\n| Total Revenues<\/b><\/td>\n | \n 780.3<\/b><\/p>\n<\/td>\n | \n (89.3)<\/b><\/p>\n<\/td>\n | \n 325.0<\/b><\/p>\n<\/td>\n | \n 2.7<\/b><\/p>\n<\/td>\n | \n 1,018.6<\/b><\/p>\n<\/td>\n | \n 30.5%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Systemwide Comparable Sales<\/i><\/td>\n | | \n | \n | \n | \n | \n\n 37.3%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA<\/b><\/td>\n | \n 111.4<\/b><\/p>\n<\/td>\n | \n (0.8)<\/b><\/p>\n<\/td>\n | \n 3.5<\/b><\/p>\n<\/td>\n | \n 0.0<\/b><\/p>\n<\/td>\n | \n 114.1<\/b><\/p>\n<\/td>\n | \n 2.4%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA Margin<\/i><\/td>\n | \n 14.3%<\/i><\/p>\n<\/td>\n | | \n | \n | \n\n 11.2%<\/i><\/p>\n<\/td>\n | \n -3.1 p.p.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| Net income (loss) attributable to AD<\/b><\/td>\n | \n 45.6<\/b><\/p>\n<\/td>\n | \n (2.7)<\/b><\/p>\n<\/td>\n | \n 11.2<\/b><\/p>\n<\/td>\n | \n 0.4<\/b><\/p>\n<\/td>\n | \n 54.5<\/b><\/p>\n<\/td>\n | \n 19.6%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| No. of shares outstanding (thousands)<\/td>\n | \n \n210,478\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n210,595\n<\/p>\n<\/td>\n | | <\/tr>\n \n| EPS (US$\/Share)<\/b><\/td>\n | \n 0.22<\/b><\/p>\n<\/td>\n | | \n | \n | \n\n 0.26<\/b><\/p>\n<\/td>\n | | <\/tr>\n \n| \n \n\u00a0\n<\/p>\n 4Q22 = 4Q21 + Currency Translation Excl. Venezuela + Constant Currency Growth Excl. Venezuela + Venezuela). Refer to \u201cDefinitions\u201d section for further detail.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nArcos Dorados\u2019 consolidated results may continue to be impacted by Venezuela\u2019s macroeconomic volatility, including the ongoing hyperinflationary environment, which has historically led the Company to record significant non-cash accounting charges to operations in this market. As such, the discussion of the Company\u2019s operating performance continues to be focused on consolidated results that exclude Venezuela.\n<\/p>\n Notable items in the Adjusted EBITDA reconciliation<\/b><\/p>\n Included in Adjusted EBITDA:<\/span> In the fourth quarter of 2021, Other operating income \/ (expense) included a $3.7 million credit related to payroll taxes in Brazil and a $5.5 million non-cash positive impact related to the fair value of restaurant businesses contributed to an investment with a sub-franchisee in Mexico.\n<\/p>\nExcluded from Adjusted EBITDA:<\/span> In the fourth quarter 2021, the Company incurred $4.8 million in reorganization and optimization expenses within its General & Administrative expenses (G&A), due to its divisional reorganization as of October 2021.\n<\/p>\n\nFourth quarter net income attributable to the Company totaled $54.5 million, compared to net income of $45.6 million in the same period of 2021. Arcos Dorados\u2019 recorded earnings of $0.26 per share in the fourth quarter of 2022 compared to net income of $0.22 per share in the corresponding 2021 period. Total weighted average shares for the fourth quarter of 2022 amounted to 210,594,545 compared to 210,478,322 in the prior year\u2019s quarter.\n<\/p>\n \n\n| \n Consolidated – excluding Venezuela<\/p>\n <\/b>Figure 2. AD Holdings Inc Consolidated – Excluding Venezuela: Key Financial Results<\/b><\/p>\n (In millions of U.S. dollars, except as noted)<\/i><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n4Q21
(a)<\/b><\/td>\n | Currency
Translation
(b)
<\/b><\/td>\n | Constant
Currency
Growth
(c)<\/b><\/td>\n | 4Q22
(a+b+c)<\/b><\/td>\n | % As
Reported<\/b><\/td>\n | % Constant
