operating activities and Adjusted Free Cash Flow as supplemental measure to facilitate the analysis of the Company’s cash generation performance and liquidity from period to period.

Adjusted net cash provided by operating activities is defined as net cash provided by (used in) operating activities plus interest paid less interest collected. Adjusted Free Cash Flow is defined as Adjusted net cash provided by operating activities less property and equipment expenditures and purchases of restaurant businesses paid at acquisition date plus proceeds from sales of property and equipment, restaurant businesses and related advances.

Management believes Adjusted net cash provided by operating activities and Adjusted Free Cash Flow provide useful information to investors, when considered together with GAAP measures, in evaluating the Company’s ability to generate cash to fund capital expenditures and financing activities. Management evaluates these measures prior to investing and financing decisions.

Adjusted net cash provided by operating activities and Adjusted Free Cash Flow are non-GAAP financial measures and should not be considered as an alternative to net cash provided by operating activities or any other measure of financial performance or liquidity prepared in accordance with GAAP. These non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable to similarly titled measures used by other companies. A reconciliation of Adjusted Free Cash Flow to net cash provided by operating activities is included in Figure 11 of this earnings release.

Constant Currency basis: refers to amounts calculated using the same exchange rate over the periods under comparison to remove the effects of currency fluctuations from this trend analysis. To better discern underlying business trends, this release uses non-GAAP financial measures that segregate year-over-year growth into two categories:

  • Currency translation reflects the impact on growth of the appreciation or depreciation of the local currencies in which the Company conducts its business against the US dollar (the currency in which the Company’s financial statements are prepared).

  • Constant currency growth reflects the underlying growth of the business excluding the effect from currency translation. The Company also calculates variations as a percentage in constant currency, which are also considered to be non-GAAP measures, to provide a more meaningful analysis of its business by identifying the underlying business trends, without distortion from the effect of foreign currency fluctuations.

Systemwide sales: Systemwide sales represent measures for both Company-operated and sub-franchised restaurants. While sales by sub-franchisees are not recorded as revenues by the Company, management believes the information is important in understanding its financial performance because these sales are the basis on which it calculates and records sub-franchised restaurant revenues and are indicative of the financial health of its sub-franchisee base.

Systemwide comparable sales growth: this non-GAAP measure, refers to the change, on a constant currency basis, in Company-operated and sub-franchised restaurant sales in one period from a comparable period for restaurants that have been open for thirteen months or longer (year-over-year basis) including those temporarily closed. Management believes it is a key performance indicator used within the retail industry and is indicative of the success of the Company’s initiatives as well as local economic, competitive and consumer trends. Sales by sub-franchisees are not recorded as revenues by the Company.

About Arcos Dorados

Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating the largest quick service restaurant chain in Latin America and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 21 Latin American and Caribbean countries and territories with more than 2,500 restaurants, operated by the Company or by its sub-franchisees, that together employ more than 100 thousand people (as of 06/30/2026). The Company is also committed to the development of the communities in which it operates, to providing young people their first formal job opportunities and to utilize its Recipe for the Future to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: https://ir.arcosdorados.com/.

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements. The forward-looking statements contained herein include statements about the Company’s business prospects, its ability to attract customers, its expectation for revenue generation and its outlook and guidance for 2026. These statements are subject to the general risks inherent in Arcos Dorados’ business. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, Arcos Dorados’ business and operations involve numerous risks and uncertainties, many of which are beyond the control of Arcos Dorados, which could result in Arcos Dorados’ expectations not being realized or otherwise materially affect the financial condition, results of operations and cash flows of Arcos Dorados. Additional information relating to the uncertainties affecting Arcos Dorados’ business is contained in its filings with the Securities and Exchange Commission. The forward-looking statements are made only as of the date hereof, and Arcos Dorados does not undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events. Certain trademarks and characters referenced herein are the property of their respective owners and are used under license.

