Arcos Dorados Reports Strong Comparable Sales for the Fourth Quarter 2023 and Provides Guidance for 2024

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 growth for the fourth quarter and full year ended December 31, 2023, ahead of its quarterly earnings announcement planned for March 2024. The Company also provided guidance for restaurant openings and total capital expenditures for 2024.

“We had a solid finish to a very strong year. Our Three D’s Strategy of Digital, Delivery and Drive-thru continues to evolve and leverages the Latin American quick service restaurant industry’s largest free-standing restaurant portfolio. Digital channels drove sales growth all year and represented 53% of Arcos Dorados’ systemwide sales in the fourth quarter. Our mobile app has evolved into an e-commerce platform. It allows us to engage with guests to learn their consumption preferences and provide the most compelling value, experience and convenience in the industry. The result was an increase in visit frequency and market share gains across our markets. Growth in Loyalty Program membership, which exceeded three million members at the end of 2023, is just the latest indicator that guests are ‘Lovin’ It’ when it comes to the McDonald’s experience in Latin America and the Caribbean,” said Marcelo Rabach, Arcos Dorados’ Chief Executive Officer.

“We opened more than 80 restaurants last year, remaining focused on free-standing unit openings. This continues to be a structural competitive advantage given the greater adaptability of this restaurant format, compared with the competition’s mostly mall-based restaurant portfolios. The openings pipeline remains robust and we are increasing the number of annual openings to capture the full potential of the McDonald’s Brand in our region.”

¹Revenue refers to unaudited, estimated results as of the time of this press release.

Systemwide Comparable Sales Growth

	Increase / (Decrease)
vs. the prior year period	1Q23	2Q23	3Q23	4Q23	FY 2023
Brazil	13.8%	9.6%	10.8%	6.2%	9.9%