ARCO

3Q 2023
Results
November 16, 2023
 FOR IMMEDIATE RELEASE

ARCOS DORADOS REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

• Systemwide comparable sales¹ grew 37.3% year-over-year, supported by strong sales volume
across all divisions
• Total revenues reached $1.1 billion in the quarter, up 22.1% in US dollars and 42.9% in
constant currency, versus the prior year period
• Digital channel sales (Delivery, Mobile App and Self-order Kiosks) contributed 50% of
systemwide sales, reaching $731.5 million
• Consolidated Adjusted EBITDA¹ was $129.1 million, up 25.8% in US dollars and 43.9% in
constant currency
• Net Income reached $59.7 million, or $0.28 per share, up from $0.22 per share in the prior year
quarter

Montevideo, Uruguay, November 16, 2023 – Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos
Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest
independent McDonald’s franchisee, today reported unaudited results for the three and nine months
ended September 30, 2023.

Third Quarter 2023 Highlights

• Systemwide comparable sales¹ grew 37.3% versus the prior year quarter, rising 1.4 times the
period’s blended inflation rate.
• Consolidated revenues reached $1.1 billion, rising 22.1% in US dollars and 42.9% in constant
currency versus the prior year period.
• Disciplined execution of a long-term growth strategy is driving strong performance across all
sales channels and geographies with an increasingly modernized restaurant portfolio.
• Consolidated Adjusted EBITDA¹ of $129.1 million rose 25.8% in US dollars versus the prior
year result, and 43.9% in constant currency.
• Consolidated Adjusted EBITDA margin reached 11.5% in the quarter, expanding by 40 basis
points versus the prior year period.
• Basic net income per share was $0.28 in the quarter, compared to net income per share of
$0.22 in the prior year quarter.
• The Company opened 27 restaurants in the quarter, including 25 free-standing locations.

¹ For definitions, please refer to page 16 of this document. 2

Message from Marcelo Rabach, Chief Executive Officer
The broad-based momentum we captured in the first half of 2023 continued in the third quarter.
McDonald’s Brand strength, structural competitive advantages and consistent execution continued
driving sales growth and market share gains across the Arcos Dorados footprint, with the strongest
performance in markets such as Brazil, Chile, Costa Rica and Mexico.
Our strategy is clear: drive sustainable sales growth, supported by both guest volume and average
check growth, to generate operating leverage and long-term profitability growth. To achieve this
objective, we are leaning on Value, which has always been a cornerstone of the McDonald’s
business. Value includes quality, service, convenience and optionality, in addition to price. This is
where our Three D’s strategy of Digital, Delivery and Drive-thru are leveraging Latin America’s
largest free-standing restaurant portfolio and most robust digital platform to offer Value to our
guests and to the communities we serve.
Systemwide comparable sales grew well above inflation again in the third quarter, with strong
guest volume growth in all main markets. Even as consumption moderated in some countries, sales
growth remained strong and helped generate operating leverage to improve profitability. This
performance, which has been improving consistently over the last several years, allows us to
continuously reinvest in the expansion, modernization and digitalization of the business. In turn,
these investments bring significant economic benefit to local economies and create new, long-term
career opportunities for young people.
Importantly, we continue to be recognized by Great Place to Work® as one of the best, if not the
best, employers for young people, with the latest certifications coming in Brazil, Argentina, Chile
and Uruguay. Youth Opportunity is one of the pillars of our Recipe for the Future ESG Platform,
together with Diversity and Inclusion, Commitment to Families, Climate Change, Circular Economy
and Sustainable Sourcing. During the quarter we made progress in and received recognition for our
efforts across all these pillars. This includes the opening of our flagship sustainable restaurant in
Brazil, with multiple ESG (Environmental, Social and Governance) initiatives, twenty of which have
already been implemented in all of the country’s restaurants. ESG is truly in our DNA!
Arcos Dorados’ results for the third quarter 2023, and so far in the fourth quarter, demonstrate the
importance of a consistent, long-term, strategic approach to delivering value and convenience to
restaurant customers. This includes the effective management of our balance sheet, by maintaining
a healthy cash balance and controlling both currency and interest rate risks on our long-term debt.
By consistently executing our strategy, we are capturing our opportunities and tackling our
challenges from a position of strength. Brand strength and reputation are at an all-time high and
our structural competitive advantages are widening as we open even more free-standing
restaurants, modernize even more existing restaurants and develop even more digital capabilities.
We are also working hard to normalize operations among markets to improve consolidated results.
For these reasons, we are confident in our ability to sustain strong operating results and
shareholder value generation for the foreseeable future.
Thank you for your ongoing support of Arcos Dorados.