Second Quarter 2026 Consolidated Results
Figure 5.
(In thousands of U.S. dollars, except per share data)
For Three-Months ended For Six-Months ended
June 30, June 30,

 

2026

 

 

2025

 

 

2026

 

 

2025

 
REVENUES
Sales by Company-operated restaurants

 

1,246,557

 

 

1,091,113

 

 

2,406,973

 

 

2,118,644

 
Revenues from franchised restaurants

 

59,077

 

 

51,183

 

 

114,624

 

 

100,244

 
Total Revenues

 

1,305,634

 

 

1,142,296

 

 

2,521,597

 

 

2,218,888

 
OPERATING COSTS AND EXPENSES
Company-operated restaurant expenses:
Food and paper

 

(443,728

)

 

(396,564

)

 

(850,727

)

 

(763,176

)
Payroll and employee benefits

 

(239,509

)

 

(206,461

)

 

(465,858

)

 

(404,210

)
Occupancy and other operating expenses

 

(366,611

)

 

(319,746

)

 

(720,488

)

 

(627,811

)
Royalty fees

 

(76,038

)

 

(66,455

)

 

(146,893

)

 

(129,866

)
Franchised restaurants – occupancy expenses

 

(25,568

)

 

(21,028

)

 

(49,825

)

 

(42,072

)
General and administrative expenses

 

(80,363

)

 

(77,530

)

 

(157,112

)

 

(150,855

)
Other operating (expense) income, net

 

(1,185

)

 

7,948

 

 

4,702

 

 

6,709

 
Total operating costs and expenses

 

(1,233,002

)

 

(1,079,836

)

 

(2,386,201

)

 

(2,111,281

)
Operating income

 

72,632

 

 

62,460

 

 

135,396

 

 

107,607

 
Net interest expense and other financing results

 

(9,583

)

 

(18,483

)

 

(23,841

)

 

(35,075

)
Gain from derivative instruments

 

3,024

 

 

1,344

 

 

7,393

 

 

1,454

 
Foreign currency exchange results

 

5,066

 

 

(3,666

)

 

12,253

 

 

(5,627

)
Other non-operating expenses, net

 

(95

)

 

(481

)

 

(111

)

 

(603

)
Income before income taxes

 

71,044

 

 

41,174

 

 

131,090

 

 

67,756

 
Income tax expense, net

 

(25,948

)

 

(18,486

)

 

(49,763

)

 

(30,991

)
Net income

 

45,096

 

 

22,688

 

 

81,327

 

 

36,765

 
Net income attributable to non-controlling interests

 

(91

)

 

(101

)

 

(181

)

 

(248

)
Net income attributable to Arcos Dorados Holdings Inc.

 

45,005

 

 

22,587

 

 

81,146

 

 

36,517

 
Net income attributable to Arcos Dorados Holdings Inc. Margin as % of total revenues

 

3.4

%

 

2.0

%

 

3.2

%

 

1.6

%
Earnings per share information ($ per share):
Basic net income per common share

$

0.22

 

$

0.11

 

$

0.39

 

$

0.17

 
Weighted-average number of common shares outstanding-Basic

 

210,663,057

 

 

210,663,057

 

 

210,663,057

 

 

210,663,057

 
Adjusted EBITDA Reconciliation
Net income attributable to Arcos Dorados Holdings Inc.

 

45,005

 

 

22,587

 

 

81,146

 

 

36,517

 
Net income attributable to non-controlling interests

 

91

 

 

101

 

 

181

 

 

248

 
Income tax expense, net

 

25,948

 

 

18,486

 

 

49,763

 

 

30,991

 
Other non-operating expenses, net

 

95

 

 

481

 

 

111

 

 

603

 
Foreign currency exchange results

 

(5,066

)

 

3,666

 

 

(12,253

)

 

5,627

 
Gain from derivative instruments

 

(3,024

)

 

(1,344

)

 

(7,393

)

 

(1,454

)
Net interest expense and other financing results

 

9,583

 

 

18,483

 

 

23,841

 

 

35,075

 
Depreciation and amortization

 

54,424

 

 

47,913

 

 

108,685

 

 

94,208

 
Operating charges excluded from EBITDA computation

 

(237

)

 

(262

)

 

747

 

 

(425

)
Adjusted EBITDA

 

126,819

 

 

110,111

 

 

244,828

 

 

201,390

 
Adjusted EBITDA Margin as % of total revenues

 

9.7

%

 

9.6

%

 

9.7

%

 

9.1

%
Second Quarter 2026 Results by Division and Average Exchange Rates per Quarter
Figure 6.
(In thousands of U.S. dollars)
 
For Three-Months ended as Constant For Six-Months ended as Constant
June 30, reported Currency June 30, reported Currency

2026

 

2025

 

