Arcos Dorados Reports Second Quarter 2023 Financial Results
Total revenues reached $1.04 billion in the quarter, up 17.2% in US dollars and 36.2% in constant currency, versus the prior year period
- Systemwide comparable sales grew 31.5% year-over-year, with strong sales and market share performance in all divisions
- Total revenues reached $1.04 billion in the quarter, up 17.2% in US dollars and 36.2% in constant currency, versus the prior year period
- Digital channel sales (Delivery, Mobile App and Self-order Kiosks), reached $665.9 million, representing 49% of systemwide sales in the second quarter
- Consolidated Adjusted EBITDA¹ was $110.1 million, up 20.5% in US dollars and 31.0% in constant currency
- Net Income in the quarter grew to $28.4 million, or $0.13 per share, almost doubling the prior year result
Second Quarter 2023 Highlights
- Systemwide comparable sales¹ increased 31.5%, rising 1.3 times blended inflation.
- Consolidated revenues reached $1.04 billion, growing 17.2% in US dollars and 36.2% in constant currency, versus the prior year period.
- Consolidated Adjusted EBITDA¹ of $110.1 million rose 20.5% in US dollars versus the prior year result, and 31.0% in constant currency.
- Consolidated Adjusted EBITDA margin reached 10.6% in the quarter, expanding by 30 basis points versus the prior year period.
- Basic net income per share was $0.13 in the quarter, almost double the net income per share of $0.07 in the prior year quarter.
- The Company opened 10 restaurants in the period, including 8 free-standing units.
- Surpassed 100 million cumulative downloads of the Company’s Mobile App.
Message from Marcelo Rabach, Chief Executive Officer
For the last several years, Arcos Dorados has made the most of its unique position in the Latin American QSR industry. We are operating the industry’s favorite Brand and leveraging structural competitive advantages to capture the McDonald’s Brand’s full growth potential.
Our “Three D’s” strategy, of Digital, Delivery and Drive-thru, provides the framework and tools for strong, sustainable sales growth. Restaurant level execution has also been a key success factor. By offering guests an unmatched experience through a combination of value, quality and service, we are generating consistent transaction volume growth on a comparable basis.
This approach to building topline has led to sales growth well above inflation that, in turn, generates fixed cost leverage and improved profitability. Importantly, the strong performance has been consistent across all three divisions. The geographic diversification we envisioned when Arcos Dorados was formed sixteen years ago has been an important success factor in recent years.
There have been a series of actions and initiatives across the organization within a long-term, strategic framework that are driving these results. From restaurant operations to digital capabilities and investment decisions, we are working hard to generate value for all stakeholders.
We understand the importance of efficient capital allocation, which is why we have focused our investments on modernizing existing restaurants and opening primarily free-standing locations to capitalize on the flexibility and adaptability of this restaurant format. Fortunately, the investments of the last three years have delivered above average returns on openings, modernizations and digital capabilities, among others.
These investments provide more than just financial returns. They also make us the largest generators of first-time jobs for young people in the region. In addition to restaurant training, we offer personal and professional development opportunities that will serve them for the rest of their lives. In fact, more than 110 thousand people have enrolled for free certificate courses on a broad range of topics through Hamburger University’s MCampus online education platform.
I hope we can inspire even more young people to join the Arcos Dorados family and build a better future for their families, communities and the planet.
Consolidated Results
Figure 1. AD Holdings Inc Consolidated: Key Financial Results (In millions of U.S. dollars, except as noted) | ||||||
2Q22 (a) | Currency Translation (b) | Constant Currency Growth (c) | 2Q23 (a+b+c) | % As Reported | % Constant Currency | |
Total Restaurants (Units) | 2,286 | 2,317 | ||||
Sales by Company-operated Restaurants | 848.4 | (163.4) | 309.6 | 994.5 | 17.2% | 36.5% |
Revenues from franchised restaurants | 39.5 | (5.6) | 12.0 | 46.0 | 16.3% | 30.3% |
Total Revenues | 887.9 | (169.0) | 321.6 | 1,040.5 | 17.2% | 36.2% |
Systemwide Comparable Sales | 31.5% | |||||
Adjusted EBITDA | 91.4 | (9.6) | 28.3 | 110.1 | 20.5% | 31.0% |
Adjusted EBITDA Margin | 10.3% | 10.6% | 0.3 p.p. | |||
Net income (loss) attributable to AD | 14.5 | (4.3) | 18.2 | 28.4 | 95.9% | 125.7% |
No. of shares outstanding (thousands) | 210,540 | 210,626 | ||||
EPS (US$/Share) | 0.07 | 0.13 |
Arcos Dorados’ total revenues reached $ 1.04 billion, up 17.2% in US dollars and 36.2% in constant currency versus the prior year quarter. Guest traffic and sales growth were driven mainly by a strong performance in front counter, dessert center and Delivery sales together with further Digital sales penetration. Systemwide comparable sales in the second quarter grew 31.5%, or about 1.3 times blended inflation, including 2.5x in Brazil and 2.8x in NOLAD.