3
Consolidated
Results
Consolidated Results

Figure 1. AD Holdings Inc Consolidated: Key Financial Results

(In millions of U.S. dollars, except as noted)
Currency Constant
3Q22 Translation Currency 3Q23 % As % Constant
(a) (b) Growth (a+b+c) Reported Currency
(c)
Total Restaurants (Units) 2,297 2,339

Sales by Company-operated Restaurants 881.6 (186.9) 380.6 1,075.3 22.0% 43.2%

Revenues from franchised restaurants 40.1 (5.1) 14.8 49.8 24.1% 36.9%
Total Revenues 921.7 (192.0) 395.4 1,125.1 22.1% 42.9%
Systemwide Comparable Sales 37.3%
Adjusted EBITDA 102.6 (18.6) 45.1 129.1 25.8% 43.9%
Adjusted EBITDA Margin 11.1% 11.5% 0.4 p.p.
Net income attributable to AD 46.9 (30.4) 43.3 59.7 27.4% 92.4%
No. of shares outstanding (thousands) 210,595 210,655
EPS (US$/Share) 0.22 0.28

Arcos Dorados’ total revenues reached $1.1 billion, up 22.1% in US dollars and 42.9% in constant
currency versus the prior year quarter. Systemwide comparable sales grew 37.3% in the third
quarter, or about 1.4 times blended inflation, with all three divisions growing above inflation,
including 4.0x blended inflation in NOLAD and 2.3x inflation in Brazil.

Guest traffic and sales growth continue to benefit from the strong consumer preference for the
McDonald’s Brand, with more than double the market share of the nearest competitor across all
main markets.

Front counter sales, which include self-order kiosks, grew 41% in constant currency versus the prior
year and generated 58% of systemwide sales. Third quarter results were also supported by
continued outstanding performance in Delivery, which grew 48% in constant currency versus the
prior year. Drive-thru sales grew 17% in constant currency, complementing the strong growth of
front counter sales.

Digital channel sales reached $731.5 million and accounted for 50% of systemwide sales in the third
quarter. As of the end of September, the Company’s Mobile App had over 107 million accumulated
downloads, with about 17 million average monthly active users, and identified sales representing
20% of consolidated sales in the quarter.

The Company’s Customer Relationship Management (CRM) platform had almost 75 million unique
registered users by the end of September 2023, which allows it to more efficiently invest its
marketing spend to increase guest frequency and engagement.

5
Adjusted EBITDA

3Q23 Adjusted EBITDA Bridge

($ million)

Third quarter consolidated Adjusted EBITDA reached $129.1 million, up 25.8% in US dollars and
43.9% in constant currency over the prior year quarter, with continued strong US dollar growth
contribution from NOLAD and Brazil. Consolidated Adjusted EBITDA margin reached 11.5%,
expanding 40 basis points versus the prior year.
Margin performance was highlighted by lower Food and Paper (F&P) costs as a percentage of
revenue in all divisions compared with the prior year, coupled with an improvement in G&A and a
slight improvement in Payroll expenses as a percentage of revenue. These more than offset
moderately higher other operating expenses and the impact of the final step up of the Company’s
royalty rate, which became effective as of August 3, 2022.

Notable items in the Adjusted EBITDA reconciliation

Included in Adjusted EBITDA: There were no notable items included in Adjusted EBITDA in either
the third quarter of 2023 or the third quarter of 2022.
Excluded from Adjusted EBITDA: There were no notable items excluded from Adjusted EBITDA in
either the third quarter of 2023 or the third quarter of 2022.

6
Non-operating Results

Arcos Dorados’ non-operating results for the third quarter included a $2.2 million gain from non-
cash foreign exchange and derivative instruments.

Net interest expense and other financing results totaled $5.0 million in the quarter versus $7.9
million in the same period last year. The Company recorded an income tax expense of $28.1 million
in the quarter, compared to an income tax expense of $32.6 million in the prior-year period.

