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Arcos Dorados Holdings Inc. logo

Arcos Dorados Holdings Inc.

arcosdorados.com

What Do They Do?

Operates McDonald’s-branded restaurants selling meals, drinks and desserts to diners across Latin America and the Caribbean.

How Do They Make Money?

Customers pay for meals and other items at company-operated restaurants when they buy them. Sub-franchisees pay monthly rent and royalties for franchised restaurants, plus an initial fee when opening one.

FY2025 revenue by product or service revenue
SegmentShareRevenue
Sales by Company-operated restaurants
Sold outright

95%
FY2022: 96%
Revenues from franchised restaurants
Mix

4.6%
FY2022: 4.5%

Who Are Their Customers?

Diners buy food and drinks directly at company-operated restaurants and at restaurants run by sub-franchisees.

Do Revenues Turn Into Profits?

Yes. It kept 5 cents of every revenue dollar as net income in FY2025.

Operating income, FY2025
8% of revenue
▲ +12% vs FY2024 ($324.5M, 7%)
Net income, FY2025
5% of revenue
▲ +43% vs FY2024 ($148.8M, 3%)
Free cash flow, FY2025
0% of revenue
▲ Now profitable vs FY2024 (−$60.8M, −1%)

How Are They Changing?

Growing. Revenue grew 76% in 4 years, from $2.7B in FY2021 to $4.7B in FY2025, about 15% a year.

Revenue over time
Sales by Company-operated restaurants Revenues from franchised restaurants
$5B$2.5B$0

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