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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934


For the month of May, 2026
 
Commission File Number: 001-35129

Arcos Dorados Holdings Inc.
(Exact name of registrant as specified in its charter)

Río Negro 1338, First Floor
Montevideo, Uruguay, 11100
(Address of principal executive office)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-FX Form 40-F 







ARCOS DORADOS HOLDINGS INC.


TABLE OF CONTENTS


ITEM
1.        Arcos Dorados Holdings Inc. Unaudited Condensed Consolidated Financial Statements as of March 31, 2026 and December 31, 2025 and for the three-month period ended March 31, 2026 and 2025 (Unaudited).








SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Arcos Dorados Holdings Inc.
By:/s/ Roman Ajzen
Name: Roman Ajzen
Title: Chief Legal Officer

Date: May 20, 2026










 
 

 

 
 

 
Arcos Dorados Holdings Inc.
 
 
Condensed Consolidated Financial Statements
As of March 31, 2026 and December 31, 2025 and for the three-month period ended March 31, 2026 and 2025 (Unaudited).
F-1

Arcos Dorados Holdings Inc.
Consolidated Statements of Income
 For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated
 
 20262025
REVENUES  
Sales by Company-operated restaurants$1,160,416 $1,027,531 
Revenues from franchised restaurants55,547 49,061 
Total revenues1,215,963 1,076,592 
OPERATING COSTS AND EXPENSES  
Company-operated restaurant expenses:  
Food and paper (406,999)(366,612)
Payroll and employee benefits(226,349)(197,749)
Occupancy and other operating expenses(353,877)(308,065)
Royalty fees(70,855)(63,411)
Franchised restaurants – occupancy expenses(24,257)(21,044)
General and administrative expenses(76,749)(73,325)
Other operating income (expense), net5,887 (1,239)
Total operating costs and expenses(1,153,199)(1,031,445)
Operating income62,764 45,147 
Net interest expense and other financing results(14,258)(16,592)
Gain from derivative instruments4,369 110 
Foreign currency exchange results7,187 (1,961)
Other non-operating expense, net (16)(122)
Income before income taxes60,046 26,582 
Income tax expense, net(23,815)(12,505)
Net income36,231 14,077 
Less: Net income attributable to non-controlling interests(90)(147)
Net income attributable to Arcos Dorados Holdings Inc.$36,141 $13,930 
Earnings per share information:  
Basic and Diluted net income attributable to Arcos Dorados Holdings Inc. per common share$0.17 $0.07 

See Notes to the Condensed Consolidated Financial Statements.
F-2

Arcos Dorados Holdings Inc.
 Consolidated Statements of Comprehensive Income
 For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars
 
 20262025
Net income$36,231 $14,077 
Other comprehensive income, net of tax:
  
Foreign currency translation 25,817 41,639 
Cash flow hedges:  
Net loss recognized in accumulated other comprehensive loss(9,682)(10,189)
  Reclassification of net loss to consolidated statement of income 11,617 12,444 
Cash flow hedges (net of deferred income taxes of $(63) and $(2,125))1,935 2,255 
Securities available for sale:
   Unrealized loss on available for sale securities(61)(77)
Reclassification adjustment for loss included in net income68 — 
Securities available for sale (net of deferred income taxes of $21 and $(33))7 (77)
Total other comprehensive income27,759 43,817 
Comprehensive income 63,990 57,894 
Less: Comprehensive income attributable to non-controlling interests(64)(167)
Comprehensive income attributable to Arcos Dorados Holdings Inc.$63,926 $57,727 
 
See Notes to the Condensed Consolidated Financial Statements.
F-3

Arcos Dorados Holdings Inc.
Consolidated Balance Sheet
As of March 31, 2026 and December 31, 2025
Amounts in thousands of US dollars, except for share data and as otherwise indicated
As of
March 31, 2026As of
(Unaudited)December 31, 2025
ASSETS  
Current assets  
Cash and cash equivalents$255,630 $373,438 
Short-term investments10,535 48,909 
Accounts and notes receivable, net159,676 164,482 
Other receivables81,984 84,474 
Inventories60,101 66,390 
Prepaid expenses and other current assets114,603 103,900 
Derivative instruments11,544 10,365 
Total current assets694,073 851,958 
Non-current assets  
Miscellaneous266,415 251,531 
Collateral deposits2,500 2,500 
Property and equipment, net1,322,688 1,308,732 
Net intangible assets and goodwill158,649 148,950 
Deferred income taxes114,077 104,250 
Derivative instruments58,829 68,339 
Equity method investments15,913 16,033 
Lease right of use asset1,185,573 1,133,551 
Total non-current assets3,124,644 3,033,886 
Total assets$3,818,717 $3,885,844 
LIABILITIES AND EQUITY  
Current liabilities  
Accounts payable$327,587 $356,606 
Royalties payable to McDonald’s Corporation30,120 34,099 
Income taxes payable38,599 50,635 
Other taxes payable85,118 93,287 
Accrued payroll and other liabilities204,399 145,460 
Provision for contingencies1,457 1,455 
Interest payable14,566 18,915 
Current portion of long-term debt41,122 11,776 
Derivative instruments12,012 9,666 
Operating lease liabilities109,475 106,836 
Total current liabilities864,455 828,735 
Non-current liabilities  
Accrued payroll and other liabilities95,307 91,801 
Provision for contingencies55,521 49,399 
Long-term debt, excluding current portion969,294 1,125,885 
Derivative instruments8,485 14,201 
Deferred income taxes2,888 2,757 
Operating lease liabilities1,045,624 1,000,927 
Total non-current liabilities2,177,119 2,284,970 
Total liabilities3,041,574 3,113,705 
Equity  
Class A shares of common stock389,967 389,967 
Class B shares of common stock132,915 132,915 
Additional paid-in capital8,659 8,659 
Retained earnings803,101 825,946 
Accumulated other comprehensive loss(539,845)(567,630)
Common stock in treasury(19,367)(19,367)
Total Arcos Dorados Holdings Inc. shareholders’ equity775,430 770,490 
Non-controlling interests in subsidiaries1,713 1,649 
Total equity777,143 772,139 
Total liabilities and equity$3,818,717 $3,885,844 
See Notes to the Condensed Consolidated Financial Statements.
F-4

