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Arcos Dorados
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Latest analysis
Updated Aug 13, 2026
Arcos Dorados H1 2026: Total revenues of $2.52 billion and net income more than doubling to $81.1 million as adjusted EBITDA rises 22% to $244.8 million across all three segments.
Arcos Dorados delivered a materially stronger H1 2026 relative to H1 2025, with total revenues rising from $2.22 billion to $2.52 billion and net income attributable to the company more than doubling from $36.5 million to $81.1 million. Adjusted EBITDA expanded from $201.4 million to $244.8 million, with Brazil the primary growth engine — segment EBITDA up from $102.5 million to $135.8 million. The company also accelerated debt reduction, retiring the bulk of its 2029 Notes through a cash tender and open market repurchases, and fully redeemed the remaining balance in July 2026, materially improving its balance sheet heading into H2.
Tone: bullishRevenue
$4.7B
ARCO 20-F · FY 2025
Revenue FY2024
$4.5B
EBITDA margin
9.7%
Founded
2007
Profile
ARCO 20-F Item 4.B · Apr 30, 2026Arcos Dorados is the world's largest independent McDonald's franchisee by systemwide sales and restaurant count, holding exclusive rights to operate and sub-franchise McDonald's restaurants across 21 Latin American and Caribbean territories. The company operates 2,520 restaurants under both company-operated and franchised models, generating revenue primarily from direct restaurant sales and rental income from sub-franchisees. Its diversified geographic footprint spans three divisions — Brazil, NOLAD, and SLAD — reducing dependence on any single market.
Read filing description ↓ Collapse description ↑
We are the world's largest independent McDonald's franchisee in terms of systemwide sales and number of restaurants, according to McDonald's, representing 4.4% of McDonald's global sales in 2025. We have the exclusive right to own, operate and grant franchises of McDonald's restaurants in 21 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, St. Martin, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela, which we refer to collectively as the Territories. As of December 31, 2025, we operated or franchised 2,520 McDonald's-branded restaurants, which represented 5.8% of McDonald's total franchised restaurants worldwide. We operate in the QSR sub-segment of the fast food segment of the Latin American and Caribbean food service industry. In Latin America and the Caribbean, the fast food segment has benefited from the region's increasing modernization, as people in more densely populated areas adopt lifestyles that increasingly seek convenience, speed and value. We operate McDonald's-branded restaurants under two different operating formats, Company-operated restaurants and franchised restaurants. As of December 31, 2025, of our 2,520 McDonald's-branded restaurants in the Territories, 1,800 (or 71.4%) were Company-operated restaurants and 720 (or 28.6%) were franchised restaurants. We generate revenues primarily from two sources: sales by Company-operated restaurants and revenues from franchised restaurants. Revenues from franchised restaurants primarily consist of rental income, which is generally based on the greater of a fixed rent or a percentage of sales reported by franchised restaurants. As of December 31, 2025, 48.8% of our restaurants were located in Brazil, 26.6% in NOLAD and 24.6% in SLAD. We believe our diversified market presence reduces our dependence on any one market and helps stabilize the impact of individual countries' economic cycles on our revenues.
Primary products
- Company-operated McDonald's restaurants
- Franchised McDonald's restaurants
- McCafé locations
- Dessert Centers
- McDelivery
- Mobile app / digital ordering
Business segments
End markets
Geographies
“We are the world's largest independent McDonald's franchisee in terms of systemwide sales and number of restaurants, according to McDonald's, representing 4.4% of McDonald's global sales in 2025.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Total revenues increased from $4,470.2 million in 2024 to $4,678.3 million in 2025, driven by growth across all three divisions, with NOLAD and SLAD posting the strongest year-over-year gains.
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