Arcos Dorados' World Cup Play and Brazilian Rebound Drive Record Q2

Amidst regional earthquakes and challenging consumer trends, the fast-food operator leverages its FIFA sponsorship and operational discipline to post record revenue, EBITDA, and net income.

ARCO · Earnings Call · 2026-08-13

Despite earthquakes in Venezuela and Colombia, and a challenging consumer backdrop, Arcos Dorados delivered its best-ever quarter. The key, according to CEO Luis Raganato, was World Cup momentum and disciplined execution. As he put it in prepared remarks: “The FIFA World Cup was a big success for the McDonald's brand in all of our markets.” — Luis Raganato, Chief Executive Officer · 2026-08-13

Total revenue reached $1.3 billion, a record, and adjusted EBITDA grew 20% year-over-year to $126.8 million, with margins expanding 70 basis points excluding a one-off sub-franchisee transaction in Mexico.

Brazil: From Turnaround to Catalyst

The most notable turnaround is in Brazil. After a tough 2025, the division delivered 180 bps of margin expansion. In Q&A, Luis explained the drivers: “They boosted the value platform, Economia, that we have already talked about. That for less than $4, you can make your own four-item combo.” — Luis Raganato, Chief Executive Officer · 2026-08-13 He added that this "generated positive comp sales and volume." This is a stark contrast to the tone just a quarter earlier, when he had said: “the second quarter is off to a very good start. And this was thanks to the proactive step that the team the Brazilian team took to reverse guest volume trends while maintaining healthy margins.” — Luis Raganato, Chief Executive Officer · 2026-05-20

World Cup: The Flywheel for Market Share and Digital

The Operational execution and Market share gains were not merely tactical. Digital sales penetration hit 66% and identified sales surpassed 28%. Loyalty members now exceed 30 million, and as Luis noted: “Active loyalty program members who redeem points tend to visit us five times as frequently as non-loyalty members.” — Luis Raganato, Chief Executive Officer · 2026-08-13

Even before the tournament, management had flagged its potential: “What you can expect is a positive impact from the FIFA World Cup event.” — Luis Raganato, Chief Executive Officer · 2025-11-12

Financial Discipline and Future Investments

On the balance sheet, the company has strengthened its position: it repaid the 2029 senior notes, issued the first sustainability-linked bond in QSR, and net leverage is now a healthy 1.1x. Free cash flow improved sequentially, allowing continued investment in 35 new restaurants and modernizing 77% of the portfolio.

The word we want you to remember today is resilience.
Luis Raganato, Chief Executive Officer · 2026-08-13

That resilience is now translating into record results. With an Investor Day ahead, the company is positioning itself for sustained growth beyond the World Cup bump.