Arcos Dorados Holdings Inc.
Condensed Consolidated Statements of Cash Flows
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars
 20262025
Operating activities  
Net income attributable to Arcos Dorados Holdings Inc.$36,141 $13,930 
Adjustments to reconcile net income attributable to Arcos Dorados Holdings Inc. to cash provided by operating activities:  
Non-cash charges and credits:  
Depreciation and amortization54,261 46,295 
Gain on restaurant transactions(5,830)— 
Foreign currency exchange results 320 5,536 
Gain from derivative instruments(4,369)(110)
Others, net4,394 (9,787)
Changes in assets and liabilities(66,791)(69,300)
Net cash provided by (used in) operating activities18,126 (13,436)
Investing activities  
Property and equipment expenditures(36,829)(48,810)
Purchases of restaurant businesses paid at acquisition date(3,500)— 
Proceeds from sales of property and equipment, restaurant businesses and related advances2,418 68 
Proceeds from short-term investments39,899 — 
Acquisition of short and long term investments(1,380)(86,700)
Other investing activity(362)(254)
Net cash provided by (used in) investing activities246 (135,696)
Financing activities  
Issuance of 2032 Senior Notes— 597,498 
Cash Tender of 2029 and 2027 Senior Notes(139,240)(136,145)
Payment of short-term debt — (34,493)
Payments for debt issue costs— (6,158)
Dividend payments to Arcos Dorados Holdings Inc.’s shareholders— (12,640)
Short and long term borrowings — 11,303 
Proceeds related to sales of restaurant businesses3,271 — 
Other financing activities(1,146)(690)
Net cash (used in) provided by financing activities (137,115)418,675 
Effect of exchange rate changes on cash and cash equivalents935 (1)
(Decrease) increase in cash and cash equivalents(117,808)269,542 
Cash and cash equivalents at the beginning of the year373,438 135,064 
Cash and cash equivalents at the end of the period $255,630 $404,606 
Supplemental cash flow information:
Cash paid during the period for:  
   Interest$21,868 $4,768 
   Income tax, net of refunds49,646 26,564 
Non-cash investing and financing activities:
Dividend declared pending of payment58,986 37,920 
Seller financing pending of payment6,000 — 
Receivable related to sales of restaurant businesses1,021 — 
See Notes to the Condensed Consolidated Financial Statements.
F-5

Arcos Dorados Holdings Inc.
Consolidated Statement of Changes in Equity
For the three-month period ended March 31, 2026 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated 
 Arcos Dorados Holdings Inc. Shareholders’ Equity  
 Class A shares of
common stock		Class B shares of
common stock		Additional
paid-in
capital		Retained
earnings		Accumulated
other
comprehensive
loss		Common stock in treasuryTotalNon-
controlling
interests		Total
NumberAmountNumberAmountNumberAmount
Balances at beginning of fiscal year132,972,119 $389,967 80,000,000 $132,915 $8,659 $825,946 $(567,630)(2,309,062)$(19,367)$770,490 $1,649 $772,139 
Net income for the period (Unaudited)— — — — — 36,141 — — — 36,141 90 36,231 
Other comprehensive income (Unaudited)— — — — — — 27,785 — — 27,785 (26)27,759 
Cash Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.28 per share) (Unaudited)— — — — — (58,986)— — — (58,986)— (58,986)
Balances at end of period (Unaudited)132,972,119 $389,967 80,000,000 $132,915 $8,659 $803,101 $(539,845)(2,309,062)$(19,367)$775,430 $1,713 $777,143 
    

See Notes to the Condensed Consolidated Financial Statements.
F-6

Arcos Dorados Holdings Inc.
Consolidated Statement of Changes in Equity
For the three-month period ended March 31, 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated
 
 Arcos Dorados Holdings Inc. Shareholders’ Equity  
 Class A shares of
common stock		Class B shares of
common stock		Additional
paid-in
capital		Retained
earnings		Accumulated
other
comprehensive
loss		Common stock in treasuryTotalNon-
controlling
interests		Total
NumberAmountNumberAmountNumberAmount
Balances at beginning of fiscal year132,972,119 $389,967 80,000,000 $132,915 $8,659 $664,390 $(668,484)(2,309,062)$(19,367)$508,080 $1,349 $509,429 
Net income for the period (Unaudited)— — — — — 13,930 — — — 13,930 147 14,077 
Other comprehensive income (Unaudited)— — — — — — 43,797 — — 43,797 20 43,817 
Cash Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.24 per share) (Unaudited)— — — — — (50,560)— — — (50,560)— (50,560)
Balances at end of period (Unaudited)132,972,119 $389,967 80,000,000 $132,915 $8,659 $627,760 $(624,687)(2,309,062)$(19,367)$515,247 $1,516 $516,763 

See Notes to the Condensed Consolidated Financial Statements.
F-7
Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated


1.    Organization and nature of business

Arcos Dorados Holdings Inc. (the “Company”) is a company limited by shares incorporated and existing under the laws of the British Virgin Islands. The Company’s fiscal year ends on the last day of December. The Company indirectly owns 100% of the equity interests in Arcos Dorados B.V. (“ADBV”).

On August 3, 2007 ADBV entered into a Stock Purchase Agreement and Master Franchise Agreements (the “Initial MFAs”) with McDonald’s Corporation pursuant to which ADBV acquired the McDonald’s business in Latin America and the Caribbean (“LatAm business”). Prior to this acquisition, the Company did not carry out operations.

Effective January 1, 2025, the Company entered into two new Master Franchise Agreements (the “MFAs”) with McDonald’s Corporation that replaced the Initial MFAs. The term of the MFAs is 20 years for all of the Territories other than French Guiana, Guadeloupe, Martinique and Saint Martin (French part), which are subject to a term of 10 years with an option to extend such terms for an additional 10 years. The Company’s rights to operate and franchise McDonald’s-branded restaurants in the Territories, and therefore its ability to conduct its business, derive exclusively from the rights granted by McDonald’s Corporation in the MFAs.

