ARCO on NYSE

Arcos Dorados Holdings

Logo: Unknown author Unknown author, Public domain, via Wikimedia Commons4

Public company operating McDonald chains

Arcos Dorados Holdings (English: Golden Arches Holdings) is the master franchise of the fast food restaurant chain McDonald's in 20 countries and territories across Latin America and the Caribbean. As of October 2024, it operates nearly 2,400 restaurants, making it the largest independent McDonald's franchisee in the world and the largest quick-service restaurant (QSR) chain in Latin America and the Caribbean, serving over 4.3 million customers daily.3 From Wikipedia, CC BY-SA 4.0

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Last updated Oct 16, 2026.

Overview

$4.7BRevenue, fiscal 20255
$212.1MNet income, fiscal 20255
Aug 3, 2007Founded1

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  • TickerARCO on NYSE1
  • Industrybeverage industry, food industry1
  • HeadquartersMontevideo1
  • Websitewww.arcosdorados.com
  • Business addressRio Negro 1338, First Floor, Montevideo, X3 113006
  • Filer categoryLarge accelerated filer6

Arcos Dorados Holdings (English: Golden Arches Holdings) is the master franchise of the fast food restaurant chain McDonald's in 20 countries and territories across Latin America and the Caribbean. As of October 2024, it operates nearly 2,400 restaurants, making it the largest independent McDonald's franchisee in the world and the largest quick-service restaurant (QSR) chain in Latin America and the Caribbean, serving over 4.3 million customers daily.3

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

7.8%Operating margin5
4.5%Net margin5
4.7%Revenue growth, 20255
27.5%Return on equity5
1.46×Debt to equity5
$15.0MFree cash flow5

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Products and services

Product brought in 95% of the revenue Arcos Dorados Holdings broke down this way in fiscal 2025.

  1. Product$4.5B595%up 5% from 2024
  2. Franchise, Rental Income$212.4M55%up 5% from 2024
  3. Franchise, Initial Fees$469.0K50%up 23% from 2024
  4. Franchise, Royalty Fees$188.0K50%down 26% from 2024
Products and services by year
Products and services202320242025
Product$4.1B$4.3B$4.5B
Franchise, Rental Income$193.5M$202.8M$212.4M
Franchise, Initial Fees$417.0K$380.0K$469.0K
Franchise, Royalty Fees$268.0K$255.0K$188.0K

Business segments

Brazil brought in 38% of the revenue Arcos Dorados Holdings broke down this way in fiscal 2025.

  1. Brazil$1.8B538%up 0% from 2024
  2. South Latin America Division$1.6B535%up 11% from 2024
  3. North Latin America Division$1.3B527%up 3% from 2024
Business segments by year
Business segments202320242025
Brazil$1.7B$1.8B$1.8B
South Latin America Division$1.5B$1.5B$1.6B
North Latin America Division$1.1B$1.2B$1.3B

Regions

B R brought in 38% of the revenue Arcos Dorados Holdings broke down this way in fiscal 2025.

  1. B R$1.8B538%up 0% from 2024
  2. Other Countries$1.7B537%up 5% from 2024
  3. AR$697.8M515%up 16% from 2024
  4. M X$481.2M510%up 8% from 2024
Regions by year
Regions202320242025
B R$1.7B$1.8B$1.8B
Other Countries$1.6B$1.7B$1.7B
AR$683.2M$600.3M$697.8M
M X$394.5M$447.4M$481.2M

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue2¢$89.5M
  • Other costs91¢$4.2B
  • Interest0¢$13.7M
  • Income tax3¢$128.7M
  • Profit5¢$212.1M

