Arcos Dorados Reports Record Q1 2026 Results with 159% Net Income Surge and 16% Comparable Sales Growth
ARCO sits 26% above its 52-week low of $6.505.
Summary
Arcos Dorados reported record first-quarter 2026 financial results, including a 159% surge in net income, 16% systemwide comparable sales growth, and the highest-ever Adjusted EBITDA for a first quarter.
Key Events · Earnings and Guidance · ARCO
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Net Income Surges 159%
Net income for Q1 2026 reached $36.1 million, a 159.4% increase from $13.9 million in Q1 2025. Earnings per share rose to $0.17 from $0.07.
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Strong Comparable Sales Growth
Systemwide comparable sales increased by 16.0% in the first quarter, driven by positive guest traffic and average check growth across regions.
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Record Adjusted EBITDA
Consolidated Adjusted EBITDA was $118.0 million, up 29.3% year-over-year, marking the highest result for a first quarter. Adjusted EBITDA margin expanded by 120 basis points to 9.7%.
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Significant Free Cash Flow Improvement
Adjusted Free Cash Flow over the last twelve months reached $109.2 million, a substantial improvement from $(3.1) million in the prior comparable period.
Analysis · ARCO · Trade & Services
Arcos Dorados delivered exceptionally strong first-quarter results, significantly exceeding prior year performance across key metrics. The substantial increase in net income and EPS, coupled with robust comparable sales growth and record Adjusted EBITDA, indicates strong operational execution and market share gains. This performance demonstrates the company's ability to drive profitability and cash flow, reinforcing its financial health and growth trajectory.
At the time of this filing, ARCO was trading at $8.17 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $6.51 to $9.75. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.