Arcos Dorados, which operates McDonald’s restaurants in Latin America and the Caribbean, reported revenue growth in the fourth quarter (Q4) of 2025, though profit fell on tax and restructuring-related costs.

The company generated revenues of $1.3bn in Q4 2025, a 10.7% rise in US dollars compared with the same period a year earlier.

However, net income attributable to the company dipped to $25.2m in Q4 2025 from $58.4m a year ago.

For the full year to 31 December 2025, revenue totalled $4.7bn, up 4.7% year-on-year in US dollar terms.

The company, which is the world’s largest independent McDonald’s franchisee, posted a net income of $212.1m in 2025, compared with $149.3m in the prior year.

Systemwide comparable sales grew 16% in Q4 and 13% for the full year 2025. The company noted that both figures were roughly aligned with blended inflation in its markets.

Arcos Dorados highlighted that digital channels continued to drive growth. Digital sales climbed 18.7% in the quarter and made up 62% of systemwide sales in the three-month period.

The company also continued to expand its footprint, opening 48 restaurants in the fourth quarter, including 41 freestanding outlets.

In 2025, it added 102 locations, slightly above its guidance range, with 88 classified as freestanding units.

The company plans to open between 105 and 115 restaurants this year, and expects capital expenditure for the year to range between $275m and $325m, funded through cash on hand and operating cash flow.

Arcos Dorados CEO Luis Raganato said: “Among our competitive strengths are a strong brand, a resilient business model, and a culture built around operational excellence to support long-term shareholder value creation.

“These strengths delivered some of the company’s best financial results last year, while protecting or expanding our industry-leading market share and maintaining a strong bond with the communities we serve.”

"Arcos Dorados Q4 revenue grows, though profit slips on charges" was originally created and published by Verdict Food Service, a GlobalData owned brand.

 

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