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McDonald's Latin America reports tough first quarter

Buenos Aires, Argentina-based Arcos Dorados Holdings Inc., the world’s largest McDonald’s franchisee, reported unaudited results for Q1 ended March 31, 2015.

May 13, 2015

Buenos Aires, Argentina-based Arcos Dorados Holdings Inc., the world’s largest McDonald’s franchisee, reported unaudited results for Q1 ended March 31, 2015, the company announced.

Highlights include:

• Consolidated revenues were $775.1 million, a 15.3 percent decline versus the first quarter of 2014. On an organic basis and excluding Venezuela, consolidated revenues grew 6.8 percent.
• Systemwide comparable sales increased by 9.4 percent year-over-year.
• Adjusted EBITDA was $41.9 million, or 16.8 percent lower year-over-year. Organic Adjusted EBITDA excluding Venezuela, decreased by 5.2 percent versus the prior year quarter.
• Net loss of $28.2 million, compared to a net loss of $20.6 million in the year-ago period, mainly due to lower operating results and higher foreign exchange losses.

"As our management team continues to be focused on and committed to better address Latin-American consumer needs, we are making the necessary tactical adjustments to navigate through the current environment," Woods Staton, chairman and CEO of Arcos Dorados, in the announcement.

"We will continue to serve the great food and offer the family-friendly environment that our customers love. While we expect headwinds to persist in the near term, we are confident that our three-year strategic plan will lead to enhanced long term shareholder value," he said. "In the first quarter we made headway on some of the key elements of our strategy, particularly in delivering a high single-digit increase in comparable sales and improving our Adjusted EBITDA margins at the divisional level. With our focus on becoming leaner and more efficient, we expect to improve our performance and financial position, and be at the forefront of a cyclical recovery in Latin America’s growth."