Arcos Dorados Holdings
Arcos Dorados Holdings Inc. is McDonaldâ€™s largest franchisee in the world in terms of systemwide sales and number of restaurants. As of December 31, 2010, it represented 6.7% of McDonaldâ€™s franchised restaurants globally. As the largest operator of McDonald's restaurants in Latin America and the Caribbean, it has more than 94,000 employees, being one of the region's leading employers of young, first-time job holders. It serves more than 4.3Â million customers daily and is the largest quick service restaurant (QSR) chain in Latin America and the Caribbean.
The company operates its McDonaldâ€™s-branded restaurants as company-operated restaurants and franchised restaurants. Company revenues depend sales made by company-operated restaurants and rental income from franchised restaurants. The rental income depends on the greater of a flat fee or a percentage of sales.
Arcos Dorados operates in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, CuraÃ§ao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad & Tobago, Uruguay and Venezuela. The company dedicated itself as the organizer of the 2014 FIFA World Cup to provide customer service training to more than 15,000 World Cup volunteers.
McDonaldâ€™s has a long history in Latin America and the Caribbean, dating to the opening of its first restaurant in Puerto Rico in 1967. Since then, McDonaldâ€™s expanded its presence across the region, opening its first stores in Costa Rica in 1970, in Brazil in 1979, in Mexico and Venezuela in 1985 and in Argentina in 1986.
Arcos Dorados was formed on August 3, 2007, as a result of the acquisition of McDonaldâ€™s Latin American business by the regionâ€™s operations managers. Prior to the acquisition, Woods Staton, Arcos Doradosâ€™ Chairman, CEO and controlling shareholder, was the joint venture partner of McDonaldâ€™s in Argentina for more than 20 years and also served as President of McDonaldâ€™s South Latin America division from 2004 until the acquisition. Arcos Dorados announced its initial public offering and became a publicly traded company on April 14, 2011 after listing its shares on the New York Stock Exchange.
With nearly $3.8Â billion in sales in 2012, Arcos Dorados represents 5.6 percent of McDonaldâ€™s global sales. In Latin America and the Caribbean, it is the largest fast food chain and is more than three times the size of its closest competitor. Compared to the US, Latin America has fewer McDonaldâ€™s per person. There's one McDonald's for every 22,200 citizens in the United States. In Mexico, Costa Rica, and Panama there's one restaurant for every 254,000 citizens; in Brazil there's one for every 310,700 citizens; and in the rest of South America, there's one for every 317,400 citizens.