Financial Performance - Total revenue reached $1.2 billion[12] - Systemwide comparable sales increased by 12.7%[12] - Adjusted EBITDA was $201.1 million with a 16.9% margin[12] - Net income amounted to $150.4 million, or $0.71 per share[12] - Net income was boosted by a $125.2 million net benefit from a federal tax credit in Brazil[14] Digital Sales & Loyalty - Digital sales contributed approximately 61% of total sales[12] - Loyalty program registered members increased to 23.6 million[22] Divisional Performance - Brazil's revenue was $452.6 million[24] - NOLAD (Northern Latin America Division) revenue was $328.5 million[25] - SLAD (Southern Latin America Division) revenue was $411.8 million[25] Development & Capital Expenditure - Opened 22 restaurants during the quarter, with 19 being freestanding[12] - Capital expenditures totaled $75.8 million, including $44.2 million for new restaurant openings[17] Balance Sheet - Net debt stood at $474 million[43] - Leverage ratio is 1.2x[44]

Core Points - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper functionality [1] - The presence of ad-blockers can lead to blocked access, necessitating their temporary disablement [1]

Financial Performance - Total revenues for the nine-month period ended September 30, 2025, increased to $3,411,716, up 2.6% from $3,325,942 in 2024[11] - Net income attributable to Arcos Dorados Holdings Inc. rose to $186,946, representing a 106.0% increase compared to $90,355 in the same period of 2024[11] - Earnings per share increased to $0.89, up from $0.43 in 2024, reflecting a significant growth in profitability[11] - Operating income for the nine-month period was $254,790, an increase of 15.0% from $221,595 in 2024[11] - The company reported a comprehensive income of $287,657 for the nine-month period, significantly higher than $47,941 in 2024[13] - Adjusted EBITDA for the nine-month period ended September 30, 2025, reached $402,516 thousand, up from $352,716 thousand in 2024, reflecting an increase of about 14.1%[92] - Total adjusted EBITDA for the nine-month period ended September 30, 2025, was $402,516, compared to $352,716 for the same period in 2024, representing a 14.1% increase[94] - Basic and diluted net income per common share for the nine-month period ended September 30, 2025, was $0.89, compared to $0.43 in 2024, indicating a 106.9% increase[105] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $182,797, compared to $135,064 at the beginning of the year, indicating a positive cash flow[17] - Net cash provided by operating activities was $163,918, slightly up from $159,794 in 2024, demonstrating stable operational performance[18] - The company approved a cash dividend distribution of $0.24 per share, to be paid in four installments, with $37,920 paid as of September 30, 2025[102] Assets and Liabilities - Total assets increased to $3,566,165, up from $2,892,654 as of December 31, 2024, showing strong growth in the company's financial position[16] - Total shareholders' equity at the end of the period was $513,474 thousand, reflecting the company's financial stability[22] - The Company has a total long-term debt of $991,248 as of September 30, 2025, compared to $718,598 as of December 31, 2024, reflecting an increase in debt obligations[58] - Total liabilities as of September 30, 2025, were $8,173, compared to $1,292 as of December 31, 2024[114] Capital Expenditures - Property and equipment expenditures for the nine-month period were $179,921, a decrease from $239,169 in 2024, indicating a potential shift in capital allocation[18] - Total property and equipment expenditures for the nine-month period ended September 30, 2025, were $179,921, down from $239,169 in 2024, a decrease of 24.9%[96] Market Presence and Operations - The company has operations in 21 territories, including Argentina, Brazil, and Mexico, expanding its market presence[27] - Effective January 1, 2025, the company entered into new Master Franchise Agreements with McDonald's Corporation for a term of 20 years, enhancing its operational framework[26] - The Company plans to open 90-100 new restaurants in 2025 and aims to reimage at least 10% of its eligible restaurants[84] Financial Ratios and Debt Management - The consolidated net indebtedness to EBITDA ratio was 1.23x as of September 30, 2025, indicating compliance with the required ratio of less than 3.00x[55] - The Fixed Charge Coverage Ratio improved to 2.26 as of September 30, 2025, compared to 2.05 on June 30, 2025, indicating stronger financial stability[83] - The Leverage Ratio decreased to 3.24 as of September 30, 2025, down from 3.80 on March 31, 2025, showing improved debt management[83] Foreign Currency and Derivatives - The company reported accumulated other comprehensive loss of $(605,957) thousand, indicating challenges in foreign currency translation[22] - The company reported a foreign currency translation loss of $568,208 as of September 30, 2025, compared to a loss of $606,785 in 2024, indicating an improvement[104] - The fair value of derivative instruments as of September 30, 2025, is $64,792 in assets and $(8,173) in liabilities[71] Accounting and Compliance - The financial statements are prepared in accordance with US GAAP, ensuring compliance with accounting standards[28] - The Company is currently assessing the impact of new accounting standards on its consolidated financial statement disclosures, including ASU No. 2023-09 and ASU No. 2024-03[45][46]

