- Systemwide comparable sales¹ grew 42.0% year-over-year,
driven primarily by higher guest volume across all
divisions
- Digital channels (Delivery, Mobile App and Self-order
Kiosks) generated 38% of systemwide sales in the quarter, with
record Delivery, Self-order Kiosk and Order Ahead sales
- Consolidated Adjusted EBITDA¹ in US dollars reached a
first-quarter record of $79.6 million, and trailing twelve month
Adjusted EBITDA was the highest in the Company’s history
- Net Income¹ reached $25.9 million, or $0.12 per share,
compared with net loss of $(0.13) per share in the prior year
quarter
Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or
the “Company”), Latin America’s largest restaurant chain and the
world’s largest independent McDonald’s franchisee, today reported
unaudited financial results for the three months ended March 31,
2022.
First Quarter 2022 Highlights – Excluding Venezuela
- Systemwide comparable sales² increased 42.0% versus the prior
year quarter, with strong results in all divisions.
- Consolidated¹ revenues totaled $787.3 million, rising 40.6% in
US dollars, or 45.2% in constant currency², versus the prior year
period.
- Consolidated¹ Adjusted EBITDA of $79.6 million was the
highest-ever for a first quarter and trailing twelve month Adjusted
EBITDA was the highest in the Company’s history.
- Consolidated¹ Adjusted EBITDA margin reached 10.1% in the
quarter, with strong sales growth driving operating leverage in all
line items versus 2021.
- Basic net income per share¹ was $0.12, compared to basic net
loss per share of $(0.13) in the prior year quarter.
- Net Debt to Adjusted EBITDA leverage ratio was 1.3x at the end
of the first quarter 2022.
¹Excluding the results of the Venezuelan operation except
Balance Sheet and Debt Ratio information.
²For definitions, please refer to page 16 of this document.
Message from Marcelo Rabach, Chief Executive Officer
Today we are reporting another quarter of record sales and
profitability. These broad-based and sustainable results are a
testament to the structural competitive advantages we have been
building for years and the focused execution of our Three-D’s
(Digital, Delivery and Drive-thru) strategy. Revenue reached nearly
$790 million in the quarter, with systemwide comparable sales up
42% on the back of strong volume growth and continued market share
gains within a consolidating marketplace. Digital sales (Delivery,
Mobile App and Self-order Kiosks) contributed 38% of the quarter’s
sales and included the highest-ever US dollar sales totals for
Delivery, Self-order Kiosks and Order Ahead.
Revenue management (including pricing, product mix and
segmentation) plus a highly-localized supply chain and efficient
operation drove significant operating leverage across all cost and
expense line items. Adjusted EBITDA was a record for a first
quarter and the trailing twelve month result is now the highest in
our history.
The Company’s balance sheet and cash generation are very strong.
After the quarter ended, we became the first quick-service
restaurant operator in the world to issue a Sustainability-Linked
Bond (SLB). As a result, the average maturity of our long-term debt
has been extended to 6.0 years, with no major maturities until
September of 2027.
We are proud of the Recipe of the Future ESG platform we
developed several years ago and this SLB proves once-again that we
are committed to the targets we established to have a positive
influence on the communities we serve and the planet as a whole.
These commitments are good for business, as demonstrated by the
lowest spread over US Treasuries ever for an Arcos Dorados
long-term debt instrument. But, more importantly, tying our
financial strategy to our long-term climate change commitments is
the right thing to do.
We began 2022 with a strong pace of growth, opening 16
restaurants, including 14 free-standing units and 10 restaurants in
Brazil. We have worked hard to increase the size and accelerate the
pace of the openings pipeline. Based on the current run-rate, we
expect to exceed restaurant opening and capital expenditure
guidance for 2022.
We are very encouraged by the results we are reporting today and
strongly believe they will be sustainable over time. Both Arcos
Dorados and the McDonald’s brand in Latin America and the Caribbean
are in a very strong competitive position.
