Arcos Dorados Holdings (NYSE:ARCO), the world’s largest independent McDonald’s franchisee, reported record-breaking financial results for the fourth quarter and full year ended December 31, 2025.
The company, which operates across Latin America and the Caribbean, saw total annual revenue climb to $4.7 billion—a 4.7% increase in U.S. dollars—while fourth-quarter revenue surged 10.7% to reach $1.3 billion.
The company’s growth was underpinned by resilient consumer demand, with systemwide comparable sales rising 16% in the fourth quarter and 13% for the full year.
These figures remained largely in line with blended regional inflation, demonstrating the brand's ability to maintain pricing power across volatile markets like Argentina and Brazil.
This operational strength also translated into the company’s highest-ever annual adjusted EBITDA in U.S. dollar terms, reaching $575.2 million for the full year.
A significant driver of the bottom line in 2025 was a substantial net tax benefit in Brazil, totaling $159 million for the year ($33.8 million in Q4).
This non-recurring benefit significantly bolstered net income, which reached $212.1 million for the full year.
Management noted that this tax credit is expected to convert into cash over the next five years, providing a steady tailwind for future liquidity and capital allocation.
On the expansion front, Arcos Dorados exceeded its own growth targets while maintaining disciplined spending.
The company invested $281.4 million in capital expenditures during 2025, successfully opening 102 new restaurants—surpassing its previous guidance while utilizing lower-than-anticipated capital per unit.
In recognition of this strong performance, the Board of Directors declared a cash dividend of $0.28 per share for 2026.