Group 1 - Arcos Dorados Holdings Inc. (NYSE:ARCO) is the exclusive franchisee of McDonald's in 20 Latin American and Caribbean countries and territories [1] - Over the last 12 months, ARCO's stock has decreased by approximately 17%, while McDonald's (MCD) stock has increased by more than 2% during the same period [1] Group 2 - There is potential for ARCO as an investment, but certain AI stocks are considered to offer greater upside potential and less downside risk [2]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions. Group 1: Company-Specific Summaries - Arcos Dorados Holdings Inc. (ARCO), a franchisee of McDonald's restaurants, has seen its current year earnings estimate revised downward by 1.7% over the last 60 days [1] - Canadian National Railway Company (CNI), a rail and related transportation company, has experienced a 2.7% downward revision in its current year earnings estimate over the last 60 days [1] - Kolibri Global Energy Inc. (KGEI), an explorer and developer of oil, gas, and clean and sustainable energy reserves, has had its current year earnings estimate revised downward by 7% over the last 60 days [2]

Core Insights - Arcos Dorados Holdings Inc. has secured a new $200 million syndicated revolving credit facility, replacing previous facilities totaling $75 million [1][2] - The new credit line has a four-year maturity with an optional one-year extension and an interest rate ranging from SOFR plus 210 to SOFR plus 240 basis points [1] - The facility was arranged by a syndicate of seven institutions, with JPMorgan Chase Bank as the sole lead arranger [4] Financial Strategy - The transaction reflects Arcos Dorados' commitment to a solid financial strategy and the trust of its banking partners [2] - The company aims to manage its capital structure proactively to ensure sustainable growth while leveraging its investment-grade credit rating [3] Operational Details - The credit facility remains undrawn as of the announcement date [1] - Legal counsel for the transaction included Davis Polk & Wardwell LLP for Arcos Dorados and Milbank LLP for JPMorgan Chase [4]

Core Insights - Restaurant Brands International Inc (QSR), Arcos Dorados Holdings Inc (ARCO), and Bruker Corp (BRKR) will trade ex-dividend on 9/23/25, with respective dividends of $0.62, $0.06, and $0.05 [1] - The expected price adjustments for the stocks on the ex-dividend date are approximately 0.99% for QSR, 0.89% for ARCO, and 0.15% for BRKR [1] - The estimated annualized yields based on recent dividends are 3.94% for QSR, 3.56% for ARCO, and 0.60% for BRKR [9] Company Summaries - **Restaurant Brands International Inc (QSR)**: Will pay a quarterly dividend of $0.62 on 10/7/25, with an expected yield of 3.94% [1][9] - **Arcos Dorados Holdings Inc (ARCO)**: Will pay a quarterly dividend of $0.06 on 9/26/25, with an expected yield of 3.56% [1][9] - **Bruker Corp (BRKR)**: Will pay a quarterly dividend of $0.05 on 10/3/25, with an expected yield of 0.60% [1][9] Market Performance - On the trading day prior to the ex-dividend date, QSR shares are down about 1.5%, ARCO shares are down about 0.4%, while BRKR shares are up about 3.6% [10]

Group 1 - The results were presented positively based on 'comparable sales' growth, leading to a favorable stock reaction [1] - Despite the positive presentation, underlying trends indicate more challenging conditions for the companies involved [1] - The focus of Quipus Capital is on operational aspects and long-term earnings power rather than market-driven dynamics [1] Group 2 - The investment strategy emphasizes holding companies independently of future price movements, with most recommendations being holds [1] - A small fraction of companies are considered suitable for buying at any given time, highlighting a cautious investment approach [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a bullish market [1]

