Arcos Dorados Results

Arcos Dorados Reports Second Quarter 2017 Financial Results

Achieved mid-teen top-line and Adjusted EBITDA growth. Delivered a strong increase in comparable sales, with positive volume trends across key markets.

Arcos Dorados

Arcos Dorados Holdings, Inc. (NYSE: ARCO), Latin America’s largest restaurant chain and the world’s largest McDonald’s franchisee, today reported unaudited results for the second quarter ended June 30, 2017.

Second Quarter 2017 Key Results

  • As reported consolidated revenues increased 16.2% to $798.7 million versus the second quarter of 2016. On a constant currency basis1, consolidated revenues grew 18.3%, or 13.0% excluding Venezuela.
  • Systemwide comparable sales1 rose 20.1% year-over-year, or 13.6% excluding Venezuela.
  • Adjusted EBITDA1 increased 38.7% to $56.6 million compared with the prior-year quarter.
  • Consolidated Adjusted EBITDA margin expanded 120 basis points to 7.1%.
  • As reported General and Administrative (G&A) expenses decreased 10 basis points as a percentage of revenues.
  • As reported net loss was $4.1 million, compared to net income of $43.4 million in the year-ago period, which included $50.1 million from asset monetization initiatives.

“We achieved mid-teen revenue and systemwide comparable sales growth, excluding Venezuela, which drove a strong increase in our Adjusted EBITDA in the second quarter. By continuing to deliver value and an unmatched experience to our customers, we were able to drive additional restaurant traffic in most of our markets. EBITDA margin expansion totaling 120 basis points reflected operating leverage, in keeping with a streamlined cost structure and more efficient restaurant operations. Consistent with our long-term strategic vision, we are focusing on our topline drivers as we transition into our growth strategy,” said Sergio Alonso, Chief Executive Officer of Arcos Dorados.

Second Quarter 2017 Results

Consolidated

Figure 1. AD Holdings Inc Consolidated: Key Financial Results

(In millions of U.S. dollars, except as noted)

   

2Q16

(a)

 

Currency

Translation

(b)

 

Constant

Currency

Growth

(c)

 

2Q17

(a+b+c)

 

% As

Reported

 

% Constant

Currency

Total Restaurants (Units)   2,135       2,160   1.2%  
 
Sales by Company-operated Restaurants 659.1 (13.1) 116.2 762.2 15.6% 17.6%
Revenues from franchised restaurants 28.2 (1.3) 9.5 36.5 29.2% 33.8%
Total Revenues 687.3 (14.3) 125.7 798.7 16.2% 18.3%
Systemwide Comparable Sales 20.1%
Adjusted EBITDA 40.8 -7.9 23.7 56.6 38.7% 58.2%
Adjusted EBITDA Margin 5.9% 7.1%
Net income (loss) attributable to AD 43.4 (11.5) (36.0) (4.1) -109.5% -83.0%
No. of shares outstanding (thousands) 210,625 210,881
EPS (US$/Share)   0.21           (0.02)        

Arcos Dorados’ second quarter as reported revenues increased 16.2%, driven by constant currency revenue growth of 18.3%, which was partially offset by the negative impact of currency translation. The currency translation impact mainly reflected the year-over-year average depreciation of the Venezuelan bolivar and the Argentine peso, which was partially offset by the appreciation of the Brazilian real. Constant currency revenue growth reflected a 20.1% expansion in systemwide comparable sales, driven by average check growth combined with positive traffic in most markets. Consolidated average check growth was strongly impacted by Venezuela’s high inflation rates.

Second quarter consolidated as reported Adjusted EBITDA increased 38.7%, driven by constant currency growth of 58.2%, which was supported by revenue growth and margin expansion. All four divisions delivered strong Adjusted EBITDA growth in the quarter. Brazil was the key contributor, followed by SLAD, the Caribbean division and NOLAD.

The Adjusted EBITDA margin expanded by 120 basis points to 7.1%, with margin improvements in Brazil and the Caribbean division partially offset by margin declines in NOLAD and SLAD. Efficiencies in Food and Paper (F&P) and Occupancy and Other Operating Expenses as a percentage of revenues drove the consolidated margin expansion.

As reported, consolidated G&A increased by 14.3% year-over-year. However, as a percentage of revenues it decreased 10 basis points. Importantly, G&A grew by 16.1% year-over-year on a constant currency basis versus the second quarter of 2016, which was below the estimated blended rate of inflation for the Company’s G&A.

