ARCO · Arcos Dorados Holdings Inc.

Arcos Dorados delivered a standout first quarter in 2026, with total revenues rising 13% year-over-year to $1.216 billion, driven by strong performance across all three geographic segments. Brazil remained the largest contributor with revenues of $471.5 million (up 17.8%), followed by SLAD at $421.9 million (up 6.9%) and NOLAD at $322.6 million (up 14.5%). Operating income improved 39% to $62.8 million, and net income attributable to shareholders more than doubled to $36.1 million, or $0.17 per diluted share, compared to $0.07 in the prior-year period. Adjusted EBITDA, a key non-GAAP metric, surged 29% to $118.0 million, with margins expanding as the company benefited from revenue growth and cost discipline. The company declared a $0.28 per share dividend for 2026, payable in quarterly installments, reflecting confidence in its cash generation. During the quarter, Arcos Dorados repurchased $135.2 million of its 2029 senior notes, reducing debt and interest costs. The cash position decreased to $255.6 million from $373.4 million at year-end, largely due to the debt repurchase and dividend accruals. The company’s leverage ratios remained well within covenant requirements, with a fixed charge coverage ratio of 2.23x and a leverage ratio of 3.15x under the Master Franchise Agreements. Overall, the quarter underscores a strong operational rebound and improved profitability, positioning the company for continued growth.