• Imagine a separate public company owned and operated all McDonald's restaurants in Europe. Arcos Dorados is that company for McDonald's in Latin America and the Caribbean.
• It's like McDonald's (MCD), but Arcos Dorados is an independent, publicly traded company focused exclusively on operating McDonald's restaurants in Latin America and the Caribbean.
• Arcos Dorados is to McDonald's restaurants in Latin America what Coca-Cola FEMSA (KOF) is to Coca-Cola beverages in the same region – a major independent franchisee/bottler for a global brand.

• Quick Service Restaurant (QSR) Operations: Arcos Dorados operates and franchises McDonald's restaurants across Latin America and the Caribbean, providing a convenient dining experience.
• Food and Beverage Sales: The company offers a wide range of McDonald's menu items, including hamburgers, chicken products, french fries, desserts, and various beverages, to its customers.

Arcos Dorados (symbol: ARCO)

Arcos Dorados primarily sells to individuals.

The company serves the following categories of customers:

1. Families with Children

This category includes parents and guardians bringing children to their restaurants. They are often attracted by child-friendly menu options like Happy Meals, play areas (where available), and the overall convenience and family-oriented atmosphere that McDonald's provides.

2. Young Adults and Teenagers

This group comprises students, young professionals, and teenagers seeking quick, affordable, and convenient meal options. They often visit for casual dining, social gatherings, or on-the-go meals, valuing the speed of service and value proposition.

3. Commuters and Office Workers

Individuals in this category are typically seeking a fast and convenient breakfast, lunch, or dinner during their commute or work breaks. They prioritize speed, accessibility, and consistency, making McDonald's a popular choice for a quick meal during a busy day.

• The Coca-Cola Company (KO)

Luis Raganato, Chief Executive Officer

Luis Raganato assumed the role of Chief Executive Officer on July 1, 2025. He began his career with Arcos Dorados in 1991 as a trainee in Argentina. Over the years, he has held various operational management roles, including Divisional President for the Caribbean and General Director in Peru. Prior to his appointment as CEO, he served as Chief Operating Officer from July 2019 to June 2025. Mr. Raganato played a significant role in guiding the company through the 2020 global pandemic and advancing its digital transformation. He holds a Bachelor's degree in Business Administration, a Master's degree in Marketing and Business Development, and an MBA.

Mariano Tannenbaum, Senior Vice President & Chief Financial Officer

Mariano Tannenbaum has served as Senior Vice President and Chief Financial Officer of Arcos Dorados since February 1, 2017. He joined the company in 2008 and has held several positions at the corporate level, including Senior Director of Corporate Finance. Mr. Tannenbaum has substantial experience as a financial executive.

Woods Staton, Executive Chairman

Woods Staton is the founder and controlling shareholder of Arcos Dorados, as well as the Executive Chairman of the Company's Board of Directors. He served as the company's first CEO from its founding in 2007 until October 2015. Mr. Staton began his career in the McDonald's system in the mid-1980s as Country Manager for Argentina, later becoming McDonald's Joint Venture partner for Argentina and opening the country's first McDonald's restaurant in 1986. He was President of McDonald's South Latin America Division from 2004 until he founded Arcos Dorados in 2007 by acquiring the Master Franchise rights, along with three private equity partners, for the territories across Latin America and the Caribbean. He is also a co-founder of Endeavor Argentina and Ashoka Argentina, organizations promoting entrepreneurship and social innovation.

Carlos Gonzalez, Chief Operating Officer

Carlos Gonzalez was appointed Chief Operating Officer effective July 1, 2025. Prior to this role, he served as Divisional President for SLAD (South Latin American Division) and, before that, Managing Director for Chile. Mr. Gonzalez joined McDonald's Chile in 2000, following a professional career in the financial and automotive sectors. He has held various operational and leadership roles within the company. He holds a degree in Public Administration and a Master's in Business Management.

Rogério Barreira, Divisional President for Brazil

Rogério Barreira serves as the Divisional President for Brazil.