Third quarter net income attributable to the Company totaled $59.7 million, compared to net
income of $46.9 million in the same period of 2022. Earnings per share were $0.28 in the third
quarter of 2023, compared to $0.22 per share in the corresponding 2022 period.

Total weighted average shares for the third quarter of 2023 amounted to 210,654,969 compared to
210,594,545 in the prior-year quarter.

For reference:
Figure 2. AD Holdings Inc Consolidated - Excluding Venezuela: Key Financial Results
(In millions of U.S. dollars, except as noted)
Currency Constant
3Q22 Translation Currency 3Q23 % As % Constant
(a) (b) Growth (a+b+c) Reported Currency
(c)
Total Restaurants (Units) 2,197 2,251

Sales by Company-operated Restaurants 876.8 (153.9) 343.7 1,066.5 21.6% 39.2%

Revenues from franchised restaurants 39.5 (2.2) 11.7 49.0 23.9% 29.6%
Total Revenues 916.3 (156.2) 355.4 1,115.5 21.7% 38.8%
Systemwide Comparable Sales 32.6%
Adjusted EBITDA 103.0 (18.5) 45.2 129.8 26.0% 43.9%
Adjusted EBITDA Margin 11.2% 11.6% 0.4 p.p.
Net income attributable to AD 47.7 (30.2) 45.1 62.6 31.3% 94.7%
No. of shares outstanding (thousands) 210,595 210,655
EPS (US$/Share) 0.23 0.30

7
Divisional
Results
Brazil Division

Figure 3. Brazil Division: Key Financial Results

(In millions of U.S. dollars, except as noted)
Currency Constant
3Q22 Translation Currency 3Q23 % As % Constant
(a) (b) Growth (a+b+c) Reported Currency
(c)
Total Restaurants (Units) 1,077 1,113

Total Revenues 352.8 30.5 55.9 439.2 24.5% 15.9%

Systemwide Comparable Sales 10.8%
Adjusted EBITDA 62.4 5.6 9.9 77.8 24.8% 15.8%
Adjusted EBITDA Margin 17.7% 17.7% 0.0 p.p.

Brazil’s revenues reached $439.2 million, increasing 24.5% year-over-year. On a constant currency
basis, revenues grew 15.9% and systemwide comparable sales rose 10.8% year-over-year, or 2.3x
inflation in the period. The McDonald’s brand fortified its leadership in the country with strong
market share gains in the quarter within a consolidating restaurant industry.

Delivery sales increased 32% in constant currency versus the prior year and strongly contributed to
sales and traffic growth in the quarter, representing 19% of systemwide sales in the period. Digital
channel sales were up 43% versus the prior year and generated 61% of systemwide sales in Brazil,
including 25% identified sales in the quarter.

Marketing initiatives in the quarter included strong brand experience campaigns. The highlight was
the sponsorship of “The Town”, the biggest music festival in Brazil this year. In addition to building
the largest McDonald’s restaurant in Latin America on festival grounds, the Company launched a
limited edition of the “McMelt The Town” sandwich in all restaurants to bring a taste of the festival
to the entire country. Maintaining its strong connection with sports, the Company also sponsored
the FIFA Women’s World Cup online broadcast on “Cazé TV”, Brazil’s biggest streaming channel.
Finally, the launches of “McFlurry Ovomaltine Mesclado” and “McFlurry Kit Kat” boosted traffic by
bringing innovation to the dessert category.

As reported Adjusted EBITDA in the division reached $77.8 million in the quarter, rising 24.8%
versus the prior year in US dollars. Adjusted EBITDA margin was 17.7%, in line with the prior year
quarter. Better F&P costs as a percentage of revenue and operating leverage in both G&A and
Payroll were offset by higher Occupancy & Other Operating expenses and a slightly higher effective
royalty rate.

Following the end of the third quarter, on October 23, 2023, the Company launched its Loyalty
Program “Meu Méqui” nationwide in Brazil. As part of the Company’s successful Digital strategy,
the program boosts the power of the Mobile App by driving visit frequency while increasing the
percentage of identified sales to provide a more personalized guest experience.

