Arcos Dorados beat sales and per-share profit estimates, and underlying adjusted EBITDA rose 9%. Reported adjusted EBITDA fell 37.4% because a prior-year tax benefit did not repeat; underlying growth and stronger cash flow make the quarter favorable despite wage pressure.
More customers came through its restaurants, and more purchases came through digital channels. Sales grew across all 3 divisions. Underlying adjusted EBITDA rose 9%, and trailing 12-month free cash flow reached about $156 million, up from about $53 million. The reported 37.4% drop reflects last year's tax benefit, though wage costs still squeezed payroll.
The story reports stronger sales at Arcos Dorados, a McDonald's franchisee, but gives no new sales, profit, or plans for McDonald's itself. It therefore does not change McDonald's outlook.
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