The emergence and rapid expansion of delivery-only kitchens (often referred to as "dark kitchens" or "cloud kitchens") and virtual restaurant brands pose a clear emerging threat. This business model operates with significantly lower capital expenditure and operational overheads compared to traditional brick-and-mortar fast-food restaurants. By focusing solely on delivery and utilizing optimized, often shared, kitchen spaces, these entities can potentially offer competitive pricing and efficiency, directly challenging Arcos Dorados' growing delivery segment. While Arcos Dorados partners with delivery aggregators, the proliferation of these asset-light competitors, which can quickly launch and scale new virtual brands, could lead to increased price competition, margin pressure, and erosion of market share in the digital and delivery space. This parallels the disruption seen in other industries where a more agile, cost-effective model challenged established players.

Arcos Dorados (ARCO) operates as the largest independent McDonald's franchisee globally, with its main products and services encompassing the full range of McDonald's food and beverage offerings within its Quick Service Restaurant (QSR) operations across Latin America and the Caribbean.

The addressable market for Arcos Dorados' main products and services is the Quick Service Restaurant (QSR) market in Latin America and the Caribbean. This market was valued at approximately USD 86.20 billion in 2024. Projections indicate continued growth, with the market expected to reach USD 94.61 billion in 2025 and an estimated USD 182.80 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 9.87% during the forecast period of 2025-2032.

• Digital Transformation and "Four D's" Strategy: The company's focus on Digital, Delivery, Drive-thru, and Development (the "Four D's") is a significant revenue driver. Digital channel sales have shown strong growth, contributing over 60% of total systemwide sales in Q2 2025. This includes sales from mobile apps, delivery, and self-order kiosks, which enhance guest experience and operational efficiency.
• Experience of the Future (EOTF) Restaurant Modernization and Expansion: Arcos Dorados is investing heavily in modernizing its restaurant base through its "Experience of the Future" (EOTF) format. The company opened 20 EOTF restaurants in Q2 2025 and plans to open 90-100 new EOTF restaurants in 2025, aiming for at least 90% EOTF penetration by 2027. This modernization improves the customer experience and supports sales growth.
• Expansion and Rollout of Loyalty Programs: The loyalty program is a crucial driver, with 21.5 million registered members across six markets by the end of Q2 2025. The program has been expanded to new markets like Argentina and Colombia and is expected to be active across all markets by late 2025 or early 2026. This initiative aims to increase guest frequency and average check sizes.
• Market Share Gains and Focus on Value Offerings: Despite challenging consumer environments in some regions, Arcos Dorados has continued to gain market share. The company is strategically focusing on affordability platforms and value-driven menus in various markets, which helps attract and retain customers and supports sales growth.
• Recovery and Growth in Key Latin American Markets: While some markets present challenges, an improving consumer environment in Brazil and a strong recovery in Argentina are expected to contribute positively to revenue growth in the upcoming quarters. The broader Latin American fast-food restaurant market is also projected to experience significant growth, with a compound annual growth rate (CAGR) of 9.8% between 2024 and 2030.

Share Repurchases

There is no significant information available regarding specific dollar amounts of share repurchases made or authorized for Arcos Dorados within the last 3-5 years. While a "6-Month Share Buyback Ratio" is mentioned for ARCO, detailed figures are not provided.

Share Issuance

Arcos Dorados' weighted average shares outstanding in the fourth quarter of 2024 amounted to 210,663,057, a slight increase from 210,654,969 in the prior year's quarter, indicating a minor issuance.

Inbound Investments

No large inbound investments by third-parties into Arcos Dorados have been identified within the last 3-5 years.

Outbound Investments

• Arcos Dorados acquired the exclusive franchise rights for Saint Martin, which will be managed under the same terms as their existing master franchise agreement with McDonald's.

Capital Expenditures

• Arcos Dorados' capital expenditures totaled $327.6 million in 2024, invested in 85 new restaurant openings, modernizations, maintenance, and other capital investments.
• For 2025, the company projects capital expenditures between $300 million and $350 million, with plans to open 90 to 100 new restaurants.
• The primary focus of capital expenditures includes opening new "Experience of the Future" (EOTF) restaurants, modernizing existing ones, and investing in its digital platform, with EOTF penetration reaching 67% of the total footprint in 2024.