Consolidated Results
Consolidated
Figure 1. AD Holdings Inc Consolidated: Key Financial
Results(In millions of U.S. dollars, except as noted)
1Q21 (a)
Currency
Translation -
Excl. Venezuela (b)
Constant Currency Growth
-
Excl. Venezuela (c)
Venezuela (d)
1Q22 (a+b+c+d)
% As Reported
Total Restaurants (Units)
2,242
2,273
Sales by Company-operated Restaurants
537.9
(25.8
)
241.3
1.9
755.3
40.4
%
Revenues from franchised restaurants
23.2
0.4
11.5
0.2
35.4
52.4
%
Total Revenues
561.1
(25.3
)
252.8
2.1
790.7
40.9
%
Adjusted EBITDA
23.9
(2.0
)
56.9
(0.3
)
78.5
228.0
%
Adjusted EBITDA Margin
4.3
%
9.9
%
5.7
%
Net income (loss) attributable to AD
(29.7
)
(2.7
)
56.6
0.3
24.5
NM
No. of shares outstanding (thousands)
210,227
210,478
EPS (US$/Share)
(0.14
)
0.12
1Q22 = 1Q21 + Currency Translation Excl.
Venezuela + Constant Currency Growth Excl. Venezuela + Venezuela).
Refer to “Definitions” section for further detail.
Arcos Dorados’ consolidated results may continue to be impacted
by Venezuela’s macroeconomic volatility, including the ongoing
hyperinflationary environment, which has historically led the
Company to record significant non-cash accounting charges to
operations in this market. As such, the discussion of the Company’s
operating performance continues to be focused on consolidated
results that exclude Venezuela both at the Consolidated level as
well as for the South Latin American Division.
First quarter net income attributable to the Company totaled
$24.5 million, compared to net loss of $29.7 million in the same
period of 2021. Arcos Dorados’ recorded earnings of $0.12 per share
in the first quarter of 2022 compared to a net loss of $(0.14) per
share in the corresponding 2021 period. Total weighted average
shares for the first quarter of 2022 amounted to 210,478,322
compared to 210,226,699 in the prior year’s quarter.
Consolidated - excluding Venezuela
Figure 2. AD Holdings Inc Consolidated - Excluding Venezuela:
Key Financial Results(In millions of U.S. dollars, except as
noted)
1Q21 (a)
Currency
Translation (b)
Constant Currency Growth
(c)
1Q22 (a+b+c)
% As
Reported
% Constant
Currency
Total Restaurants (Units)
2,136
2,172
Sales by Company-operated Restaurants
536.8
(25.8
)
241.3
752.3
40.2
%
45.0
%
Revenues from franchised restaurants
23.1
0.4
11.5
35.0
51.8
%
49.9
%
Total Revenues
559.8
(25.3
)
252.8
787.3
40.6
%
45.2
%
Systemwide Comparable Sales
42.0
%
Adjusted EBITDA
24.7
(2.0
)
56.9
79.6
221.9
%
230.0
%
Adjusted EBITDA Margin
4.4
%
10.1
%
5.7
%
Net income (loss) attributable to AD
(28.0
)
(2.7
)
56.6
25.9
NM
NM
No. of shares outstanding (thousands)
210,227
210,478.3
EPS (US$/Share)
(0.13
)
0.12
Total revenues in US dollars increased 40.2%, or 45.0% in
constant currency, versus the prior year period. Systemwide
comparable sales rose 42% in the quarter, with strong sales growth
in all divisions. Drive-thru and Delivery sales continued to
support top-line growth, increasing 13% and 29% in constant
currency, respectively, on top of robust growth in the prior year
and despite the recovery of on-premise sales segments: front
counter, dessert centers and McCafé.
On-premise sales continued to recover, growing 81% versus the
prior year in constant currency. With that, 46% of systemwide sales
were generated in off-premise channels and 54% in the on-premise
segments in the first quarter 2022. Digital, which includes sales
from Delivery, Mobile App and Self-order kiosks generated 38% of
systemwide sales in the quarter, with a 54% growth versus the prior
year, reaching 40% of the Company’s total sales in March 2022, its
highest monthly sales in absolute terms.