The Company has operations in twenty-one territories as follows: Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas (USVI), Venezuela and, since July 2025, Saint Martin (French part) and Sint Maarten (Dutch part), together “St. Martin”. All restaurants are operated either by the Company’s subsidiaries or by independent entrepreneurs under the terms of sub-franchise agreements (franchisees).

2.    Basis of presentation and principles of consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) for interim financial information and include the accounts of the Company and its subsidiaries. The Company has elected to report its Condensed Consolidated Financial Statements in United States dollars (“$” or “US dollars”).

The accompanying Condensed Consolidated Financial Statements do not include all the information and footnotes required by generally accepted accounting principles for a complete set of financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted for purposes of this presentation. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the consolidated annual financial statements of the Company as of December 31, 2025.

The accompanying Condensed Consolidated Financial Statements are unaudited and include, in the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are considered necessary for the fair presentation of the information in the Condensed Consolidated Financial Statements.

Operating results for the three-month period ended March 31, 2026 are not necessarily indicative of results that may be expected for any future periods.


3.    Summary of significant accounting policies

The following is a summary of significant accounting policies followed by the Company in the preparation of the Condensed Consolidated Financial Statements.



F-8
Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated




Use of estimates

The preparation of the Condensed Consolidated Financial Statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Foreign currency matters

The financial statements of the Company’s foreign operating subsidiaries are translated in accordance with guidance in ASC 830 Foreign Currency Matters. Except for the Company’s Venezuelan and Argentinian operations, the functional currencies of the Company’s foreign operating subsidiaries are the local currencies of the countries in which they conduct their operations. Therefore, assets and liabilities are translated into US dollars at the balance sheet date exchange rates, and revenues, expenses and cash flow are translated at average rates prevailing during the periods. Translation adjustments are included in the “Accumulated other comprehensive loss” component of shareholders’ equity. The Company includes foreign currency exchange results related to monetary assets and liabilities transactions, including intercompany transactions, denominated in currencies other than its functional currencies in its statements of income.

Since January 1, 2010 and July 1, 2018, Venezuela and Argentina, respectively, have been considered to be highly inflationary, and as such, the financial statements of these subsidiaries are remeasured as if their functional currency was the reporting currency of the immediate parent company (US dollars). As a result, remeasurement gains and losses are recognized in earnings rather than in the cumulative translation adjustment.

In addition, in these territories, there are foreign currency restrictions. In Argentina, the Central Bank imposes certain restrictions on access to the foreign exchange market (Mercado Libre de Cambios, or “MLC”). As of the date of these condensed consolidated financial statements: (i) imports of goods may be settled with access to the MLC upon nationalization of such goods, (ii) payments for imports of services may be settled with access to the MLC once the related services have been rendered, (iii) access to the MLC for payments of principal or interest under intercompany foreign financial indebtedness is subject to applicable regulatory requirements and, in certain cases, prior approval from the Central Bank of Argentina, and (iv) access to the MLC for dividend distributions to foreign shareholders of Argentine companies is limited to profits generated in fiscal years commencing in 2025, while the distribution of retained earnings generated in prior periods remains restricted; however, certain financial instruments are available in the market to facilitate the payment of such past-due dividends.

Venezuela’s currency restrictions have been in place for several years under different foreign exchange regulations. Although in 2019, the Central Bank of Venezuela loosened those restrictions by permitting financial institution to participate as intermediaries in foreign currency operations, the Company’s ability to immediately access cash through repatriations continues to be limited. Additionally, the Venezuelan market is subject to price controls. Its government issued a regulation establishing a maximum profit margin for companies and maximum prices for certain goods and services. However, the Company was able to increase prices during the three-month period ended March 31, 2026.

As of March 31, 2026, Argentina’s and Venezuela’s net nonmonetary asset positions, comprised primarily of fixed assets, were $193.1 million and $23.2 million, respectively.






F-9
Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated




Accounts payable outsourcing

In the ordinary course of business, the Company looks to obtain extended payment terms during the negotiation process with suppliers, which payment terms can vary from 15 days to up to 180 days after the invoice date. In this context, the Company offers its suppliers access to an accounts payable services arrangement provided by third party financial institutions. Independent from the Company, the financial institutions offer suppliers to voluntarily sell their receivables to them in an arrangement separately negotiated by the supplier and the financial institution. This service also allows the Company’s suppliers to view its scheduled payments online, enabling them to better manage their cash flow and reduce payment processing costs. The Company’s responsibility is limited to making payment on the original due dates of the invoice negotiated with the supplier, regardless of whether the supplier sells its receivable. The Company is not permitted to remit payment to the financial institution or the supplier on a date later than the original due date of the invoice under any circumstances. The payment terms and purchase price of the original invoice do not change once the supplier elects to participate. Those payment terms vary from 45 days to up to 180 days after the invoice date. The Company has no economic interest in the sale of these receivables and no direct relationship with the financial institutions concerning the sale of receivables. As a result, the Company does not pay any fee to the financial institutions for purchasing the suppliers' receivables and it does not receive any fee, commission, refund or discount from the financial institutions for the accounts payable services arrangement. The Company retains the right to all early pay discounts offered by suppliers if they do not sell their receivables.

As of March 31, 2026 and December 31, 2025, the amounts under the accounts payable services arrangement and included in Accounts Payable in the Balance Sheet are $45,290 and $14,226, respectively.

Severance

During 2025, the Company approved and executed plans to restructure and further improve efficiencies in its operations (Reorganization and Optimization Plan). Restructuring costs are related to one-time termination benefits. As of March 31, 2026, $1,656 ($85 in Brazil, $495 in NOLAD, $790 in SLAD, and $286 in Corporate) was recorded within General and Administrative Expenses item in the consolidated income statement.

The total accumulated restructuring costs incurred for the Reorganization and Optimization Plan was $10,377. The Company is not expecting to incur any additional amount in connection with the Reorganization and Optimization Plan.

