Arcos Dorados Holdings Inc.

Second-quarter 2026 revenue was $1.3 billion, the highest ever quarterly revenue, up more than 14% year over year in USD. Adjusted EBITDA totaled $126.8 million, more than 20% above last year, and adjusted EBITDA margin expanded 70 bps excluding last year’s Mexican sub-franchisee transaction. EPS doubled versus last year, while net income set a second-quarter record. Brazil’s EBITDA margin improved 180 bps to 14.6% and EBITDA grew $23 million, or 43%; SLAD EBITDA grew about $3 million, or 6.6%, and SLAD weighted average inflation was around 46%-47%. In the quarter, the company opened 16 restaurants, bringing first-half openings to 35, and spent $49.1 million in capex; year to date capex was almost $86 million. Management did not provide formal next-quarter or full-year financial guidance, but said second-half 2026 conditions should remain dynamic and that it is confident in full-year execution and results.

Luis Raganato framed the quarter as evidence of resilience in a tough consumer backdrop, emphasizing that the company is monetizing its market-share advantage through value, digital, loyalty, and brand campaigns. He said the World Cup sponsorship, launched with pre-campaigns months in advance, helped drive traffic, premium sandwich sales, and all-time-high brand favorability across the region. In Q&A, he repeatedly said Brazil’s rebound is sustainable in the near future and that early third-quarter trends are in line with expectations.

Mariano Tannenbaum said profitability was resilient, with adjusted EBITDA of $126.8 million and 70 bps margin expansion excluding last year’s one-off transaction. He pointed to continued improvement in food and paper, better G&A after last year’s restructuring, and a lower effective tax rate; he also said net interest expense fell thanks to capital structure optimization and income tied to last year’s Brazil tax credit. He highlighted a strong balance sheet, net leverage of 1.1x at quarter-end, completion in July of the second liability-management transaction of the year, and full repayment of the 2029 senior notes. He also said Q2 capex was $49.1 million, bringing the modernized restaurant experience to more than 77% of the portfolio, and estimated average CapEx per store improved by 15%-20%.

Analysts focused on whether Brazil’s same-store sales and margin gains were sustainable, what was driving market share, and how promotional pricing was being managed. Management said Brazil’s rebound came from three levers—value platform Economia, targeted digital campaigns, and World Cup marketing—and that they are already seeing positive trends in early third-quarter weeks. On Mexico and NOLAD, management said the quarter was pressured by a difficult comparison base, a still-challenging macro environment, and heavy prior-year promo comparisons, but that positive traffic, strong value offers, and loyalty helped the business outperform the sector. On Argentina and SLAD, management said consumer spending stayed weak, but the company held guest counts nearly flat and expects the quarter’s food-and-paper headwinds to be tactical rather than persistent.