By the end of March, the Company’ Mobile App registered 69
million downloads and was, by far, the leader in monthly active
users among quick service restaurant operators. Increasingly
personalized digital marketing initiatives generated greater guest
frequency and helped drive sales growth in the quarter.
Finally, results in the quarter were supported by strong
consumer preference for the McDonald’s Brand experience. Guest
perception of key brand attributes, including favorite brand,
improved across the Company’s footprint, with market share growth
ahead of all other chained quick service restaurant brands.
Adjusted EBITDA – Excluding Venezuela ($million)
Breakdown of main variations contributing to 1Q22 Adjusted
EBITDA
First quarter consolidated Adjusted EBITDA, excluding Venezuela,
reached $79.6 million. Trailing twelve month Adjusted EBITDA was
$329.9 million, the highest in the Company’s history. Strong,
traffic-driven sales growth generated operating leverage in all
divisions. Consolidated Adjusted EBITDA margin was up 5.7
percentage points versus the first quarter of 2021, with all
divisions exceeding pre-pandemic margin levels, reflecting
successful revenue and cost management. Importantly, all divisions
also exceeded pre-pandemic Adjusted EBITDA levels in US dollar
terms.
Consolidated G&A expenses declined by 90 basis points as a
percentage of sales versus the prior year quarter as a result of
strong revenue growth.
Notable items in the Adjusted EBITDA reconciliation
Included in Adjusted EBITDA: There
were no material variations.
Excluded from Adjusted EBITDA:
There were no material variations.
Non-operating Results - excluding Venezuela
Arcos Dorados’ non-operating results for the first quarter
included a non-cash foreign currency exchange gain of $15.8 million
and an $11.7 million loss from Derivative Instruments, both due to
the appreciation of the Brazilian Real in the period. Net interest
expense was $1.6 million lower year-over-year. The Company recorded
an income tax expense of $17.2 million in the first quarter,
compared to an income tax benefit of $0.1 million in the prior-year
period.
First quarter net income attributable to the Company totaled
$25.9 million, compared to net loss of $28.0 million in the
prior-year period. Earnings per share were $0.12 in the first
quarter 2022 compared to net loss per share of $(0.13) in the prior
year quarter.
Divisional Results
Brazil Division
Figure 3. Brazil Division: Key Financial Results(In millions
of U.S. dollars, except as noted)
1Q21 (a)
Currency
Translation (b)
Constant Currency Growth
(c)
1Q22 (a+b+c)
% As
Reported
% Constant
Currency
Total Restaurants (Units)
1,030
1,061
Total Revenues
203.3
14.9
93.8
312.0
53.5
%
46.1
%
Systemwide Comparable Sales
39.0
%
Adjusted EBITDA
13.5
2.3
30.2
46.0
240.0
%
223.2
%
Adjusted EBITDA Margin
6.7
%
14.8
%
8.1
%
As reported revenues increased 53.5% versus the first quarter
2021, reaching $312.0 million. Traffic rose strongly
year-over-year, partly due to the impact of renewed government
restrictions on the prior year period’s sales volume in March. The
appreciation of the Brazilian real also helped improve US dollar
revenue growth. On a constant currency basis, revenues grew 46.1%,
supported by 39.0% higher systemwide comparable sales.
First quarter marketing activities in Brazil built sales and
traffic growth momentum, with important campaigns designed to boost
brand affinity among younger guests. The “Méquizices” campaign
featured some of Brazil’s top music celebrities describing their
favorite McDonald’s orders. The sponsorship of Big Brother Brazil,
the country’s most popular reality television show, fueled sales
across the Three D’s: Digital, Delivery and Drive Thru. Families
enjoyed the exclusive “Disney 50th Anniversary” collection in the
Happy Meal, driving unit sales growth in the quarter.
As reported Adjusted EBITDA in the division reached $46.0
million in the quarter, benefitting from an 8.1 percentage point
improvement in Adjusted EBITDA margin versus the prior year
quarter, or 1.0 percentage point higher versus the pre-pandemic
first quarter 2019. Margins benefitted from operating leverage
generated by the strong growth in sales. This included gross margin
expansion despite cost pressures.
