News

McDonald's Latin American franchisee posts big revenue growth

October 27, 2011

Arcos Dorados Holdings Inc., Latin America's largest restaurant chain and the world's largest McDonald's franchisee, today reported unaudited results for the third quarter ended Sept. 30, 2011.

Third Quarter 2011 highlights include:

• Revenues increased by 24.7 percent year-over-year, or by 19.8 percent on a constant currency basis, to $984.0 million (U.S. dollars);
• Systemwide comparable sales increased by 15.7 percent year-over-year;
• 64 net additions of restaurants over the last 12 months;
• Adjusted EBITDA increased by 11.5 percent year-over-year, or by 2.0 percent on a constant currency basis, to $95.0 million;
• Net income amounted to $19.6 million;
• Trinidad & Tobago becomes 20th territory, first restaurant opened.

"During the third quarter Arcos Dorados experienced enhanced systemwide comparable sales both on a year over year and sequential basis, demonstrating the sustained demand of our consumers throughout the region. We also continued to reimage and open new restaurants at an impressive pace in accordance with our plan, contributing to overall revenue growth. On a store level, strong growth persists as customers continue to prioritize the McDonald's brand, products and customer service," said Woods Staton, CEO of Arcos Dorados.

Broken down by region

All of the company's divisions posted revenue growth, with the Brazil division growing 24.4 percent year-over-year.

NOLAD's (Mexico, Panama and Costa Rica) revenues increased by 17.4 percent year-over-year, with a systemwide comparable sales increase of 8.6 percent.

SLAD's (Argentina, Venezuela, Colombia, Chile, Perú, Ecuador, and Uruguay) revenues grew by 33.9 percent compared to the third quarter of 2010, mainly driven by a 31.7 percent increase in systemwide comparable sales. The Caribbean division (Puerto Rico, Martinique, Guadeloupe, Aruba, Curaçao, F. Guiana, Trinidad & Tobago, US Virgin Islands of St. Thomas and St. Croix) reported revenue growth of 2.6 percent above the third quarter of 2010, with a decline in systemwide comparable sales of 1.9 percent, impacted primarily by the difficult economic climate in that region.

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