What were Arcos Dorados Holdings’ (NYSE:ARCO) total revenues for Q1 2026?

Arcos Dorados reported total revenue of $1.2 billion for Q1 2026, up 12.9% year-over-year, driven by higher transaction volumes, systemwide comparable sales growth, and digital channel penetration.

How did comparable sales perform in Q1 2026?

Systemwide comparable sales increased 16% during the quarter, reflecting strong customer engagement and market share gains across the company’s Latin American and Caribbean operations.

What were Arcos Dorados’ profitability metrics in Q1 2026?

Consolidated adjusted EBITDA rose 29.3% to $118 million, with the adjusted EBITDA margin expanding 120 basis points to 9.7%. Net income increased to $36.1 million ($0.17 per diluted share), up from $0.07 per share a year ago.

What drove the margin expansion at Arcos Dorados?

Lower supply chain pressures, including improvements in food and paper costs (down roughly 60 basis points of revenue), contributed to stronger margins, particularly from structural input cost improvements in Brazil.

How did Arcos Dorados perform on free cash flow?

Trailing twelve-month adjusted free cash flow swung positive to $109.2 million, reversing a prior-year cash outflow of $(3.1) million, highlighting strong operational cash generation.

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Arcos Dorados net income doubles to $36.1M on strong McDonald’s demand

Written by Isaac FrancisPublished May. 20 2026Last Updated May. 20 2026

Arcos Dorados Holdings (NYSE:ARCO), Latin America and the Caribbean’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, reported its unaudited financial results for the first quarter ended March 31, 2026.

The company achieved double-digit revenue expansion alongside a multi-fold increase in net profits, backed by high transaction volumes and declining core raw material costs.

Total revenue for the first quarter reached $1.2 billion, representing a 12.9% increase in U.S. dollars compared to the first quarter of 2025.

Systemwide comparable sales advanced 16% during the three-month period, driving sustained market share capture across its primary operating territories.

Top-line results were reinforced by steady digital channel penetration and localized menu adjustments tailored to volatile regional macroeconomic climates.

Profitability frameworks also recorded substantial expansion during the quarter.

Consolidated adjusted EBITDA rose 29.3% year-over-year to $118 million, marking the highest first-quarter baseline in the company’s operating history.

The consolidated adjusted EBITDA margin expanded by 120 basis points to land at 9.7%.

This expansion was primarily driven by lower supply chain pressures, as consolidated food and paper costs as a percentage of revenue improved by roughly 60 basis points, anchored by a structural improvement in input expenses throughout Brazil.

Below the operating line, net income rose to $36.1 million, or $0.17 per diluted share, up from the $0.07 per share recorded in the first quarter of the prior year.

The consolidated net income margin moved up 170 basis points year-over-year to 3.0%.

Driven by steady operational returns, trailing twelve-month adjusted free cash flow swung to a positive $109.2 million, reversing a cash outflow deficit of $(3.1) million recorded in the prior year's corresponding window.

Meanwhile, Arcos Dorados expanded its retail footprint by opening 19 new restaurants across the Latin American region during the quarter, continuing its long-term strategy to capture underpenetrated consumer segments.