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ARCO

Arcos Dorados Holdings Inc.

ARCO

Arcos Dorados Holdings Inc. • NYSE
$7.59 ▲ 3.83% (+0.28)
Market Cap $1.60 B
52w High $8.52
52w Low $6.51
Dividend Yield 0.24%
P/E 6.49
Volume 1.01M
Outstanding Shares 210.66M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.193B ▲ $-5.291M ▼ $150.429M ▲ 12.611% ▲ $0.71 ▲ $226.991M ▲
Q2-2025 $1.142B ▲ $69.582M ▼ $22.587M ▲ 1.977% ▲ $0.11 ▲ $107.57M ▲
Q1-2025 $1.077B ▼ $74.564M ▲ $13.93M ▼ 1.294% ▼ $0.066 ▼ $89.469M ▼
Q4-2024 $1.144B ▲ $67.744M ▲ $58.404M ▲ 5.104% ▲ $0.28 ▲ $147.583M ▲
Q3-2024 $1.134B $61.337M $35.214M 3.106% $0.17 $125.236M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $256.872M ▲ $3.566B ▲ $2.82B ▲ $744.799M ▲
Q2-2025 $233.862M ▼ $3.372B ▼ $2.791B ▼ $580.238M ▲
Q1-2025 $494.791M ▲ $3.467B ▲ $2.95B ▲ $515.247M ▲
Q4-2024 $138.593M ▲ $2.893B ▼ $2.383B ▼ $508.08M ▼
Q3-2024 $120.807M $2.961B $2.448B $512.203M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $150.429M ▲ $106.212M ▲ $-64.675M ▲ $-113K ▲ $35.745M ▲ $30.444M ▲
Q2-2025 $22.587M ▲ $71.142M ▲ $-66.554M ▲ $-259.613M ▼ $-257.554M ▼ $15.799M ▲
Q1-2025 $13.93M ▼ $-13.436M ▼ $-135.696M ▼ $418.675M ▲ $269.542M ▲ $-62.246M ▼
Q4-2024 $58.404M ▲ $107.053M ▲ $-88.126M ▼ $5.785M ▲ $19.156M ▲ $18.586M ▲
Q3-2024 $35.214M $96.087M $-58.174M $-25.381M $11.692M $5.845M

Five-Year Company Overview

Income Statement

Income Statement Arcos Dorados shows a clear recovery and growth story over the last five years. Sales have climbed steadily from the pandemic trough, and operating profits have improved as the business scaled back up. Profitability moved from losses to consistent earnings, though the most recent year shows profit slightly softer than the prior year rather than a clean upward line. Overall, the income statement reflects a mature, stable operator with better cost control and healthier margins than during the crisis years, but still exposed to economic swings in its markets.

Balance Sheet

Balance Sheet The balance sheet has gradually strengthened, with total assets and shareholder equity building up from a low base. Debt, however, remains high relative to equity, signaling a leveraged capital structure. Cash on hand is modest, which keeps pressure on management to maintain strong operations and access to funding. In simple terms, the company looks more solid than a few years ago, but it still carries meaningful financial leverage and relies on disciplined balance sheet management.

Cash Flow

Cash Flow Operating cash flow is consistently positive and has grown compared with the early pandemic period, which is a good sign of an underlying business that generates real cash, not just accounting profits. Free cash flow, however, has been more up and down because the company is spending heavily on new restaurants and upgrades. Recent negative free cash flow mainly reflects this investment push rather than operational weakness. The trade-off is clear: stronger long-term footprint and modernization in exchange for tighter near-term cash breathing room.

Competitive Edge

Competitive Edge Arcos Dorados enjoys a solid but not unassailable edge. Its master franchise agreement with McDonald’s across much of Latin America and the Caribbean provides a powerful brand, large scale, and marketing reach that local rivals struggle to match. Its size helps with purchasing, logistics, and advertising efficiency. At the same time, it operates in very competitive quick-service markets, with local and global chains vying for the same consumer, and it must navigate inflation, currency volatility, and shifting consumer spending in the region. The moat is real but must be actively defended.

Innovation and R&D

Innovation and R&D The company is leaning heavily into digital and operational innovation rather than traditional lab-style R&D. Its “Three D’s” strategy—Digital, Delivery, and Drive-Thru—has turned technology, mobile ordering, and modernized stores into key growth engines. The “Experience of the Future” format, self-order kiosks, and a fast-growing loyalty program deepen customer relationships and raise average spending. On top of that, the “Recipe for the Future” sustainability platform—covering greener sourcing, waste reduction, and youth employment—helps differentiate the brand and can support long-term loyalty and regulatory goodwill.

Summary

Arcos Dorados looks like a regional restaurant leader that has successfully moved past the pandemic shock, rebuilt profitability, and is now in an investment-heavy phase focused on digital capabilities and store modernization. Financially, it combines growing earnings and solid operating cash generation with a relatively leveraged balance sheet and uneven free cash flow due to expansion spending. Strategically, its exclusive McDonald’s franchise, scale advantages, digital ecosystem, and sustainability agenda provide clear strengths, while macroeconomic volatility, currency risk, and ongoing competitive pressure in Latin America remain key areas to watch.

NEWS

November 13, 2025 · 7:30 AM UTC

Arcos Dorados to Participate in Upcoming Investor Event

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November 12, 2025 · 7:30 AM UTC

Arcos Dorados Reports Third Quarter 2025 Financial Results

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October 15, 2025 · 7:00 AM UTC

Arcos Dorados Holdings Inc. Third Quarter 2025 Results Webcast Date and Time

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October 6, 2025 · 4:15 PM UTC

Arcos Dorados to Participate in Upcoming Investor Event

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October 6, 2025 · 7:27 AM UTC

Arcos Dorados Enters Into New $200 Million Syndicated Revolving Credit Facility

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