North Latin American Division (NOLAD)
Figure 4. NOLAD Division: Key Financial Results(In millions
of U.S. dollars, except as noted)
1Q21 (a)
Currency
Translation (b)
Constant Currency Growth
(c)
1Q22 (a+b+c)
% As
Reported
% Constant
Currency
Total Restaurants (Units)
629
625
Total Revenues
173.8
(4.0
)
34.1
203.9
17.3
%
19.6
%
Systemwide Comparable Sales
24.1
%
Adjusted EBITDA
13.8
(0.6
)
8.2
21.4
54.7
%
59.2
%
Adjusted EBITDA Margin
8.0
%
10.5
%
2.5
%
As reported revenues were $203.9 million, up 17.3% in US dollars
and 19.6% in constant currency versus the prior year quarter.
Notably, this US dollar result was almost 30% higher than the
pre-pandemic first quarter of 2019. NOLAD markets maintained the
strong performance trends established in 2021 thanks mostly to the
continuing recovery in guest volume. Systemwide comparable sales
rose 24.1% year-over-year, driven primarily by Mexico and
Panama.
Marketing activities in NOLAD mostly focused on core menu items
in the quarter. Mexico reinforced the chicken category with the
introduction of “Spicy Chicken McNuggets” and the “McCrispy Spicy
Deluxe”. Costa Rica drove customer excitement with the “El
Incomparable Big Mac” campaign and, after a 2-year hiatus, we
successfully re-introduced a seasonal favorite, the Filet-o-Fish,
in Costa Rica, Panama and Puerto Rico.
As reported Adjusted EBITDA reached $21.4 million in the first
quarter compared with $13.8 million in the prior year quarter,
representing a year-over-year increase of 54.7%, or 59.2% on a
constant currency basis. Similar to revenue, the US dollar Adjusted
EBITDA result was higher than the pre-pandemic first quarter of
2019. First quarter 2022 Adjusted EBITDA margin rose by 2.5
percentage points against 2021, including efficiencies in all line
items.
South Latin American Division (SLAD)
Figure 5. SLAD Division: Key Financial Results(In millions
of U.S. dollars, except as noted)
1Q21 (a)
Currency
Translation -
Excl.
Venezuela (b)
Constant Currency Growth
-
Excl.
Venezuela (c)
Venezuela (d)
1Q22 (a+b+c+d)
% As
Reported
Total Restaurants (Units)
583
587
Total Revenues
184.1
(36.3
)
124.9
2.1
274.9
49.3
%
Adjusted EBITDA
9.6
(5.3
)
26.3
(0.3
)
30.3
215.7
%
Adjusted EBITDA Margin
5.2
%
11.0
%
5.8
%
Figure 6. SLAD Division - Excluding Venezuela: Key Financial
Results(In millions of U.S. dollars, except as noted)
1Q21 (a)
Currency
Translation (b)
Constant Currency Growth
(c)
1Q22 (a+b+c)
% As
Reported
% Constant
Currency
Total Restaurants (Units)
477
486
Total Revenues
182.8
(36.3
)
124.9
271.5
48.5
%
68.3
%
Systemwide Comparable Sales
64.3
%
Adjusted EBITDA
10.4
(5.3
)
26.3
31.5
202.0
%
252.9
%
Adjusted EBITDA Margin
5.7
%
11.6
%
5.9
%
Revenues in SLAD, excluding Venezuela, increased 48.5% in US
dollars, or 68.3% in constant currency terms. Systemwide comparable
sales rose 64.3%, more than double the blended inflation in the
period. Performance was strong across the division, especially in
Argentina, Chile and Colombia where volume growth was robust.
First quarter marketing activities in SLAD also centered on core
offerings. In Argentina, the “Más Sabor, Más Fun” campaign drove an
increase in Big Mac sales while markets like Chile and Colombia
focused on strengthening the chicken category. Most markets’ family
business benefitted from the Company’s exclusive licensing
agreement with Disney. Finally, Drive-thru and Delivery remained
very strong in the Division, reaching all time sales records in
many markets.