Recent accounting pronouncements

Income Statement Expenses - Disaggregation

In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”. The pronouncement expands the disclosure requirements for expenses, specifically by providing more detailed information about the types of expenses in commonly presented expense captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently in the process of determining the impact that ASU 2024-03 will have on the Company's Condensed Consolidated Financial Statements.









F-10
Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated


Credit Losses
In July 2025, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2025-05, Credit Losses (Topic 326): “Measurement of Credit Losses for Accounts Receivable and Contract Assets”. The pronouncement provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. It also applies when assets are acquired in transactions accounted for under ASC 805, Business Combinations. The amendments in this ASU are effective for all entities for annual reporting periods beginning after 15 December 2025 and interim reporting periods within those annual reporting periods. The adoption of the ASU 2025-05 did not have a material impact on these Condensed Consolidated Financial Statements.

Internal-use Software

In September 2025, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2025-06, which clarifies and modernizes the accounting for costs related to internal-use software in Accounting Standards Codification (ASC) 350-40, “Intangibles — Goodwill and Other — Internal-Use Software”. The pronouncement removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. ASU 2025-06 is effective for fiscal years beginning after 15 December 2027, and interim periods within those fiscal years. Entities may apply the guidance using a prospective, retrospective or modified transition approach. Early adoption is permitted. The Company is currently in the process of determining the impact that ASU 2025-06 will have on the Company’s Condensed Consolidated Financial Statements.

Interim Reporting

In December 2025, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2025-11, which clarifies the guidance in Accounting Standards Codification ASC 270, “Interim Reporting”, and creates a comprehensive list of interim disclosures in ASC 270 that are required in interim financial statements and the accompanying notes under US GAAP. ASU 2025-11 is effective for interim periods beginning after 15 December 2027. Early adoption is permitted. The Company is currently in the process of determining the impact that ASU 2025-11 will have on the Company’s interim Condensed Consolidated Financial Statements.

No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.



















F-11

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated






4.    Long-term debt

Long-term debt consists of the following: 
As of
March 31, 2026As of
(Unaudited)December 31, 2025
2032 Notes$600,000 $600,000 
2029 Notes214,804 350,000 
Finance lease obligations11,227 11,672 
Long-term bank loans184,716 184,994 
Other long-term borrowings9,083 2,193 
Subtotal1,019,830 1,148,859 
Discounts and premiums on Notes(3,279)(4,229)
Deferred financing costs ("DFC")(6,135)(6,969)
Total$1,010,416 $1,137,661 
Current portion of long-term debt41,122 11,776 
Long-term debt, excluding current portion$969,294 $1,125,885 


The following table presents additional information related to the 2032 and 2029 Notes (the “Notes”):
 Principal as of
Annual interest rate CurrencyMarch 31, 2026 (Unaudited)December 31, 2025Maturity
2032 Notes6.375 %USD$600,000 $600,000 January 29, 2032
2029 Notes6.125 %USD214,804 350,000 May 27, 2029


The following table presents additional information for the three-month period ended March 31, 2026 and 2025:

 Interest Expense (i) DFC Amortization (i)Amortization of Premium/Discount, net (i)
2026 (Unaudited)2025 (Unaudited)2026 (Unaudited)2025 (Unaudited)2026 (Unaudited)2025 (Unaudited)
2032 Notes$9,563 $6,588 $210 $144 $93 $64 
2029 Notes4,661 5,117 578 118 857 172 
2027 Notes— 4,193 — 320 — 314 
(i) These charges are included within “Net interest expense and other financing results” in the consolidated statements of income.

2029 Notes

On January 30, 2026, the Company announced the commencement of an offer to purchase for cash up to $150 million of its outstanding 2029 Notes, which resulted in the redemption on February 17, 2026 of 38.51% of the outstanding principal, for a total amount of $134,796 plus accrued and unpaid interest. Additionally, on March 4, 2026, the Company redeemed $400 plus accrued and unpaid interest upon final settlement of the tender offer.
F-12

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated






During April and May, 2026, the Company repurchased and cancelled $6,891 of its outstanding 2029 notes for a total amount of $7,071 plus accrued and unpaid interests.

The following table summarizes the activity of 2029 Notes as of March 31, 2026:
TransactionDatePrincipal AmountAverage PriceTotal (payment) /collection (i)
IssuanceApril 27, 2022$350,000 — $— 
Open market repurchasesDuring 2022$(12,800)93.87 %$(12,015)
Open market repurchases
During 2023
$(3,000)93.76 %$(2,813)
SaleDuring 2025$15,800 102.25 %$16,156 
Cash Tender During 2026$(135,196)102.99 %$(139,240)
Principal amount of 2029 Notes as of March 31, 2026:$214,804 
(i) Not including accrued and unpaid interest

Long-term bank loans

The following table presents additional information related to long-term bank loans:
Principal as of
TerritoriesEntityCurrencyAnnual interest rateMarch 31, 2026 (Unaudited)December 31, 2025Maturity
BrazilCitibank, N.A.USD4.39%50,000 50,000 January 2029
Bank of America, N.A.4.40%50,000 50,000 
JPMorgan Chase Bank, N.A.4.71%50,000 50,000 
UruguayBanco Itaú Uruguay S.A.USD3.90%8,000 8,000 November 2026
4.31%9,500 9,500 January 2027
Banco Bilbao Vizcaya Argentaria Uruguay S.A.3.95%2,000 2,000 November 2026
4.10%5,500 5,500 January 2027
ChileBanco Itaú ChileCLP5.65%$9,716 $9,994 January 2027
Total$184,716 $184,994 

The following table presents additional information for the three-month period ended March 31, 2026 and 2025:
            
Interest Expense (i)DFC Amortization (i)
2026202520262025
Long-term bank loans$2,390 $880 $51 $— 

(i) These charges are included within “Net interest expense and other financing results” in the consolidated statements of income.





F-13

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated

5.    Derivative instruments

The Company’s derivatives that are designated for hedge accounting consist of forward contracts and cross currency swaps consisting of cross-currency interest rate swap, principal only swaps, call spreads, interest coupon only swaps and sustainability linked ESG principal only swap. All these derivatives are classified as cash flow hedges. Further details are in the “Derivatives designated as hedging instruments” section.