9
North Latin American Division (NOLAD)

Figure 4. NOLAD Division: Key Financial Results

(In millions of U.S. dollars, except as noted)
Currency Constant
3Q22 Translation Currency 3Q23 % As % Constant
(a) (b) Growth (a+b+c) Reported Currency
(c)
Total Restaurants (Units) 631 638

Total Revenues 232.9 27.7 35.1 295.6 27.0% 15.1%

Systemwide Comparable Sales 11.5%
Adjusted EBITDA 22.7 3.3 6.2 32.3 42.0% 27.4%
Adjusted EBITDA Margin 9.8% 10.9% 1.1 p.p.

As reported revenues totaled $295.6 million, up 27.0% in US dollars and 15.1% in constant currency
versus the prior year quarter. Systemwide comparable sales rose 11.5% year-over-year, or 4.0x the
division’s blended inflation in the period, with comparable sales increasing above inflation in all
markets. Sales growth was supported by higher guest traffic across all markets as well, with
particularly strong volume growth in Mexico, Costa Rica and the French West Indies markets.
The NOLAD division reached some of its highest ever market share levels, backed by positive brand
attribute trends. Marketing activities featured menu innovations across the region, including the
launch of “GRANDS” sandwiches, an indulgent and tasty platform. In Mexico, the
#McDonaldsMéxicoMeEncanta brand campaign was endorsed by Sergio “Checo” Pérez, the popular
Mexican Formula 1 driver, and included the “Menú Checo” famous order campaign. In Puerto Rico,
the Company launched the “Saca tu Encanto” brand-building campaign partnered with Tommy
Torres, a popular local musical artist.
NOLAD’s digital penetration is improving consistently as investments in both technology and
restaurant modernizations bring the division closer to the Company average. As it closes this gap,
NOLAD is already benefiting from improving digital trends. For example, the McDonald’s Mobile
App is, by far, the leader in monthly active users among quick service restaurant operators in
Mexico, where the sales growth rate remains one of the strongest in the Company’s footprint.
As reported Adjusted EBITDA reached $32.3 million in the third quarter compared with $22.7
million in the prior year quarter, representing a year-over-year increase of 42.0% versus the prior
year in US dollars. Adjusted EBITDA margin expanded by 110 basis points versus the prior year
period driven by better F&P costs and Occupancy & Other Operating expenses as a percentage of
revenue that more than offset slightly higher Payroll and G&A expenses as well as the higher
royalty rate.

10
South Latin American Division (SLAD)

Figure 5. SLAD Division: Key Financial Results

(In millions of U.S. dollars, except as noted)
Currency Constant
3Q22 Translation Currency 3Q23 % As % Constant
(a) (b) Growth (a+b+c) Reported Currency
(c)
Total Restaurants (Units) 589 588

Total Revenues 336.1 (250.2) 304.4 390.3 16.1% 90.6%

Systemwide Comparable Sales 93.8%
Adjusted EBITDA 39.7 (39.6) 41.7 41.8 5.3% 105.0%
Adjusted EBITDA Margin 11.8% 10.7% -1.1 p.p.

Revenues in SLAD reached $390.3 million, rising 16.1% in US dollars. Systemwide comparable sales
rose 93.8%, or 1.3x SLAD’s blended inflation rate. Chile, Ecuador and Uruguay delivered the
strongest growth, more than double inflation in the quarter. Systemwide comparable sales growth
also reflects the impact of Argentina and Venezuela’s high inflation rates.

SLAD’s markets captured additional market share in the quarter, with improved scores in brand
attributes, reinforcing McDonald´s brand preference across the division. To continue strengthening
its leadership in the beef segment, the Company launched the “Bacon Cheddar McMelt” sandwich
and the “Pileta de Cheddar” in Argentina, Chile, Colombia and Ecuador with strong sales results in
all four countries. The Company also continued the roll out of Best Burger, extending the platform
to Aruba, Curaçao and Trinidad. The dessert platform produced excellent results with the launch of
McFlurry products with locally relevant brands, including: Sahne-nuss in Chile, Nucita in Colombia,
Chips Ahoy in Perú and Serenata de Amor in Uruguay.

Digital sales in SLAD continued to grow, supported by increased penetration of Mobile Order and
Pay and Delivery functionalities in the Mobile App. The Company also continued the development
of its own Delivery platform in SLAD markets.

