Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest McDonald’s franchisee, today reported its unaudited results for the third quarter ended September 30, 2012.
To better discern underlying business trends, this release uses non-GAAP financial measures that segregate year-over-year growth into three categories: (i) currency translation, (ii) special items and (iii) organic growth. (i) Currency translation reflects the impact on growth of the appreciation or depreciation of the local currencies in which we conduct our business against the US dollar (the currency in which our financial statements are prepared). (ii) Special items include the impact of CAD related awards and other events that management does not consider part of the underlying performance of the business. (iii) Organic growth reflects the underlying growth of the business excluding the effect from currency translation and special items. Management believes organic growth better reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results.
Additionally, the Company has modified the presentation of quarterly and accumulated amounts in this release, providing an analysis by geographic division. The information presented is the same as in prior releases.
Third quarter 2012 Highlights
- Revenues decreased 2.2% year-over-year to US$ 961.9 million, but increased 11.6% on an organic basis, as comparable sales growth and revenues from new stores did not fully offset a reduction in reported revenues from the impact of the depreciation of local currencies versus the US dollar
- Systemwide comparable sales increased 6.5% year-over-year. The result is in addition to a 15.7% increase in comparable sales in 3Q11
- 103 net new restaurants opened during the last 12 months, contributing US$ 47.7 million to revenues in constant currency. The full-year opening plan is on track, with outstanding restaurants under construction
- Adjusted EBITDA decreased 12.0% to US$ 83.6 million, due primarily to the 24.5% depreciation of the Brazilian currency versus the prior year period. Excluding currency translation and special items, organic Adjusted EBITDA was 7.3% lower year-over-year
- Net income amounted to US$ 32.6 million compared to US$ 19.6 million one year ago, when the Company incurred debt restructuring charges