Additionally, the Company enters into certain derivatives that are not designated for hedge accounting. The Company has entered into call spread and cross currency swaps to mitigate the impacts of foreign currency fluctuations on foreign currency denominated liabilities. Further details are in the “Derivatives not designated as hedging instruments” section.

The following table presents the fair values of derivative instruments included in the consolidated balance sheets as of March 31, 2026 and December 31, 2025:
AssetsLiabilities
Type of DerivativeBalance Sheet LocationAs ofAs ofBalance Sheet LocationAs ofAs of
March 31, 2026 (Unaudited)December 31, 2025March 31, 2026 (Unaudited)December 31, 2025
Derivatives designated as hedging instruments 
Cash Flow hedge
Forward contractsOther receivables$4 $489 Accrued payroll and other liabilities$(2,075)$(2,642)
Forward contractsDerivative instruments— — Derivative instruments(1,640)(2,428)
Cross currency swapsDerivative instruments58,829 65,869 Derivative instruments(6,905)(4,157)
Subtotal$58,833 $66,358 $(10,620)$(9,227)
Derivatives not designated as hedging instruments  
Cross currency swapsDerivative instruments11,544 12,815 Derivative instruments(11,952)(17,282)
Call spreadDerivative instruments— 20 Derivative instruments— — 
Subtotal$11,544 $12,835 $(11,952)$(17,282)
Total derivative instruments$70,377 $79,193 $(22,572)$(26,509)

Derivatives designated as hedging instruments

Cash flow hedges

The Company has entered into various forward contracts in a few territories to hedge a portion of the foreign exchange risk associated with forecasted imports of goods. The effect of the hedges results in fixing the cost of goods acquired (i.e. the net settlement or collection adjusts the cost of inventory paid to the suppliers). As of March 31, 2026, the Company estimated that the entire amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into earnings within the next 12 months.

Moreover, the Company has entered into certain instruments designated as cash flow hedges to reduce the exposure to variability in expected future cash flows related to intercompany loans (principal and interest). As of March 31, 2026, the Company estimated that the entire amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into earnings within the next 4 years.


F-14

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated


The following table presents the notional amounts of the Company’s outstanding derivative instruments classified as cash flow hedges:
Notional amount as of
March 31, 2026 (Unaudited)December 31, 2025
Forward contracts$109,711 $98,819 
Cross currency swaps234,000 234,000 

Additional disclosures

The following table presents the pretax amounts affecting income and other comprehensive income for the three-month period ended March 31, 2026 and 2025 for each type of derivative relationship: 
Derivatives in Cash Flow
Hedging Relationships		Loss Recognized in Accumulated OCI on Derivative (Unaudited)Loss (Gain) Reclassified from Accumulated OCI into income
 (Unaudited)
2026202520262025
Forward contracts$(1,473)$(1,667)$1,686 $(701)
Cross currency swaps(13,421)(13,168)15,206 19,916 
Total$(14,894)$(14,835)$16,892 $19,215 
 
The net loss reclassified from accumulated OCI into income is presented as follows:

For the three-month period ended March 31,
Adjustment to:2026 (Unaudited)2025 (Unaudited)
Food and paper$(2,265)$1,787 
Net interest expense and other financing results(1,135)(1,846)
Foreign currency exchange results(13,492)(19,156)
Total$(16,892)$(19,215)

Derivatives not designated as hedging instruments

The Company has entered into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately within “Gain from derivative instruments”.

The following table presents the notional amounts of the Company’s outstanding derivative instruments not designed as hedging instruments:

Notional amount as of
March 31, 2026 (Unaudited)December 31, 2025
Call spread— 24,000 
Cross currency swaps300,000 300,000 
F-15

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated

6.    Share-based compensation

Phantom RSU Awards

The following table provides information about the Phantom RSUs granted by the Company and subject to vesting as of March 31, 2026:

GrantUnitsVesting date
2023561,259May 2026
2024484,854May 2027
202539,904April 2026
736,975May 2028

The total compensation expense for the three-month period ended March 31, 2026 and 2025 amounts to $1,888 and $1,455, respectively, which has been recorded under “General and administrative expenses” within the consolidated statements of income.

The following table summarizes the activity under the plan as of March 31, 2026:

UnitsSettlement
Outstanding at December 31, 20251,881,410 $— 
Forfeited(58,418)— 
Outstanding at March 31, 20261,822,992 — 

The following table provides a summary of the plan as of March 31, 2026:

Total Non-vested
Number of units outstanding1,822,992 
Current share price8.25 
Total fair value of the plan15,040 
Weighted-average accumulated percentage of service60.42 %
Accrued liability (i)9,087 
Compensation expense not yet recognized (ii)5,953 


(i)Presented within “Accrued payroll and other liabilities” in the Company’s current and non-current consolidated balance sheet.
(ii)Expected to be recognized in a weighted-average period of 1.82 years.








F-16

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated

7.    Commitments and contingencies

Commitments related to the MFAs

The MFAs require the Company and its MF subsidiaries, among other obligations:
 
(i)to agree with McDonald’s Corporation on a restaurant opening plan. Moreover. the Company has agreed to make its best efforts to reimage at least 10% of its eligible restaurants. The Company may also propose, subject to McDonald’s Corporation’s consent, amendments to any restaurant opening plan and/or reinvestment plan to adapt to changes in economic or political conditions;
(ii)to pay to McDonald’s Corporation an initial franchise fee for each new restaurant opened. In addition, the Company will pay an initial franchise fee for each franchised restaurant in operation as of January 1, 2025, which will be payable in two equal installments (August 1, 2027 and August 1, 2037).
(iii)to pay monthly royalties commencing at a rate of 6.0% of gross sales of the restaurants during the first 10 years. This percentage will increase to 6.25% and 6.5% for the subsequent two five-year periods of the agreement;
(iv)to commit to funding a specified Strategic Marketing Plan; that includes the expenditure of at least 5% of the Company’s gross sales on advertising and promotion activities, unless otherwise agreed with McDonald’s Corporation;
(v)to own (or lease) directly or indirectly, the fee simple interest in all real property on which any franchised restaurant is located; and
(vi)to maintain a minimum fixed charge coverage ratio (as defined therein) at least equal to 1.50 as well as a maximum leverage ratio (as defined therein) of 4.25.