Out of $4.7B in revenue.5

Where each dollar of operating cash went, fiscal 2025

  • Capital spending85¢$281.4M
  • Dividends paid15¢$50.6M

Out of $296.3M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.5

Financial statements

Revenue891011125$4.7B in 2025+52% since 2018
0$2.0B$4.0B$6.0B2018: $3.1B$3.1B20182019: $3.0B$3.0B2019−4%2020: $2.0B$2.0B2020−33%2021: $2.7B$2.7B2021+34%2022: $3.6B$3.6B2022+36%2023: $4.3B$4.3B2023+20%2024: $4.5B$4.5B2024+3%2025: $4.7B$4.7B2025+5%
Operating income891011125$364.4M in 2025+195% since 2018
-$200.0M0$200.0M$400.0M2018: $123.5M$123.5M20182019: $159.9M$159.9M2019+30%2020: -$66.8M-$66.8M20202021: $139.5M$139.5M20212022: $264.4M$264.4M2022+90%2023: $314.0M$314.0M2023+19%2024: $324.5M$324.5M2024+3%2025: $364.4M$364.4M2025+12%
Net income891011125$212.1M in 2025+476% since 2018
-$200.0M-$100.0M0$100.0M$200.0M$300.0M2018: $36.8M$36.8M20182019: $79.9M$79.9M2019+117%2020: -$149.5M-$149.5M20202021: $45.5M$45.5M20212022: $140.3M$140.3M2022+209%2023: $181.3M$181.3M2023+29%2024: $148.8M$148.8M2024−18%2025: $212.1M$212.1M2025+43%

Every line of the income statement in the latest annual report, as filed.5

Period ending2025-12-312024-12-312023-12-31
Total revenues$4.7B$4.5B$4.3B
Food and paper-$1.6B-$1.5B-$1.5B
Payroll and employee benefits-$835.1M-$797.6M-$790.0M
Occupancy and other operating expenses-$1.3B-$1.2B-$1.2B
Royalty fees-$273.0M-$265.4M-$249.3M
Franchised restaurants occupancy expenses-$89.5M-$83.7M-$83.4M
General and administrative expenses-$312.8M-$279.9M-$285.0M
Other operating income, net$103.0M$18.0M$1.9M
Total operating costs and expenses-$4.3B-$4.1B-$4.0B
Operating income$364.4M$324.5M$314.0M
Net interest expense and other financing results-$13.7M-$47.2M-$32.3M
(Loss) Gain from derivative instruments-$3.1M$941.0K-$13.2M
Foreign currency exchange results-$4.9M-$15.1M$10.8M
Other non-operating expenses, net-$1.5M-$3.9M-$1.2M
Income before income taxes$341.3M$259.3M$278.1M
Income tax expense, net-$128.7M-$109.9M-$95.7M
Net income$212.6M$149.4M$182.4M
Less: Net income attributable to non-controlling interests-$468.0K-$620.0K-$1.1M
Net income attributable to Arcos Dorados Holdings Inc.$212.1M$148.8M$181.3M
Basic net income attributable to Arcos Dorados Holdings Inc. per common share (in dollars per share)$1.01$0.71$0.86
Diluted net income attributable to Arcos Dorados Holdings Inc. per common share (in dollars per share)$1.01$0.71$0.86

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The story

McDonald's first restaurant in this region was in Puerto Rico in 1967. Since then, McDonald's expanded its presence across the region, opening its first stores in Costa Rica in 1970, in Panama in 1971, in Brazil in 1979, in Mexico and Venezuela in 1985, and in Argentina in 1986. Arcos Dorados (Spanish for "golden arches") was formed on August 3, 2007, as a result of the acquisition of McDonald's Corporation's Latin American business by the region's operations managers. Prior to the acquisition, Woods Staton, Arcos Dorados' Chairman, CEO, and controlling shareholder, was the joint venture partner of McDonald's in Argentina for more than 20 years and also served as President of McDonald's South Latin America division from 2004 until the acquisition. Arcos Dorados announced its initial public offering and became a publicly traded company on April 14, 2011, after listing its shares on the New York Stock Exchange (NYSE).

From Wikipedia’s article on Arcos Dorados Holdings, shared under CC BY-SA 4.0.7

Products and brands

Business areas

Arcos Dorados' territory includes Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad and Tobago, Uruguay and Venezuela. The company dedicated itself as the organizer of the 2014 FIFA World Cup to provide customer service training to more than 15,000 World Cup volunteers.

