Arcos Dorados Posts $4.7 Billion in Revenue, Expanding McDonald's Across Latin America

Arcos Dorados Holdings Inc., Latin America and the Caribbean's largest restaurant chain and the world's largest independent McDonald's franchisee, closed out 2025 with its most profitable year on record. Total revenue reached $4.7 billion for the full year 2025, up 4.7% in US dollars versus the prior year. Consolidated Adjusted EBITDA for the full year hit $575.2 million, the company's highest US dollar result ever.

The fourth quarter carried the year's momentum. Total revenues reached $1.3 billion in Q4, up 10.7% in US dollars versus the prior year quarter, and systemwide comparable sales rose 16% in the quarter, in line with blended inflation across the company's markets. Full-year comparable sales grew 13%. The quarterly profit picture was messier: net income for the fourth quarter was $25.2 million, compared with $58.4 million in the prior year period, with the decrease mainly driven by a higher income tax expense as well as a reorganization and optimization expense. That restructuring charge was $8.7 million but is expected to yield annual savings of more than $10.0 million. Full-year net income still jumped sharply, rising to $212.1 million from $149.3 million in 2024.

The number that matters most to anyone working in one of these restaurants is the digital share. Digital channels generated 61% of 2025 systemwide sales, supported by 27.2 million loyalty members. In the fourth quarter alone, digital channel sales rose 18.7% and represented 62% of the quarter's systemwide sales, with notably strong performance in self-order kiosks, delivery and loyalty sales. The company said the strength in self-order kiosk sales reinforces the continued relevance of the on-premise restaurant experience in the region's quick-service industry. That framing matters: kiosks aren't replacing the restaurant, they're redirecting where work happens inside it, shifting crew labor from front-counter order-taking toward food assembly, delivery handoff and loyalty fulfillment.

The loyalty program had 27.2 million registered members at year-end and is now available in all main markets, completing the planned 2025 rollout and covering more than 90% of all restaurants in the Arcos Dorados footprint. Mexico and Chile were added to the program during Q4, bringing the total to nine active countries. Almost three out of every four transactions in Brazil were generated through digital channels, and about 30% of total sales came through the loyalty platform in that market during the quarter. For crew in those restaurants, every shift now involves managing app-driven orders, loyalty redemptions and kiosk queues simultaneously.

Expansion continued at a pace that requires real hiring across the region. The company opened 102 restaurants in 2025, ending the year with 2,520 locations, and plans 105 to 115 openings in 2026. Of the 102 openings, 88 were freestanding units, the format that typically includes drive-thru and a fuller crew complement. Capital expenditures for the full year reached $281.4 million, including $140.6 million related to the 102 restaurant openings, achieved with lower total capex than the prior year. For 2026, the company expects to spend between $275 million and $325 million, funded through cash on hand and operating cash flow.

Mexico and Argentina supported the consolidated Q4 result with systemwide comparable sales growth of 1.5 times and 1.3 times blended inflation, respectively, while Brazil showed sequential improvement despite a full year of declining industry-wide restaurant traffic. Beef price inflation in Brazil rose approximately 30% over twelve months, acting as a persistent drag on food costs throughout the year. The company's digital push helped offset some of that pressure, with lower payroll expenses as a share of revenue in Brazil contributing to margin improvement in Q4.

CEO Luis Raganato summarized the year's performance in the company's earnings release: "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."

For crew across 21 markets, the arc of 2025 is straightforward: more restaurants, more digital transactions, and a loyalty platform now woven into nearly every shift. The question heading into 2026, with another 105 to 115 locations planned, is whether training and staffing investment keeps pace with the speed of the digital buildout.