As reported Adjusted EBITDA in the division totaled $41.8 million in the third quarter. The division
generated restaurant level margin expansion, driven by lower F&P costs as well as better Payroll
and Occupancy & Other Operating expenses as a percentage of revenue. These were offset by
higher other operating expenses and a moderate increase in G&A as a percentage of revenue.

For reference:
Figure 6. SLAD Division – Excluding Venezuela: Key Financial Results
(In millions of U.S. dollars, except as noted)
Currency Constant
3Q22 Translation Currency 3Q23 % As % Constant
(a) (b) Growth (a+b+c) Reported Currency
(c)
Total Restaurants (Units) 489 500

Total Revenues 330.7 (214.4) 264.4 380.7 15.1% 79.9%

Systemwide Comparable Sales 79.9%
Adjusted EBITDA 40.0 (39.5) 41.8 42.4 6.0% 104.5%
Adjusted EBITDA Margin 12.1% 11.1% -1.0 p.p.

11
New Unit Development

Figure 7. Total Restaurants (eop)*

September June March December September
2023 2023 2023 2022 2022
Brazil 1,113 1,098 1,091 1,084 1,077
NOLAD 638 639 639 638 631
SLAD 588 580 582 590 589
TOTAL 2,339 2,317 2,312 2,312 2,297
*Considers Company-operated and franchised restaurants at period-end

Figure 8. Footprint as of September 30, 2023

Dessert
Store Type* Ownership McCafes
Total Centers
Restaurants Company
FS IS MS & FC Franchised
Operated
Brazil 564 92 457 1,113 674 439 137 1,993
NOLAD 392 51 195 638 484 154 13 519
SLAD 237 128 223 588 500 88 166 710
TOTAL 1,193 271 875 2,339 1,658 681 316 3,222
FS: Free-Standing; IS: In-Store; MS: Mall Store; FC: Food Court.

Arcos Dorados opened 27 restaurants during the third quarter of 2023, including 25 free-standing
units. In Brazil, the Company opened 14 free-standing units in the quarter. For the first nine
months of 2023, the Company opened 45 restaurants, 41 of which were free-standing restaurants.
This included 32 restaurant openings in Brazil, with 29 free-standing units opened in the country in
the period.

More than half the Company’s footprint is made up of free-standing locations, making it the
region’s largest free-standing restaurant portfolio. As of the end of September, there were 1,214
Experience of the Future restaurants, composing 52% of the Company’s total restaurant base and
offering guests the most modernized experience in the region’s quick service restaurant industry.

The restaurant development plan remains on track and the Company expects to meet its full year
guidance of 75 to 80 restaurant openings.

12
Balance Sheet & Cash Flow Highlights

Figure 9. Consolidated Debt and Financial Ratios

(In thousands of U.S. dollars, except ratios)
September 30, December 31,
2023 2022
Total Cash & Cash equivalents (i) 251,149 304,396
Total Financial Debt (ii) 709,335 674,401
Net Financial Debt (iii) 458,186 370,005
LTM Adjusted EBITDA 453,735 386,564
Total Financial Debt / LTM Adjusted EBITDA ratio 1.6 1.7
Net Financial Debt / LTM Adjusted EBITDA ratio 1.0 1.0
(i) Total cash & cash equivalents include short-term investment.
(ii) Total financial debt includes short-term debt, long-term debt, accrued interest payable and derivative
instruments (including the asset portion of derivatives amounting to $50.3 million and $92.9 million as
a reduction of financial debt as of September 30, 2023, and December 31, 2022, respectively).
(iii) Net financial debt equals total financial debt less total cash & cash equivalents.

On September 27, 2023, the Company paid off the outstanding $18.2 million balance of its 2023
Notes. As of September 30, 2023, total cash and cash equivalents were $251.1 million and total
financial debt (including the net derivative instrument position) was $709.3 million.
Net debt (total financial debt minus total cash and cash equivalents) was $458.2 million, up from
$370.0 million at the end of 2022, due to the lower cash balance and lower fair value of the
derivative instruments. The net debt to Adjusted EBITDA leverage ratio ended the quarter at a
healthy 1.0x, unchanged from year-end 2022.
Net cash generated from operating activities for the nine months ended September 30, totaled
$232.3 million, compared with the $235.4 million cash from operations generated during the same
period last year. Capital expenditures totaled $227.8 million in the first nine months of 2023. Net
cash used in financing activities was $32.1 million, which included $31.6 million corresponding to
the first three installments of the 2023 dividend.

