Arcos Dorados Reports Record Full-Year 2025 Adjusted EBITDA and Strong Revenue Growth

summarizeSummary

Arcos Dorados reported record full-year 2025 Adjusted EBITDA of $575.2 million and a significant increase in net income to $212.1 million, alongside strong revenue and comparable sales growth, a declared dividend, and positive 2026 guidance.

check_boxKey Events

• Record Full-Year Adjusted EBITDA

  Consolidated Adjusted EBITDA reached a record $575.2 million for the full year 2025, up 15.0% in US dollars versus the prior year, marking the Company's highest US dollar result for a full year.

• Strong Revenue and Comparable Sales Growth

  Total revenue for the full year 2025 was $4.7 billion, up 4.7% in US dollars, with systemwide comparable sales rising 13.0%, in line with blended inflation. Fourth-quarter revenue grew 10.7% to $1.3 billion, with comparable sales up 16.0%.

• Significant Full-Year Net Income and EPS Increase

  Net Income for the full year 2025 was $212.1 million, a substantial increase from $148.8 million in 2024, with EPS of $1.01, up from $0.71. Fourth-quarter net income was $25.2 million, impacted by higher income tax expense and reorganization costs.

• Dividend Declared and Debt Tender Offer Completed

  The Board of Directors declared a cash dividend of $0.28 per share for 2026. The company also successfully completed a cash tender offer, redeeming $135.2 million of its outstanding 2029 Notes.

auto_awesomeAnalysis

Arcos Dorados delivered robust full-year 2025 financial results, highlighted by record Adjusted EBITDA and significant growth in net income and EPS. The company demonstrated strong operational execution with systemwide comparable sales rising in line with inflation and exceeding restaurant opening guidance with lower capital expenditures. While fourth-quarter net income saw a decline due to higher tax expenses and reorganization costs, the overall full-year performance, coupled with a declared dividend and successful debt tender offer, signals strong financial health and effective capital management. The positive 2026 guidance for new restaurant openings further reinforces a favorable outlook.