Slides
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Third Quarter 2025 Results Arcos Dorados November 12, 2025
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This presentation contains forward -looking statements that represent our beliefs, projections and predictions about future events or our future performance. Forward -looking statements can be identified by terminology such as “may,” “will,” “would,” “c ould,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms or other similar expressions or phrases. These forward -looking statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievement described in or implied by such statements. The forward-looking statements contained herein include statements about the Company’s business prospects, its ability to attrac t customers, its expectation for revenue generation and its outlook. 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 ris ks and uncertainties, many of which are beyond the control of Arcos Dorados, which could result in Arcos Dorados' expectations n ot 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 S ecurities 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. 2 Disclaimer
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1 4 2 5 3 Agenda 3 Highlights Development Margins Key Balance Sheet & Profitability & Marketing, Digital & Sales 6 Supplemental Information Final Thoughts
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1 Highlights Key 3rd Quarter 2025
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12.7% ~61% $150.4m Third Quarter 2025 Key Highlights ¹Mobile App, Delivery and Self -order Kiosks (systemwide) 3Q 2025 T otal Revenue $1.2b Systemwide Comparable Sales Digital Sales Contribution1 3Q 2025 Net Income Restaurant Openings 22 $0.71 per share 27% Identified 19 Freestanding Systemwide Comparable Sales grew in -line with blended inflation • Total revenue grew 5.2% in US dollars, with balanced growth across all divisions. • Argentina and Mexico continued to perform strongly, while Brazil stabilized sequentially . • Average check growth drove the result, more than offsetting a slight volume decline. Marketing & Digital a major differentiator throughout the Arcos Dorados footprint • Protecting and expanding market share. • Supporting long -term, sustainable performance. • Deepening the emotional connection with guests. • Offering good value for money and leveraging exclusive brand partnerships. Net Income was boosted by a $125.2 million net benefit from a federal tax credit in Brazil • Adjusted EBITDA included an $85.6 million net impact from the federal tax credit, generating a significant Adjusted EBITDA margin improvement versus the prior year. • Net Income included an additional net impact of $39.6 million in interest income related to the federal tax credit, increasing net margin versus the prior year period. Restaurant openings and Capital Expenditures remain on track • Opened 22 restaurants across the region. • Restaurant portfolio was 72% modernized at the end of the third quarter of 2025. • Capital expenditures of $75.8 million in the quarter, including $44.2 million for openings. $201.1m 16.9% margin 5 3Q 2025 Adj. EBITDA
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Marketing, Digital & Divisional Revenue Organic Growth Drivers 2
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Marketing & Loyalty Strategic Differentiators 7 T otal Digital Sales Penetration Loyalty Program Registered Members 3Q 2024 3Q 2024 3Q 2025 3Q 2025 ~58% 12.9m ~61% 23.6m
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• Comparable sales grew 1.3x inflation driven mainly by strength in Argentina, Colombia and Uruguay . • Digital sales penetration was above 60%. • Loyalty supporting sales in Argentina, Colombia, Ecuador and Uruguay. 431.5 452.6 444.6 3Q24 3Q25 (as reported) 3Q25 (in constant currency) 1.0% • Comparable sales improved sequentially. • Market share remained strong. • Digital sales penetration was almost 72%. • Loyalty surpassed 19 million members, involved in almost 30% of total sales. Systemwide comparable sales growth BRAZIL ($million) 4.9% 3.0% Third Quarter 2025 T otal Revenues by Division 8 309.7 328.5 322.3 3Q24 3Q25 (as reported) 3Q25 (in constant currency) 0.4% • Comparable sales rose 6.3% in Mexico, or 1.8x inflation, with strong volume growth . • Digital sales penetration was above 40%. • Loyalty engagement was strong in Costa Rica and Puerto Rico and is being piloted in Mexico. NOLAD ($million) 6.1% 4.1% Systemwide comparable sales growth 392.5 411.8 538.2 3Q24 3Q25 (as reported) 3Q25 (in constant currency) 39.7% SLAD ($million) 4.9% 37.1% Systemwide comparable sales growth
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Margins Profitability & Adjusted EBITDA & Margin Bridge 3
