What was the Adjusted EBITDA for Dollar Rent A Car's International RAC segment in 2023?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| (In millions) | Americas RAC | International RAC | Total | |
|---|---|---|---|---|
| Revenues | $ | 7,722 | $ 1,649 | $ 9,371 |
| Significant segment expenses: | ||||
| Direct vehicle and operating | 4,582 | 880 | 5,462 | |
| Depreciation of revenue earning vehicles and lease charges, net(1) | 1,775 | 264 | 2,039 | |
| Selling, general and administrative | 501 | 227 | 728 | |
| Other segment items(2) | 279 | (24) | 255 | |
| Segment profit (loss): Adjusted EBITDA | $ | 585 | $ 302 | $ 887 |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the Adjusted EBITDA for the International RAC (Rental of vehicles, as well as sales of value-added services, in locations other than the U.S., Canada, Latin America and the Caribbean) segment was $302 million for the year ended December 31, 2023. This figure represents the segment profit or loss before certain adjustments are applied.
Adjusted EBITDA is a key metric used by Dollar Rent A Car's chief executive officer to assess the performance and allocate resources for the company's reportable segments. It provides a view of the operational profitability of the International RAC segment, excluding the impact of corporate overhead, non-vehicle depreciation and amortization, non-vehicle debt interest, vehicle debt-related charges, restructuring costs, unrealized gains or losses on financial instruments, and other items.
For a prospective Dollar Rent A Car franchisee, understanding the Adjusted EBITDA of the International RAC segment can provide insights into the potential profitability of operating a franchise location outside of the Americas. However, it is important to note that this figure represents the overall performance of the segment and may not be indicative of the performance of individual franchise locations. Franchisees should conduct their own due diligence and consider various factors, such as location, market conditions, and operating expenses, when evaluating the potential profitability of a Dollar Rent A Car franchise.