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Arcos Dorados Holdings (NYSE:ARCO) reported Systemwide comparable sales jumped 37.6% year-over-year in Q1 with strong sales and higher guest volume across all divisions.
The free-standing restaurant portfolio drove strong revenue growth in the quarter. Total revenues in U.S. dollars increased 25.3%, or 43.9% in constant currency. Front counter sales grew more than 50% in constant currency from a year ago and generated 59% of systemwide sales in the quarter. Drive-thru and delivery sales increased 13% and 40% in constant currency, respectively, despite the acceleration in front counter sales. Total restaurant volumes continued to grow as the ARCO omnichannel offerings drove increased guest frequency.
Consolidated Adjusted EBITDA was up 28.0% to $100.5M and rose 42.7% in constant currency. Net income soared 52.7% to $37.4M.
The McDonald's franchise restaurant operator ended the quarter with 2,312 units vs. 2,273 a year ago.
On the balance sheet, the company reported a net debt to adjusted EBITDA leverage ratio of 1.0X at the end of the quarter.
CEO update: "Arcos Dorados, like the McDonald’s system globally, has been generating consistently strong results for the last couple of years. This is a direct result of our long-term, strategic approach to generating value for our shareholders and we expect the structural competitive advantages of our restaurant portfolio and digital platform to continue to drive value creation for the foreseeable future."
Shares of Arcos Dorados (ARCO) rose 3.45% in premarket trading to $8.69 vs. the 52-week trading range of $6.23 to $9.04.