Arcos Dorados Holdings Inc. operates and franchises McDonald’s restaurants. The company has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela, which it refers to as the Territories. As of December 31, 2013, the company operated or franchised 2,062 McDonald’s-branded restaurants. The company operates in the quick-service restaurant sub-segment of the fast food segment of the Latin American and Caribbean food service industry. It operates McDonald’s-branded restaurants under two different operating formats, company-operated restaurants and franchised restaurants. As of December 31, 2013, of the company’s 2,062 McDonald’s-branded restaurants in the Territories, 1,538 were company-operated restaurants and 524 were franchised restaurants. The company owns the land for 511 of its restaurants (totaling approximately 1.1 million square meters) and the buildings for all but 12 of its restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curaçao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the U.S. Virgin Islands of St. Croix and St. Thomas and Venezuela; NOLAD, consisting of Costa Rica, Mexico and Panama; and SLAD, consisting of Argentina, Chile, Ecuador, Peru and Uruguay. The company is the majority stakeholder in various joint ventures that collectively own 28 restaurants in Argentina, Chile and Colombia. The company has also granted developmental licenses to 12 restaurants. Pursuant to the developmental licenses, the developmental licensees own or lease the land and building on which the restaurants are located and pay a franchise fee to it in addition to the continuing franchise fee due to McDonald’s. The company classifies its restaurants into one of four categories, including freestanding, food court, in-store, and mall stores. As of December 31, 2013, 951 of the company’s restaurants were freestanding, 475 were food courts, 301 were in-stores, and 335 were mall stores. The company’s menus feature three tiers of products: affordable entry-level options, such as its 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 and low-calorie or low-sodium products that are marketed through common platforms rather than as individual items. These platforms can be based on the type of products, such as beef, chicken, salads or desserts, or on the type of customer targeted, such as the children’s menu. In 2013, the company also began offering fresh fruits and vegetables with all of its Happy Meals in all of the Territories, except Venezuela and Puerto Rico (only offering fruits). McCafé Locations and Dessert Centers The company’s brand extension efforts focus on the development of additional McCafé locations and Dessert Centers. McCafé locations are separate areas within restaurants where customers can purchase various customizable beverages, including lattes, cappuccinos, mochas, hot and iced premium coffees and hot chocolate. As of December 31, 2013, there were 348 McCafé locations in the Territories. At Dessert Centers, customers can purchase various dessert items, including the McFlurry and soft-serve ice cream. Seasonality The company’s sales and revenues are generally greater in the second half of the year (year ended December 31, 2013) than in the first half. Although the impact on the company’s results of operations is relatively small, this impact is due to increased consumption of its products during the winter and summer holiday seasons, affecting July and December, respectively. Suppliers The company’s main suppliers are JBS S.A.; McCain Foods Limited; Coca-Cola Company; and Fresh Start Bakeries, Inc. History Arcos Dorados Holdings Inc. was founded in 2007.
arcos dorados holdings inc-a
Roque Saenz Peña 432
Buenos Aires, 1636
Phone: 54 11 4711 2000
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To contact ARCOS DORADOS HOLDINGS INC-A, please visit www.arcosdorados.com. Company data is provided by Capital IQ. Please use this form to report any data issues.