Arcos Dorados Holdings Inc.
Arcos Dorados Holdings Inc. operates McDonald’s restaurants across Latin America and the Caribbean through an exclusive franchise relationship with McDonald’s. The company owns, operates, and sub-franchises restaurants in 21 countries and territories, with a business centered on quick-service food, beverage, and restaurant operations in the region.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueFood, beverage, and service sales from McDonald’s restaurants operated directly by the company.
Royalties and related income from restaurant rights and sub-franchised locations.
Orders fulfilled through delivery platforms, app-based ordering, and other digital channels.
Ancillary income tied to restaurant operations, including fees and other operating revenues.
Products
Reported · share of revenue- Products95.5 %
- Franchise Rental Income4.5 %
Source: 20-F FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Arcos Dorados serves consumers across Latin America and the Caribbean who buy standardized fast-food meals, beverages, and convenience items from McDonald’s restaurants. Its customer base includes families, young adults, commuters, and value-oriented diners, with demand supported by dine-in, drive-thru, delivery, and digital ordering channels.
Buy meals and snacks from McDonald’s restaurants for convenience, consistency, and price points.
Use the restaurants for predictable menu items and casual dining occasions.
Purchase branded, fast, and value-oriented food in social or on-the-go settings.
Order through digital channels and delivery services for convenience and speed.
Strategy
The company’s strategy is tied to maximizing the McDonald’s brand across its exclusive territory while maintaining an efficient capital structure. It also emphasizes restaurant expansion, operational execution, and channel mix improvements through delivery and digital ordering, which support systemwide sales and network density.
Exclusive rights in 21 countries and territories make local execution the main source of scale and competitive advantage.
Higher systemwide sales depend on traffic, product mix, and restaurant-level execution across channels.
Lower funding costs improve flexibility for restaurant investment and financial resilience.
Geography
2025Arcos Dorados operates in 21 countries and territories across Latin America and the Caribbean, which makes its business highly region-specific and exposed to local consumer spending, labor markets, and currencies. Its principal executive office is in Montevideo, Uruguay, while the operating footprint spans a broad mix of larger markets such as Brazil and Mexico and smaller Caribbean and Andean markets.
Share of the revenue the company reports by geography.
Risks
The business is exposed to consumer demand swings, currency movements, and country-level regulatory differences across Latin America and the Caribbean. Because it operates a large restaurant network and relies on franchise-brand economics, labor costs, food inflation, and financing conditions can materially affect operating performance and cash generation.
- Foreign exchange volatilityImpact: HighLikelihood: High
Results are generated in multiple local currencies but reported in U.S. dollars.
Exposure - Consumer demand volatilityImpact: HighLikelihood: Medium
Quick-service restaurant sales depend on discretionary spending and traffic patterns.
Exposure: Restaurant sales across Latin America and the Caribbean
- Input cost inflationImpact: MediumLikelihood: High
Food, labor, and occupancy costs can rise faster than menu pricing.
Exposure: Restaurant-level margins and pricing power
- Regulatory and labor riskImpact: MediumLikelihood: Medium
Operating in many jurisdictions creates exposure to labor, tax, and licensing rules.
Exposure: 21-country operating footprint
- Capital structure and refinancing riskImpact: MediumLikelihood: Medium
Restaurant groups rely on access to debt markets and disciplined leverage management.
Exposure: Long-term debt and note refinancing
Accounting
Judgemental itemsMost restaurant sites are leased, so lease terms and discount rates affect liabilities and expense recognition.
Impact: Occupancy costs, EBIT, and lease liabilities
Operations span multiple currencies but reporting is in U.S. dollars.
Impact: Revenue, EBITDA, and balance-sheet volatility
Financing actions and long-term notes can create interest, extinguishment, or fair value effects.
Impact: Interest expense and non-operating items
Restaurant assets and right-of-use assets require judgment on recoverability and depreciation.
Impact: Operating income and asset values
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Last updated: 28/09/2026