Currency<\/b><\/td>\n<\/tr>\n\n| Total Restaurants (Units)<\/b><\/td>\n | \n 2,159<\/b><\/p>\n<\/td>\n | | \n | \n\n 2,214<\/b><\/p>\n<\/td>\n | | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Sales by Company-operated Restaurants<\/td>\n | \n \n743.1\n<\/p>\n<\/td>\n | \n \n(89.0)\n<\/p>\n<\/td>\n | \n \n312.9\n<\/p>\n<\/td>\n | \n \n967.0\n<\/p>\n<\/td>\n | \n \n30.1%\n<\/p>\n<\/td>\n | \n \n42.1%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Revenues from franchised restaurants<\/td>\n | \n \n34.1\n<\/p>\n<\/td>\n | \n \n(0.3)\n<\/p>\n<\/td>\n | \n \n12.1\n<\/p>\n<\/td>\n | \n \n45.8\n<\/p>\n<\/td>\n | \n \n34.5%\n<\/p>\n<\/td>\n | \n \n35.4%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total Revenues<\/b><\/td>\n | \n 777.1<\/b><\/p>\n<\/td>\n | \n (89.3)<\/b><\/p>\n<\/td>\n | \n 325.0<\/b><\/p>\n<\/td>\n | \n 1,012.8<\/b><\/p>\n<\/td>\n | \n 30.3%<\/b><\/p>\n<\/td>\n | \n 41.8%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Systemwide Comparable Sales<\/i><\/td>\n | | \n | \n | \n | \n | \n\n 35.7%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA<\/b><\/td>\n | \n 112.4<\/b><\/p>\n<\/td>\n | \n (0.8)<\/b><\/p>\n<\/td>\n | \n 3.5<\/b><\/p>\n<\/td>\n | \n 115.1<\/b><\/p>\n<\/td>\n | \n 2.3%<\/b><\/p>\n<\/td>\n | \n 3.1%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA Margin<\/i><\/td>\n | \n 14.5%<\/i><\/p>\n<\/td>\n | | \n | \n\n 11.4%<\/i><\/p>\n<\/td>\n | \n -3.1 p.p.<\/i><\/p>\n<\/td>\n | | <\/tr>\n \n| Net income (loss) attributable to AD<\/b><\/td>\n | \n 47.2<\/b><\/p>\n<\/td>\n | \n (2.7)<\/b><\/p>\n<\/td>\n | \n 11.2<\/b><\/p>\n<\/td>\n | \n 55.7<\/b><\/p>\n<\/td>\n | \n 18.0%<\/b><\/p>\n<\/td>\n | \n 23.7%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| No. of shares outstanding (thousands)<\/td>\n | \n \n210,478\n<\/p>\n<\/td>\n | | \n | \n\n \n210,595\n<\/p>\n<\/td>\n | | \n | <\/tr>\n \n| EPS (US$\/Share)<\/b><\/td>\n | \n 0.22<\/b><\/p>\n<\/td>\n | | \n | \n\n 0.26<\/b><\/p>\n<\/td>\n | | \n | <\/tr>\n<\/table>\n\nArcos Dorados\u2019 structural competitive advantages in Drive-thru and Delivery, together with the expansion of Digital sales and the continuous recovery in on-premise volume drove strong sales growth. Total revenues in US dollars increased 30.3%, or 41.8% in constant currency, versus the prior year period. Systemwide comparable sales for the fourth quarter rose 35.7%.\n<\/p>\n \nThe Company\u2019s off-premise channels demonstrated their enduring popularity with guests. Drive-thru and Delivery grew 17% and 52%, respectively, in constant currency in the fourth quarter on top of very strong growth in the prior year. On-premise sales also continued to recover, growing about 48% versus the prior year in constant currency. With that, 42% of systemwide sales in the fourth quarter 2022 were generated in off-premise channels and 58% in the on-premise channels.\n<\/p>\n \nDigital, which helps drive sales across all channels, generated 44% of sales in the fourth quarter, reaching $580.0 million, a new quarterly sales record in absolute terms. Full year Digital sales also reached an all-time high of $1.9 billion, up 55% versus the prior year. The incremental nature and continued success of Digital sales support the Company\u2019s long-term approach to generating sustainable revenue growth.\n<\/p>\n \nThe Company\u2019s App is currently available in 18 markets and over 2,300 restaurants, reaching more than 87 million cumulative downloads by the end of 2022. The App has more than 14 million average monthly active users and, in December, identifiable sales represented 17% of the Company\u2019s total sales.\n<\/p>\n \nIn addition, Arcos Dorados\u2019 CRM (Customer Relationship Management) platform, with more than 67 million unique registered users by the end of December, continues to grow. The platform provides convenient solutions, combined with insights from the Company\u2019s data analytics capabilities, driving a more personalized experience with a higher guest lifetime value.\n<\/p>\n Adjusted EBITDA \u2013 Excluding Venezuela<\/b><\/p>\n 4Q22 Adjusted EBITDA Bridge
\n
