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. 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, 2015, of the company's 2,141 McDonald’s-branded restaurants in the Territories, 1,588 were company-operated restaurants and 553 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 501 of its restaurants (totaling approximately 1.1 million square meters) and the buildings for all but 11 of its restaurants. The company divides its operations into four geographical divisions, including 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 the majority stakeholder in various joint ventures that collectively own 18 restaurants in Argentina and Chile. The company has also granted developmental licenses to 11 restaurants. Restaurant Categories The company classifies its restaurants into four categories, including freestanding, food court, in-store and mall stores. As of December 31, 2015, 1,006 of the company's restaurants were freestanding, 496 were food courts, 297 were in-stores and 342 were mall stores. The company’s brand extension efforts focus on the development of additional McCafé locations and Dessert Centers. McCafe locations are stylish, separate areas within restaurants where customers could purchase various customizable beverages, including lattes, cappuccinos, mochas, hot and iced premium coffees and hot chocolate. As of December 31, 2015, there were 321 McCafé locations in the Territories. Dessert Centers operate separately from existing restaurants, but depend on them for supplies and operational support. At Dessert Centers, customers could purchase various dessert items, including the McFlurry and soft-serve ice cream. As of December 31, 2015, there were 2,618 Dessert Centers in the Territories. Product The company’s menus feature three tiers of products, including entry-level options, such as its Big Pleasures, Small Prices Offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; 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. Suppliers The company's main suppliers are JBS S.A., McCain Foods Limited, The Coca-Cola Company, Bimbo SA and Arytza SA. Seasonality The company’s sales and revenues are generally greater in the second half of the year (year ending December 2015) 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
Dr. Luis Bonavita 1294
11300 WTC Free Zone
Phone: 598 2626 3000
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