ARCO NYSE· Arcos Dorados Holdings Inc.
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ARCO NYSE· Arcos Dorados Holdings Inc.
Earnings report Q1 2024

Arcos Dorados Reports Strong Comparable Sales Growth in Q4 2023

Segments of revenue

Arcos Dorados reported a 32.4% increase in systemwide comparable sales in the fourth quarter of 2023. The company's total revenue grew by 15.4% compared to the same quarter in the previous year.


Arcos Dorados' strong performance in the fourth quarter can be attributed to its Three D's Strategy of Digital, Delivery, and Drive-thru. The company's digital channels, which accounted for 53% of systemwide sales, drove sales growth throughout the year. The mobile app, which has evolved into an e-commerce platform, allowed Arcos Dorados to engage with customers, learn their preferences, and provide a compelling value, experience, and convenience. This resulted in increased visit frequency and market share gains across their markets. The growth in Loyalty Program membership, exceeding three million members at the end of 2023, indicates strong customer engagement.


While Arcos Dorados experienced overall strong growth, there were some challenges in certain markets. In Brazil, October sales faced a difficult comparison but rebounded strongly in November and December with double-digit comparable sales growth. The impact of social unrest in Panama during the quarter partially offset the strong results in Mexico and the French West Indies.


Digital sales rose by nearly 65% in constant currency, with delivery sales increasing by around 50% in the fourth quarter. Identifiable sales accounted for 21% of total sales, and the Loyalty Program surpassed three million members by the end of 2023.


Arcos Dorados delivered a strong performance in the fourth quarter of 2023, with systemwide comparable sales growing by 32.4% and total revenue increasing by 15.4%. The company's Three D's Strategy, focusing on digital, delivery, and drive-thru, proved successful in driving sales growth and increasing market share. However, challenges in certain markets, such as Brazil and Panama, impacted overall results. The company's strong digital presence, including a mobile app that has evolved into an e-commerce platform, contributed to increased customer engagement and loyalty. Overall, Arcos Dorados' performance in the latest quarter demonstrates its ability to adapt to changing consumer preferences and leverage digital channels for growth.

Source documents

Form 6-K  filed on Jan 29, 2024
210 pages scanned

Reference data

Company financials Q1 revenue 1.18B
Analyst estimates Q1 EPS beat by 31.24%
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