Consolidated – excluding Venezuela

Figure 2. AD Holdings Inc Consolidated - Excluding Venezuela: Key Financial Results

(In millions of U.S. dollars, except as noted)

    2Q16

(a)

 

Currency

Translation

(b)

 

Constant

Currency

Growth

(c)

 

2Q17

(a+b+c)

 

% As

Reported

 

% Constant

Currency

Total Restaurants (Units)   2,002       2,030   1.4%  
 
Sales by Company-operated Restaurants 650.1 12.0 82.2 744.3 14.5% 12.6%
Revenues from franchised restaurants 27.2 1.4 5.9 34.5 26.8% 21.7%
Total Revenues 677.3 13.4 88.1 778.8 15.0% 13.0%
Systemwide Comparable Sales 13.6%
Adjusted EBITDA 43.4 3.3 12.1 58.9 35.6% 28.0%
Adjusted EBITDA Margin 6.4% 7.6%
Net income (loss) attributable to AD 50.8 0.8 (48.6) 3.0 -94.2% -95.7%
No. of shares outstanding (thousands) 210,625 210,881
EPS (US$/Share)   0.24           0.01        

Excluding the Company’s Venezuelan operation, as reported revenues increased 15.0% year-over-year. The result primarily reflects constant currency revenue growth of 13.0%, coupled with a positive impact from currency translation, as the appreciation of the Brazilian real more than offset the depreciation of the Argentine peso, as well as other currencies in the Company’s territories. Constant currency revenue growth was supported by a 13.6% increase in systemwide comparable sales, driven by average check growth and positive traffic in all divisions.

Adjusted EBITDA increased 35.6% on an as reported basis, or 28.0% in constant currency terms. The Adjusted EBITDA margin expanded 120 basis points to 7.6%, mainly driven by efficiencies in F&P and Occupancy and Other Operating expenses as a percentage of revenues.

Non-operating Results

Non-operating results for the second quarter reflected a $15.6 million foreign currency exchange loss, versus a gain of $15.5 million last year. The depreciation of the Brazilian real and the appreciation of the Mexican peso from the previous quarter-end generated a loss related to intercompany balances. Net interest expense increased $2.3 million year-over-year to $23.0 million in the quarter, largely explained by the incurrence of certain transaction costs in connection with the debt restructuring completed in April of 2017.

The Company reported an income tax benefit of $6.0 million in the quarter, compared to an income tax expense of $14.4 million in the prior year period.

Second quarter net loss attributable to the Company totaled $4.1 million, compared to net income of $43.4 million in the same period of 2016. The result reflects lower year-over-year operating results, given that the second quarter of last year included $50.1 million from the Company’s asset monetization initiatives, combined with the aforementioned negative variance in foreign exchange results and higher net interest expenses. These factors were partially offset by a positive variance in income tax expenses.

The Company reported a loss per share of $0.02 in the second quarter of 2017, compared to earnings per share of $0.21 in the previous corresponding period. Total weighted average shares for the second quarter of 2017 were 210,881,194, as compared to 210,625,444 in the prior year quarter.

Analysis by Division:

Brazil Division

Figure 3. Brazil Division: Key Financial Results

(In millions of U.S. dollars, except as noted)

   

2Q16

(a)

 

Currency

Translation

(b)

 

Constant

Currency

Growth

(c)

 

2Q17

(a+b+c)

 

% As

Reported

 

% Constant

Currency

Total Restaurants (Units)   884       910   2.9%  
 
Total Revenues 309.4 29.3 16.2 354.9 14.7% 5.2%
Systemwide Comparable Sales 8.3%
Adjusted EBITDA 30.5 3.9 11.5 45.9 50.5% 37.7%
Adjusted EBITDA Margin   9.9%           12.9%        

Brazil’s as reported revenues increased by 14.7%, supported by the 8% year-over-year average appreciation of the Brazilian real. Excluding the impact of currency translation, constant currency revenues grew 5.2% year-over-year and were negatively impacted by the refranchising of certain company-operated restaurants during the last twelve months. The shift to a greater percentage of franchised restaurants negatively impacts total revenue, as company-operated restaurant sales are replaced by rental income received from the Company’s sub-franchisees. In the quarter, total systemwide sales grew 10.5% in constant currency, while systemwide comparable sales increased 8.3%, driven by average check growth and positive traffic, despite a still soft consumer environment in the country.