<\/b>($ million)<\/i><\/p>\n \nConsolidated Adjusted EBITDA of $115.1 million reflects 21.3% underlying US dollar growth versus the prior year, excluding notable items from the fourth quarter 2021 and adjusting for the final step up in the royalty rate that impacted the fourth quarter 2022.\n<\/p>\n \nConsolidated Adjusted EBITDA margin was down 3.1 percentage points versus the prior year quarter. Excluding notable items from the fourth quarter 2021 result and adjusting for the final step up in the royalty rate from the Company\u2019s Master Franchise Agreement with McDonald\u2019s Corporation, the consolidated Adjusted EBITDA margin was down just 90 basis points.\n<\/p>\n \nGross margin remained healthy despite higher Food & Paper (F&P) costs. Payroll expenses rose partly due to the discontinuation of certain government subsidies from 2021. Royalties were higher due to the final step-up in the company\u2019s royalty rate. These effects were partly offset by operating leverage in the Company\u2019s Occupancy & Other Operating expenses as well as its G&A expenses, which improved 120 basis points as a percentage of revenue compared with the prior year period.\n<\/p>\n Non-operating Results – excluding Venezuela<\/b><\/p>\n \nArcos Dorados\u2019 non-operating results for the fourth quarter included a $5.9 million loss from non-cash foreign exchange and derivative instruments.\n<\/p>\n \nNet interest expense and other financing results was $8.8 million lower year-over-year. The Company recorded an income tax expense of $20.1 million in the fourth quarter, compared to an income tax expense of $23.2 million in the prior-year period.\n<\/p>\n \nFourth quarter net income attributable to the Company totaled $55.7 million, compared to net income of $47.2 million in the prior year period. Earnings per share were $0.26 in the fourth quarter 2022 compared to net income per share of $0.22 in the prior year quarter.\n<\/p>\n Divisional Results<\/b><\/p>\n\n\n| \n Brazil Division<\/p>\n <\/b>Figure 3. Brazil Division: Key Financial Results<\/b><\/p>\n (In millions of U.S. dollars, except as noted)<\/i><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n4Q21
(a)<\/b><\/td>\n | Currency
Translation
(b)
<\/b><\/td>\n | Constant
Currency
Growth
(c)<\/b><\/td>\n | 4Q22
(a+b+c)<\/b><\/td>\n | % As
Reported<\/b><\/td>\n | % Constant
Currency<\/b><\/td>\n<\/tr>\n\n| Total Restaurants (Units)<\/b><\/td>\n | \n 1,051<\/b><\/p>\n<\/td>\n | | \n | \n\n 1,084<\/b><\/p>\n<\/td>\n | | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Total Revenues<\/b><\/td>\n | \n 298.6<\/b><\/p>\n<\/td>\n | \n 23.4<\/b><\/p>\n<\/td>\n | \n 84.3<\/b><\/p>\n<\/td>\n | \n 406.3<\/b><\/p>\n<\/td>\n | \n 36.1%<\/b><\/p>\n<\/td>\n | \n 28.2%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Systemwide Comparable Sales<\/i><\/td>\n | | \n | \n | \n | \n | \n\n 21.9%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA<\/b><\/td>\n | \n 76.1<\/b><\/p>\n<\/td>\n | \n 4.8<\/b><\/p>\n<\/td>\n | \n 0.4<\/b><\/p>\n<\/td>\n | \n 81.2<\/b><\/p>\n<\/td>\n | \n 6.8%<\/b><\/p>\n<\/td>\n | \n 0.5%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA Margin<\/i><\/td>\n | \n 25.5%<\/i><\/p>\n<\/td>\n | | \n | \n\n 20.0%<\/i><\/p>\n<\/td>\n | \n -5.5 p.p.<\/i><\/p>\n<\/td>\n | | <\/tr>\n<\/table>\n\nBrazil\u2019s revenues reached $406.3 million, the division\u2019s highest ever for a single quarter. Systemwide comparable sales rose 21.9% versus the prior year, or 3.6x inflation in the period.\n<\/p>\n \nDigital sales in Brazil also reached new quarterly and full year records of $328.6 million and $1.1 billion, respectively, up 55% and 60% versus the prior year. By the end of 2022, digital sales represented 52% of systemwide sales in the division.\n<\/p>\n \nMarketing campaigns included the launch of eight sandwiches celebrating the FIFA World Cup in October, driving record sales in the month. As the tournament approached, additional marketing campaigns and partnerships with local celebrities and sports personalities helped drive additional sales growth. In addition, Black Friday delivered a historical record in digital sales for a single day, with the McDonald\u2019s App reaching the second position among all downloaded Apps in Brazil. Growth in own digital channels (Mobile Order and Pay and McDelivery) was an impressive 41% versus the prior-year quarter.