Incr/(Decr)%

Incr/(Decr)%

2026

 

2025

 

Incr/(Decr)%

Incr/(Decr)%
Revenues
Brazil

520,604

 

415,387

 

25.3

%

11.7

%

992,099

 

815,689

 

21.6

%

8.8

%
NOLAD

347,490

 

317,829

 

9.3

%

2.4

%

670,043

 

599,529

 

11.8

%

4.2

%
SLAD

437,540

 

409,080

 

7.0

%

38.1

%

859,455

 

803,670

 

6.9

%

40.5

%
TOTAL

1,305,634

 

1,142,296

 

14.3

%

18.5

%

2,521,597

 

2,218,888

 

13.6

%

19.0

%
 
Operating Income (loss)
Brazil

53,754

 

34,118

 

57.6

%

39.8

%

92,064

 

67,096

 

37.2

%

22.3

%
NOLAD

17,466

 

27,569

 

-36.6

%

-41.0

%

32,626

 

40,428

 

-19.3

%

-24.6

%
SLAD

28,771

 

27,354

 

5.2

%

37.1

%

62,868

 

52,423

 

19.9

%

60.9

%
Corporate and Other

(27,359

)

(26,581

)

-2.9

%

-9.4

%

(52,162

)

(52,340

)

0.3

%

-8.8

%
TOTAL

72,632

 

62,460

 

16.3

%

15.9

%

135,396

 

107,607

 

25.8

%

30.1

%
 
Adjusted EBITDA
Brazil

75,841

 

52,954

 

43.2

%

27.3

%

135,785

 

102,523

 

32.4

%

18.2

%
NOLAD

33,694

 

41,238

 

-18.3

%

-23.8

%

65,396

 

67,478

 

-3.1

%

-9.8

%
SLAD

43,216

 

40,533

 

6.6

%

33.5

%

92,619

 

79,593

 

16.4

%

49.2

%
Corporate and Other

(25,932

)

(24,614

)

-5.4

%

-12.1

%

(48,972

)

(48,204

)

-1.6

%

-10.4

%
TOTAL

126,819

 

110,111

 

15.2

%

13.8

%

244,828

 

201,390

 

21.6

%

23.0

%
Figure 7.
 
Systemwide Comparable Sales Growth For Three-Months ended
June 30,

2026

2025
Brazil

5.4%

0.3%
NOLAD

-2.2%

4.4%
SLAD

42.9%

38.2%
TOTAL

15.3%

12.1%
Figure 8.
 
Period average
Local currency per US$		 Brazil Mexico Argentina
 

2Q26

5.05

17.39

1,410.32

2Q25

5.66

19.49

1,150.22
Summarized Consolidated Balance Sheet
Figure 9.
(In thousands of U.S. dollars)

June 30,

December 31,

2026

 

2025

 
ASSETS
Current assets
Cash and cash equivalents

259,990

 

373,438

 
Short-term investments

10,000

 

48,909

 
Accounts and notes receivable, net

171,763

 

164,482

 
Other current assets (1)

264,988

 

254,764

 
Derivative instruments

52,433

 

10,365

 
Total current assets

759,174

 

851,958

 
Non-current assets
Property and equipment, net

1,328,673

 

1,308,732

 
Net intangible assets and goodwill

157,315

 

148,950

 
Deferred income taxes

108,439

 

104,250

 
Derivative instruments

15,433

 

68,339

 
Equity method investments

15,958

 

16,033

 
Leases right of use asset

1,240,729

 

1,133,551

 
Other non-current assets (2)

266,759

 

254,031

 
Total non-current assets

3,133,306

 

3,033,886

 
Total assets

3,892,480

 

3,885,844

 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable

332,794

 

356,606

 
Taxes payable (3)

124,369

 

143,922

 
Accrued payroll and other liabilities

179,684

 

145,460

 
Royalties payable to McDonald’s Corporation

30,549

 

34,099

 
Provision for contingencies

1,468

 

1,455

 
Interest payable

19,121

 

18,915

 
Financial debt (4)

51,821

 

21,442

 
Operating lease liabilities

119,695

 

106,836

 
Total current liabilities

859,501

 

828,735

 
Non-current liabilities
Accrued payroll and other liabilities

93,868

 

91,801

 
Provision for contingencies

56,532

 

49,399

 
Financial debt (5)

