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, 2014, the company operated or franchised 2,121 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. The company operates McDonald’s-branded restaurants under two different operating formats, company-operated restaurants and franchised restaurants. As of December 31, 2014, of the company’s 2,121 McDonald’s-branded restaurants in the Territories, 1,577 (74.3%) were company-operated restaurants and 544 (25.7%) were franchised restaurants. The company generates revenues primarily from two sources: sales by company-operated restaurants and revenues from franchised restaurants that primarily consist of rental income. The company owns the land for 505 of its restaurants (totaling approximately 1.1 million square meters) and the buildings for all but 12 of its restaurants. The company 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. In addition, the company is a majority stakeholder in various joint ventures that collectively own 18 restaurants in Argentina and Chile. The company granted developmental licenses to 12 restaurants. The company classifies its restaurants into one of four categories: freestanding, food court, in-store and mall stores. The company’s brand extension efforts focus on the development of additional McCafe locations and Dessert Centers. The company’s menus feature three tiers of products: affordable entry-level options, such as its Big Pleasures, Small Prices or McMío 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. The company offers a new menu with fewer calories and less sugar and sodium in the majority of its Territories. The company’s brand extension efforts focus on the development of additional McCafe locations and Dessert Centers. McCafe locations are stylish, 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, 2014, there were 343 McCafe locations in the Territories. Suppliers The company’s main suppliers are JBS S.A.; McCain Foods Limited; Coca-Cola Company; Bimbo; and Arytza. Seasonality The company’s sales and revenues are generally greater in the second half of the year 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. History Arcos Dorados Holdings Inc. was founded in 2007. The company was incorporated under the laws of the British Virgin Islands with limited liability in 2010.
arcos dorados holdings inc-a
Roque Saenz Peña 432
Buenos Aires, 1636
Phone: 54 11 4711 2000
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