Marketing activities in the quarter included the continuation of the new affordability platform “Clássicos do Dia” or “Daily Classics”, which continued to drive volume growth. Also in the quarter, the Company included Smurfs and Transformers in the Happy Meal and launched the McFlurry and McShake “Sonho de Valsa”, which contributed to growth in the Dessert category.

As reported Adjusted EBITDA increased 50.5% year-over-year and 37.7% on a constant currency basis. The Adjusted EBITDA margin expanded 300 basis points to 12.9%, mainly driven by lower F&P costs as a percentage of revenues.

NOLAD

Figure 4. NOLAD Division: Key Financial Results

(In millions of U.S. dollars, except as noted)

   

2Q16

(a)

 

Currency

Translation

(b)

 

Constant

Currency

Growth

(c)

 

2Q17

(a+b+c)

 

% As

Reported

 

% Constant

Currency

Total Restaurants (Units)   516       515   -0.2%  
 
Total Revenues 88.2 (2.8) 10.8 96.1 9.0% 12.2%
Systemwide Comparable Sales 11.1%
Adjusted EBITDA 7.8 (0.3) 0.9 8.4 7.0% 11.1%
Adjusted EBITDA Margin   8.9%           8.7%        

NOLAD’s as reported revenues increased 9.0% year-over-year as constant currency growth of 12.2% more than offset negative currency translation impacts. Systemwide comparable sales increased 11.1%, driven by average check growth combined with an increase in traffic across all of the division’s markets.

Marketing activities in the quarter included the affordability platform “Combo of the Day” in Panama. Also in the quarter, the Company launched the McFlurry Hershey’s Cookies and Crème Bites in the Dessert category, among others. In Mexico, the Company continued to gain traction with the continuation of the affordability platform “McTrío 3x3” and also benefitted from a positive calendar effect with the shift of the Easter Holiday.

As reported Adjusted EBITDA increased by 7.0%, or 11.1% on a constant currency basis. The Adjusted EBITDA margin contracted 20 basis points to 8.7% in the second quarter, mainly due to higher F&P costs as a percentage of revenues, which resulted from cost increases above price increases, in keeping with the Company’s focus on protecting traffic.

SLAD

Figure 5. SLAD Division: Key Financial Results

(In millions of U.S. dollars, except as noted)

   

2Q16

(a)

 

Currency

Translation

(b)

 

Constant

Currency

Growth

(c)

 

2Q17

(a+b+c)

 

% As

Reported

 

% Constant

Currency

Total Restaurants (Units)   382       386   1.0%  
 
Total Revenues 191.0 (13.3) 54.7 232.3 21.6% 28.6%
Systemwide Comparable Sales 29.0%
Adjusted EBITDA 15.6 (1.0) 3.3 17.9 14.7% 20.9%
Adjusted EBITDA Margin   8.2%           7.7%        

SLAD’s as reported revenues increased 21.6% as constant currency growth of 28.6% more than offset negative currency translation impacts resulting from the 11% year-over-year average depreciation of the Argentine peso. Systemwide comparable sales increased 29.0%, driven by the combination of average check growth and a solid increase in traffic.

Marketing activities in the quarter included the continuation of the new affordability platform “Combo del Día” and the “Antojos” campaign, based on core menu items. Also in the quarter, the Company introduced Smurfs and Transformers in the Happy Meal, and the McFlurry Toblerone in the Dessert category, among others.

Adjusted EBITDA increased 14.7% on an as reported basis and rose 20.9% in constant currency terms. The Adjusted EBITDA margin contracted 50 basis points to 7.7%, mainly driven by higher Payroll expenses, which resulted from salary increases based on prior period inflation which was above the prevailing rate in Argentina. This was partially offset by efficiencies in F&P costs as a percentage of revenues.

Caribbean Division

Figure 6. Caribbean Division: Key Financial Results

(In millions of U.S. dollars, except as noted)

   

2Q16

(a)

 

Currency

Translation

(b)

 

Constant

Currency

Growth

(c)

 

2Q17

(a+b+c)

 

% As

Reported

 

%

Constant

Currency

Total Restaurants (Units)   353       349   -1.1%  
 
Total Revenues 98.7 (27.5) 44.1 115.3 16.8% 44.7%
Systemwide Comparable Sales 56.3%
Adjusted EBITDA 1.5 (11.3) 12.0 2.1 45.6% 822.5%
Adjusted EBITDA Margin   1.5%           1.8%        

The Caribbean division’s as reported revenues increased 16.8%, as constant currency growth of 44.7% exceeded currency translation impacts derived from the remeasurement of the results of the Venezuelan operation at a weaker year-over-year average exchange rate. Systemwide comparable sales increased 56.3%, with inflation-driven average check growth more than offsetting a slight decrease in total traffic in the division.

