Arcos Dorados Issues a Clarification on Expected Q1 2026 Performance
MWN-AI** Summary
Arcos Dorados Holdings Inc. (NYSE: ARCO), the largest restaurant chain in Latin America and an independent McDonald’s franchisee, recently issued a statement regarding its anticipated performance for the first quarter of 2026. Contrary to market speculation suggesting a decline in systemwide comparable sales growth due to ongoing macroeconomic challenges in the region, Arcos Dorados reported that it expects an increase in sales growth compared to the previous quarter.
The Company cited stronger local currencies in its key markets, which have appreciated since the beginning of 2025, as a contributing factor to its anticipated revenue growth in U.S. dollars for the first quarter of 2026. This clarification aims to reassure investors amidst concerns about economic pressures impacting sales.
Arcos Dorados is scheduled to release its fourth quarter and full-year earnings for the period ending December 31, 2025, on March 19, 2026, before the market opens. The results for the first quarter of 2026 will be published in mid-May 2026.
As the largest independent McDonald's franchisee, Arcos Dorados operates over 2,500 restaurants and employs more than 100,000 people across 21 countries in Latin America and the Caribbean. The Company emphasizes its commitment to community development, providing job opportunities for youth, and maintaining environmental responsibility.
In this announcement, Arcos Dorados included a cautionary note regarding forward-looking statements, underscoring the inherent risks and uncertainties in projecting future performance. The company has made it clear that actual results may vary significantly and it will not be obligated to update its forecasts following this announcement. For more details on the Company’s financial health and operations, investors can visit its website or refer to its SEC filings.
MWN-AI** Analysis
Arcos Dorados Holdings Inc. (NYSE: ARCO), the leading quick-service restaurant chain in Latin America, recently sought to clarify market misconceptions regarding its expected performance for Q1 2026. The company's assertion of expected sequential growth in systemwide comparable sales, despite economic pressures in specific regions, invites a deeper analysis of its market positioning and potential for revenue growth.
The rebuttal to claims of declining sales growth is noteworthy, as it underscores the company's resilience in navigating macroeconomic challenges. Arcos Dorados anticipates stronger local currencies supporting its total revenue in US dollars for Q1 2026, positioning it favorably against inflationary pressures that have hindered consumer spending historically. This is particularly relevant in a fragmented market where consumer sentiment can fluctuate widely due to regional economic instability.
Investors should consider several critical factors when evaluating Arcos Dorados’ outlook. Firstly, the company's extensive operational footprint across 21 countries provides a diversified revenue stream that may mitigate risks associated with localized downturns. Secondly, continuing investments in technological advancements and sustainability initiatives, as highlighted by their “Recipe for the Future,” align with growing consumer preferences for responsible corporate practices, potentially enhancing customer loyalty.
Moreover, the upcoming earnings release on March 19, 2026, will be a pivotal moment for investors. Strong Q4 results paired with positive projections for Q1 could serve as catalysts for share price appreciation. Conversely, any unexpected results could prompt significant market volatility.
In conclusion, while the current external economic landscape presents challenges, Arcos Dorados’ positive guidance and operational strategies could fortify its market position. Investors should leverage this insight, monitoring the upcoming earnings with an eye toward potential growth opportunities amid an evolving economic environment.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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 issued a clarification with respect to its expected first quarter performance.
Arcos Dorados is aware of comments made recently in the market that, due to continued macroeconomic pressures in parts of Latin America, systemwide comparable sales growth is expected to decrease in the first quarter of 2026 versus the fourth quarter of 2025. In fact, the opposite is true. Based on its first quarter performance to date, the Company believes it will generate sequentially higher systemwide comparable sales growth in the first quarter of 2026 compared with the fourth quarter of 2025. Importantly, in addition to this constant currency growth in a comparable restaurant base, many of the local currencies in the Company’s main markets are stronger so far this year compared with the beginning of 2025, supporting expected total revenue growth in US dollars in the first quarter of 2026.
On March 19, 2026, before the market opens, the Company will publish its earnings press release and audited financial results for the fourth quarter and full year ended December 31, 2025. Results for the first quarter, ending March 31, 2026, will be made public in the middle of May 2026.
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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 sub-franchise McDonald’s restaurants in 21 Latin American and Caribbean countries and territories. Arcos Dorados and its sub-franchisees together operate more than 2,500 restaurants and have more than 100,000 employees (as of 12/31/2025). The Company is committed to the development of the communities in which it operates by providing young people their first formal job opportunities and utilizing 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: https://ir.arcosdorados.com/ .
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements. The forward-looking statements contained herein include statements about the Company’s expected performance in the first quarter of 2026, including systemwide sales growth and total revenue. These statements are subject to the general risks inherent in Arcos Dorados' business. 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. Additional information relating to the uncertainties affecting Arcos Dorados' business is contained in its filings with the SEC. 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.
Definitions
Constant Currency basis: refers to amounts calculated using the same exchange rate over the periods under comparison to remove the effects of currency fluctuations from this trend analysis. To better discern underlying business trends, this release uses non-GAAP financial measures that segregate year-over-year growth into two categories:
- Currency translation reflects the impact on growth of the appreciation or depreciation of the local currencies in which the Company conducts its business against the US dollar (the currency in which the Company’s financial statements are prepared).
- Constant currency growth reflects the underlying growth of the business excluding the effect from currency translation. The Company also calculates variations as a percentage in constant currency, which are also considered to be non-GAAP measures, to provide a more meaningful analysis of its business by identifying the underlying business trends, without distortion from the effect of foreign currency fluctuations.
Systemwide comparable sales growth: this non-GAAP measure, refers to the change, on a constant currency basis, in Company-operated and sub-franchised restaurant sales in one period from a comparable period for restaurants that have been open for thirteen months or longer (year-over-year basis) including those temporarily closed. Management believes it is a key performance indicator used within the retail industry and is indicative of the success of the Company’s initiatives as well as local economic, competitive and consumer trends. Sales by sub-franchisees are not recorded as revenues by the Company.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260213108508/en/
For more information, please contact:
Investor Relations Contact
Dan Schleiniger
VP of Investor Relations
Arcos Dorados
[email protected]
Media Contact
David Grinberg
VP of Corporate Communications
Arcos Dorados
[email protected]
FAQ**
How does Arcos Dorados Holdings Inc. Class A Shares ARCO plan to address potential macroeconomic pressures affecting sales in Latin America while maintaining its expected sequential sales growth in Q1 2026?
What specific strategies is Arcos Dorados Holdings Inc. Class A Shares ARCO implementing to enhance comparable sales growth amid fluctuating local currencies in its main markets?
Can you provide insights into how Arcos Dorados Holdings Inc. Class A Shares ARCO's first quarter performance will impact its total revenue growth in US dollars for Q1 2026, particularly in relation to the previous quarter?
How does the anticipated sales growth of Arcos Dorados Holdings Inc. Class A Shares ARCO reflect on its overall long-term business strategy and commitment to community development in its operating regions?
**MWN-AI FAQ is based on asking OpenAI questions about Arcos Dorados Holdings Inc. Class A Shares (NYSE: ARCO).
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