Latest news with #ArcosDorados'
Business Wire
4 days ago
- Business
- Business Wire
Arcos Dorados Announces Management Changes
MONTEVIDEO, Uruguay--(BUSINESS WIRE)--Arcos Dorados Holdings Inc. (NYSE: ARCO) ('Arcos Dorados' or the 'Company'), Latin America's largest restaurant chain and the world's largest independent McDonald's franchisee, today announced its Board of Directors has appointed Luis Raganato as Arcos Dorados' new Chief Executive Officer, effective July 1, 2025. Mr. Raganato succeeds Marcelo Rabach, who decided to step down from the CEO position but will remain a member of the Company's Board of Directors. 'Luis began his career with us in 1991, as a crew member in one of our restaurants in Córdoba, Argentina. By the time we appointed him Chief Operating Officer in 2019, he had established a successful track record at every level of our operation. It did not take long for Luis to again prove his leadership abilities, as he played an instrumental role in guiding Arcos Dorados through the global pandemic of 2020. Coming out of that challenging period, he worked with the ADvance digital team to further the digitalization of the operation, which was a key driver of the record financial results of the last several years,' said Woods Staton, Executive Chairman of the Board. 'For the last six years, Luis has partnered with Marcelo to take Arcos Dorados to new heights, and I am confident he is the right person to lead us into our next phase of growth. His experience, vision and commitment to our values will ensure we build an even brighter future for our Company and all its stakeholders. I would like to express my heartfelt gratitude to Marcelo for 35 stellar years at Arcos Dorados. He is leaving the Company in as strong a position as ever and, although he will no longer lead the day-to-day operation, I am very pleased that Marcelo will remain a member of our Board of Directors to help steer the Company's strategy into the future,' Mr. Staton concluded. 'I am honored to have been appointed the next CEO of Arcos Dorados. I would like to thank Woods and the other members of our Board for this incredible opportunity. We have come a long way on our journey to become Latin America and the Caribbean's largest and most successful QSR operator and I am certain that we still have a huge opportunity to continue growing for the foreseeable future,' said Mr. Raganato. 'I worked directly with Marcelo for more than ten years, beginning when I became President of the Caribbean Division and he was COO, and for the last six years as COO of Arcos Dorados. Together, we helped develop the Company's long-term strategy and I am committed to generating value for all our stakeholders.' Mr. Raganato served as the Company's Chief Operating Officer beginning in July 2019. Prior to his appointment as COO, he was the Divisional President for the Caribbean, and before that, the Managing Director of Arcos Dorados in Peru. Mr. Raganato began his career at Arcos Dorados in 1991 as a Trainee in the Nuevocentro Shopping Center location in the province of Córdoba, Argentina and has held various positions in Operations Management over the course of his career with Arcos Dorados. Mr. Raganato holds a bachelor's degree in business administration from Instituto Aeronáutico de Argentina, a master's degree in marketing and business development from Escuela Superior de Estudios de Marketing de Madrid and an MBA from Universidad de Piura, Peru. Carlos Gonzalez appointed as Arcos Dorados' new Chief Operating Officer Carlos Gonzalez, who currently serves as President of the South Latin American Division, will succeed Mr. Raganato as Chief Operating Officer, also effective July 1, 2025. Mr. Gonzalez began his career in the financial and automotive sectors before joining McDonald's Chile in 2000. During his tenure, he held various operational and leadership roles within the Company, including as Managing Director for Chile, from 2011 to 2024. Mr. Gonzalez has a degree in public administration from the University of Chile in 1989 and has completed various postgraduate studies in marketing and management as well as a master's in business management from Adolfo Ibáñez University in Santiago, Chile. About Arcos Dorados Arcos Dorados is the world's largest independent McDonald's franchisee, operating the largest quick service restaurant chain in Latin America and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald's restaurants in 20 Latin American and Caribbean countries and territories with more than 2,400 restaurants, operated by the Company or by its sub-franchisees, that together employ more than 100 thousand people (as of 03/31/2025). The Company is also committed to the development of the communities in which it operates, to providing young people their first formal job opportunities and to utilize its Recipe for the Future to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website:
Yahoo
6 days ago
- Business
- Yahoo
ARCO Q1 Earnings Call: Flat Sales and Margin Pressure Amid Challenging Consumer Environment
