Arcos Dorados Renews McDonald's Franchise for 20 Years

TL;DR

Arcos Dorados just locked in its McDonald's franchise for another 20 years across LatAm/Caribbean!

AI Summary

Arcos Dorados Holdings Inc. announced on January 2, 2025, that it has renewed its Master Franchise Agreement with McDonald's for an additional 20 years. This agreement covers the operation of McDonald's restaurants in 20 countries and territories across Latin America and the Caribbean. The renewal solidifies Arcos Dorados' long-standing partnership and its commitment to the region.

Why It Matters

This long-term renewal provides significant stability and visibility for Arcos Dorados, reassuring investors about its continued operational rights and future growth prospects within its key markets.

Risk Assessment

Risk Level: low — The filing is a routine renewal of an existing, long-term franchise agreement, indicating continuity rather than new risk.

Key Numbers

• 20 Years — Franchise Agreement Renewal Term (Extends the operational rights for Arcos Dorados in Latin America and the Caribbean.)
• 20 Countries — Territories Covered (Geographic scope of the renewed Master Franchise Agreement.)

Key Players & Entities

• Arcos Dorados Holdings Inc. (company) — Registrant and franchisee
• McDonald's (company) — Franchisor
• January 2, 2025 (date) — Date of press release and agreement renewal
• 20 Years (duration) — Term of the renewed franchise agreement
• Juan David Bastidas (person) — Chief Legal Counsel signing the report

FAQ

Filing Documents

• dp223066_6k.htm (6-K) — 23KB
• image_001.jpg (GRAPHIC) — 2KB
• image_002.jpg (GRAPHIC) — 2KB
• image_015.jpg (GRAPHIC) — 2KB
• image_017.jpg (GRAPHIC) — 1KB
• image_018.jpg (GRAPHIC) — 1KB
• image_019.jpg (GRAPHIC) — 1KB
• 0000950103-25-000116.txt ( ) — 34KB

From the Filing

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January, 2025 Commission File Number: 001-35129 Arcos Dorados Holdings Inc. (Exact name of registrant as specified in its charter) Río Negro 1338, First Floor Montevideo, Uruguay, 11100 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F X Form 40-F ARCOS DORADOS HOLDINGS INC. TABLE OF CONTENTS ITEM 1. Press Release dated January 2, 2025 titled “Arcos Dorados and McDonald’s Renew Master Franchise Agreement for 20 Years” SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Arcos Dorados Holdings Inc. By: /s/ Juan David Bastidas Name: Juan David Bastidas Title: Chief Legal Counsel Date: January 3, 2025 Item 1 ARCOS DORADOS AND MCDONALD’S RENEW MASTER FRANCHISE AGREEMENT FOR 20 YEARS Montevideo, Uruguay, January 2, 2025 – Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee announced that, on December 30, 2024, it renewed its Master Franchise Agreement (“MFA”) with McDonald’s (NYSE: MCD). The parties have finalized a new, 20-year MFA, that became effective on January 1, 2025, and replaced the previous MFA. The new MFA also includes a renewal option, at McDonald’s discretion, for a new, 20-year MFA, beginning January 1, 2045. As previously announced, the new MFA includes a royalty fee of gross sales of 6.0% for the first ten years, 6.25% for the subsequent five years and 6.5% for the final five years. “I am very pleased to have reached an agreement to renew our long-standing and successful relationship with McDonald’s. Arcos Dorados is, by far, the best restaurant operator in Latin America and the Caribbean. We are proud McDonald’s franchisees and, guided by a clear purpose, we have generated strong, long-term shareholder value and made a meaningful, positive impact on the communities where we operate,” said Woods Staton, Executive Chairman of Arcos Dorados. “Over the next 20 years, we will work even harder to consolidate our market leadership in all aspects of our business for the benefit of all our stakeholders,” he concluded. Arcos Dorados will provide additional disclosure regarding the new MFA in line with the requirements of the US Securities and Exchange Commission. Investor Relations Contact Dan Schleiniger VP of Investor Relations Arcos Dorados daniel.schleiniger@mcd.com.uy Media Contact David Grinberg VP of Corporate Communications Arcos Dorados david.grinberg@mcd.com.uy Follow us on: About Arcos Dorados Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating the largest quick service restaurant chain in Latin America and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 20 Latin American and Caribbean countries and territories with more than 2,400 restaurants, operated by the Company or by its sub-franchisees, that together employ more than 100 thousand people (as of 09/30/2024). The Company is also committed to the development of the communities in which it operates, to providing young people their first formal job opportunities and to utilize its Recipe for the Future to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: www.arcosdorados.com/ir . Cautionary Statement on Forward-Looking Statements This press release contains forward-looking statements. The forward-looking statements contained herein include statements about the Company’s business prospects, its market leadership and the renewal of its Master Franchise Agreement with McDonald’s. These statements are subject to the general risks inherent in Arcos Dorados’ business. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, Arcos Dorados’ business and operations involve numerous risks and uncertainties, many of which are beyond the control of Arcos Dorados, which could result in Arcos Dorados’ expectations not being realized or otherwise materially affect the financial condition, results of operations and cash flows of Arcos Dorados. Additional informat

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View this 6-K filing on SEC EDGAR