Second quarter 2023 front counter sales, which includes self-order kiosks, grew 37% in constant currency versus the prior year and generated 57% of systemwide sales. Delivery sales also grew strongly, up 41% in constant currency on top of robust growth in the prior year, reflecting industry-leading operational execution and significant brand preference. Drive-thru sales grew 12% in constant currency, despite the continued normalization of front counter sales.
Digital channel sales, which includes Delivery, Mobile App and Self-order kiosks, grew 41% versus the prior year and reached $665.9 million, representing 49% of systemwide sales in the second quarter. The Company’s Mobile App surpassed 100 million cumulative downloads, with more than 16 million average monthly active users, and the Company’s customer relationship management (CRM) platform had over 70 million unique registered users at the end of June 2023.
The Mobile App leverages guest data and increases visit frequency, especially when the sale is identified to an individual guest. During the second quarter, identified sales represented about 20% of consolidated sales and 25% of total sales in Brazil.
Notable items in the Adjusted EBITDA reconciliation
Included in Adjusted EBITDA: The positive variation in other operating income / (expense) is mainly explained by a $4.0 million gain from the sale of restaurants to a sub-franchisee in Chile in the second quarter of 2023.
Excluded from Adjusted EBITDA: There were no notable items excluded from Adjusted EBITDA in either the second quarter of 2023 or the second quarter of 2022.
Adjusted EBITDA
2Q23 Adjusted EBITDA Bridge
($ million)
Second quarter consolidated Adjusted EBITDA reached $110.1 million, up 20.5% in US dollars and 31.0% in constant currency over the prior year quarter, with continued US dollar growth in all divisions. Consolidated Adjusted EBITDA margin reached 10.6%, expanding 30 basis points versus the prior year, but down 10 basis points when adjusted for the $4.0 million gain from the sale of restaurants to a sub-franchisee in Chile.
Margin performance was highlighted by significant operating leverage in both Payroll and Occupancy & Other Operating expenses due to strong sales growth across all divisions. Food and Paper (F&P) costs also declined as a percentage of revenue compared with the prior year due to a better gross margin in NOLAD and SLAD. These more than offset moderately higher G&A expenses and the impact of the final step up of the Company’s royalty rate, which became effective as of August 3, 2022.
Non-operating Results
Arcos Dorados’ non-operating results for the second quarter included a $4.5 million gain from non-cash foreign exchange and derivative instruments.
Net interest expense and other financing results totaled $12.1 million in the quarter versus $24.2 million in the same period last year. The second quarter 2022 result included $10.6 million in expenses related to the liability management transaction executed during that quarter when the Company issued its 2029 Senior Notes, the first Sustainability Linked Bond (SLB) in the QSR industry.
In the second quarter, the Company recorded an income tax expense of $38.8 million, compared to an income tax expense of $15.6 million in the prior-year period.
Second quarter net income attributable to the Company totaled $28.4 million, compared to net income of $14.5 million in the same period of 2022. Earnings per share were $0.13 in the second quarter of 2023, versus $0.07 per share generated in the prior year quarter.
Total weighted average shares for the second quarter of 2023 were 210,625,859 compared to 210,539,537 in the second quarter of 2022.
