What are the key takeaways from ARCO's 2024 earnings reports?

Arcos Dorados Holdings Inc. (ARCO) reported strong financial results for Q4 and full year 2024, marking its highest annual revenue in USD. The key takeaways from the earnings reports are as follows:

1. **Record Revenues and EBITDA**:
- Total revenues reached $1.1 billion in Q4 and $4.5 billion for FY2024, marking the highest annual result in USD.
- Consolidated Adjusted EBITDA reached $147.4 million in Q4 and $500.1 million for the full year, marking a 11.1% and 5.9% year-over-year increase, respectively.
- Consolidated Adjusted EBITDA margin was 12.9% and 11.2% for Q4 and FY2024, respectively, representing a 160 and 30 basis points improvement versus the prior year quarter.
2. **Systemwide Comparable Sales Growth**:
- Systemwide comparable sales increased by 21.5% in Q4 and 32.8% for the full year, driven by strong local currency growth in all divisions.
- Excluding Argentina, systemwide comparable sales grew by 7.8%, indicating effective traffic-driving initiatives.
3. **Digital Transformation and Loyalty Program Success**:
- Digital sales grew by 18% year-over-year, contributing 57% of systemwide sales in 2024.
- The loyalty program reached 15.8 million registered members by the end of Q4, up from 3.2 million in 2023, boosting both frequency and average check values where implemented.
4. **Restaurant Expansion and Dividend Declaration**:
- The company opened 29 Experience of the Future (EOTF) restaurants in Q4, including 26 free-standing locations and 15 new units in Brazil.
- Arcos Dorados declared a cash dividend of $0.24 per share for 2025, reflecting its strong financial performance and commitment to shareholders.
5. **Macroeconomic Challenges**:
- The company faced currency headwinds in Brazil and Mexico, as well as inflationary pressures in Argentina, which impacted revenue growth and margins.
- Despite these challenges, Arcos Dorados maintained pricing discipline and achieved strong operational performance, driven by its diversified business model and strategic initiatives.

Overall, Arcos Dorados demonstrated resilience in the face of macroeconomic challenges, achieving historic financial milestones and solid revenue growth, underscored by its digital transformation and successful loyalty program.