13
Supplemental
Information
Third Quarter 2023 Earnings Webcast

A webcast to discuss the information contained in this press release will be held today, November
16, 2023, at 10:00 a.m. ET. In order to access the webcast, members of the investment community
should follow this link: Arcos Dorados Third Quarter 2023 Results Webcast.
A replay of the webcast will be available later today in the investor section of the Company’s
website: www.arcosdorados.com/ir.

Investor Relations Contact Media Contact

Dan Schleiniger David Grinberg
VP of Investor Relations VP of Corporate Communications
Arcos Dorados Arcos Dorados
daniel.schleiniger@mcd.com.uy david.grinberg@mcd.com.uy

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15
Definitions

Systemwide comparable sales growth: refers to the change, measured in constant currency, in our
Company-operated and franchised restaurant sales in one period from a comparable period for
restaurants that have been open for thirteen months or longer (year-over-year basis). While sales
by our franchisees are not recorded as revenues by us, we believe the information is important in
understanding our financial performance because these sales are the basis on which we calculate
and record franchised revenues and are indicative of the financial health of our franchisee base.
Constant currency basis: refers to amounts calculated using the same exchange rate over the
periods under comparison to remove the effects of currency fluctuations from this trend analysis.
To better discern underlying business trends, this release uses non-GAAP financial measures that
segregate year-over-year growth into two categories: (i) currency translation, (ii) constant currency
growth. (i) Currency translation reflects the impact on growth of the appreciation or depreciation of
the local currencies in which we conduct our business against the US dollar (the currency in which
our financial statements are prepared). (ii) Constant currency growth reflects the underlying growth
of the business excluding the effect from currency translation.
Adjusted EBITDA: In addition to financial measures prepared in accordance with the general
accepted accounting principles (GAAP), within this press release and the accompanying tables, we
use a non-GAAP financial measure titled ‘Adjusted EBITDA’. We use Adjusted EBITDA to facilitate
operating performance comparisons from period to period.
Adjusted EBITDA is defined as our operating income plus depreciation and amortization plus/minus
the following losses/gains included within other operating income (expenses), net, and within
general and administrative expenses in our statement of income: gains from sale, or insurance
recovery of property and equipment, write-offs of property and equipment, and impairment of
long-lived assets.
We believe Adjusted EBITDA facilitates company-to-company operating performance comparisons
by backing out potential differences caused by variations such as capital structures (affecting net
interest expense and other financing results), taxation (affecting income tax expense) and the age
and book depreciation of facilities and equipment (affecting relative depreciation expense), which
may vary for different companies for reasons unrelated to operating performance. Figure 10 of this
earnings release includes a reconciliation for Adjusted EBITDA. For more information, please see
Adjusted EBITDA reconciliation in Note 9 – Segment and geographic information – of our financial
statements (6-K Form) filed today with the S.E.C.

16
About Arcos Dorados

Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating the largest
quick service restaurant chain in Latin America and the Caribbean. It has the exclusive right to own,
operate and grant franchises of McDonald’s restaurants in 20 Latin American and Caribbean
countries and territories with more than 2,300 restaurants, operated by the Company or by its sub-
franchisees, that together employ over 95 thousand people (as of 09/30/2023). The Company is
also committed to the development of the communities in which it operates, to providing young
people their first formal job opportunities and to utilize its Recipe for the Future to achieve a
positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange
(NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website:
www.arcosdorados.com/ir.

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements. The forward-looking statements contained
herein include statements about the Company’s business prospects, its ability to attract customers,
its affordable platform, its expectation for revenue generation and its outlook and guidance for
growth and investments in 2023. These statements are subject to the general risks inherent in
Arcos Dorados' business. These expectations may or may not be realized. Some of these
expectations may be based upon assumptions or judgments that prove to be incorrect. In addition,
Arcos Dorados' business and operations involve numerous risks and uncertainties, many of which
are beyond the control of Arcos Dorados, which could result in Arcos Dorados' expectations not
being realized or otherwise materially affect the financial condition, results of operations and cash
flows of Arcos Dorados. Additional information relating to the uncertainties affecting Arcos
Dorados' business is contained in its filings with the Securities and Exchange Commission. The
forward-looking statements are made only as of the date hereof, and Arcos Dorados does not
undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking
statements to reflect events or circumstances after the date such statements were made, or to
reflect the occurrence of unanticipated events.