For reference:
Figure 2. AD Holdings Inc Consolidated - Excluding Venezuela: Key Financial Results (In millions of U.S. dollars, except as noted) | ||||||
2Q22 (a) | Currency Translation (b) | Constant Currency Growth (c) | 2Q23 (a+b+c) | % As Reported | % Constant Currency | |
Total Restaurants (Units) | 2,186 | 2,227 | ||||
Sales by Company-operated Restaurants | 844.8 | (139.3) | 283.4 | 989.0 | 17.1% | 33.6% |
Revenues from franchised restaurants | 39.1 | (3.2) | 9.6 | 45.5 | 16.3% | 24.5% |
Total Revenues | 883.9 | (142.5) | 293.0 | 1,034.4 | 17.0% | 33.2% |
Systemwide Comparable Sales | 27.7% | |||||
Adjusted EBITDA | 92.4 | (15.2) | 34.4 | 111.6 | 20.8% | 37.2% |
Adjusted EBITDA Margin | 10.5% | 10.8% | 0.3 p.p. | |||
Net income (loss) attributable to AD | 15.6 | (10.3) | 24.7 | 29.9 | 92.1% | 158.4% |
No. of shares outstanding (thousands) | 210,540 | 210,626 | ||||
EPS (US$/Share) | 0.07 | 0.14 |
Divisional Results
Brazil Division
Figure 3. Brazil Division: Key Financial Results (In millions of U.S. dollars, except as noted) | ||||||
2Q22 (a) | Currency Translation (b) | Constant Currency Growth (c) | 2Q23 (a+b+c) | % As Reported | % Constant Currency | |
Total Restaurants (Units) | 1,070 | 1,098 | ||||
Total Revenues | 358.1 | (2.7) | 49.9 | 405.2 | 13.2% | 13.9% |
Systemwide Comparable Sales | 9.6% | |||||
Adjusted EBITDA | 52.7 | (0.3) | 16.7 | 69.1 | 31.2% | 31.7% |
Adjusted EBITDA Margin | 14.7% | 17.1% | 2.3 p.p. |
Brazil’s revenues increased 13.2% year-over-year, reaching $405.2 million. Systemwide comparable sales rose 9.6% year-over-year, or 2.5x inflation in the period, with visit share more than double the market’s nearest competitor.
Digital channel sales were up 30% versus the prior year, boosted by the “Méqui Fest” campaign, with a "festival” of offers designed to generate mobile app downloads and usage. Total digital sales generated 61% of systemwide sales in Brazil, including 25% identified sales in the quarter. Delivery demonstrated its continued popularity among guests and the Company consolidated its market leadership in this channel. Delivery sales rose 25% in constant currency versus the prior year period, representing 19% of systemwide sales in the quarter.
The quarter also included a new menu item in the premium beef segment with the introduction of the “Big Tasty Bacon Barbecue”, while a campaign to celebrate the 40th anniversary of Chicken McNuggets strengthened the strategically important chicken category.
As reported Adjusted EBITDA in the division reached $69.1 million in the quarter, rising 31.2% versus the prior year in US dollars. Adjusted EBITDA margin was 17.1%, or 230 basis points higher than the prior year quarter. Sales growth above inflation and significant operating leverage more than offset moderately higher F&P costs as a percentage of revenue.
North Latin American Division (NOLAD)
Figure 4. NOLAD Division: Key Financial Results (In millions of U.S. dollars, except as noted) | ||||||
2Q22 (a) | Currency Translation (b) | Constant Currency Growth (c) | 2Q23 (a+b+c) | % As Reported | % Constant Currency | |
Total Restaurants (Units) | 628 | 639 | ||||
Total Revenues | 222.7 | 20.8 | 34.1 | 277.6 | 24.6% | 15.3% |
Systemwide Comparable Sales | 10.4% | |||||
Adjusted EBITDA | 23.3 | 2.2 | 2.7 | 28.2 | 21.3% | 11.7% |
Adjusted EBITDA Margin | 10.4% | 10.2% | -0.2 p.p. |
As reported revenues totaled $277.6 million, up 24.6% in US dollars and 15.3% in constant currency versus the prior year quarter. Systemwide comparable sales rose 10.4% year-over-year, or 2.8x the division’s blended inflation in the period, with sales increasing above inflation in most markets and particularly strong volume growth in Mexico.
NOLAD’s markets captured additional market share in the quarter with consistent, positive momentum in brand attributes across the division. In April, the Company continued the roll out of Best Burger, extending the platform to Puerto Rico, where sales responded strongly in May and June. New menu items included the launch of the McCrispy CBO sauce in Mexico, strengthening the chicken portfolio in the country. The 40th Anniversary of the Chicken McNuggets was also celebrated in most countries, highlighting this core menu favorite among guests.