If the Company is not in compliance with these (or other) commitments under the MFAs, it could be in material breach. A material breach of the MFAs would give McDonald’s Corporation certain rights, including the ability to acquire all or part of the Company’s business.

For the three-month period ended March 31, 2026, the Company was in compliance with the financial ratios mentioned in point (vi) above. The ratios for the period mentioned, were as follows:
March 31, 2026 (Unaudited)
Fixed Charge Coverage Ratio2.23 
Leverage Ratio3.15 

Commitments related to the Letters of Credit

The Company, through ADBV, maintains standby letters of credit in favor of McDonald’s Corporation as collateral for the obligations assumed under the MFAs, for a total aggregate drawing amount of $80 million. These letters of credit can be drawn if certain events occur, including the failure to pay royalties. No amounts have been drawn at the date of issuance of these financial statements. The following table presents information related to the standby letters of credit:
BankCurrencyAmount
Banco Bilbao Vizcaya Argentaria, S.A.$45,000
J.P. Morgan$20,000
Itaú$15,000




F-17

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated


These letters of credit contain a limited number of customary affirmative and negative covenants, including a maximum indebtedness to EBITDA ratio, as follows:
BankRatioMaximum RatioMarch 31, 2026 (Unaudited)
Banco Bilbao Vizcaya Argentaria, S.A.
Net indebtedness to EBITDA (including interest payable)
4.00 0.21 
J.P. MorganIndebtedness to EBITDA (including interest payable)4.50 0.60 
ItaúNet indebtedness to EBITDA (not including interest payable)4.50 0.26 

For the three-month period ended March 31, 2026, the Company was in compliance with each ratio.

Commitments related to long-term debt

The Company and ADBV maintain a $200 million Syndicated Revolving Credit Facility with JP Morgan Chase Bank, N.A., Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, Banco Santander (Brasil) S.A. - Grand Cayman Branch, Bank of America, N.A., BNP Paribas, Banco de Crédito del Perú and Firstbank Puerto Rico (the “Syndicated Revolving Credit Facility”).

In Addition, the Company, through its Brazilian subsidiary, entered into separate bank loans under the 4131 Brazilian Law (“4131 Bank Loans”) for $50,000 each with Citibank, N.A, Bank of America, N.A. and JP Morgan Chase Bank, N.A.

Under the Syndicated Revolving Credit Facility and 4131 Bank Loans, the Company is required to comply with a limited number of customary affirmative and negative covenants including, as of the last day of each quarter, with a consolidated net indebtedness to EBITDA ratio of less than 3.00x.

As of March 31, 2026, this ratio was 1.15x and as such the Company was in compliance.

As of March 31, 2026 no borrowings were outstanding under the Syndicated Revolving Credit Facility.

See note 4 for further information about the 4131 Bank Loans.


Provision for contingencies

The Company has certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings, including those involving labor, tax and other matters. As of March 31, 2026 and December 31, 2025, the Company maintains a provision for contingencies, net of judicial deposits, amounting to $56,978 and $50,854, respectively, presented as follows: $1,457 and $1,455 as a current liability and $55,521 and $49,399 as a non-current liability, respectively. The breakdown of the provision for contingencies is as follows:
As of
March 31, 2026As of
 (Unaudited)December 31, 2025
Tax contingencies in Brazil$45,093 $40,765 
Labor contingencies in Brazil 11,048 9,958 
Others9,359 7,684 
Subtotal65,500 58,407 
Judicial deposits(8,522)(7,553)
Provision for contingencies$56,978 $50,854 
F-18

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated



As of March 31, 2026, there are certain matters related to the interpretation of tax, customs, labor and civil laws for which there is a reasonable possibility that a loss may have been incurred in accordance with ASC 450-20-50-4 within a range of $447 million and $491 million. In accordance with ASC 450-20-50-6, unasserted claims or assessments that do not meet the conditions mentioned have not been included.

As of March 31, 2026, there are certain matters related to the interpretation of income tax laws which could be challenged by tax authorities in an amount of $181 million, related to assessments for the fiscal years 2009 to 2017. No formal claim has been made for fiscal years within the statute of limitation by tax authorities in any of the mentioned matters, however those years are still subject to audit and claims may be asserted in the future.

8.    Segment and geographic information

The Company is required to report information about operating segments in annual financial statements and interim financial reports issued to shareholders in accordance with ASC 280.

The Company has determined that its reportable segments are those that are based on the Company’s method of internal reporting. The Company manages its business as distinct geographic segments and its operations are divided into three geographic divisions, as follows: (i) Brazil, (ii) the North Latin American division, or “NOLAD,” which is comprised of Costa Rica, Mexico, Panama, Puerto Rico, Martinique, Guadeloupe, French Guiana, the U.S. Virgin Islands of St. Croix and St. Thomas and, since July 2025, St. Martin and (iii) the South Latin American division, or “SLAD,” which is comprised of Argentina, Chile, Ecuador, Peru, Uruguay, Colombia, Venezuela, Trinidad and Tobago, Aruba and Curaçao. The accounting policies of the segments are the same as those described in Note 3 of the Consolidated Financial Statements as of December 31, 2025.

The Company’s chief operating decision maker is the Chief Executive Officer ("CEO”) and adjusted EBITDA is the measure of segment’s profit or loss used to evaluate segment performance and resource allocation.


F-19

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated


The following tables present information about profit or loss, significant expenses, other segment items, and assets for each reportable segment: 
For the three-month period ended
 March 31,
 20262025
(Unaudited)(Unaudited)
Revenues:  
Brazil$471,495 $400,302 
NOLAD322,553 281,700 
SLAD421,915 394,590 
Total revenues$1,215,963 $1,076,592 
Significant expenses (a):
Company-operated restaurant expenses:
Brazil$(382,117)$(325,002)
NOLAD(276,602)(239,536)
SLAD(356,136)(335,476)
Total Company-operated restaurant expenses$(1,014,855)$(900,014)
Franchised restaurants-occupancy expenses:
Brazil$(15,633)$(13,509)
NOLAD(2,779)(2,564)
SLAD(3,201)(2,850)
Total Franchised restaurants-occupancy expenses$(21,613)$(18,923)
General and administrative expenses:
Brazil$(14,585)$(13,052)
NOLAD(14,644)(13,346)
SLAD(14,579)(15,296)
Total reportable segments(43,808)(41,694)
Corporate (i)(23,123)(23,486)
Total General and administrative expenses $(66,931)$(65,180)
Other segment items:
Brazil$784 $830 
NOLAD3,174 (14)
SLAD1,404 (1,908)
Total reportable segments5,362 (1,092)
Corporate83 (104)
Total Other segment items (a) (b)$5,445 $(1,196)
Adjusted EBITDA:  
Brazil$59,944 $49,569 
NOLAD31,702 26,240 
SLAD49,403 39,060 
Total reportable segments141,049 114,869 
Corporate and others (i)(23,040)(23,590)
Total adjusted EBITDA$118,009 $91,279 

(a) Depreciation and amortization are not included within the significant expenses and other segment items.
(b) Other segment items include results related to recovery of taxes, restaurant transactions, rental income of excess properties, accrual for contingencies, results from equity method investments, write-offs of inventory and other miscellaneous items.
F-20

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated


For the three-month period ended
March 31,
 20262025
 (Unaudited)(Unaudited)
Adjusted EBITDA reconciliation:  
Total adjusted EBITDA$118,009 $91,279 
(Less) Plus items excluded from computation that affect operating income:  
Depreciation and amortization(54,261)(46,295)
Gains from sale and insurance recovery of property and equipment968 501 
Write-offs of long-lived assets(296)(338)
Reorganization and optimization plan expenses(1,656)— 
Operating income62,764 45,147 
(Less) Plus:  
Net interest expense and other financing results(14,258)(16,592)
Gain from derivative instruments4,369 110 
Foreign currency exchange results7,187 (1,961)
Other non-operating expense, net(16)(122)
Income tax expense, net(23,815)(12,505)
Net income attributable to non-controlling interests(90)(147)
Net income attributable to Arcos Dorados Holdings Inc.$36,141 $13,930 

For the three-month period ended
March 31,
 20262025
 (Unaudited)(Unaudited)
Depreciation and amortization:  
Brazil$21,620 $17,756 
NOLAD15,926 13,292 
SLAD15,238 13,114 
Total reportable segments52,784 44,162 
Corporate and others1,477 2,133 
Total depreciation and amortization$54,261 $46,295 

F-21

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated


For the three-month period ended
March 31,
 20262025
 (Unaudited)(Unaudited)
Property and equipment expenditures:  
Brazil$18,250 $22,238 
NOLAD6,376 5,688 
SLAD12,203 20,848 
Others— 36 
Total property and equipment expenditures$36,829 $48,810 

 As of
March 31,
2026December 31,
 (Unaudited)2025
Total assets:  
Brazil$1,710,448 $1,634,041 
NOLAD1,096,843 1,072,288 
SLAD949,758 958,777 
Total reportable segments3,757,049 3,665,106 
Corporate and others (i)159,783 318,257 
Purchase price allocation (ii)(98,115)(97,519)
Total assets$3,818,717 $3,885,844 

(i)Corporate general and administrative expenses consist of corporate office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training. As of March 31, 2026 and December 31, 2025, corporate assets primarily include cash and cash equivalents, short-term investments and derivative instruments.

(ii)Relates to the purchase price allocation adjustment made at corporate level, which reduces the accounting value of our long-lived assets (excluding Lease right of use) and goodwill. As of March 31, 2026 and December 31, 2025, primarily related with the reduction of goodwill.
 

F-22

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated

9.    Shareholders’ equity

Authorized capital

The Company is authorized to issue a maximum of 500,000,000 shares, consisting of 420,000,000 Class A shares and 80,000,000 Class B shares, neither of which have par value.

Issued and outstanding capital

As of each of March 31, 2026 and December 31, 2025, the Company had 210,663,057 outstanding shares, consisting of 130,663,057 Class A shares and 80,000,000 Class B shares. In addition, 2,309,062 Class A shares were held in treasury.

Rights, privileges and obligations

Holders of Class A shares are entitled to one vote per share and holders of Class B shares are entitled to five votes per share. Except with respect to voting, the rights, privileges and obligations of the Class A shares and Class B shares are pari passu in all respects, including with respect to dividends and rights upon liquidation of the Company.
 
Distribution of dividends
 
The Company can only make distributions to the extent, that immediately following the distribution, its assets exceed its liabilities and the Company is able to pay its debts as they become due.

On March 18, 2026, the Company approved a dividend distribution to all Class A and Class B shareholders of $0.28 per share to be paid in four installments, as follows: $0.07 per share in April 2, June 26, September 25 and December 29, 2026, respectively.

F-23

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated



Accumulated other comprehensive loss

The following tables set forth information with respect to the components of “Accumulated other comprehensive loss” as of March 31, 2026 and 2025, respectively, and their related activity during the three-month period ended:
 
 
 
Foreign currency translation
 
Cash flow hedges
 
Securities available for sale (i)
Total Accumulated other comprehensive loss
Balances at December 31, 2025$(570,908)$3,271 $7 $(567,630)
Other comprehensive income (loss) before reclassifications (Unaudited)25,843 (9,682)(61)16,100 
Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income (Unaudited)— 11,617 68 11,685 
Net current-period other comprehensive income (Unaudited)25,843 1,935 7 27,785 
Balances at March 31, 2026 (Unaudited)$(545,065)$5,206 $14 $(539,845)

 
 
 
Foreign currency translation
 
Cash flow hedges
 
Securities available for sale (i)
Total Accumulated other comprehensive loss
Balances at December 31, 2024$(667,652)$3,231 $(4,063)$(668,484)
Other comprehensive income (loss) before reclassifications (Unaudited)41,619 (10,189)(77)31,353 
Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income (Unaudited) — 12,444 — 12,444 
Net current-period other comprehensive income (loss) (Unaudited)41,619 2,255 (77)43,797 
Balances at March 31, 2025 (Unaudited)$(626,033)$5,486 $(4,140)$(624,687)

(i)Related to unrealized results on available for sale securities. For the three-month period ended March 31, 2026 and 2025 the Company maintains Securities classified as available for sale in accordance with guidance in ASC 320 Investments – Debt and Equity Securities amounting to $535 and $3,485, respectively, included within “Short-term investments” in the Consolidated Balance Sheet. The amortized cost at acquisition amounted to $524 and $7,744 for the three-month period ended March 31, 2026 and 2025, respectively.
F-24

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated
10.    Earnings per share

The Company is required to present basic and diluted earnings per share in accordance with ASC 260. Earnings per share are based on the weighted average number of shares outstanding during the period after consideration of the dilutive effect, if any, for common stock equivalents, including stock options and restricted share units. Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock outstanding and dilutive securities outstanding during the period under the treasury method.

The following table sets forth the computation of basic and diluted net income per common share attributable to Arcos Dorados Holdings Inc. for all periods presented:
For the three-month period ended
March 31,
 20262025
 (Unaudited)(Unaudited)
Net income attributable to Arcos Dorados Holdings Inc. available to common shareholders$36,141 $13,930 
Weighted-average number of common shares outstanding - Basic and Diluted210,663,057 210,663,057 
Basic and Diluted net income attributable to Arcos Dorados Holdings Inc. per common share$0.17 $0.07 

11.    Related party transactions

The Company has entered into a master commercial agreement on arm’s-length terms with Axionlog, a company under common control that provides quick service restaurants and other food service businesses with comprehensive third-party logistics services, including storage, transportation, planning, and logistics management services, in the countries in which it operates (“Axionlog”). Pursuant to this agreement, Axionlog provides the Company some or all of these services in most of the Company’s territories.


The following table summarizes the outstanding balance between the Company and Axionlog as of March 31, 2026 and December 31, 2025: 
 As of
March 31,December 31,
20262025
 (Unaudited)
Other receivables5,175 5,952 
Miscellaneous4,197 4,281 
Accounts payable(20,454)(31,278)









F-25

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated


The following table summarizes the transactions between the Company and Axionlog for the three-month period ended March 31, 2026 and 2025:    
For the three-month period ended
 March 31,
20262025
 (Unaudited)(Unaudited)
Food and paper (i)$(84,212)$(80,457)
Occupancy and other operating expenses(3,241)(2,757)

(i)Includes $18,228 of distribution fees and $65,984 of supplier purchases managed through the Axionlog Business for the three-month period ended March 31, 2026; and, $18,007 and $62,450, respectively, for the three-month period ended March 31, 2025.

The following table summarizes the outstanding balances between the Company and its equity method investments as of March 31, 2026 and December 31, 2025:

 20262025
Lacoop II, S.CSaile (i)Lacoop II, S.CSaile (i)
Other receivables$2,606 $794 $2,928 $1,510 
Accounts payable(2,603)— (2,412)— 

(i) Operadora de Franquicias Saile S.A.P.I. de C.V.

12.    Disclosures about fair value of financial instruments

Assets and liabilities measured and recorded at fair value on recurring basis

The Company's assets and liabilities measured and recorded at fair value on recurring basis were valued using:

Level 1 inputs: Valuations utilizing quoted, unadjusted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level 2 inputs: Valuations utilizing quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability.

Level 3 inputs: Valuations utilizing significant unobservable inputs provides the least objective evidence of fair value and requires a significant degree of judgment. Inputs may be used with internally developed methodologies and should reflect an entity’s assumptions using the best information available about the assumptions that market participants would use in pricing an asset or liability.

As of March 31, 2026, and December 31, 2025, the Company had not changed the methodology, nor the assumptions used to estimate the fair value of the financial instruments.

There were no transfers to and from Levels 1, 2 and 3 during the three-month period ended March 31, 2026, nor during the year ended December 31, 2025.

F-26

Arcos Dorados Holdings Inc.
Notes to the Condensed Consolidated Financial Statements
For the three-month period ended March 31, 2026 and 2025 (Unaudited)
Amounts in thousands of US dollars, except for share data and as otherwise indicated

The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:

Quoted Prices in
Active Markets
For Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
As ofAs ofAs ofAs ofAs ofAs ofBalance as ofBalance as of
March 31, 2026 (Unaudited)December 31, 2025March 31, 2026 (Unaudited)December 31, 2025March 31, 2026 (Unaudited)December 31, 2025March 31, 2026 (Unaudited)December 31, 2025
Assets
Cash equivalents$156,462 $285,469 $— $— $— $— $156,462 $285,469 
Short-term Investments10,000 47,544 535 1,365 — — 10,535 48,909 
Derivatives— — 70,377 79,193 — — 70,377 79,193 
Total Assets$166,462 $333,013 $70,912 $80,558 $— $— $237,374 $413,571 
Liabilities
Derivatives$— $— $22,572 $26,509 $— $— $22,572 $26,509 
Total Liabilities$— $— $22,572 $26,509 $— $— $22,572 $26,509 

Certain financial assets and liabilities not measured at fair value

As of March 31, 2026, the fair value of the Company’s short term and long-term debt was estimated at $996,753, compared to a carrying amount of $1,024,982. This fair value was estimated using various pricing models or discounted cash flow analysis that incorporated quoted market prices and is similar to Level 2 within the valuation hierarchy. The carrying amount for notes receivable approximates fair value.

Non-financial assets and liabilities measured at fair value on a nonrecurring basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). As of March 31, 2026, no material fair value adjustments or fair value measurements were required for non-financial assets or liabilities.

13.    Subsequent Events

Long-term debt

During April and May, 2026, the Company repurchased and cancelled $6,891 of its outstanding 2029 notes for a total amount of $7,071 plus accrued and unpaid interests.
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