Arcos Dorados Q2 2026: Record Revenue, Net Income Doubles to $45M
ARCO sits 28% above its 52-week low of $6.54.
Summary
Arcos Dorados reported record Q2 2026 results: revenue up 14.3% to $1.31 billion, net income nearly doubled to $45 million, and adjusted free cash flow jumped to $143.4 million over the last twelve months.
Key Events · Earnings and Guidance · ARCO
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Record Q2 Revenue and Net Income
Total revenues reached $1.31 billion, up 14.3% year-over-year, and net income attributable to Arcos Dorados nearly doubled to $45.0 million, or $0.22 per share, up from $0.11 per share in Q2 2025.
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Systemwide Comparable Sales Up 15.3%
Systemwide comparable sales rose 15.3% in Q2 2026, supported by the best guest volume performance of the last six quarters and a 25% increase in digital channel sales, which represented 66% of systemwide sales.
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Adjusted EBITDA Reaches Q2 Record
Consolidated Adjusted EBITDA was $126.8 million, up 15.2% versus the prior year, with margin expanding 10 basis points to 9.7%, driven by lower food and paper costs and G&A expenses as a percentage of revenues.
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Adjusted Free Cash Flow Surges
Adjusted Free Cash Flow over the last twelve months reached $143.4 million, compared with $16.1 million in the prior-year comparable period, reflecting strong operating cash generation and disciplined capital spending.
Analysis · ARCO · Trade & Services
Arcos Dorados delivered its strongest second quarter ever, with revenue up 14.3% to $1.31 billion and net income nearly doubling to $45.0 million. Systemwide comparable sales rose 15.3%, driven by the best guest volume in six quarters and a 25% jump in digital sales. Adjusted EBITDA hit a Q2 record of $126.8 million, and LTM adjusted free cash flow surged to $143.4 million from just $16.1 million a year ago. The company also completed the redemption of its 2029 sustainability-linked notes, further cleaning up the balance sheet. This is a clear beat across the board, with margin expansion and strong cash generation.
At the time of this filing, ARCO was trading at $8.36 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $6.54 to $9.75. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.