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 unaudited results for the fourth quarter and audited results for the full year ended December 31, 2012.
Full Year 2012 Highlights
- Revenues increased by 3.8% year-over-year to US$ 3,797.4 million, or by 14.2% on an organic basis, as high single-digit comparable sales growth and revenues from new restaurants offset reported revenues lowered by the depreciation of local currencies versus the US dollar
- Systemwide comparable sales increased by 9.2% year-over-year
- 130 gross new restaurants opened in 2012. Capital expenditures for the year totaled US$ 294.5 million and contributed to the overall restaurant count of 1,948
- Adjusted EBITDA 1 improved versus the prior year, increasing 0.2% to US$ 340.6 million, or 1.2% on an organic basis
- Net income was largely unchanged at US$ 114.3 million versus US$ 115.5 million one year ago
Fourth Quarter 2012 Highlights
- Revenues increased by 5.3% year-over-year to US$ 1,009.7 million or by 13.8% on an organic basis, as strong comparable and new restaurant sales growth outweighed local currency depreciation
- Systemwide comparable sales increased by 8.6% year-over-year, driven by average check growth
- Adjusted EBITDA increased by 6.7% to US$ 111.6 million, including special items. Excluding currency translation and special items, Adjusted EBITDA was 4.7% higher year-over-year, despite a continued weak consumption environment in Brazil
- Net income was US$ 44.2 million compared to US$46.2 million one year ago
“Arcos Dorados’ ability to achieve high single-digit comparable sales growth in 2012 despite negligible economic expansion in our largest market underscores the strength of our brand, operational excellence and our earnings potential as Brazilian consumption recovers. In a soft market environment, we distinguished ourselves through promotional strategies of our iconic products and innovative offerings which resulted in double-digit organic revenue growth and solid market share. The opening of 130 new restaurants in 2012 will drive future earnings by capitalizing on a rapidly growing consumer base with a preference for convenience and away-from-home dining options in Latin America.”
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