17
Third Quarter 2023 Consolidated Results

Figure 10. Third Quarter 2023 Consolidated Results

(In thousands of U.S. dollars, except per share data)

For Three-Months ended For Nine-Months ended

September 30, September 30,
2023 2022 2023 2022
REVENUES
Sales by Company-operated restaurants 1,075,328 881,586 3,016,212 2,485,230
Revenues from franchised restaurants 49,782 40,117 140,211 115,049
Total Revenues 1,125,110 921,703 3,156,423 2,600,279
OPERATING COSTS AND EXPENSES
Company-operated restaurant expenses:
Food and paper (376,023) (316,368) (1,061,634) (880,804)
Payroll and employee benefits (200,904) (165,362) (580,286) (487,031)
Occupancy and other operating expenses (300,456) (243,208) (843,176) (708,082)
Royalty fees (65,058) (51,076) (180,317) (133,753)
Franchised restaurants - occupancy expenses (21,424) (17,181) (60,053) (50,044)
General and administrative expenses (67,806) (58,638) (202,924) (169,172)
Other operating (expenses) / income, net (2,364) 4,044 4,219 11,514
Total operating costs and expenses (1,034,035) (847,789) (2,924,171) (2,417,372)
Operating income 91,075 73,914 232,252 182,907
Net interest expense and other financing results (4,973) (7,920) (26,960) (42,740)
Gain / (loss) from derivative instruments 900 7,578 (13,220) (5,258)
Foreign currency exchange results 1,286 6,016 22,231 16,798
Other non-operating (expenses) / income, net (106) 59 (100) (49)
Income before income taxes 88,182 79,647 214,203 151,658
Income tax expense (28,072) (32,604) (87,922) (65,411)
Net income 60,110 47,043 126,281 86,247
Net income attributable to non-controlling interests (389) (176) (785) (396)
Net income attributable to Arcos Dorados Holdings Inc. 59,721 46,867 125,496 85,851
Earnings per share information ($ per share):
Basic net income per common share $ 0.28 $ 0.22 $ 0.60 $ 0.41
Weighted-average number of common shares outstanding-Basic 210,654,969 210,594,545 210,625,346 210,537,894
Adjusted EBITDA Reconciliation
Operating income 91,075 73,914 232,252 182,907
Depreciation and amortization 37,286 28,294 105,806 88,934
Operating charges excluded from EBITDA computation 759 441 1,622 668
Adjusted EBITDA 129,120 102,649 339,680 272,509
Adjusted EBITDA Margin as % of total revenues 11.5 % 11.1 % 10.8 % 10.5 %

18
Third Quarter 2023 Results by Division

Figure 11. Third Quarter Consolidated Results by Division

(In thousands of U.S. dollars)
For Three-Months ended as Constant For Nine-Months ended as Constant
September 30, reported Currency September 30, reported Currency
2023 2022 Incr/(Decr)% Incr/(Decr)% 2023 2022 Incr/(Decr)% Incr/(Decr)%
Revenues
Brazil 439,213 352,798 24.5 % 15.9% 1,218,610 1,022,846 19.1% 16.2%
NOLAD 295,641 232,852 27.0 % 15.1% 832,497 659,430 26.2% 17.1%
SLAD 390,256 336,053 16.1 % 90.6% 1,105,316 918,003 20.4% 85.5%
SLAD - Excl. Venezuela 380,657 330,688 15.1 % 79.9% 1,084,298 905,241 19.8% 76.6%
TOTAL 1,125,110 921,703 22.1 % 42.9% 3,156,423 2,600,279 21.4% 40.9%
TOTAL - Excl. Venezuela 1,115,511 916,338 21.7 % 38.8 % 3,135,405 2,587,517 21.2% 37.6%

Operating Income (loss)