As reported Adjusted EBITDA reached $31.5 million, compared with
$10.4 million in the prior-year quarter. Adjusted EBITDA margin was
11.6%, or 5.9 percentage points higher than the prior year quarter.
Food & Paper costs remained stable, with all other cost and
expense line items declining as a percentage of sales in the
period.
New Unit Development
Figure 7. Total Restaurants (eop)*
March 2022
December 2021
September 2021
June 2021
March 2021
Brazil
1,061
1,051
1,052
1,044
1,030
NOLAD
625
625
626
626
629
SLAD
587
585
585
585
583
TOTAL
2,273
2,261
2,263
2,255
2,242
* Considers Company-operated and franchised restaurants at
period-end
Figure 8. Footprint as of March 31, 2022
Store Type*
Total
Restaurants
Ownership
McCafes
Dessert
Centers
FS & IS
MS & FC
Company
Operated
Franchised
Brazil
601
460
1,061
639
422
104
1,977
NOLAD
432
193
625
456
169
14
533
SLAD
364
223
587
497
90
162
715
TOTAL
1,397
876
2,273
1,592
681
280
3,225
* FS: Free-Standing; IS: In-Store; MS: Mall Store; FC: Food Court.
During the first quarter of 2022, Arcos Dorados opened 16
restaurants, including 14 new free-standing units and 10 new
restaurants in Brazil. As of the end of March 2022 there were 828
Experience of the Future Restaurants across the Company’s
footprint.
Balance Sheet & Cash Flow Highlights
Figure 9. Consolidated Financial Ratios(In thousands of U.S.
dollars, except ratios)
March 31,
December 31,
2021
2021
Cash & cash equivalents (i)
279,749
278,830
Total Financial Debt (ii)
705,871
657,896
Net Financial Debt (iii)
426,122
379,066
Total Financial Debt / LTM Adjusted EBITDA ratio
2.2
2.4
Net Financial Debt / LTM Adjusted EBITDA ratio
1.3
1.4
(i) 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 $90.7 million and $120.4
million as a reduction of financial debt as of March 31, 2021 and
December 2021, respectively). (iii) Net Financial Debt equals Total
Financial Debt less Cash & cash equivalents.
Cash and cash equivalents were $279.7 million and total
financial debt (including the value of derivative instruments) was
$705.9 million, as of March 31, 2022. Net debt was $426.1 million,
up from $379.1 million at the end of 2021 due to a decline in the
value of Brazilian real linked derivative instruments.
The Net Debt to Adjusted EBITDA leverage ratio ended the quarter
at a healthy 1.3x as record trailing-twelve-month Adjusted EBITDA
more than offset the increase in net debt.
Net cash generated from operating activities for the three
months ended March 31 totaled $35.2 million, up from just $7.0
million last year. Cash used in net investing activities totaled
$40.9 million, with capital expenditures of $24.8 million. Net cash
used in financing activities was $11.8 million, including the first
installment of the 2022 dividend.
Recent Developments
Sustainability-Linked Bond
On April 27, 2022, the Company became the first quick service
restaurant operator in the world to link its financial strategy to
its environmental objectives when its subsidiary, Arcos Dorados
B.V., issued a Sustainability-Linked Bond (SLB) for an aggregate
principal amount of $350 million. Maturing on May 27, 2029 the SLB
bears interest of 6.125% per year, representing the lowest spread
over US Treasuries in the Company’s history. The proceeds of this
liability management transaction are being used to re-purchase most
of the Company’s outstanding 2023 bond and to fund a tender offer
of $150 million of its outstanding 2027 bond.
The bond includes Sustainability Performance Targets (SPT) that
must be achieved by 2025 against a 2021 baseline. SPT 1 is for a
15% absolute reduction of Scope 1 and 2 greenhouse gas (GHG)
emissions. SPT 2 is for a 10% reduction in the intensity of Scope 3
GHG emissions. Both SPT 1 and SPT 2 will be measured and reported
by a third-party expert, South Pole Carbon Asset Management
Ltd.
