Fitch Ratings upgraded Arcos Dorados Holdings Inc.'s Long-Term Foreign Currency Issuer Default Ratings and senior unsecured notes to 'BBB-' from 'BB+' on January 17, 2025. The rating for Arcos Dorados B.V.'s senior unsecured notes was also upgraded to 'BBB-', with a Stable Outlook.
This upgrade reflects Arcos Dorados' improved leverage metrics, with net lease adjusted debt levels now below 2.5x. Fitch also cited expectations of continued strong operating performance, robust liquidity, and a comfortable debt maturity profile as the company executes its growth strategy.
Fitch projects Arcos Dorados' EBITDA to exceed $480 million in 2024 and approach $600 million over the ratings horizon, with an average EBITDA of $540 million for 2024-2026. Capital expenditures are expected to average around $325 million for 2024-2026, supporting the company's target of 90-100 restaurant openings in 2025.
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