Arcos Dorados Reports Strong Comparable Sales for the Fourth Quarter 2023 and Provides Guidance for 2024 - Seite 2

NOLAD

16.6%

10.4%

11.5%

5.4%

10.6%

SLAD

91.8%

82.4%

93.8%

94.7%

90.9%

Total

37.6%

31.5%

37.3%

32.4%

34.6%

Fourth quarter systemwide comparable sales grew solidly on top of very strong results in the prior year period. In Brazil, October sales faced a challenging comparison but rebounded strongly in November and December with double-digit comparable sales growth. NOLAD saw strong results, especially in Mexico and the French West Indies, partially offset by the impact of social unrest in Panama during the quarter. SLAD’s markets performed strongly in the quarter as well. Digital rose nearly 65% in constant currency, including around 50% higher Delivery sales in the quarter. Identifiable sales were 21% of sales in the quarter with the Loyalty Program surpassing 3 million members at year end.

2023 Actual and 2024 Guidance – Openings and Capital Expenditures

Openings and Modernizations

The Company opened 81 Experience of the Future (EOTF) restaurants in 2023, including 72 free-standing units. There were 50 openings in Brazil and an even number of openings between NOLAD and SLAD.

For 2024, the Company expects to open 80 to 90 EOTF restaurants, comprised of about 90% free-standing units.

Capital Expenditures

Total capital expenditures in 2023² were approximately in line with guidance of $350 million, including all openings, modernizations, optimizations and maintenance in the restaurant portfolio as well as the Company’s investments in its Digital platform and back-office systems.

For 2024, the Company projects total capital expenditures of $300 million to $350 million, which it expects to fund with cash on hand and cash generated from operations.

²Total capital expenditures in 2023 refer to unaudited, estimated results as of the time of this press release.

Definitions:

Systemwide comparable sales growth: refers to the change, measured in constant currency, in our Company-operated and franchised restaurant sales in one period from a comparable period for restaurants that have been open for thirteen months or longer (year-over-year basis). While sales by our franchisees are not recorded as revenues by us, we believe the information is important in understanding our financial performance because these sales are the basis on which we calculate and record franchised revenues and are indicative of the financial health of our franchisee base.