If one of the SPT’s is not achieved, then the interest rate on
the SLB will increase by 12.5 basis points. If neither SPT is
achieved, then the interest rate will increase by 25 basis
points.
First Quarter 2022 Earnings Webcast
A webcast to discuss the information contained in this press
release will be held today, May 18, 2022, at 10:00 a.m. ET. In
order to access the webcast, members of the investment community
should follow this link Arcos Dorados First Quarter 2022 Results
Webcast.
A replay of the webcast will be available later today through
August 2022 in the investor section of the Company’s website:
www.arcosdorados.com/ir.
Definitions
Systemwide comparable sales growth: refers to the change,
measured in constant currency, in our Company-operated and
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). While sales by our franchisees are not
recorded as revenues by us, we believe the information is important
in understanding our financial performance because these sales are
the basis on which we calculate and record franchised revenues and
are indicative of the financial health of our franchisee base.
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: (i) currency
translation, (ii) constant currency growth. (i) Currency
translation reflects the impact on growth of the appreciation or
depreciation of the local currencies in which we conduct our
business against the US dollar (the currency in which our financial
statements are prepared). (ii) Constant currency growth reflects
the underlying growth of the business excluding the effect from
currency translation.
Excluding Venezuela basis: due to the ongoing political
and macroeconomic uncertainty prevailing in Venezuela, and in order
to provide greater clarity and visibility on the Company’s
financial and operating overall performance, this release focuses
on the results on an “Excluding-Venezuela” basis, which is non-GAAP
measure.
Adjusted EBITDA: In addition to financial measures
prepared in accordance with the general accepted accounting
principles (GAAP), within this press release and the accompanying
tables, we use a non-GAAP financial measure titled ‘Adjusted
EBITDA’. We use Adjusted EBITDA to facilitate operating performance
comparisons from period to period.
Adjusted EBITDA is defined as our operating income plus
depreciation and amortization plus/minus the following losses/gains
included within other operating income (expenses), net, and within
general and administrative expenses in our statement of income:
gains from sale, equity method investments, or insurance recovery
of property and equipment; write-offs of property and equipment;
impairment of long-lived assets and goodwill; and reorganization
and optimization plan expenses.
We believe 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 financial charges),
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. Figures 10 and 11 of
this earnings release include a reconciliation for Adjusted EBITDA.
For more information, please see Adjusted EBITDA reconciliation in
Note 9 – Segment and geographic information – of our financial
statements (6-K Form) filed today with the S.E.C.
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
2,250 restaurants, operated by the Company or by its
sub-franchisees, that together employ over 90 thousand people (as
of 03/31/2022). 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: www.arcosdorados.com/ir.
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 affordable platform, its expectation for revenue
generation and its outlook and guidance for growth and investments
in 2022. 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.
First Quarter 2022 Consolidated Results
Figure 10. First Quarter 2022 Consolidated Results(In
thousands of U.S. dollars, except per share data)
For
Three-Months ended March 31,
2022
2021
REVENUES Sales by Company-operated restaurants
755,294
537,889
Revenues from franchised restaurants
35,387
23,227
Total Revenues
790,681
561,116
OPERATING COSTS AND EXPENSES Company-operated restaurant expenses:
Food and paper
(263,408
)
(192,659
)
Payroll and employee benefits
(152,228
)
(114,421
)
Occupancy and other operating expenses
(220,127
)
(178,193
)
Royalty fees
(38,616
)
(27,661
)
Franchised restaurants - occupancy expenses
(16,008
)
(11,827
)
General and administrative expenses
(55,538
)
(44,966
)
Other operating income
3,591
1,803
Total operating costs and expenses
(742,334
)
(567,924
)
Operating income / (loss)
48,347
(6,808
)
Net interest expense
(10,659
)
(12,282
)
Loss from derivative instruments
(11,692
)
(1,149
)
Foreign currency exchange results
15,827
(9,348
)
Other non-operating (expenses), net
(25
)
(142
)
Income / (loss) before income taxes
41,798
(29,729
)
Income tax expense
(17,169
)
70
Net income / (loss)
24,629
(29,659
)
Less: Net income attributable to non-controlling interests
(126
)
(54
)
Net income / (loss) attributable to Arcos Dorados Holdings
Inc.
