Arcos Dorados Q1 2026 Financial Results: Record Revenue and Strong Growth

Arcos Dorados Holdings Inc., the largest McDonald's franchisee in Latin America, reported strong first quarter 2026 results with total revenue reaching $1.2 billion, up 12.9% year-over-year. Systemwide comparable sales grew 16.0%, driven by positive guest traffic and average check growth across regions. Adjusted EBITDA increased 29.3% to $118.0 million, with margin expansion of 120 basis points to 9.7%. Net income rose significantly to $36.1 million ($0.17 per share) from $13.9 million ($0.07 per share) in Q1 2025. The company opened 19 new restaurants during the quarter and achieved improved Adjusted Free Cash Flow of $109.2 million over the last twelve months. Digital sales represented 64% of systemwide sales, and the loyalty program grew to 30.4 million members. The company also reported progress on sustainability targets, reducing greenhouse gas emissions by 26.5% versus 2021 baseline.