This is a clean beat across revenue, EBITDA, and EPS with margin expansion and strong cash generation. The stock may re-rate on the sustained operational trajectory. Monitor the upcoming October 1 Investor Day for longer-term guidance.
Price Chart
Executive Summary
Arcos Dorados reported record Q1 2026 results with total revenue of $1.216 billion (up 12.9% YoY), Adjusted EBITDA of $118.0 million (up 29.3% YoY), and net income of $36.1 million (up 159.4% YoY). Systemwide comparable sales grew 16.0%, and the company expanded its Adjusted EBITDA margin by 120 bps to 9.7%. The strong operational performance follows a record full-year 2025 and confirms continued momentum across all divisions.
Key Facts
- Total revenue of $1.216 billion in Q1 2026, up 12.9% YoY in US dollars
- Systemwide comparable sales rose 16.0% in Q1 2026
- Consolidated Adjusted EBITDA of $118.0 million, up 29.3% YoY, a record for Q1
- Adjusted EBITDA margin expanded 120 bps YoY to 9.7%
- Net income of $36.1 million, or $0.17 per share, up from $0.07 per share in Q1 2025
- Net income margin expanded 170 bps YoY to 3.0%
- LTM Adjusted Free Cash Flow improved to $109.2 million from $(3.1) million
- Total Financial Debt / LTM Adjusted EBITDA ratio improved to 1.6x from 1.9x
- Opened 19 new restaurants in the quarter, total systemwide units at 2,536
Financial Impact
Revenue growth of $139.4M (+12.9%) and Adjusted EBITDA growth of $26.7M (+29.3%) in Q1 2026 vs Q1 2025
Risk Factors
- Currency translation risk: US dollar appreciation against local currencies could pressure reported revenues
- SLAD division's hyperinflationary Argentina environment poses margin and FX volatility risk
- Brazil comparable sales growth moderated to 0.5% from 2.9% a year ago, potentially signaling market maturity
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0000950103-26-007512 |
| Document: 0000950103-26-007512-index-headers.html | 0000950103-26-007512 |
| Document: 0000950103-26-007512-index.html | 0000950103-26-007512 |
| Document: 0000950103-26-007512.txt | 0000950103-26-007512 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 1, 2026 26d ago | 6-K | $6.91 $7.11 | ▲ +2.89% | ▲ +2.15% | $7.00 (+1.30%) |
Aug 13, 2026 10w ago | 6-K | $8.14 $7.91 | ▼ −2.83% | ▼ −2.63% | $7.00 (−14.00%) |
Aug 13, 2026 10w ago | 6-K | $8.14 $7.91 | ▼ −2.83% | ▼ −2.63% | $7.00 (−14.00%) |
May 20, 2026 22w ago | 6-K | $9.08 $9.15 | ▲ +0.77% | ▲ +0.58% | $7.00 (−22.91%) |
May 20, 2026 22w ago | 6-K | $9.08 $9.15 | ▲ +0.77% | ▲ +0.58% | $7.00 (−22.91%) |
Apr 30, 2026 25w ago | 20-F | $8.78 $8.65 | ▼ −1.48% | ▼ −1.14% | $7.00 (−20.27%) |
Mar 26, 2026 30w ago | 6-K | $8.00 $7.93 | ▼ −0.88% | ▼ −0.52% | $7.00 (−12.50%) |
US Market Status
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