\n<\/p>\n \nNotably, the McDonald\u2019s Brand ended the year with its highest ever brand preference metrics in the country, reflecting the emotional connection the Company is making with its Brazilian guests.\n<\/p>\n \nAs reported Adjusted EBITDA in the division reached $81.2 million in the quarter, rising 6.8% versus the prior year in US dollars. Ongoing Adjusted EBITDA rose 19.4% in the period, excluding the $3.7 million tax credit from the prior year result and adjusting for the final step-up in the Company\u2019s royalty rate that impacted the fourth quarter 2022. In addition to these factors, margin in the quarter was mostly impacted by higher F&P costs and as well as an increase in Payroll expenses as a percentage of revenue.\n<\/p>\n \n\n| \n North Latin American Division (NOLAD)<\/p>\n <\/b>Figure 4. NOLAD Division: Key Financial Results<\/b><\/p>\n (In millions of U.S. dollars, except as noted)<\/i><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n4Q21
(a)<\/b><\/td>\n | Currency
Translation
(b)
<\/b><\/td>\n | Constant
Currency
Growth
(c)<\/b><\/td>\n | 4Q22
(a+b+c)<\/b><\/td>\n | % As
Reported<\/b><\/td>\n | % Constant
Currency<\/b><\/td>\n<\/tr>\n\n| Total Restaurants (Units)<\/b><\/td>\n | \n 625<\/b><\/p>\n<\/td>\n | | \n | \n\n 638<\/b><\/p>\n<\/td>\n | | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Total Revenues<\/b><\/td>\n | \n 209.2<\/b><\/p>\n<\/td>\n | \n 2.7<\/b><\/p>\n<\/td>\n | \n 48.9<\/b><\/p>\n<\/td>\n | \n 260.8<\/b><\/p>\n<\/td>\n | \n 24.7%<\/b><\/p>\n<\/td>\n | \n 23.4%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Systemwide Comparable Sales<\/i><\/td>\n | | \n | \n | \n | \n | \n\n 19.6%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA<\/b><\/td>\n | \n 30.2<\/b><\/p>\n<\/td>\n | \n (0.1)<\/b><\/p>\n<\/td>\n | \n (2.2)<\/b><\/p>\n<\/td>\n | \n 27.9<\/b><\/p>\n<\/td>\n | \n -7.6%<\/b><\/p>\n<\/td>\n | \n -7.4%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA Margin<\/i><\/td>\n | \n 14.4%<\/i><\/p>\n<\/td>\n | | \n | \n\n 10.7%<\/i><\/p>\n<\/td>\n | \n -3.7 p.p.<\/i><\/p>\n<\/td>\n | | <\/tr>\n<\/table>\n\nAs reported revenues were $260.8 million, up 24.7% in US dollars and 23.4% in constant currency versus the prior year quarter. Systemwide comparable sales rose 19.6% year-over-year, or 3.1x inflation in the period. Mexico, Costa Rica and Puerto Rico contributed strongly to the quarter\u2019s sales growth.\n<\/p>\n \nMarketing activities in NOLAD featured menu innovations across the region, with the launch of FIFA World Cup themed sandwiches in Mexico, Panama and Costa Rica. In Mexico, the #McDonaldsM\u00e9xicoMeEncanta<\/i> brand-building campaign partnered with Sergio \u201cCheco\u201d P\u00e9rez, the popular Mexican Formula 1 driver with special activations during Mexico\u2019s Grand Prix in October. Also notable in the quarter was Costa Rica\u2019s record sales for a quarter where the Company reinforced its strength in the beef segment with the implementation of Best Burger.\n<\/p>\n \nAs reported, Adjusted EBITDA reached $27.9 million in the fourth quarter. Ongoing Adjusted EBITDA rose 23.7% in the period, excluding the $5.5 million benefit from the fair value of the restaurant businesses contributed to an investment with a sub-franchisee in Mexico and adjusting for the final step-up in the Company\u2019s royalty rate that impacted the fourth quarter 2022. Also excluding these two factors, the ongoing Adjusted EBITDA margin was flat in the quarter with higher F&P costs offset by operating leverage in all other expense line items.\n<\/p>\n \n\n| \n South Latin American Division (SLAD)<\/p>\n <\/b>Figure 5. SLAD Division: Key Financial Results<\/b><\/p>\n (In millions of U.S. dollars, except as noted)<\/i><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n4Q21
(a)<\/b><\/td>\n | Currency
Translation –
Excl.