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margin 3Q25 – Consolidated Adj. EBITDA • Adjusted EBITDA grew strongly in US dollars, benefitting from an $85.6 million net federal tax credit in Brazil. • Food & Paper costs increased in all three divisions, especially in Brazil where beef costs remained elevated. • Payroll improved in all three divisions with productivity gains and revenue growth above restaurant wage increases. • Occupancy and Other operating expenses improved in Brazil and SLAD, offsetting modest pressure in NOLAD. • G&A increased as a percentage of sales, mainly due to higher expenses in Brazil and NOLAD versus the prior year. • Other operating income included the net impact of a federal tax credit in the 3Q25, compared with a $5.6 million recovery of social contributions in Brazil in the 3Q24. 3Q25 – Adj. EBITDA Margin Performance (% of total revenue) Third Quarter 2025 Consolidated Adj. EBITDA Margin & Margin Bridge 3Q24 Adjusted EBITDA Margin Food & Paper Payroll & Employee benefits Occupancy & Other Operating Expenses Royalty Fees Franchised Restaurants Occupancy Expenses G&A Other Operating Income (Expense) 3Q25 Adjusted EBITDA Margin 10 16.9% ($million) 125.0 201.1 207.0 3Q24 3Q25 (as reported) 3Q25 (in constant currency) 60.9% 65.6% 11.0% -1.2% 0.6% 0.2% 0.1% -0.1% -0.5% 6.6% 16.9%
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35.7 46.7 60.6 3Q24 3Q25 (as reported) 3Q25 (in constant currency) 30.7 30.0 29.4 3Q24 3Q25 (as reported) 3Q25 (in constant currency) • F&P rose due mainly to local beef costs. • Payroll captured improved productivity. • Occupancy and other operating expenses improved in several line items. • Royalty fees rose in -line with 1H25. • G&A rose as a percentage of sales. • Other operating income included the net impact of a federal tax credit in the 3Q25. • F&P costs were higher versus 3Q24. • Payroll reflected better productivity and lower wage pressure. • Occupancy and other operating expenses rose modestly as a percentage of sales. • Royalty fees were lower with the new MFA. • G&A rose as a percentage of sales. Third Quarter 2025 Adjusted EBITDA by Division • F&P costs were higher versus 3Q24. • Payroll, Occupancy and other operating expenses and Royalties were all lower as a percentage of sales versus the 3Q24. • G&A was flat as a percentage of sales. 11 32.6% BRAZIL ($million) 86.6% 81.9% 9.1% NOLAD ($million) (2.4)% (4.4)% 11.3% SLAD ($million) 30.8% 69.8% 79.0 147.4 143.6 3Q24 3Q25 (as reported) 3Q25 (in constant currency) Adj. EBITDA margin Adj. EBITDA margin Adj. EBITDA margin
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Development Balance Sheet & Capital Allocation 4
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Healthy Balance Sheet Metrics Comfortable Net Leverage Ratio 666 721 700 933 304 247 139 257 362 474 561 676 2022 2023 2024 3Q25 • Total financial debt includes short -term debt, long -term debt, and derivative instruments (net of asset portion) • Net Debt = Total financial debt less cash and cash equivalents • Leverage ratio = Net financial debt / LTM adjusted EBITDA Key Debt Metrics – at period end ($million) T otal Debt Net DebtCash & Equivalents Stable BBB- 13 1.2x1.1x1.0x0.9x Leverage Ratio Stable BBB-
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3Q25 & 9M25 Openings • 22 restaurant openings (54 in 9M25). • 14 restaurant openings in Brazil (34 in 9M25). • 19 free-standing openings (47 in 9M25). 3Q25 & 9M25 Capital Allocation • $75.8 mm capital expenditures ($179.9 mm in 9M25) • Including $44.2 mm for growth ($92.3 mm in 9M25). • $12.6 mm dividend payment ($37.9 mm in 9M25). 3Q 2025 Quarter -end Restaurant Footprint Development & Capital Allocation Investing in Long-term Growth 72% Modernized 14 Division Store Type T otal Restaurants McCafé Dessert CentersFreestanding In Store MS & FC BRAZIL 652 89 461 1,202 174 2,023 NOLAD 423 48 195 666 19 512 SLAD 270 124 217 611 232 732 TOTAL 1,345 261 873 2,479 425 3,267
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Wrap Up 5 Final Thoughts
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16 EDUCATION Costa Rica Peru Chile Mexico #1 in the Merco Talent ranking in the “Restaurants” category Winner of the IPAE Company Award 2024 in the “Promotion of Excellence in Education” category for our MCampus Comunidad initiative. #1 in the Merco Talent ranking in the “Fast Food” category #2 in the Merco Companies ranking in the “Restaurants” category Great Place to Work MERCO (Corporate Reputation Monitor) Argentina Brasil Panama #1 in the Great Place to Work for Young Talent #4 in the Great Place to Work #8 in the Merco Companies Ranking Social Impact & Sustainable Development
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Focused on Big Priorities Targeting Shareholder Value Strong Marketing Plans • Optimizing today’s performance . • Maximizing returns on investment. • Preparing for the long term. • Sustainable topline growth and improved operational efficiency. • Driving profitability and higher free cash flow generation. • Working to deliver a solid finish to 2025. • The 2026 FIFA World Cup sponsorship includes Arcos Dorados’ three largest markets. Final Thoughts 17
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& Answers Questions
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Supplemental Information 6