Marketing activities in the quarter included the continuation of the Crispy Onion BBQ in the Signature Line and the launch of the McFlurry Pirulin in the Dessert category. Also in the quarter, the Company launched the “MyCombo” campaign in Puerto Rico and introduced Smurfs and Super Mario in the Happy Meal, among others.

As reported Adjusted EBITDA totaled $2.1 million in the second quarter, compared with $1.5 million in the prior year quarter. The Adjusted EBITDA margin expanded 30 basis points to 1.8%, mainly driven by efficiencies in Payroll and G&A expenses, which were partially offset by higher F&P costs and Occupancy and Other Operating expenses as a percentage of revenues.

Caribbean Division – excluding Venezuela

Figure 7. Caribbean Division - Excluding Venezuela: Key Financial Results

(In millions of U.S. dollars, except as noted)

   

2Q16

(a)

 

Currency

Translation

(b)

 

Constant

Currency

Growth

(c)

 

2Q17

(a+b+c)

 

% As

Reported

 

%

Constant

Currency

Total Restaurants (Units)   220       219   -0.5%  
 
Total Revenues 88.7 0.2 6.5 95.4 7.5% 7.3%
Systemwide Comparable Sales 5.5%
Adjusted EBITDA 4.1 (0.0) 0.4 4.4 8.5% 9.5%
Adjusted EBITDA Margin   4.6%           4.7%        

As reported revenues in the Caribbean division, excluding Venezuela, increased 7.5%, driven by constant currency growth of 7.3% and broadly stable year-over-year average exchange rates. The 5.5% expansion in comparable sales resulted from higher average check and positive traffic in the quarter.

Adjusted EBITDA totaled $4.4 million, compared to $4.1 million in the same period of 2016. The Adjusted EBITDA margin expanded 10 basis points to 4.7%, mainly driven by efficiencies in G&A and Payroll expenses, partially offset by higher Occupancy and Other Operating expenses as a percentage of revenues.

New Unit Development

Figure 8. Total Restaurants (eop)*                    
   

June

2017

 

March

2017

 

December

2016

 

September

2016

 

June

2016

Brazil   910   904   902   890   884
NOLAD 515 517 517 515 516
SLAD 386 385 384 383 382
Caribbean 349 350 353 352 353
TOTAL 2,160 2,156 2,156 2,140 2,135
LTM Net Openings   25   20   15   18   15
* Considers Company-operated and franchised restaurants at period-end

The Company opened 42 new restaurants during the twelve-month period ended June 30, 2017, resulting in a total of 2,160 restaurants. Also during the period, the Company added 166 Dessert Centers, bringing the total to 2,748. McCafés totaled 316 as of June 30, 2017.

Balance Sheet & Cash Flow Highlights

Cash and cash equivalents were $237.8 million at June 30, 2017. The Company’s total financial debt (including derivative instruments) was $627.0 million. Net debt (Total Financial Debt minus Cash and cash equivalents) was $389.2 million and the Net Debt/Adjusted EBITDA ratio was 1.4x at June 30, 2017.

Net cash provided by operating activities totaled $85.0 million for the quarter, and cash provided by financing activities amounted to $4.1 million. Cash used in net investing activities totaled $24.2 million, which included $12.8 million from asset monetization proceeds less total capital expenditures of $36.6 million.

 

Figure 9. Consolidated Financial Ratios

(In thousands of U.S. dollars, except ratios)

  June 30   December 31
    2017   2016
Cash & cash equivalents 237,797 194,803
Total Financial Debt (i) 626,953 610,170
Net Financial Debt (ii) 389,156 415,367
Total Financial Debt / LTM Adjusted EBITDA ratio 2.3 2.6
Net Financial Debt / LTM Adjusted EBITDA ratio   1.4   1.7

(i) Total financial debt includes short-term debt, long-term debt and derivative instruments.

(ii) Total financial debt less cash and cash equivalents.

First Half 2017

For the six months ended June 30, 2017, the Company’s as reported revenues increased by 17.4% to $1,580.2 million, largely driven by constant currency growth of 17.7%. As reported Adjusted EBITDA was $119.3 million, a 34.0% increase compared to the first half of 2016. On a constant currency basis, Adjusted EBITDA increased by 43.4%. The reported Adjusted EBITDA margin expanded by 90 basis points to 7.5%, driven by lower F&P costs, Occupancy and Other Operating expenses, and G&A as a percentage of revenues, partially offset by higher Payroll expenses.

