Arcos Dorados Q4 Comparable Sales Up 32.4%; Guides 80-90 New Stores in 2024

TL;DR

**ARCO crushed Q4 comparable sales up 32.4% and plans 80-90 new restaurants in 2024!**

AI Summary

Arcos Dorados Holdings Inc. (NYSE: ARCO), the largest McDonald's franchisee in Latin America, reported a robust 32.4% systemwide comparable sales growth for the fourth quarter of 2023, with total revenue increasing by 15.4% compared to the prior year. The company also announced plans to open 80 to 90 new restaurants in 2024, primarily free-standing locations, and expects total capital expenditures to be between $300 million and $350 million for the year. This matters to investors because strong comparable sales and aggressive expansion plans signal healthy demand and future growth potential, which could positively impact the stock price.

Why It Matters

Strong comparable sales growth indicates healthy customer demand and effective business strategies, while planned capital expenditures and new restaurant openings suggest future revenue expansion for Arcos Dorados.

Risk Assessment

Risk Level: low — The filing reports strong performance and clear growth guidance, indicating a positive outlook with minimal immediate risks disclosed.

Analyst Insight

A smart investor would view this filing as a strong indicator of growth and consider further research into ARCO's financial health and market position, potentially increasing their stake or initiating a position.

Key Numbers

• 32.4% — Systemwide comparable sales growth (for the fourth quarter of 2023, indicating strong performance)
• 15.4% — Total revenue growth (versus the prior year quarter, showing overall revenue increase)
• 81 — Restaurants opened (in 2023, demonstrating past expansion)
• 80 to 90 — Restaurants expected to open (in 2024, outlining future growth plans)
• $300 million to $350 million — Total Capital Expenditures (expected in 2024, indicating investment in growth)

Key Players & Entities

• Arcos Dorados Holdings Inc. (company) — registrant and Latin America's largest McDonald's franchisee
• Juan David Bastidas (person) — Chief Legal Counsel for Arcos Dorados Holdings Inc.
• 07 Trade & Services (company) — organization name associated with the filer
• McDonald's (company) — franchisor for Arcos Dorados

Forward-Looking Statements

• Arcos Dorados will meet or exceed its 2024 restaurant opening guidance. (Arcos Dorados Holdings Inc.) — high confidence, target: December 31, 2024
• The company's focus on free-standing restaurants will contribute to continued strong comparable sales. (Arcos Dorados Holdings Inc.) — medium confidence, target: December 31, 2024

FAQ

Key Financial Figures

• $300 million — Expenditures in 2024 are expected to be $300 million to $350 million Montevideo, Uruguay,
• $350 million — 2024 are expected to be $300 million to $350 million Montevideo, Uruguay, January 29, 2024
• $350 m — approximately in line with guidance of $350 million, including all openings, moderniz

Filing Documents

• dp205826_6k.htm (6-K) — 37KB
• image_001.jpg (GRAPHIC) — 3KB
• image_003.jpg (GRAPHIC) — 2KB
• 0000950103-24-001239.txt ( ) — 45KB

From the Filing

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January, 2024 Commission File Number: 001-35129 Arcos Dorados Holdings Inc. (Exact name of registrant as specified in its charter) Río Negro 1338, First Floor, 11100 Montevideo, Uruguay (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F X Form 40-F ARCOS DORADOS HOLDINGS INC. TABLE OF CONTENTS ITEM 1. Press Release dated January 29, 2024 titled “Arcos Dorados Reports Strong Comparable Sales for the Fourth Quarter 2023 and Provides Guidance for 2024” SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Arcos Dorados Holdings Inc. By: /s/ Juan David Bastidas Name: Juan David Bastidas Title: Chief Legal Counsel Date: January 29, 2024 Item 1 FOR IMMEDIATE RELEASE ARCOS DORADOS REPORTS STRONG COMPARABLE SALES FOR THE FOURTH QUARTER 2023 AND PROVIDES GUIDANCE FOR 2024 Systemwide comparable sales grew 32.4% in the fourth quarter of 2023, with total revenue 1 growing 15.4% versus the prior year quarter Opened 81 restaurants in 2023 and expect to open 80 to 90 restaurants in 2024, with a pipeline composed of 90% free-standing restaurants Total Capital Expenditures in 2024 are expected to be $300 million to $350 million Montevideo, Uruguay, January 29, 2024 – 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 reported its systemwide comparable sales growth for the fourth quarter and full year ended December 31, 2023, ahead of its quarterly earnings announcement planned for March 2024. The Company also provided guidance for restaurant openings and total capital expenditures for 2024. “We had a solid finish to a very strong year. Our Three D’s Strategy of Digital, Delivery and Drive-thru continues to evolve and leverages the Latin American quick service restaurant industry’s largest free-standing restaurant portfolio. Digital channels drove sales growth all year and represented 53% of Arcos Dorados’ systemwide sales in the fourth quarter. Our mobile app has evolved into an e-commerce platform. It allows us to engage with guests to learn their consumption preferences and provide the most compelling value, experience and convenience in the industry. The result was an increase in visit frequency and market share gains across our markets. Growth in Loyalty Program membership, which exceeded three million members at the end of 2023, is just the latest indicator that guests are ‘Lovin’ It’ when it comes to the McDonald’s experience in Latin America and the Caribbean,” said Marcelo Rabach, Arcos Dorados’ Chief Executive Officer. “We opened more than 80 restaurants last year, remaining focused on free-standing unit openings. This continues to be a structural competitive advantage given the greater adaptability of this restaurant format, compared with the competition’s mostly mall-based restaurant portfolios. The openings pipeline remains robust and we are increasing the number of annual openings to capture the full potential of the McDonald’s Brand in our region.” 1 Revenue refers to unaudited, estimated results as of the time of this press release. 1 Systemwide Comparable Sales Growth Increase / (Decrease) vs. the prior year period 1Q23 2Q23 3Q23 4Q23 FY 2023 Brazil 13.8% 9.6% 10.8% 6.2% 9.9% NOLAD 16.6% 10.4% 11.5% 5.4% 10.6% SLAD 91.8% 82.4% 93.8% 94.7% 90.9% Total 37.6% 31.5% 37.3% 32.4% 34.6% Fourth quarter systemwide comparable sales grew solidly on top of very strong results in the prior year period. In Brazil, October sales faced a challenging comparison but rebounded strongly in November and December with double-digit comparable sales growth. NOLAD saw strong results, especially in Mexico and the French West Indies, partially offset by the impact of social unrest in Panama during the quarter. SLAD’s markets performed strongly in the quarter as well. Digital rose nearly 65% in constant currency, including around 50% higher Delivery sales in the quarter. Identifiable sales were 21% of sales in the quarter with the Loyalty Program surpassing 3 million members at year end. 2023 Actual and 2024 Guidance – Openings and Capital Expenditures Openings and Modernizations The Company opened 81 Experience of the Future (EOTF) restaurants in 2023, including 7

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View this 6-K filing on SEC EDGAR