959,374

 

1,140,086

 
Deferred income taxes

3,006

 

2,757

 
Operating lease liabilities

1,087,425

 

1,000,927

 
Total non-current liabilities

2,200,205

 

2,284,970

 
Total liabilities

3,059,706

 

3,113,705

 
Equity
Class A shares of common stock

389,967

 

389,967

 
Class B shares of common stock

132,915

 

132,915

 
Additional paid-in capital

8,659

 

8,659

 
Retained earnings

848,106

 

825,946

 
Accumulated other comprehensive loss

(529,204

)

(567,630

)
Common stock in treasury

(19,367

)

(19,367

)
Total Arcos Dorados Holdings Inc shareholders’ equity

831,076

 

770,490

 
Non-controlling interest in subsidiaries

1,698

 

1,649

 
Total equity

832,774

 

772,139

 
Total liabilities and equity

3,892,480

 

3,885,844

 
(1) Includes “Other receivables”, “Inventories” and “Prepaid expenses and other current assets”.
(2) Includes “Miscellaneous” and “Collateral deposits”.
(3) Includes “Income taxes payable” and “Other taxes payable”.
(4) Includes “Current portion of long-term debt” and “Derivative instruments”.
(5) Includes “Long-term debt, excluding current portion” and “Derivative instruments”.
Condensed Consolidated Statements of Cash Flows
Figure 10.
(In thousands of U.S. dollars)
For Six-Months ended
June 30,

2026

 

2025

 
Operating activities
Net income attributable to Arcos Dorados Holdings Inc.

81,146

 

36,517

 
Adjustments to reconcile net income attributable to Arcos Dorados
Holdings Inc. to cash provided by operating activities:
Non-cash charges and credits:
Depreciation and amortization

108,685

 

94,208

 
Gain on restaurant transactions

(5,826

)

(6,845

)
Foreign currency exchange results

(1,124

)

10,745

 
Gain from derivative instruments

(7,393

)

(1,454

)
Others, net

19,364

 

(11,157

)
Changes in assets and liabilities

(71,355

)

(64,308

)
Net cash provided by operating activities

123,497

 

57,706

 
Investing activities
Property and equipment expenditures

(85,879

)

(104,153

)
Purchases of restaurant businesses paid at acquisition date

(3,500

)

(3,475

)
Proceeds from sales of property and equipment, restaurant businesses and related advances

2,858

 

290

 
Proceeds from short-term investments

40,415

 

12,600

 
Acquisition of short and long term investments

(1,380

)

(106,385

)
Other investing activity

(636

)

(1,127

)
Net cash used in investing activities

(48,122

)

(202,250

)
Financing activities
Issuance of 2032 Senior Notes

—

 

597,498

 
Cash Tender and Open Market Repurchases of 2029 and 2027 Senior Notes

(158,075

)

(379,265

)
Payment of short-term debt

—

 

(35,710

)
Payments for debt issue costs

—

 

(6,158

)
Dividend payments to Arcos Dorados Holdings Inc.’s shareholders

(29,493

)

(25,280

)
Short and long term borrowings

—

 

11,437

 
Proceeds related to sales of restaurant businesses

3,271

 

—

 
Other financing activities

(2,705

)

(3,460

)
Net cash (used in) provided by financing activities

(187,002

)

159,062

 
Effect of exchange rate changes on cash and cash equivalents

(1,821

)

(2,530

)
(Decrease) increase in cash and cash equivalents

(113,448

)

11,988

 
Cash and cash equivalents at the beginning of the year

373,438

 

135,064

 
Cash and cash equivalents at the end of the period

259,990

 

147,052

 
Adjusted free cash flow
Figure 11.
(In thousands of U.S. dollars)
LTM ended
Jun 30,

2026

 

2025

 
Net cash provided by operating activities

362,135

 

260,846

 
Interest paid

68,973

 

50,891

 
Interest collected

(22,703

)

(11,915

)
Adjusted net cash provided by operating activities

408,405

 

299,822

 
Property and equipment expenditures

(263,076

)

(282,862

)
Purchases of restaurant business paid at acquisition date

(7,082

)

(4,535

)
Proceeds from sales of property and equipment, restaurant businesses and related advances

5,137

 

3,719

 
Adjusted Free Cash Flow

143,384

 

16,144

 

 

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