Arcos Dorados Holdings Inc.

Arcos Dorados Holdings Inc. is the world's largest independent McDonald's franchisee, based on systemwide sales and number of restaurants, representing 4.4% of McDonald's global sales in 2025. The company holds the exclusive right to own, operate, and grant franchises for McDonald's restaurants across 21 countries and territories in Latin America and the Caribbean. These include Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Martin, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. As of December 31, 2025, Arcos Dorados operated or franchised 2,520 McDonald's-branded restaurants, accounting for 5.8% of McDonald's total franchised restaurants worldwide. In 2025 and 2024, the company accrued $273.0 million and $265.4 million, respectively, in royalties to McDonald's. Arcos Dorados operates within the Quick Service Restaurant (QSR) sub-segment of the fast food industry in Latin America and the Caribbean. The company began operations on August 3, 2007. Its McDonald's-branded restaurants operate under two formats: Company-operated restaurants and franchised restaurants. As of December 31, 2025, 1,800 (71.4%) of its 2,520 restaurants were Company-operated, and 720 (28.6%) were franchised. Revenues are primarily generated from sales at Company-operated restaurants and rental income from franchised restaurants, which is typically the greater of a fixed rent or a percentage of sales. As of December 31, 2025, 48.8% of the company's restaurants were located in Brazil, 26.6% in NOLAD, and 24.6% in SLAD.