Year-to-date consolidated net income amounted to $36.5 million, compared with net income of $59.5 million in the first half of 2016. The result reflects higher operating results in the first half of 2017, which were more than offset by a negative variance in foreign currency exchange results ($56.3 million) and net interest expenses. The Company reported an income tax expense of $16.4 million in the first half of 2017, compared to an income tax expense of $22.7 million in the prior year period.

Excluding the Venezuelan operation, the Company’s as reported revenues increased by 16.6%, and 11.2% on a constant currency basis. As reported Adjusted EBITDA rose by 30.5%, and by 17.7%, on a constant currency basis. The reported Adjusted EBITDA margin expanded by 90 basis points to 7.8%, as efficiencies in F&P costs, Occupancy and Other Operating expenses and G&A more than offset higher Payroll expenses as a percentage of revenues.

During the first half of 2017, capital expenditures totaled $65.2 million.

Quarter Highlights & Recent Developments

Re-Development Initiative

Since inception and through June 30, 2017, the Company has received cumulative cash proceeds of approximately $140 million from the redevelopment of certain of its properties, primarily in Mexico.

About Arcos Dorados

Arcos Dorados is the world’s largest McDonald’s franchisee in terms of systemwide sales and number of restaurants, 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, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guyana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad & Tobago, Uruguay and Venezuela. The Company operates or franchises over 2,100 McDonald’s-branded restaurants with over 90,000 employees and is recognized as one of the best companies to work for in Latin America. Arcos Dorados is traded on the New York Stock Exchange (NYSE: ARCO).

Second Quarter 2017 Consolidated Results

(In thousands of U.S. dollars, except per share data)

 

Figure 10. Second Quarter & First Half 2017 Consolidated Results

(In thousands of U.S. dollars, except per share data)

  For Three-Months ended   For Six-Months ended
June 30, June 30,
    2017   2016 2017   2016
REVENUES    
Sales by Company-operated restaurants 762,221 659,076 1,507,630 1,290,089
Revenues from franchised restaurants     36,477       28,225     72,548       55,726  
Total Revenues     798,698       687,301     1,580,178       1,345,815  
OPERATING COSTS AND EXPENSES
Company-operated restaurant expenses:
Food and paper (272,741 ) (242,698 ) (536,205 ) (470,716 )
Payroll and employee benefits (168,617 ) (144,859 ) (334,893 ) (284,011 )
Occupancy and other operating expenses (206,944 ) (183,387 ) (409,747 ) (359,097 )
Royalty fees (38,845 ) (33,603 ) (77,357 ) (65,699 )
Franchised restaurants - occupancy expenses (16,540 ) (13,194 ) (32,651 ) (25,790 )
General and administrative expenses (60,844 ) (53,213 ) (115,747 ) (101,999 )
Other operating income, net     1,417       47,404     51,336       47,423  
Total operating costs and expenses     (763,114 )     (623,550 )   (1,455,264 )     (1,259,889 )
Operating income     35,584       63,751     124,914       85,926  
Net interest expense (23,043 ) (20,778 ) (39,458 ) (35,037 )
Gain (Loss) from derivative instruments (6,589 ) (37 ) (7,231 ) (30 )
Foreign currency exchange results (15,552 ) 15,487 (24,111 ) 32,206
Other non-operating expense, net     (430 )     (592 )   (1,125 )     (766 )
Income (loss) before income taxes     (10,030 )     57,831     52,989       82,299  
Income tax (expense) benefit     5,987       (14,387 )   (16,351 )     (22,729 )
Net income (loss)     (4,043 )     43,444     36,638       59,570  
Less: Net income attributable to non-controlling interests     (71 )     (15 )   (148 )     (77 )
Net income (loss) attributable to Arcos Dorados Holdings Inc.     (4,114 )     43,429     36,490       59,493  
Earnings (loss) per share information ($ per share):
Basic net income per common share $ (0.02 ) $ 0.21 $ 0.17 $ 0.28
Weighted-average number of common shares outstanding-Basic     210,881,194       210,625,444     210,796,678       210,582,170  
Adjusted EBITDA Reconciliation              
Operating income 35,584 63,751 124,914 85,926
Depreciation and amortization 24,440 24,403 47,892 49,590
Operating charges excluded from EBITDA computation     (3,426 )     (47,350 )     (53,524 )     (46,505 )
Adjusted EBITDA     56,598       40,804       119,282       89,011  
Adjusted EBITDA Margin as % of total revenues     7.1 %     5.9 %     7.5 %     6.6 %

