Arcos Dorados Holdings Inc., Latin America's largest restaurant chain and the world's largest McDonald's franchisee, has reported its unaudited results for the second quarter ended June 30.
Highlights include:
- Revenues increased by 1.8 percent year-over-year to $ 904.2 million (U.S.) or by 15.5 percent on an organic basis, as double-digit comparable sales growth helped to offset a reduction in reported revenues from the impact of the depreciation of local currencies versus the U.S. dollar;
- Systemwide comparable sales increased by 10.4 percent year-over-year, driven by average check growth and increased guest counts. The result is in addition to a 14.8 percent increase in comparable sales in Q2 2011;
- 91 net new restaurants opened during the last 12 months, with an accelerated year-over-year pace in quarterly openings, which contributed $40.4 million to revenues;
- Adjusted EBITDA decreased by 0.9 percent to $67.3 million, due primarily to the 23 percent depreciation of the Brazilian currency versus the prior year;
- Net income amounted to $12.1 million, below last year's net income of $14.2 million, primarily due to the impact of currency depreciation, foreign exchange losses and a higher income tax rate.
"Our operations continue to be very strong, led by higher average check growth, increased guest counts and successful marketing activities across all regions. The result is double digit organic revenue growth, which is on target with our stated expectations," said Woods Staton, chairman and CEO of Arcos Dorados Holdings Inc. "While various economic issues persist in the region, the underlying strength of our enterprise is indisputable and will serve as a driver of ongoing future revenue growth."
As of the end of June, Arcos Dorados' system includes 1,858 total units.
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