Fast-food chain Arcos Dorados (NYSE:ARCO) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.08 billion. Its GAAP profit of $0.07 per share decreased from $0.14 in the same quarter last year. Is now the time to buy ARCO? Find out in our full research report (it's free). Revenue: $1.08 billion (flat year on year) Adjusted Operating Income: $45.15 million vs analyst estimates of $52.01 million (4.2% margin, 13.2% miss) Adjusted EBITDA Margin: 8.5% Locations: 2,439 at quarter end, up from 2,381 in the same quarter last year Same-Store Sales rose 5.6% year on year (38.6% in the same quarter last year) Market Capitalization: $1.55 billion Management attributed Arcos Dorados' flat sales in Q1 to a combination of external and internal factors, including lower guest volumes across the quick-service restaurant industry, unfavorable calendar effects from Leap Day and Holy Week, and currency depreciation in key markets. CEO Marcelo Rabach noted that digital and loyalty channels remained resilient, with almost 60% of sales coming through digital platforms and a growing base of nearly 19 million monthly app users. While off-premise channels helped offset weaker in-restaurant traffic, CFO Mariano Tannenbaum highlighted that higher food and paper costs, especially in Brazil due to rising beef prices, weighed on margins. Management emphasized that operating performance improved later in the quarter, especially in March, and that Brazil and SLAD divisions provided some margin stability despite broader challenges. Looking ahead, Arcos Dorados' leadership expects an improved operating environment as the year progresses, supported by a robust marketing plan and ongoing digital initiatives. Management indicated that early Q2 sales trends, particularly in Mexico and Brazil, have strengthened as negative calendar effects subside and brand activations ramp up. CFO Mariano Tannenbaum stated, 'We expect margins for 2025 will be similar to 2024, excluding the positive impact of prior-year payroll reversals in Brazil,' as the company pursues pricing actions aligned with inflation, enhanced supplier negotiations, and continued cost discipline. CEO Marcelo Rabach expressed confidence in capturing further market share and leveraging the company's modernized restaurant base, while remaining cautious on consumer spending trends. Management identified several factors that shaped Q1 results, including digital channel growth, segment-specific consumer dynamics, and varied margin performance across regions. Digital channel penetration: The company's digital sales accounted for nearly 60% of system-wide sales, with digital platforms and the loyalty program driving customer engagement and frequency. Off-premise channels, such as delivery and mobile ordering, remained resilient as consumers pulled back on in-restaurant dining. Brazil's mixed performance: Brazil saw a modest constant-currency revenue increase but faced a soft consumer climate and heightened beef costs, which pressured margins. Marketing campaigns, including sponsorships and menu innovations, helped maintain brand preference and market share despite external pressures. NOLAD region dynamics: The NOLAD division (Mexico, Panama, Costa Rica, and others) experienced comparable sales gains in Mexico, but overall revenue was impacted by currency depreciation and weaker traffic in Panama and Costa Rica. Digital campaigns and value-focused promotions were used to maintain customer engagement. SLAD division recovery: SLAD (South Latin America Division) posted strong comparable sales growth, led by Argentina's rebound from prior economic instability and robust performance in Uruguay and Venezuela. Digital sales penetration in SLAD reached 70% in some markets, underscoring the effectiveness of ongoing digitalization efforts. Margin pressures and cost management: Rising food and packaging costs, particularly in Brazil, drove margin contraction, although management cited some relief from payroll expense efficiencies and positive royalty fee changes in other divisions. The company is prioritizing pricing adjustments and supplier negotiations to mitigate further cost headwinds. Management's outlook for the remainder of 2025 centers on digital engagement, disciplined pricing, and adaptation to shifting consumer spending patterns. Digital and loyalty expansion: Continued investment in digital platforms and the expansion of the MyMcDonald's loyalty program are expected to drive higher customer frequency and off-premise sales. Management aims to have the loyalty program active in all major markets by year-end, further increasing digital penetration. Margin stabilization strategies: Management plans to offset rising input costs through pricing actions aligned with inflation, improved supplier negotiations, and operational efficiencies, including enhanced scheduling systems. The company expects EBITDA margins to be broadly stable year-on-year, adjusted for prior-year payroll credits in Brazil. Macro and consumer headwinds: Leadership remains cautious about consumer spending, especially in Brazil and NOLAD, due to ongoing economic volatility. Management's strategy emphasizes protecting traffic through competitive pricing and promotions, with an eye on fixed cost leverage as sales volumes recover. In upcoming quarters, the StockStory team will watch closely for (1) sustained improvement in sales trends in Brazil and NOLAD as calendar effects normalize, (2) signs that margin stabilization efforts—such as pricing and supplier negotiations—are taking hold, and (3) continued momentum in digital and loyalty program adoption. The pace of restaurant openings and the ability to maintain cost discipline in a volatile macro environment will also be important indicators. Arcos Dorados currently trades at a forward price-to-sales ratio of 0.3×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Why Arcos Dorados Stock Is Sinking Today