Venezuela
(b)
<\/b><\/td>\n | Constant
Currency
Growth –
Excl.
Venezuela
(c)<\/b><\/td>\n | Venezuela
(d)<\/b><\/td>\n | 4Q22
(a+b+c+d)<\/b><\/td>\n | % As
Reported<\/b><\/td>\n<\/tr>\n\n| Total Restaurants (Units)<\/b><\/td>\n | \n 585<\/b><\/p>\n<\/td>\n | | \n | \n | \n\n 590<\/b><\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Total Revenues<\/b><\/td>\n | \n 272.6<\/b><\/p>\n<\/td>\n | \n (115.4)<\/b><\/p>\n<\/td>\n | \n 191.8<\/b><\/p>\n<\/td>\n | \n 2.7<\/b><\/p>\n<\/td>\n | \n 351.6<\/b><\/p>\n<\/td>\n | \n 29.0%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Systemwide Comparable Sales<\/i><\/td>\n | | \n | \n | \n | \n | \n\n 75.3%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA<\/b><\/td>\n | \n 30.5<\/b><\/p>\n<\/td>\n | \n (13.5)<\/b><\/p>\n<\/td>\n | \n 14.3<\/b><\/p>\n<\/td>\n | \n 0.0<\/b><\/p>\n<\/td>\n | \n 31.3<\/b><\/p>\n<\/td>\n | \n 2.8%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA Margin<\/i><\/td>\n | \n 11.2%<\/i><\/p>\n<\/td>\n | | \n | \n | \n\n 8.9%<\/i><\/p>\n<\/td>\n | \n -2.3 p.p.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\nFigure 6. SLAD Division – Excluding Venezuela: Key Financial Results
<\/b>(In millions of U.S. dollars, except as noted)<\/i><\/td>\n<\/tr>\n\n | \n4Q21
(a)<\/b><\/td>\n | Currency
Translation
(b)
<\/b><\/td>\n | Constant
Currency
Growth
(c)<\/b><\/td>\n | 4Q22
(a+b+c)<\/b><\/td>\n | % As
Reported<\/b><\/td>\n | % Constant
Currency<\/b><\/td>\n<\/tr>\n\n| Total Restaurants (Units)<\/b><\/td>\n | \n 483<\/b><\/p>\n<\/td>\n | | \n | \n\n 492<\/b><\/p>\n<\/td>\n | | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Total Revenues<\/b><\/td>\n | \n 269.4<\/b><\/p>\n<\/td>\n | \n (115.4)<\/b><\/p>\n<\/td>\n | \n 191.8<\/b><\/p>\n<\/td>\n | \n 345.8<\/b><\/p>\n<\/td>\n | \n 28.3%<\/b><\/p>\n<\/td>\n | \n 71.2%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Systemwide Comparable Sales<\/i><\/td>\n | | \n | \n | \n | \n | \n\n 70.7%<\/i><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA<\/b><\/td>\n | \n 31.5<\/b><\/p>\n<\/td>\n | \n (13.5)<\/b><\/p>\n<\/td>\n | \n 14.3<\/b><\/p>\n<\/td>\n | \n 32.3<\/b><\/p>\n<\/td>\n | \n 2.6%<\/b><\/p>\n<\/td>\n | \n 45.4%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Adjusted EBITDA Margin<\/i><\/td>\n | \n 11.7%<\/i><\/p>\n<\/td>\n | | \n | \n\n 9.3%<\/i><\/p>\n<\/td>\n | \n -2.3 p.p.<\/i><\/p>\n<\/td>\n | | <\/tr>\n<\/table>\n\nRevenues in SLAD, excluding Venezuela, increased 28.3% in US dollars, driven by a 70.7% increase in systemwide comparable sales versus the prior year, or 1.6x the division\u2019s blended inflation. All the division\u2019s main markets generated strong topline growth in the quarter.