Arcos Dorados Holdings, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2012. For the quarter, the company's net income amounted to USD 12.1 million, below last year's net income of USD 14.2 million, primarily due to the impact of currency depreciation, foreign exchange losses and a higher income tax rate. Total revenues were USD 904,212,000 against USD 888,489,000 a year ago. Operating income was USD 41,273,000 against USD 36,104,000 a year ago. Income before income taxes was USD 19,219,000 against USD 19,151,000 a year ago. Basic net income per common share attributable to the company was USD 0.06 against USD 0.07 a year ago. Adjusted EBITDA decreased by 0.9% to USD 67.3 million, due primarily to the 23% depreciation of the Brazilian currency versus the prior year. Adjusted EBITDA was USD 67,869,000 for the quarter ended June 30, 2011. Cash generated from operating activities was USD 31.1 million. During the quarter, capital expenditures amounted to USD 55 million.

For the six months, total revenues were USD 1,825,810,000 against USD 1,715,146,000 a year ago. Operating income was USD 96,489,000 against USD 96,685,000 a year ago. Income before income taxes was USD 56,853,000 against USD 64,942,000 a year ago. Net income attributable to the company was USD 37,503,000 against USD 49,725,000 a year ago. Basic net income per common share attributable to the company was USD 0.18 against USD 0.22 a year ago. Adjusted EBITDA was USD 145,343,000 against USD 140,194,000 a year ago. Total capital expenditure amounted to USD 95.6 million for the period compared with USD 104.3 million in the first half of 2011. Net financial debt as at June 30, 2012 was USD 418.9 million.

Mr. Alfredo Elias Ayub has been appointed an independent board member of the company. From 1999 until April 2011, Mr. Elias was the Chief Executive Officer of the Comisi n Federal de Electricidad. Mr. Elias currently serves as member of Dean's board of advisors for Harvard Business School (2010 to date).

Based on the current economic outlook and marketing plans for 2012, the company has modified its adjusted EBITDA growth guidance for the full year to reflect a delay in the expected recovery of consumption within the Brazilian economy. In addition, a weaker than expected currency, primarily in Brazil, is expected to impact the cost of imported inputs. The company expects to achieve revenue growth within the original guidance provided at the beginning of the year, but now expects Adjusted EBITDA to reach between 8% to 10% growth over the 2011 result based on constant currency and excluding the CAD related impact on results from stock price variations of 2012. The following growth rates are now expected to be achieved with respect to the previous year: revenue growth in the range of 15% to 17%; adj. EBITDA growth in the range of 8% to 10%; and an effective tax rate for the year in the range of 31% to 33%. The capital expenditures plan remains the same and includes approximately 130 gross openings. Due to the devaluation in local currencies, the result is a lower capex amount in US dollars for the full year of approximately USD 300 to USD 320 million.