Arcos Dorados has exclusive franchise rights to McDonald's locations in Latin America and the Caribbean. It grew sales by 11% on a constant currency basis in Q1, but saw profitability plummet. However, its quickly growing loyalty program and store count expansion potential offer plenty of appeal. 10 stocks we like better than Arcos Dorados › Arcos Dorados (NYSE: ARCO) is the largest independent McDonald's franchisee with 2,400 locations across Latin America and the Caribbean. Its shares were down 7% as of 1 p.m. ET Wednesday, according to data provided by S&P Global Market Intelligence. The sub-franchisee reported first-quarter earnings Wednesday and delivered 11% sales growth on a constant currency basis while taking market share in a challenging consumer spending environment. However, Arcos Dorados' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and net income slid 16% and 51%, prompting today's drop in price. Arcos Dorados announced a new 20-year Master Franchise Agreement (MFA) with McDonald's in January this year. While management believes the new MFA will be a net positive to the company's adjusted EBITDA in 2025, the declining profitability in Q1 isn't an auspicious start. However, it is too early to judge the new 20-year MFA after only 90 days, and investors should give Arcos Dorados a few quarters to see how things stabilize with time. And that goes for the company's burgeoning loyalty program as well. Arcos Dorados' loyalty program has 18.8 million members as of Q1. This count has grown by 19% from January, and these identified accounts equal one-fourth of the company's sales, providing valuable insights and marketing potential. Now six countries strong, the loyalty program launched in Argentina and Colombia in Q1, as well as Ecuador in April. Should Arcos Dorados see success with this loyalty program, its growth story could be massive, considering its 2,400 stores pale in comparison to the 13,000 in the U.S. Trading at just 11 times earnings, Arcos Dorados and its 3.2% dividend yield look enticing, but I'd rather see a couple more quarters' worth of data. Before you buy stock in Arcos Dorados, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Arcos Dorados wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $613,951!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $796,353!* Now, it's worth noting Stock Advisor's total average return is 948% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Arcos Dorados Stock Is Sinking Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-02-2025
- Business
- Yahoo
Arcos Dorados Announces Intent to Redeem All of Its Outstanding 5.875% Notes Due 2027 (CUSIP Nos. 03965U AC4 / G0457F AC1) (The "Redemption")
MONTEVIDEO, Uruguay, February 28, 2025--(BUSINESS WIRE)--Arcos Dorados Holdings Inc. (NYSE: ARCO) ("Arcos Dorados" or the "Company") today announced its intent to redeem all of its outstanding 5.875% senior notes due 2027 (the "Notes"). A notice of redemption will be sent to the holders of the Notes in accordance with the requirements of the indenture governing the Notes (the "Indenture"). Pursuant to the terms of the Indenture, the Notes will be redeemed at a redemption price equal to 100% of the outstanding principal amount of the Notes plus accrued and unpaid interest (including Additional Amounts, if any) from October 4, 2024, to, but excluding the redemption date. The anticipated redemption date is April 4, 2025. This press release does not constitute or form part of any offer or invitation to purchase, or any solicitation of any offer to sell, the Notes or any other securities in the United States or any other country, nor shall it or any part of it, or the fact of its release, form the basis of, or be relied on or in connection with, any contract therefor. Follow us on: LinkedIn Instagram X YouTube About Arcos Dorados Arcos Dorados is the world's largest independent McDonald's franchisee, operating in Latin America and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald's restaurants in 20 Latin American and Caribbean countries and territories with more than 2,400 restaurants, operated or franchised by the Company or by its sub-franchisees, that together employ more than 100,000 people (as of 09/30/2024). The Company is also committed to the development of the communities in which it operates, to providing young people their first formal job opportunities and to utilize its Recipe for the Future to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: Cautionary Statement on Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are proceeded by words such as "believes," "expects," "may," "anticipates," "plans," "intends," "assumes," "will" or similar expressions. The forward-looking statements contained herein include statements about the Company's Notes offering and its intended use of proceeds therefrom. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, Arcos Dorados' business and operations involve numerous risks and uncertainties, many of which are beyond the control of Arcos Dorados, which could result in Arcos Dorados' expectations not being realized or otherwise materially affect the financial condition, results of operations and cash flows of Arcos Dorados. Some of the factors that could cause future results to materially differ from recent results or those projected in forward-looking statements are described in Arcos Dorados' filings with the United States Securities and Exchange Commission. The forward-looking statements are made only as of the date hereof, and Arcos Dorados does not undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events. In light of the risks and uncertainties described above, and the potential for variation of actual results from the assumptions on which certain of such forward-looking statements are based, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this document may not occur, and that actual results may vary materially from those described herein, including those described as anticipated, expected, targeted, projected or otherwise. View source version on Contacts Investor Relations Contact Dan SchleinigerVP of Investor RelationsArcos Media Contact David GrinbergVP of Corporate CommunicationsArcos Sign in to access your portfolio