\n<\/p>\n \nMost SLAD division markets reached their highest market share levels while also receiving their best ever scores for brand love and affinity. Digital sales grew an outstanding 50% in the quarter and achieved the highest digital penetration to date. Beef and chicken campaigns reinforced the Brand\u2019s value for money proposition as well as its quality and taste perceptions. This included the launch of the \u201cMcCrispy Chicken\u201d platform in Colombia and Chile and the \u201cSelecciones McDonald\u2019s\u201d World Cup sandwiches in most markets. Argentina also ran a special edition premium hamburger to celebrate the country\u2019s FIFA World Cup championship as official digital sponsors of the country\u2019s national team.\n<\/p>\n \nAdjusted EBITDA reached $32.3 million, compared with $31.5 million in the prior-year quarter. Argentina, Chile and Colombia were the main contributors to the fourth quarter\u2019s result. Adjusted EBITDA grew 11.2%, adjusting for the final step up in the Company\u2019s royalty rate that impacted the quarter. Payroll expenses rose as a percentage of revenue as government programs designed to protect jobs were largely discontinued in the fourth quarter 2021.\n<\/p>\n New Unit Development<\/b><\/p>\n\n\nFigure 7. Total Restaurants (end of period)*<\/b><\/td>\n<\/tr>\n\n | \n\n December
\n
2022<\/b><\/p>\n<\/td>\n | \n September
\n
2022<\/b><\/p>\n<\/td>\n | \n June
\n
2022<\/b><\/p>\n<\/td>\n | \n March
\n
2022<\/b><\/p>\n<\/td>\n | \n December
\n
2021<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Brazil<\/td>\n | \n \n1,084\n<\/p>\n<\/td>\n | \n \n1,077\n<\/p>\n<\/td>\n | \n \n1,070\n<\/p>\n<\/td>\n | \n \n1,061\n<\/p>\n<\/td>\n | \n \n1,051\n<\/p>\n<\/td>\n<\/tr>\n | \n| NOLAD<\/td>\n | \n \n638\n<\/p>\n<\/td>\n | \n \n631\n<\/p>\n<\/td>\n | \n \n628\n<\/p>\n<\/td>\n | \n \n625\n<\/p>\n<\/td>\n | \n \n625\n<\/p>\n<\/td>\n<\/tr>\n | \n| SLAD<\/td>\n | \n \n590\n<\/p>\n<\/td>\n | \n \n589\n<\/p>\n<\/td>\n | \n \n588\n<\/p>\n<\/td>\n | \n \n587\n<\/p>\n<\/td>\n | \n \n585\n<\/p>\n<\/td>\n<\/tr>\n | \n| TOTAL<\/b><\/td>\n | \n 2,312<\/b><\/p>\n<\/td>\n | \n 2,297<\/b><\/p>\n<\/td>\n | \n 2,286<\/b><\/p>\n<\/td>\n | \n 2,273<\/b><\/p>\n<\/td>\n | \n 2,261<\/b><\/p>\n<\/td>\n<\/tr>\n\n* Includes Company-operated and franchised restaurants at period-end<\/i><\/td>\n<\/tr>\n<\/table>\n\n\nFigure 8. Restaurant Footprint as of December 31, 2022<\/b><\/td>\n<\/tr>\n\n | \nStore Type*<\/b><\/td>\n | Total
Restaurants<\/b><\/td>\n | Ownership<\/b><\/td>\n | McCafes<\/b><\/td>\n | Dessert
Centers<\/b><\/td>\n<\/tr>\n\n | \nFS<\/b><\/td>\n | IS<\/b><\/td>\n | MS & FC<\/b><\/td>\n | Company
Operated<\/b><\/td>\n | Franchised<\/b><\/td>\n<\/tr>\n\n| Brazil<\/td>\n | \n \n535\n<\/p>\n<\/td>\n | \n \n92\n<\/p>\n<\/td>\n | \n \n457\n<\/p>\n<\/td>\n | \n 1,084<\/b><\/p>\n<\/td>\n | \n \n656\n<\/p>\n<\/td>\n | \n \n428\n<\/p>\n<\/td>\n | \n 123<\/b><\/p>\n<\/td>\n | \n 1976<\/b><\/p>\n<\/td>\n<\/tr>\n\n| NOLAD<\/td>\n | \n \n391\n<\/p>\n<\/td>\n | \n \n51\n<\/p>\n<\/td>\n | \n \n196\n<\/p>\n<\/td>\n | \n 638<\/b><\/p>\n<\/td>\n | \n \n473\n<\/p>\n<\/td>\n | \n \n165\n<\/p>\n<\/td>\n | \n 12<\/b><\/p>\n<\/td>\n | \n 521<\/b><\/p>\n<\/td>\n<\/tr>\n\n| SLAD<\/td>\n | \n \n238\n<\/p>\n<\/td>\n | \n \n128\n<\/p>\n<\/td>\n | \n \n224\n<\/p>\n<\/td>\n | \n 590<\/b><\/p>\n<\/td>\n | \n \n504\n<\/p>\n<\/td>\n | \n \n86\n<\/p>\n<\/td>\n | \n 165<\/b><\/p>\n<\/td>\n | \n 701<\/b><\/p>\n<\/td>\n<\/tr>\n\n| TOTAL<\/b><\/td>\n | \n 1,164<\/b><\/p>\n<\/td>\n | \n 271<\/b><\/p>\n<\/td>\n | \n 877<\/b><\/p>\n<\/td>\n | \n 2,312<\/b><\/p>\n<\/td>\n | \n 1,633<\/b><\/p>\n<\/td>\n | \n 679<\/b><\/p>\n<\/td>\n | \n 300<\/b><\/p>\n<\/td>\n | \n 3,198<\/b><\/p>\n<\/td>\n<\/tr>\n\n| * FS: Freestanding; IS: In-Store; MS: Mall Store; FC: Food Court.