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Arcos Dorados Delivers Double-Digit Q4 Growth and Record Adjusted EBITDA

Results were bolstered by a nonrecurring Brazil tax-credit benefit.

Overview

  • Q4 2025 revenue reached $1.3 billion, up 10.7% year over year, with systemwide comparable sales rising 16%.
  • Adjusted EBITDA was $172.7 million, supported by a Brazil net tax benefit of $33.8 million in the quarter and about $106 million recognized for 2025, while GAAP net income declined on tax and restructuring charges.
  • Digital channels accounted for a record 62% of systemwide sales, underpinned by a loyalty program now present in over 90% of restaurants.
  • Guidance for 2026 targets 105–115 new restaurant openings and $275–$325 million in capital expenditures, funded by cash and operating cash flow, with cost savings expected from a completed headcount reduction and lower-cost refinancing.
  • Brazil remained a margin pressure point due to roughly 30% beef-price inflation, though trends improved late in 2025, and the Board increased the 2026 cash dividend to $0.28 per share.