Arcos Dorados Reports Fourth Quarter 2020 Comparable Sales and Provides an Outlook For 2021
Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, today reported its systemwide comparable sales results for the fourth quarter and full year ended December 31, 2020, ahead of its quarterly earnings announcement planned for March 17, 2021. The Company also provided a business update, including its outlook and strategic priorities for the full year 2021.
“We begin this new calendar year with renewed optimism for our business and the McDonald’s brand in Latin America. The lessons learned in 2020 have undoubtedly served to unite our team as well as bring us closer to the guests and communities we serve. Although we have not yet reached the Full Revival Phase of our plan, we expect to do so this year and Arcos Dorados is clearly the best-positioned restaurant operator in Latin America and the Caribbean. In 2021, we plan to gain meaningful market share, resume normalized operations and self-fund investments in unit growth as well as extending our significant lead in the industry’s digital race,” said Marcelo Rabach, Arcos Dorados’ Chief Executive Officer.
“This starts with being recognized as the safest restaurant experience in Latin America and the Caribbean, supported by our McProtegidos (McSafe) Program. We will build on our Three D’s strategy, leveraging our unmatched Drive-Thru restaurant footprint, evolving our leading Delivery platform and expanding our Digital capabilities. We expect to deliver sales growth with our compelling portfolio of core products and the resumption of a strong family-oriented marketing calendar in 2021. We have also reached an agreement with McDonald’s to receive Growth Support, which is expected to keep the 2021 effective royalty rate at about 5.3% of sales versus the 6.0% stipulated by the Master Franchise Agreement. Finally, our profitability and operating cash flow should accelerate throughout the year on the back of recovering sales and disciplined cost, expense and cash management.”
2020 Systemwide Comparable Sales by Division, excl. Venezuela
|Increase / (Decrease)|
|2020 Quarter Ended||Full Year|
|March 31||June 30||September 30||December 31||