By Micah Maidenberg

 

Arcos Dorados Holdings Inc. said Thursday that comparable fourth-quarter sales fell year-over-year, but the decline wasn't as steep as in the previous two periods.

Overall, comparable sales were off 7.9% for the fourth quarter, the McDonald's Corp. franchisee focused on Latin America and the Caribbean said. Those sales dropped 51% and 27.2% in the second and third quarters as the Covid-19 pandemic cut into demand and consumers stay at home.

This year, the company expects to open between 40 and 50 new restaurants, 80% of them in Brazil. Capital spending, Arcos said, will range from $110 million to $130 million.

In addition, the company struck a deal with the McDonald's corporate office to receive "Growth Support" this year that will result in an effective royalty rate of about 5.3%, lower than the 6% rate required by its franchise agreement with the chain.

"In 2021, we plan to gain meaningful market share, resume normalized operations and self-fund investments in unit growth," Chief Executive Marcelo Rabach said.

 

Write to Micah Maidenberg at micah.maidenberg@wsj.com

 

(END) Dow Jones Newswires

January 21, 2021 07:33 ET (12:33 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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