As reported Adjusted EBITDA in the division reached $28.2 million in the quarter, rising 21.3% versus the prior year in US dollars. Adjusted EBITDA margin declined by 20 basis points versus the prior year period, primarily due to the impact of the final step-up in the Company’s royalty rate as well as higher Payroll and G&A expenses as a percentage of revenue. These were almost entirely offset by lower F&P costs as a percentage of revenue and operating leverage in other cost and expense line items.
Notably, NOLAD generates its results in hard or relatively stable currencies: US dollar, euro, Mexican peso and Costa Rican colón.
South Latin American Division (SLAD)
Figure 5. SLAD Division: Key Financial Results (In millions of U.S. dollars, except as noted) | ||||||
2Q22 (a) | Currency Translation (b) | Constant Currency Growth (c) | 2Q23 (a+b+c) | % As Reported | % Constant Currency | |
Total Restaurants (Units) | 588 | 580 | ||||
Total Revenues | 307.1 | (187.0) | 237.6 | 357.7 | 16.5% | 77.4% |
Systemwide Comparable Sales | 82.4% | |||||
Adjusted EBITDA | 32.9 | (17.3) | 21.2 | 36.9 | 12.0% | 64.4% |
Adjusted EBITDA Margin | 10.7% | 10.3% | -0.4 p.p. |
Revenues in SLAD reached $357.7 million, rising 16.5% in US dollars, driven by an 82.4% increase in systemwide comparable sales versus the prior year, or 1.2x the division’s blended inflation rate, with Argentina, Colombia and Chile driving topline growth.
SLAD reached some of its highest ever market share levels, backed by positive brand attribute trends. Menu innovations across the region, included the launch of flavorful and abundant products in the beef and chicken categories such as the “Signature Tasty Turbo Bacon” in Chile, “Bacon Cheddar McMelt” in Argentina and “McCrispy BLT” in Colombia with localized campaigns that contributed to improved scores in quality attributes and brand preference in these markets. Digital channel and identified sales penetration rose to record levels in the division, including strong growth in the Mobile Order and Pay functionality on the mobile app.
As reported Adjusted EBITDA in the division totaled $36.9 million in the second quarter and Adjusted EBITDA margin contracted 40 basis points versus the prior year quarter. Adjusted EBITDA margin in the quarter benefited from a $4.0 million gain from the sale of restaurants in Chile. Excluding this effect, the margin declined by 150 basis points versus the prior year.
The division’s Adjusted EBITDA was primarily impacted by the final step-up in the Company’s royalty rate, as well as a moderate increase in G&A and payroll expenses as a percentage of revenue. These were partially offset by lower F&P costs as a percentage of revenue generated by a favorable sales mix and strong sales growth.
For reference:
Figure 6. SLAD Division - Excluding Venezuela: Key Financial Results (In millions of U.S. dollars, except as noted) | ||||||
2Q22 (a) | Currency Translation (b) | Constant Currency Growth (c) | 2Q23 (a+b+c) | % As Reported | % Constant Currency | |
Total Restaurants (Units) | 488 | 490 | ||||
Total Revenues | 303.1 | (160.5) | 209.0 | 351.6 | 16.0% | 69.0% |
Systemwide Comparable Sales | 70.8% | |||||
Adjusted EBITDA | 34.0 | (22.9) | 27.3 | 38.4 | 13.1% | 80.4% |
Adjusted EBITDA Margin | 11.2% | 10.9% | -0.3 p.p. |
New Unit Development
Figure 7. Total Restaurants (eop)* | |||||
June 2023 | March 2023 | December 2022 | September 2022 | June 2022 | |
Brazil | 1,098 | 1,091 | 1,084 | 1,077 | 1,070 |
NOLAD | 639 | 639 | 638 | 631 | 628 |
SLAD | 580 | 582 | 590 | 589 | 588 |
TOTAL | 2,317 | 2,312 | 2,312 | 2,297 | 2,286 |
* Considers Company-operated and franchised restaurants at period-end |
Figure 8. Footprint as of June 30, 2023 | ||||||||
Store Type* | Total Restaurants | Ownership | McCafes | Dessert Centers | ||||
FS | IS | MS & FC | Company Operated | Franchised | ||||
Brazil | 550 | 91 | 457 | 1,098 | 662 | 436 | 137 | 1,975 |
NOLAD | 392 | 51 | 196 | 639 | 484 | 155 | 13 | 519 |
SLAD | 229 | 128 | 223 | 580 | 494 | 86 | 166 | 704 |
TOTAL | 1,171 | 270 | 876 | 2,317 | 1,640 | 677 | 316 | 3,198 |
* FS: Free-Standing; IS: In-Store; MS: Mall Store; FC: Food Court. |
During the second quarter of 2023, the Company opened 10 restaurants, including 9 restaurants in Brazil and 8 free-standing units. More than half the Company’s footprint is made up of free-standing units, the region’s largest free-standing portfolio, which provides a structural competitive advantage given the versatility of this format.