Brazil 59,374 49,498 20.0 % 11.1% 156,376 119,543 30.8% 27.1%
NOLAD 21,779 14,619 49.0 % 32.9% 54,136 42,706 26.8% 16.4%
SLAD 34,187 33,470 2.1 % 125.4% 97,101 84,141 15.4% 112.2%
SLAD - Excl. Venezuela 35,142 34,121 3.0 % 123.3% 101,364 87,543 15.8% 116.4%
Corporate and Other (24,265) (23,673) -2.5% -55.4% (75,361) (63,483) -18.7% -63.8%
TOTAL 91,075 73,914 23.2 % 53.0% 232,252 182,907 27.0% 51.0%
TOTAL - Excl. Venezuela 92,030 74,565 23.4 % 52.6% 236,515 186,309 26.9% 54.1%

Adjusted EBITDA
Brazil 77,848 62,364 24.8 % 15.8% 206,450 161,108 28.1% 24.6%
NOLAD 32,308 22,748 42.0 % 27.4% 84,218 67,408 24.9% 15.3%
SLAD 41,780 39,683 5.3 % 105.0% 119,370 102,936 16.0% 92.7%
SLAD - Excl. Venezuela 42,428 40,045 6.0 % 104.5% 122,655 105,466 16.3% 97.3%
Corporate and Other (22,816) (22,146) -3.0% -57.3% (70,358) (58,943) -19.4% -65.3%
TOTAL 129,120 102,649 25.8 % 43.9% 339,680 272,509 24.6% 39.2%
TOTAL - Excl. Venezuela 129,768 103,011 26.0 % 43.9% 342,965 275,039 24.7% 41.5%

Figure 12. Average Exchange Rate per Quarter*

Brazil Mexico Argentina
3Q23 4.88 17.07 312.54
3Q22 5.24 20.22 135.61
* Local $ per 1 US$

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Summarized Consolidated Balance Sheets

Figure 13. Summarized Consolidated Balance Sheets

(In thousands of U.S. dollars)
September 30, December 31,
2023 2022
ASSETS
Current assets
Cash and cash equivalents 166,307 266,937
Short-term investment 84,842 37,459
Accounts and notes receivable, net 136,519 124,273
Other current assets (1) 220,475 196,873
Derivative instruments — 58,821
Total current assets 608,143 684,363
Non-current assets
Property and equipment, net 1,022,274 856,085
Net intangible assets and goodwill 59,106 54,569
Deferred income taxes 83,876 87,972
Derivative instruments 50,267 34,088
Equity method investments 17,709 14,708
Leases right of use assets, net 903,816 820,683
Other non-current assets (2) 101,142 84,162
Total non-current assets 2,238,190 1,952,267
Total assets 2,846,333 2,636,630
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 324,453 353,468
Taxes payable (3) 178,355 146,682
Accrued payroll and other liabilities 146,775 115,327
Royalties payable to McDonald’s Corporation 14,453 21,280
Provision for contingencies 2,194 2,272
Interest payable 18,133 7,906
Financial debt (4) 10,697 29,566
Operating lease liabilities 89,737 82,911
Total current liabilities 784,797 759,412
Non-current liabilities
Accrued payroll and other liabilities 23,675 28,781
Provision for contingencies 48,382 42,567
Financial debt (5) 730,772 729,838
Deferred income taxes 5,057 3,931
Operating lease liabilities 810,969 747,674
Total non-current liabilities 1,618,855 1,552,791
Total liabilities 2,403,652 2,312,203
Equity
Class A shares of common stock 389,907 389,393
Class B shares of common stock 132,915 132,915
Additional paid-in capital 8,719 9,206
Retained earnings 510,410 424,936
Accumulated other comprehensive losses (580,821) (613,460)
Common stock in treasury (19,367) (19,367)
Total Arcos Dorados Holdings Inc shareholders’ equity 441,763 323,623
Non-controlling interest in subsidiaries 918 804
Total equity 442,681 324,427
Total liabilities and equity 2,846,333 2,636,630

(1) Includes "Other receivables", "Inventories" and "Prepaid expenses and other current assets”.
(2) Includes "Miscellaneous" and "Collateral deposits".
(3) Includes "Income taxes payable" and "Other taxes payable".
(4) Includes "Short-term debt”, “Current portion of long-term debt" and "Derivative instruments”.
(5) Includes "Long-term debt, excluding current portion" and "Derivative instruments".

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Thank
you!