Arcos Dorados Holdings Inc. reported its first quarter 2025 financial results on May 14, 2025, with consolidated revenues totaling $1.1 billion, remaining relatively flat versus the prior year in US dollars. This occurred despite strong currency depreciations in the company's three largest markets.
The company's Adjusted EBITDA for the quarter slid 16%, and net income decreased to $13.9 million, or $0.07 per share, representing a 51% decline from $0.14 per share in the prior year. This decline in profitability was noted despite 11% sales growth on a constant currency basis and market share gains in a challenging consumer spending environment.
The loyalty program continued to expand, reaching 18.8 million members as of Q1, a 19% increase from January. This program, which launched in Argentina and Colombia in Q1 and Ecuador in April, accounted for one-fourth of the company's sales. Management believes the new 20-year Master Franchise Agreement will be a net positive to adjusted EBITDA in 2025.
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