As of the end of June, there were 1,128 Experience of the Future restaurants, the most modern format in the global McDonald’s system, making up 49% of the Company’s total footprint.
The Company’s restaurant development plan remains on track, with a strong pipeline of restaurant openings and modernizations underway in the second semester of 2023. All ground breaks on new restaurant construction for 2023 have been made and the Company expects to meet its full year openings guidance of 75 to 80 restaurants and about 250 modernizations.
Balance Sheet & Cash Flow Highlights
Figure 9. Consolidated Financial Ratios (In thousands of U.S. dollars, except ratios) | ||
| June 30, | December 31, |
| 2023 | 2022 |
Total Cash & cash equivalents (i) | 223,953 | 304,396 |
Total Financial Debt (ii) | 695,494 | 674,401 |
Net Financial Debt (iii) | 471,541 | 370,005 |
LTM Adjusted EBITDA | 427,264 | 386,564 |
Total Financial Debt / LTM Adjusted EBITDA ratio | 1.6 | 1.7 |
Net Financial Debt / LTM Adjusted EBITDA ratio | 1.1 | 1.0 |
(i) | Total cash & cash equivalents include 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 $72.0 million and $92.9 million as a reduction of financial debt as of June 30, 2023 and December 31, 2022, respectively). |
(iii) | Net financial debt equals total financial debt less total cash & cash equivalents. |
As of June 30, 2023, total cash and cash equivalents were $224.0 million and total financial debt (including the net derivative instrument position) was $695.5 million. Net debt (total financial debt minus total cash and cash equivalents) was $471.5 million, up from $370.0 million at the end of 2022, due to lower cash balances and lower net value of the Brazilian-real linked derivative instruments used to hedge the US dollar debt.
The net debt to Adjusted EBITDA leverage ratio ended the quarter at a healthy 1.1x.
Net cash generated from operating activities for the six months ended June 30, totaled $84.3 million versus $121.9 million in the same period last year. Cash used in net investing activities totaled $109.0 million, with capital expenditures of $123.1 million. Net cash used in financing activities was $27.9 million, which included $21.1 million corresponding to the first two installments of the 2023 dividend.
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 20 Latin American and Caribbean countries and territories with more than 2,300 restaurants, operated by the Company or by its sub-franchisees, that together employ over 95 thousand people (as of 06/30/2023). 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).
Second Quarter 2023 Consolidated Results
Figure 10. Second Quarter 2023 Consolidated Results (In thousands of U.S. dollars, except per share data) | |||||
For Three-Months ended | For Six-Months ended | ||||
June 30, | June 30, | ||||
2023 | 2022 | 2023 | 2022 | ||
REVENUES | |||||
Sales by Company-operated restaurants | 994,530 | 848,350 | 1,940,884 | 1,603,644 | |
Revenues from franchised restaurants | 45,991 | 39,545 | 90,429 | 74,932 | |
Total Revenues | 1,040,521 | 887,895 | 2,031,313 | 1,678,576 | |
OPERATING COSTS AND EXPENSES | |||||
Company-operated restaurant expenses: | |||||
Food and paper | (351,745) | (301,028) | (685,611) | (564,436) | |
Payroll and employee benefits | (194,065) | (169,441) | (379,382) | (321,669) | |
Occupancy and other operating expenses | (278,997) | (244,747) | (542,720) | (464,874) | |