24,503
(29,713
)
Earnings per share information ($ per share): Basic net
income / (loss) per common share
$
0.12
$
(0.14
)
Weighted-average number of common shares outstanding-Basic
210,478,322
210,226,699
Adjusted EBITDA Reconciliation Operating income / (loss)
48,347
(6,808
)
Depreciation and amortization
30,136
30,366
Operating charges excluded from EBITDA computation
15
372
Adjusted EBITDA
78,498
23,930
Adjusted EBITDA Margin as % of total revenues
9.9
%
4.3
%
First Quarter 2022 Consolidated Results Excluding
Venezuela
Figure 11. First Quarter 2022 Consolidated Results -
Excluding Venezuela (In thousands of U.S. dollars, except per
share data)
For Three-Months ended March 31,
2022
2021
REVENUES Sales by Company-operated restaurants
752,279
536,766
Revenues from franchised restaurants
35,022
23,070
Total Revenues
787,301
559,836
OPERATING COSTS AND EXPENSES Company-operated restaurant expenses:
Food and paper
(262,314
)
(192,471
)
Payroll and employee benefits
(151,346
)
(114,187
)
Occupancy and other operating expenses
(218,535
)
(177,409
)
Royalty fees
(38,616
)
(27,661
)
Franchised restaurants - occupancy expenses
(15,879
)
(11,726
)
General and administrative expenses
(54,454
)
(44,281
)
Other operating income
3,601
2,965
Total operating costs and expenses
(737,543
)
(564,769
)
Operating income / (loss)
49,758
(4,933
)
Net interest expense
(10,659
)
(12,282
)
Loss from derivative instruments
(11,692
)
(1,149
)
Foreign currency exchange results
15,763
(9,560
)
Other non-operating (expenses), net
(23
)
(142
)
Income / (loss) before income taxes
43,147
(28,066
)
Income tax expense
(17,169
)
87
Net income / (loss)
25,978
(27,979
)
Less: Net income attributable to non-controlling interests
(126
)
(54
)
Net income / (loss) attributable to Arcos Dorados Holdings
Inc.
25,852
(28,033
)
Earnings per share information ($ per share): Basic net
income / (loss) per common share
$
0.12
$
(0.13
)
Weighted-average number of common shares outstanding-Basic
210,478,322
210,226,699
Adjusted EBITDA Reconciliation Operating income / (loss)
49,758
(4,933
)
Depreciation and amortization
29,869
30,016
Operating charges excluded from EBITDA computation
15
(339
)
Adjusted EBITDA
79,642
24,744
Adjusted EBITDA Margin as % of total revenues
10.1
%
4.4
%
First Quarter 2022 Results by Division
Figure 12. First Quarter 2022 Consolidated Results by
Division(In thousands of U.S. dollars)
1Q
Three-Months ended as Constant March
31, reported Currency
2022
2021
Incr/(Decr)%
Incr/(Decr)%
Revenues Brazil
311,979
203,251
53.5
%
46.1
%
NOLAD
203,852
173,754
17.3
%
19.6
%
SLAD
274,850
184,111
49.3
%
72.0
%
SLAD - Excl. Venezuela
271,470
182,832
48.5
%
68.3
%
TOTAL
790,681
561,116
40.9
%
46.4
%
TOTAL - Excl. Venezuela
787,301
559,837
40.6
%
45.2
%
Operating Income (loss)
Brazil
32,021
180
NM
NM
NOLAD
13,233
5,141
157.4
%
166.7
%
SLAD
23,826
1,852
NM
NM
SLAD - Excl. Venezuela
25,237
3,727
NM
NM
Corporate and Other
(20,733
)
(13,981
)
48.3
%
61.3
%
TOTAL
48,347
(6,808
)
NM
NM
TOTAL - Excl. Venezuela
49,758
(4,933
)
NM
NM
Adjusted EBITDA Brazil
46,038
13,540
240.0
%
223.2
%
NOLAD
21,402
13,836
54.7
%
59.2
%
SLAD
30,316
9,604
215.7
%
252.1
%
SLAD - Excl. Venezuela
31,460
10,418
202.0
%
252.9
%
Corporate and Other
(19,258
)
(13,050