Core Insights - The company reported total revenue of $1.1 billion for Q2 2025, with system-wide comparable sales increasing by 12.1% in constant currency, surpassing blended inflation [3][9] - Adjusted EBITDA reached $110.1 million, growing over 7% with a margin expansion of approximately 40 basis points when excluding last year's labor contingency reduction in Brazil [3][10] - The company appointed Luis Raganato as CEO and outlined three strategic priorities focusing on organic operations, development, and long-term positioning [4][26] Financial Performance - NOLAD division revenue grew by 6.9% in constant currency, with comparable sales rising 1.8 times blended inflation; Mexico achieved 12.4% comparable sales growth [3][17] - SLAD division revenue rose by 37.8% in constant currency, with comparable sales up 1.4 times blended inflation and margin expanding by about 260 basis points [3][18] - Brazil's revenue increased by 2% in constant currency, maintaining market share despite a negative industry volume environment [3][16] Digital and Loyalty Programs - Digital sales penetration reached approximately 60% system-wide, with loyalty programs accounting for nearly 23% of total sales in six markets and 26% in Brazil [3][12] - The loyalty program now covers two-thirds of restaurants, with expectations to reach 90% by the end of 2025 [7][13] Expansion and Capital Expenditures - The company opened 20 new Experience of the Future (EOTF) restaurants in Q2 2025, totaling 32 in the first half of the year, with a full-year guidance of 90-100 openings [3][11] - Capital expenditures for Q2 2025 were $55.3 million, including $26.8 million for growth CapEx related to new restaurant construction [7][22] Market Position and Strategy - Brand preference increased to nearly twice that of the nearest competitor across the region, supported by marketing and digital initiatives [8][12] - The company maintains a disciplined approach to pricing and capital allocation, with a focus on maximizing returns on investments [4][66] Debt and Ratings - The net debt to adjusted EBITDA ratio stands at 1.4x, with S&P assigning an initial BBB- investment-grade rating, aligning the company's debt profile with full investment-grade status [3][21]

Financial Data and Key Metrics Changes - Total revenue for the second quarter reached $1.1 billion, with constant currency revenue supported by a 12.1% increase in system-wide comparable sales, exceeding blended inflation for the period [5][6] - Adjusted EBITDA for the quarter was $110.1 million, with a growth of over 7% excluding last year's labor contingency reduction in Brazil, and a margin expansion of approximately 40 basis points [7][16] - The net debt to adjusted EBITDA ratio was 1.4 times, indicating a strong balance sheet [20] Business Line Data and Key Metrics Changes - Brazil's total revenue in constant currency grew by 2%, with positive comparable sales despite negative industry volumes [13] - NOLAD's total revenue rose by 6.9% in constant currency, with comparable sales growth of 1.8 times blended inflation [14] - SLAD's revenue increased by 37.8% in constant currency, with comparable sales up 1.4 times blended inflation [15] Market Data and Key Metrics Changes - Digital sales accounted for over 70% of system-wide sales in Brazil, with the loyalty program surpassing 18 million members, contributing to 26% of total sales [13] - In Mexico, comparable sales grew by 12.4%, significantly outperforming main competitors [14] - Argentina's market share continued to expand, with strong performance driven by local marketing initiatives [15][66] Company Strategy and Development Direction - The company plans to open 90 to 100 new Experience of the Future restaurants in 2025, with 32 openings in the first half of the year [8][21] - The strategic focus includes enhancing customer experience, modernizing development processes, and preparing for future market demands [24][25] - The company emphasizes collaboration with stakeholders to maintain leadership and drive growth [26] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a challenging macroeconomic environment in Brazil but expressed confidence in maintaining market share and improving margins through targeted pricing and marketing initiatives [32][36] - The outlook for the second half of the year remains cautious, with expectations of continued pressure on consumer confidence [36][82] - Management is optimistic about the recovery of margins as consumer trends improve [60] Other Important Information - The company has received an investment-grade rating from S&P, which is expected to support future capital market transactions [20] - The acquisition of three existing restaurants and exclusive franchise rights in Saint Martin is part of the growth strategy, with no material change expected in consolidated results from this acquisition [21][78] Q&A Session Summary Question: How does the company assess the balance between foot traffic, pricing, product mix, and profitability in Brazil? - The company managed to deliver positive comparable sales by offsetting a drop in traffic with targeted price increases and product mix, focusing on average check rather than volume [32] Question: What are the preliminary insights on demand trends in July for Brazil and Mexico? - Brazil continues to face a challenging environment, while Mexico had a strong quarter with sales growth driven by various channels [36][37] Question: Can you elaborate on which regions contributed most significantly to top line and margin performance in NOLAD? - NOLAD showed strong performance, particularly in Mexico, with sales growing at 1.8 times inflation and margin improvements despite currency challenges [41][42] Question: How does management see beef prices evolving in the second half of the year in Brazil? - Management does not expect significant cost pressures from beef prices in the second half, with recent appreciation of the Brazilian real potentially benefiting gross margins [51][52] Question: What is the nature of Francisco Statement's new role as Chief Strategy Officer? - Francisco will focus on developing long-term strategies across the business, leveraging his extensive experience in various leadership roles [86]