Operations

With nearly $3.8 billion in sales in 2012, Arcos Dorados represents 5.6 percent of McDonald's global sales. In Latin America and the Caribbean, it is the largest fast-food chain and is more than three times the size of its closest competitor. Compared to the US, Latin America has fewer McDonald's per person. There's one McDonald's for every 22,200 citizens in the United States. In Mexico, Costa Rica, and Panama there's one restaurant for every 254,000 citizens; in Brazil, there's one for every 310,700 citizens; and in the rest of South America, there's one for every 317,400 citizens.

Company-operated and franchised restaurants

Arcos Dorados operates its McDonald's-branded restaurants under two structures: company-operated restaurants and franchised restaurants. Arcos Dorados owns, manages and operates approximately 75 percent of its restaurants. Restaurants operated and managed by franchisees account roughly for the remaining 25% of affiliated locations. They receive technical and operational support from Arcos Dorados, including training programs, operations manuals, access to its supply and distribution network, and marketing assistance.

McCafé locations and Dessert Centers

Launched in 1999, the McCafé concept is meant to attract new customers, particularly during breakfast and after lunch, in separate areas within restaurants where customers can buy lattes, cappuccinos, mochas, hot and iced premium coffees and hot chocolate. As of 2021, there were 298 McCafé locations in Latin America. "Dessert Centers", operate separately from existing restaurants, offering traditional McDonald's desserts like the McFlurry and soft-serve ice cream. As of 2021, there were 3,265 Dessert Centers in Latin America. The first Dessert Center opened in Costa Rica in 1986.

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Reimaging

Arcos Dorados has been updating its McDonald's restaurants throughout the region. Between 2010 and 2012, more than 260 restaurants were fully renovated with larger gathering areas, warmer colors, contemporary furniture, artwork, large windows and often have outdoor space with tables and umbrellas for outdoor dining.

Menu

Arcos Dorados' menus feature the same core items as McDonald's throughout the world, including hamburgers, fries, salads, and chicken sandwiches, but also include foods unique to the region. A few examples include a flan-like dessert in Peru, dulce de leche desserts in Argentina and Uruguay, and the McMolletes (English muffin with refried beans, cheese, and salsa) in Mexico. A typical menu includes three tiers of options: affordable entry-level options, such as the Big Pleasures, Small Prices, or "Combo del Día" ("Daily Extra Value Meal") offerings; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder; and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches.

Nutrition and well-being

In 2011, Arcos Dorados launched a new Happy Meal, with reduced sodium, calorie and fat totals. All Happy Meal combinations in Latin America contain less than 600 calories – less than one-third of the daily calorie intake recommended for children by the World Health Organization. Also in 2011, sodium in buns, McNuggets, cheese and ketchup were reduced by an average of 10 percent. Arcos Dorados was the first restaurant chain in Latin America to publish all its calorie content in its restaurant boards in 2013. In-store, Arcos Dorados locations advertises its nutritional information in all restaurants on posters near the counter, and on paper mats that line the meal trays. Full nutritional information on every food item is available on its website.

From Wikipedia’s article on Arcos Dorados Holdings, shared under CC BY-SA 4.0.7

Subsidiaries and ownership

Parent company

From Wikidata.1

Timeline

  1. Aug 3, 2007Founded Founded1

Recent filings

  1. Oct 1, 20266-K
  2. Aug 25, 20264
  3. Aug 14, 2026SCHEDULE 13G
  4. Aug 13, 20266-K
  5. Aug 13, 20266-K
  6. May 28, 20264
  7. May 20, 20266-K
  8. May 20, 20266-K
  9. May 15, 2026SCHEDULE 13G
  10. May 12, 20264
  11. May 12, 20264
  12. May 12, 20264
  13. May 12, 20264
  14. May 12, 20264
  15. May 12, 20264

Every filing from the last three years, summarized. The full record is on SEC EDGAR.2