Second Quarter 2017 Results by Division

(In thousands of U.S. dollars)

 

Figure 11. Second Quarter & First Half 2017 Consolidated Results by Division

(In thousands of U.S. dollars)

  2Q   1H
Three-Months ended   % Incr.   Constant Six-Months ended   % Incr.   Constant
June 30,       /   Currency June 30,       /   Currency
    2017   2016   (Decr)   Incr/(Decr)% 2017   2016   (Decr)   Incr/(Decr)%

Revenues

   
Brazil 354,939 309,436 14.7% 5.2% 714,934 598,028 19.5% 3.0%
Caribbean 115,297 98,697 16.8% 44.7% 222,515 196,286 13.4% 50.4%
NOLAD 96,126 88,171 9.0% 12.2% 180,468 173,460 4.0% 8.8%
SLAD 232,336 190,997 21.6% 28.6% 462,261 378,041 22.3% 27.8%
TOTAL 798,698 687,301 16.2% 18.3% 1,580,178 1,345,815 17.4% 17.7%
 
 

Operating Income (loss)

Brazil 32,652 18,904 72.7% 57.9% 63,959 44,360 44.2% 24.4%
Caribbean (4,039) (6,563) 38.5% 233.5% (4,305) (14,365) 70.0% 229.7%
NOLAD 7,052 48,389 -85.4% -84.8% 58,208 50,359 15.6% 25.2%
SLAD 14,084 12,115 16.3% 23.6% 30,942 24,953 24.0% 29.4%
Corporate and Other (14,165) (9,094) -55.8% -65.8% (23,890) (19,381) -23.3% -29.8%
TOTAL 35,584 63,751 -44.2% -28.0% 124,914 85,926 45.4% 67.6%
 
 

Adjusted EBITDA

Brazil 45,892 30,502 50.5% 37.7% 90,654 65,795 37.8% 18.9%
Caribbean 2,120 1,456 45.6% 822.5% 7,758 3,917 98.1% 613.2%
NOLAD 8,369 7,824 7.0% 11.1% 13,575 15,465 -12.2% -10.8%
SLAD 17,881 15,595 14.7% 20.9% 38,501 32,084 20.0% 24.5%
Corporate and Other (17,664) (14,573) -21.2% -26.6% (31,206) (28,250) -10.5% -14.1%
TOTAL   56,598   40,804   38.7%   58.2%   119,282   89,011   34.0%   43.4%

Summarized Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

Figure 13. Summarized Consolidated Balance Sheets

(In thousands of U.S. dollars)

  June 30   December 31
    2017   2016
ASSETS
Current assets
Cash and cash equivalents 237,797 194,803
Accounts and notes receivable, net 69,719 83,239
Other current assets (1)   150,589     167,148  
Total current assets   458,105     445,190  
Non-current assets
Property and equipment, net 872,675 847,966
Net intangible assets and goodwill 42,032 43,044
Deferred income taxes 62,381 70,446
Other non-current assets (2)   130,550     98,407  
Total non-current assets   1,107,638     1,059,863  
Total assets   1,565,743     1,505,053  
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 206,858 217,914
Taxes payable (3) 89,478 112,593
Accrued payroll and other liabilities 127,500 144,442
Other current liabilities (4) 24,327 24,620
Provision for contingencies 720 764
Financial debt (5) 16,983 47,975
Deferred income taxes   0     0  
Total current liabilities   465,866     548,308  
Non-current liabilities
Accrued payroll and other liabilities 26,954 23,760
Provision for contingencies 21,393 17,348
Financial debt (6) 637,446 562,195
Deferred income taxes   2,010     1,866  
Total non-current liabilities   687,803     605,169  
Total liabilities   1,153,669     1,153,477  
Equity
Class A shares of common stock 376,728 373,969
Class B shares of common stock 132,915 132,915
Additional paid-in capital 12,395 13,788
Retained earnings 308,458 271,968
Accumulated other comprehensive losses   (418,935 )   (441,649 )
Total Arcos Dorados Holdings Inc shareholders’ equity   411,561     350,991  
Non-controlling interest in subsidiaries   513     585  
Total equity   412,074     351,576  
Total liabilities and equity   1,565,743     1,505,053  



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