Royalty fees | (58,520) | (44,061) | (115,259) | (82,677) | |
Franchised restaurants - occupancy expenses | (20,420) | (16,855) | (38,629) | (32,863) | |
General and administrative expenses | (69,526) | (54,996) | (135,118) | (110,534) | |
Other operating income, net | 7,644 | 3,879 | 6,583 | 7,470 | |
Total operating costs and expenses | (965,629) | (827,249) | (1,890,136) | (1,569,583) | |
Operating income | 74,892 | 60,646 | 141,177 | 108,993 | |
Net interest expense and other financing results | (12,128) | (24,161) | (21,987) | (34,820) | |
Loss from derivative instruments | (9,191) | (1,144) | (14,120) | (12,836) | |
Foreign currency exchange results | 13,662 | (5,045) | 20,945 | 10,782 | |
Other non-operating income / (expenses), net | 116 | (83) | 6 | (108) | |
Income before income taxes | 67,351 | 30,213 | 126,021 | 72,011 | |
Income tax expense | (38,824) | (15,638) | (59,850) | (32,807) | |
Net income | 28,527 | 14,575 | 66,171 | 39,204 | |
Net income attributable to non-controlling interests | (159) | (94) | (396) | (220) | |
Net income attributable to Arcos Dorados Holdings Inc. | 28,368 | 14,481 | 65,775 | 38,984 | |
Earnings per share information ($ per share): | |||||
Basic net income per common share | $ 0.13 | $ 0.07 | $ 0.31 | $ 0.19 | |
Weighted-average number of common shares outstanding-Basic | 210,625,859 | 210,539,537 | 210,610,288 | 210,509,099 | |
Adjusted EBITDA Reconciliation | |||||
Operating income | 74,892 | 60,646 | 141,177 | 108,993 | |
Depreciation and amortization | 35,000 | 30,504 | 68,520 | 60,640 | |
Operating charges excluded from EBITDA computation | 164 | 212 | 863 | 227 | |
Adjusted EBITDA | 110,056 | 91,362 | 210,560 | 169,860 | |
Adjusted EBITDA Margin as % of total revenues | 10.6 % | 10.3 % | 10.4 % | 10.1 % |
Second Quarter 2023 Results by Division
Figure 11. Second Quarter 2023 Consolidated Results by Division (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 | ||||
2023 | 2022 | Incr/(Decr)% | Incr/(Decr)% | 2023 | 2022 | Incr/(Decr)% | Incr/(Decr)% | ||
Revenues | |||||||||
Brazil | 405,199 | 358,069 | 13.2 % | 13.9% | 779,397 | 670,048 | 16.3% | 16.4% | |
NOLAD | 277,590 | 222,726 | 24.6 % | 15.3% | 536,856 | 426,578 | 25.9% | 18.2% | |
SLAD | 357,732 | 307,100 | 16.5 % | 77.4% | 715,060 | 581,950 | 22.9% | 82.6% | |
SLAD - Excl. Venezuela | 351,615 | 303,083 | 16.0 % | 69.0% | 703,641 | 574,553 | 22.5% | 74.6% | |
TOTAL | 1,040,521 | 887,895 | 17.2 % | 36.2% | 2,031,313 | 1,678,576 | 21.0% | 39.8% | |
TOTAL - Excl. Venezuela | 1,034,404 | 883,878 | 17.0 % | 33.2 % | 2,019,894 | 1,671,179 | 20.9% | 36.9% | |
Operating Income (loss) | |||||||||
Brazil | 52,912 | 38,024 | 39.2 % | 39.5% | 97,002 | 70,045 | 38.5% | 38.4% | |
NOLAD | 18,410 | 14,854 | 23.9 % | 13.6% | 32,357 | 28,087 | 15.2% | 7.9% | |
SLAD | 29,452 | 26,845 | 9.7 % | 75.4% | 62,914 | 50,671 | 24.2% | 103.5% | |
SLAD - Excl. Venezuela | 31,345 | 28,185 | 11.2 % | 95.1% | 66,222 | 53,422 | 24.0% | 112.0% | |
Corporate and Other | (25,882) | (19,077) | -35.7% | -68.3% | (51,096) | (39,810) | -28.3% | -68.8% | |
TOTAL | 74,892 | 60,646 | 23.5 % | 40.0% | 141,177 | 108,993 | 29.5% | 49.7% | |
TOTAL - Excl. Venezuela | 76,785 | 61,986 | 23.9 % | 49.7% | 144,485 | 111,744 | 29.3% | 55.0% | |
Adjusted EBITDA | |||||||||
Brazil | 69,129 | 52,706 | 31.2 % | 31.7% | 128,602 | 98,744 | 30.2% | 30.2% | |
NOLAD | 28,210 | 23,258 | 21.3 % | 11.7% | 51,910 | 44,660 | 16.2% | 9.1% | |