<\/i><\/td>\n<\/tr>\n<\/table>\n \nArcos Dorados opened 21 restaurants during the fourth quarter of 2022, including 10 restaurants in Brazil. For the full year, the Company opened 66 restaurants, including 59 free-standing units and 40 restaurants in Brazil. The Company\u2019s restaurant footprint is now made up of 50.4% free-standing units and more than 62% street-facing restaurants, when including in-store locations. This is Latin America\u2019s largest free-standing restaurant portfolio by a wide margin, which provides a structural competitive advantage in nearly all the Company\u2019s main markets given the versatility of the free-standing restaurant format.\n<\/p>\n \nDuring the year the Company also modernized more than 110 existing restaurants to the Experience of the Future (EOTF) format. As of the end of 2022, there were 1,037 EOTF restaurants making up 45% of Arcos Dorados\u2019 total footprint.\n<\/p>\n Balance Sheet & Cash Flow Highlights<\/b><\/p>\n\n\nFigure 9. Consolidated Financial Ratios
<\/b>(In thousands of U.S. dollars, except ratios)<\/i><\/td>\n<\/tr>\n\n | \nDecember 31,<\/b><\/td>\n | December 31,<\/b><\/td>\n<\/tr>\n\n | \n\n 2022<\/b><\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Cash & cash equivalents (i)<\/td>\n | \n \n304,396\n<\/p>\n<\/td>\n | \n \n278,830\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total Financial Debt (ii)<\/td>\n | \n \n674,401\n<\/p>\n<\/td>\n | \n \n657,896\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net Financial Debt (iii)<\/td>\n | \n \n370,005\n<\/p>\n<\/td>\n | \n \n379,066\n<\/p>\n<\/td>\n<\/tr>\n | \n| Adjusted EBITDA<\/td>\n | \n \n386,564\n<\/p>\n<\/td>\n | \n \n271,758\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total Financial Debt \/ LTM Adjusted EBITDA ratio<\/td>\n | \n \n1.7\n<\/p>\n<\/td>\n | \n \n2.4\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net Financial Debt \/ LTM Adjusted EBITDA ratio<\/td>\n | \n \n1.0\n<\/p>\n<\/td>\n | \n \n1.4\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (i)<\/i><\/p>\n<\/td>\n | | \n\n Cash & cash equivalents includes Short-term investment<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n (ii)<\/i><\/p>\n<\/td>\n | | \n\n Total Financial Debt includes short-term debt, long-term debt, accrued interest payable and derivative instruments (including the asset portion of derivatives amounting to $92.9 million and $120.4 million as a reduction of financial debt as of December 31, 2022 and December 2021, respectively).<\/i><\/p>\n<\/td>\n<\/tr>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |