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 March, 2022

Commission File Number: 001-35129

 

Arcos Dorados Holdings Inc.

(Exact name of registrant as specified in its charter)

 

Dr. Luis Bonavita 1294, Office 501

Montevideo, Uruguay, 11300 WTC Free Zone

(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-F

X

   Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Yes   No

X

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

Yes   No

X

 

 

 

 

ARCOS DORADOS HOLDINGS INC.

 

TABLE OF CONTENTS

 

ITEM  
1. Press Release dated March 16, 2022 titled “Arcos Dorados Reports Supplemental Historical Information”

 

 

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/ Juan David Bastidas
        Name: Juan David Bastidas
        Title: Chief Legal Counsel

Date: March 16, 2022

 

 

 

Item 1

 

FOR IMMEDIATE RELEASE ??cone Descri????o gerada automaticamente

ARCOS DORADOS REPORTS SUPPLEMENTAL HISTORICAL INFORMATION

 

 

Montevideo, Uruguay, March 16, 2022 – 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, is providing restated quarterly financial information for the years 2019, 2020 and 2021, reflecting the Company’s recently-announced divisional reorganization, in order to facilitate the historical analysis of its performance:

 

Divisional Reorganization

 

Effective October 1, 2021, the Company made certain changes in its internal management structure, in order to gain operational agility, leading the Company to reorganize its operation into three geographic divisions, as follows:

 

(i)Brazil division;

 

(ii)North Latin American division, or “NOLAD,” which is now comprised of Mexico, Puerto Rico, Costa Rica, Panama, Martinique, Guadeloupe, French Guiana, St. Croix and St. Thomas; and

 

(iii)South Latin American division, or “SLAD,” which is now comprised of Argentina, Chile, Colombia, Ecuador, Peru, Uruguay, Venezuela, Aruba, Curaçao and Trinidad & Tobago.

 

Investor Relations Contact

Dan Schleiniger 

VP of Investor Relations

Arcos Dorados 

daniel.schleiniger@ar.mcd.com

 

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Media Contact

David Grinberg

VP of Corporate Communications

Arcos Dorados

david.grinberg@mcd.com.uy

 

 

1 

 

2021 Key Metrics by Division

 

(In thousands of U.S. dollars, except percentages)

 

  1Q21 2Q21 3Q21 4Q21 2021
Systemwide comparable sales growth        
Brazil -10.0% 65.6% 36.2% 18.3% 20.4%
NOLAD 6.7% 84.5% 38.7% 23.6% 33.2%
SLAD 51.8% 292.1% 161.8% 91.1% 117.1%
SLAD - Excl. Venezuela 24.9% 229.4% 121.2% 75.1% 86.8%
TOTAL - Excl. Venezuela 2.1% 98.7% 56.6% 33.6% 38.8%
           
Total Revenues          
Brazil 203,251 225,740 275,229 298,561  1,002,781
NOLAD 173,754 193,271 204,670 209,171  780,866
SLAD 184,111 173,685 245,938 272,560  876,294
SLAD - Excl. Venezuela 182,831 172,266 243,462 269,398  867,957
TOTAL 561,116 592,696 725,837 780,292  2,659,941
TOTAL - Excl. Venezuela 559,836 591,277 723,361 777,130  2,651,604
           
Operating Income (loss)          
Brazil 180 19,995 36,925 60,787  117,887
NOLAD 5,141 8,916 12,487 22,241  48,785
SLAD 1,852 5,631 18,718 22,413  48,614
SLAD - Excl. Venezuela 3,727 6,129 19,093 23,905  52,853
Corporate and Other (13,981) (16,724) (17,389) (27,673)  (75,767)
TOTAL (6,808) 17,818 50,741 77,768  139,519
TOTAL - Excl. Venezuela (4,933) 18,316 51,116 79,260  143,758
           
Adjusted EBITDA (1)          
Brazil 13,540 33,819 52,188 76,056  175,603
NOLAD 13,836 19,039 22,273 30,175  85,323
SLAD 9,604 11,083 26,409 30,477  77,573
SLAD - Excl. Venezuela 10,418 12,231 26,691 31,516  80,856
Corporate and Other (13,050) (16,785) (11,583) (25,323)  (66,741)
TOTAL 23,930 47,156 89,287 111,385  271,758
TOTAL - Excl. Venezuela 24,744 48,304 89,569 112,424  275,041
           
Adjusted EBITDA Margin (2)          
Brazil 6.7% 15.0% 19.0% 25.5% 17.5%
NOLAD 8.0% 9.9% 10.9% 14.4% 10.9%
SLAD 5.2% 6.4% 10.7% 11.2% 8.9%
SLAD - Excl. Venezuela 5.7% 7.1% 11.0% 11.7% 9.3%
TOTAL 4.3% 8.0% 12.3% 14.3% 10.2%
TOTAL - Excl. Venezuela 4.4% 8.2% 12.4% 14.5% 10.4%
           
Restaurant Footprint as of December 31, 2021        
           
  Ownership Total Restaurants    
  Company Operated Franchised    
Brazil 631 420 1,051    
NOLAD 453 172 625    
SLAD 495 90 585    
TOTAL 1,579 682 2,261    

 

(1)Adjusted EBITDA is a measure of our performance that is reviewed by our management. Adjusted EBITDA does not have a standardized meaning and, accordingly, our definition of Adjusted EBITDA may not be comparable to Adjusted EBITDA as used by other companies. Total Adjusted EBITDA is a non-GAAP measure. For our definition of Adjusted EBITDA, see “Item 5. Operating and Financial Review and Prospects - A. Operating Results - Key Business Measures”.

 

(2)Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenues, expressed as a percentage.

2 

 

2020 Key Metrics by Division

 

(In thousands of U.S. dollars, except percentages)

 

  1Q20 2Q20 3Q20 4Q20 2020
Systemwide comparable sales growth        
Brazil -6.0% -46.3% -26.2% -10.6% -21.8%
NOLAD -6.7% -43.7% -21.2% -7.8% -19.8%
SLAD 31.0% -60.1% -22.1% 28.8% -6.0%
SLAD - Excl. Venezuela 0.6% -67.0% -34.6% -1.0% -25.8%
TOTAL - Excl. Venezuela -4.5% -51.0% -27.2% -7.9% -22.3%
           
Total Revenues          
Brazil 284,382 132,234 192,402 253,730  862,748
NOLAD 155,531 102,226 149,279 177,610  584,646
SLAD 177,591 58,064 125,118 176,052  536,825
SLAD - Excl. Venezuela 175,994 57,739 124,225 174,373  532,330
TOTAL 617,504 292,524 466,799 607,392  1,984,219
TOTAL - Excl. Venezuela 615,907 292,199 465,906 605,713  1,979,725
           
Operating Income (loss)          
Brazil 11,088 (21,135) 7,676 18,492  16,121
NOLAD 2,653 (9,510) 972 5,915  30
SLAD (7,382) (34,784) (777) 14,101  (28,842)
SLAD - Excl. Venezuela (5,539) (32,388) 774 16,023  (21,130)
Corporate and Other (13,494) (11,849) (11,932) (16,788)  (54,063)
TOTAL (7,135) (77,278) (4,061) 21,720  (66,754)
TOTAL - Excl. Venezuela (5,292) (74,882) (2,510) 23,642  (59,042)
           
Adjusted EBITDA (1)          
Brazil 29,171 (7,099) 21,507 32,576  76,155
NOLAD 13,415 (2,214) 10,874 19,421  41,496
SLAD (1,822) (22,687) 3,572 21,767  830
SLAD - Excl. Venezuela (332) (21,460) 4,355 22,682  5,245
Corporate and Other (12,241) (10,907) (10,919) (16,303)  (50,370)
TOTAL 28,523 (42,907) 25,034 57,461  68,111
TOTAL - Excl. Venezuela 30,013 (41,680) 25,817 58,376  72,526
           
Adjusted EBITDA Margin (2)          
Brazil 10.3% -5.4% 11.2% 12.8% 8.8%
NOLAD 8.6% -2.2% 7.3% 10.9% 7.1%
SLAD -1.0% -39.1% 2.9% 12.4% 0.2%
SLAD - Excl. Venezuela -0.2% -37.2% 3.5% 13.0% 1.0%
TOTAL 4.6% -14.7% 5.4% 9.5% 3.4%
TOTAL - Excl. Venezuela 4.9% -14.3% 5.5% 9.6% 3.7%
           
Restaurant Footprint as of December 31, 2020        
           
  Ownership Total Restaurants    
  Company Operated Franchised    
Brazil 610 410 1,020    
NOLAD 475 154 629    
SLAD 491 96 587    
TOTAL 1,576 660 2,236    

 

(1)Adjusted EBITDA is a measure of our performance that is reviewed by our management. Adjusted EBITDA does not have a standardized meaning and, accordingly, our definition of Adjusted EBITDA may not be comparable to Adjusted EBITDA as used by other companies. Total Adjusted EBITDA is a non-GAAP measure. For our definition of Adjusted EBITDA, see “Item 5. Operating and Financial Review and Prospects - A. Operating Results - Key Business Measures”.

 

(2)Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenues, expressed as a percentage.

 

 

3 

 

2019 Key Metrics by Division

 

(In thousands of U.S. dollars, except percentages)

 

  1Q19 2Q19 3Q19 4Q19 2019
Systemwide comparable sales growth        
Brazil 6.8% 12.1% 10.8% 9.5% 9.7%
NOLAD 1.7% 5.1% 2.8% 4.9% 3.7%
SLAD 31537.2% 7543.8% 485.1% 374.6% 11963.2%
SLAD - Excl. Venezuela 20.8% 24.3% 23.8% 16.9% 21.5%
TOTAL - Excl. Venezuela 10.0% 14.2% 12.7% 10.4% 11.8%
           
Total Revenues          
Brazil 340,764 329,298 346,201 369,302  1,385,566
NOLAD 157,939 169,158 172,048 177,237  676,382
SLAD 232,296 225,288 231,719 207,827  897,129
SLAD - Excl. Venezuela 229,240 222,569 229,349 205,788  886,947
TOTAL 730,999 723,744 749,968 754,366  2,959,077
TOTAL - Excl. Venezuela 727,943 721,025 747,598 752,327  2,948,895
           
Operating Income (loss)          
Brazil 32,093 28,486 41,633 62,131  164,342
NOLAD 2,542 5,130 7,275 15,008  29,955
SLAD 9,434 7,556 8,882 2,024  27,894
SLAD - Excl. Venezuela 11,094 8,680 10,464 5,897  36,137
Corporate and Other (12,745) (15,428) (15,543) (18,538)  (62,255)
TOTAL 31,324 25,744 42,247 60,625  159,937
TOTAL - Excl. Venezuela 32,984 26,868 43,829 64,498  168,180
           
Adjusted EBITDA (1)          
Brazil 46,904 44,198 57,481 79,262  227,844
NOLAD 10,546 12,825 14,912 25,775  64,059
SLAD 16,207 14,578 18,477 13,781  63,043
SLAD - Excl. Venezuela 17,343 15,364 19,639 15,154  67,500
Corporate and Other (13,038) (15,785) (15,905) (18,442)  (63,171)
TOTAL 60,619 55,816 74,965 100,376  291,775
TOTAL - Excl. Venezuela 61,755 56,602 76,127 101,749  296,232
           
Adjusted EBITDA Margin (2)          
Brazil 13.8% 13.4% 16.6% 21.5% 16.4%
NOLAD 6.7% 7.6% 8.7% 14.5% 9.5%
SLAD 7.0% 6.5% 8.0% 6.6% 7.0%
SLAD - Excl. Venezuela 7.6% 6.9% 8.6% 7.4% 7.6%
TOTAL 8.3% 7.7% 10.0% 13.3% 9.9%
TOTAL - Excl. Venezuela 8.5% 7.9% 10.2% 13.5% 10.0%
           
Restaurant Footprint as of December 31, 2019        
           
  Ownership Total Restaurants    
  Company Operated Franchised    
Brazil 612 411 1,023    
NOLAD 456 199 655    
SLAD 512 103 615    
TOTAL 1,580 713 2,293    

 

(1)Adjusted EBITDA is a measure of our performance that is reviewed by our management. Adjusted EBITDA does not have a standardized meaning and, accordingly, our definition of Adjusted EBITDA may not be comparable to Adjusted EBITDA as used by other companies. Total Adjusted EBITDA is a non-GAAP measure. For our definition of Adjusted EBITDA, see “Item 5. Operating and Financial Review and Prospects - A. Operating Results - Key Business Measures”.

 

(2)Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenues, expressed as a percentage.

 

 

4