Arcos Dorados Holdings Business Summary

Arcos Dorados Holdings Inc. (ARCO) operates as the world’s largest independent McDonald’s franchisee, maintaining exclusive rights to own, operate, and sub-franchise the brand across 20 countries and territories in Latin America and the Caribbean. The company generates revenue through a dual-stream model consisting of direct sales from company-operated restaurants and rental income or royalties from franchised locations, typically structured as a percentage of sales. Its operations are strategically divided into three primary geographic segments: Brazil, the North Latin American Division (NOLAD), and the South Latin American Division (SLAD). As the dominant player in the regional quick-service restaurant (QSR) market with over 2,500 locations, Arcos Dorados competes directly with Alsea SAB de CV, Restaurant Brands International (Burger King, Popeyes), and Yum! Brands (KFC, Pizza Hut), maintaining a competitive advantage through its unmatched scale, digital loyalty integration, and extensive "Experience of the Future" restaurant modernizations. The company was founded in 2007 by Executive Chairman Woods Staton, who led the acquisition of McDonald’s Corporation’s Latin American operations after serving as a long-term joint venture partner in Argentina. The leadership team is currently headed by CEO Luis Raganato, a company veteran who rose from a restaurant crew member in 1991 to Chief Operating Officer before assuming the top executive role in July 2025. He is supported by Carlos Gonzalez as Chief Operating Officer and Mariano Tannenbaum as Senior Vice President and Chief Financial Officer. The board of directors features high-profile members such as Annette Franqui, a former executive at Goldman Sachs and J.P. Morgan, and Cristina Palmaka, President of SAP Latin America. Woods Staton remains the controlling shareholder, anchoring a leadership team characterized by deep institutional knowledge and a focus on digital transformation and sustainable growth.