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margin 3Q25 – Net Income 3Q25 – Net Income Margin Performance (% of total revenue) Third Quarter 2025 Consolidated Net Income Growth & Margin Bridge 3Q24 Net Income Margin Adjusted EBITDA Depreciation & Amortization Operating Charges Excluded from EBITDA Net Interest Expense & Other Financing Results Gain / (Loss) from Derivative Instruments Other Non- operating Income (Expense) 3Q25 Net Income Margin 20 12.6% ($million) 35.2 150.4 147.0 3Q24 3Q25 (as reported) 3Q25 (in constant currency) 327.2% 317.4% 3.1% 5.8% -0.2% -0.3% 3.0% 0.0% 0.0% -0.1% 1.3% 0.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 12.6% Foreign Currency Exchange Results Income Tax Expense Net Income attributable to non- controlling interests
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666 721 700 933304 247 139 257 362 474 561 676 2022 2023 2024 3Q25 Net Debt to Net Income • Total financial debt includes short -term debt, long -term debt, and derivatives instruments (net of asset portion) • Net Debt = Total financial debt less cash and cash equivalents • Leverage ratio = Net financial debt / Last Twelve -Month Net Income Key Debt Metrics – at period end ($million) T otal Debt Net DebtCash & Equivalents 21 2.8x3.8x2.6x2.6x Leverage Ratio
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Adjusted EBITDA Reconciliation 22 ($million) 2025 2024 2025 2024 Adjusted EBITDA Reconciliation Net income attributable to Arcos Dorados Holdings Inc. 150,429 35,214 186,946 90,355 Net income attributable to non-controlling interests 113 76 361 502 Income tax expense, net 25,732 39,589 56,723 76,695 Other non-operating (expenses) income, net 424 (758) 1,027 (106) Foreign currency exchange results (3,037) (3,292) 2,590 15,823 (Loss) Gain from derivative instruments 593 516 (861) (733) Net interest income (expense) and other financing results (27,071) 8,480 8,004 39,059 Depreciation and amortization 50,717 45,411 144,925 133,704 Operating charges excluded from EBITDA computation 3,226 (237) 2,801 (2,583) Adjusted EBITDA 201,126 124,999 402,516 352,716 Adjusted EBITDA Margin as % of total revenues 16.9% 11.0% 11.8% 10.6% For Three-Months For Nine-Months September 30, September 30,
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Definitions 23 In analyzing business trends, management considers a variety of performance and financial measures which are considered to be non-GAAP including: Adjusted EBITDA, Constant Currency basis, Systemwide sales, and Systemwide comparable sales growth. Adjusted EBITDA: In addition to financial measures prepared in accordance with the general accepted accounting principles (GAAP), this press r elease and the accompanying tables use a non -GAAP financial measure titled ‘Adjusted EBITDA’. Management uses Adjusted EBITDA to facilitate operating performance comparisons from period to peri od. Adjusted EBITDA is defined as the Company’s operating income plus depreciation and amortization plus/minus the following loss es/gains: gains from sale or insurance recovery of property and equipment, write -offs of long-lived assets, impairment of long -lived assets, and reorganization and optimization plan expenses. Management believes Adjusted EBITDA facilitates company -to-company operating performance comparisons by backing out potential di fferences caused by variations such as capital structures (affecting net interest expense and other financing results), taxation (affecting income tax expense) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for different companies for reasons unrelated to operating performance. Slide 22 of this presentation includes a reconciliation of Adjusted EBITDA to Net Income attributable to Arcos Dorados. For more information, please see the Adjusted EBITDA reconciliation in Note 9 – Segment and geographic information – of our financial statements filed today with the Securities and Exchange Commission (the “SEC”) on Form 6 -K. 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: ( i) 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 financ ial statements are prepared). (ii) 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 consta nt 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 fore ign currency fluctuations. Systemwide sales: Systemwide sales represent measures for both Company -operated and sub -franchised restaurants. While sales by sub -franchisees ar e not recorded as revenues by the Company, management believes the information is important in understanding its financial performance because these sales are the basis on which it calcula tes and records sub -franchised restaurant revenues and are indicative of the financial health of its sub -franchisee base. Systemwide comparable sales growth: this non -GAAP measure, refers to the change, on a constant currency basis, in Company -operated and sub -franchised restaurant sa les 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. Managem ent 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 s ub-franchisees are not recorded as revenues by the Company.
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IR Contacts Dan Schleiniger Vice President Investor Relations daniel.schleiniger@mcd.com.uy https://ir.arcosdorados.com Follow us on Thank you! ir@mcd.com.uy