SLAD | 36,874 | 32,937 | 12.0 % | 64.4% | 77,590 | 63,253 | 22.7% | 85.0% | |
SLAD - Excl. Venezuela | 38,402 | 33,961 | 13.1 % | 80.4% | 80,227 | 65,421 | 22.6% | 92.9% | |
Corporate and Other | (24,157) | (17,539) | -37.7% | -70.1% | (47,542) | (36,797) | -29.2% | -70.1% | |
TOTAL | 110,056 | 91,362 | 20.5 % | 31.0% | 210,560 | 169,860 | 24.0% | 36.4% | |
TOTAL - Excl. Venezuela | 111,584 | 92,386 | 20.8 % | 37.2% | 213,197 | 172,028 | 23.9% | 40.0% |
Figure 12. Average Exchange Rate per Quarter* | ||||
Brazil | Mexico | Argentina | ||
2Q23 | 4.95 | 17.68 | 231.76 | |
2Q22 | 4.92 | 20.02 | 117.88 | |
* Local $ per 1 US$ |
Summarized Consolidated Balance Sheets
Figure 13. Summarized Consolidated Balance Sheets (In thousands of U.S. dollars) | ||
June 30, | December 31, | |
2023 | 2022 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 201,492 | 266,937 |
Short-term investment | 22,461 | 37,459 |
Accounts and notes receivable, net | 127,856 | 124,273 |
Other current assets (1) | 213,667 | 196,873 |
Derivative instruments | 49,211 | 58,821 |
Total current assets | 614,687 | 684,363 |
Non-current assets | ||
Property and equipment, net | 981,051 | 856,085 |
Net intangible assets and goodwill | 65,706 | 54,569 |
Deferred income taxes | 92,234 | 87,972 |
Derivative instruments | 22,806 | 34,088 |
Equity method investments | 17,566 | 14,708 |
Leases right of use assets, net | 907,323 | 820,683 |
Other non-current assets (2) | 101,351 | 84,162 |
Total non-current assets | 2,188,037 | 1,952,267 |
Total assets | 2,802,724 | 2,636,630 |
LIABILITIES AND EQUITY | ||
Current liabilities | ||
Accounts payable | 307,995 | 353,468 |
Taxes payable (3) | 172,070 | 146,682 |
Accrued payroll and other liabilities | 147,928 | 115,327 |
Royalties payable to McDonald´s Corporation | 15,981 | 21,280 |
Provision for contingencies | 2,299 | 2,272 |
Interest payable | 7,788 | 7,906 |
Financial debt (4) | 32,085 | 29,566 |
Operating lease liabilities | 89,626 | 82,911 |
Total current liabilities | 775,772 | 759,412 |
Non-current liabilities | ||
Accrued payroll and other liabilities | 23,291 | 28,781 |
Provision for contingencies | 49,685 | 42,567 |
Financial debt (5) | 727,638 | 729,838 |
Deferred income taxes | 5,824 | 3,931 |
Operating lease liabilities | 816,165 | 747,674 |
Total non-current liabilities | 1,622,603 | 1,552,791 |
Total liabilities | 2,398,375 | 2,312,203 |
Equity | ||
Class A shares of common stock | 389,907 | 389,393 |
Class B shares of common stock | 132,915 | 132,915 |
Additional paid-in capital | 8,719 | 9,206 |
Retained earnings | 450,689 | 424,936 |
Accumulated other comprehensive loss | (559,229) | (613,460) |
Common stock in treasury | (19,367) | (19,367) |
Total Arcos Dorados Holdings Inc shareholders’ equity | 403,634 | 323,623 |
Non-controlling interest in subsidiaries | 715 | 804 |
Total equity | 404,349 | 324,427 |
Total liabilities and equity | 2,802,724 | 2,636,630 |
(1) | Includes "Other receivables", "Inventories" and "Prepaid expenses and other current assets”. |
(2) | Includes "Miscellaneous", "Collateral deposits", and "McDonald’s Corporation indemnification for contingencies". |
(3) | Includes "Income taxes payable" and "Other taxes payable". |
(4) | Includes "Short-term debt”, “Current portion of long-term debt" and "Derivative instruments”. |
(5) | Includes "Long-term debt, excluding current portion" and "Derivative instruments". |