)
47.6
%
60.2
%
TOTAL
78,498
23,930
228.0
%
228.8
%
TOTAL - Excl. Venezuela
79,642
24,744
221.9
%
230.0
%
Figure 13. Average Exchange Rate per Quarter*
Brazil Mexico Argentina
1Q22
5.23
20.50
106.56
1Q21
5.47
20.34
88.56
* Local $ per 1 US$
Summarized Consolidated Balance Sheets
Figure 14. Summarized Consolidated Balance Sheets(In
thousands of U.S. dollars)
March 31,
December 31,
2022
2021
ASSETS
Current assets
Cash and cash equivalents
267,326
278,830
Short-term investment
12,423
-
Accounts and notes receivable, net
89,387
82,180
Other current assets (1)
165,354
179,106
Total current assets
534,490
540,116
Non-current assets Property and
equipment, net
801,172
743,533
Net intangible assets and goodwill
42,087
38,808
Deferred income taxes
81,341
67,802
Derivative instruments
90,680
120,371
Equity method investments
13,583
13,105
Leases right of use assets, net
832,948
763,580
Other non-current assets (2)
85,543
73,942
Total non-current assets
1,947,354
1,821,141
Total assets
2,481,844
2,361,257
LIABILITIES AND EQUITY
Current
liabilities Accounts payable
250,977
269,215
Taxes payable (3)
132,035
137,362
Accrued payroll and other liabilities
121,061
89,923
Other current liabilities (4)
30,165
27,316
Provision for contingencies
2,120
2,140
Financial debt (5)
15,510
12,787
Operating lease liabilities
83,846
79,120
Total current liabilities
635,714
617,863
Non-current liabilities Accrued
payroll and other liabilities
26,144
21,900
Provision for contingencies
39,118
31,946
Financial debt (6)
765,194
754,097
Deferred income taxes
3,492
7,170
Operating lease liabilities
772,655
707,119
Total non-current liabilities
1,606,603
1,522,232
Total liabilities
2,242,317
2,140,095
Equity Class A shares of common
stock
388,369
388,369
Class B shares of common stock
132,915
132,915
Additional paid-in capital
10,147
10,101
Retained earnings
309,096
316,180
Accumulated other comprehensive losses
(582,375
)
(607,768
)
Common stock in treasury
(19,367
)
(19,367
)
Total Arcos Dorados Holdings Inc shareholders’ equity
238,785
220,430
Non-controlling interest in subsidiaries
742
732
Total equity
239,527
221,162
Total liabilities and equity
2,481,844
2,361,257
(1) Includes "Other receivables", "Inventories", "Prepaid expenses
and other current assets", "McDonald's Corporation's
indemnification for contingencies", and "Derivative Intruments".
(2) Includes "Miscellaneous", "Collateral deposits", and
"McDonald´s Corporation indemnification for contingencies". (3)
Includes "Income taxes payable" and "Other taxes payable". (4)
Includes "Royalties payable to McDonald´s Corporation" and
"Interest payable". (5) Includes
"Current portion of long-term debt" and
"Derivative instruments". (6) Includes "Long-term debt, excluding
current portion" and "Derivative instruments".
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220518005389/en/
Investor Relations Contact Dan Schleiniger VP of Investor
Relations Arcos Dorados daniel.schleiniger@ar.mcd.com Media
Contact David Grinberg VP of Corporate Communications Arcos
Dorados david.grinberg@mcd.com.uy Follow us on: LinkedIn
Twitter
Arcos Dorados (NYSE:ARCO)
Historical Stock Chart
From Apr 2024 to May 2024
Arcos Dorados (NYSE:ARCO)
Historical Stock Chart
From May 2023 to May 2024