Arcos Dorados is the world's largest independent McDonald's franchisee, holding the exclusive master franchise agreement to own, operate, and sub-franchise McDonald's restaurants across 21 countries and territories in Latin America and the Caribbean. As of year-end 2025, Arcos Dorados operated or franchised 2,520 McDonald's restaurants. The company serves the standard McDonald's menu — burgers, chicken, fries, beverages, and desserts — targeting young adults and families. In Latin America, McDonald's carries an aspirational "destination" positioning that differentiates it from more developed markets. Arcos Dorados operates roughly 71% of its restaurants directly, capturing all restaurant-level sales, while sub-franchisees run the remaining 29%, with Arcos Dorados earning rental income and franchise fees. Under both models, Arcos Dorados pays a 6% royalty on gross sales to McDonald's. The business is organized into three geographic segments: Brazil (~38% of revenue), NOLAD covering North Latin America (~27%), and SLAD covering South Latin America (~35%). Profitability is driven by systemwide sales volume, food and paper cost management, and labor productivity. Digital channels — mobile app, delivery, and self-order kiosks — accounted for 61% of systemwide sales in 2025, supported by a loyalty program with 27 million members. Arcos Dorados also operates 3,279 Dessert Centers, a low-CapEx, high-return standalone dessert kiosk format. Growth is driven by new restaurant openings, loyalty program expansion, and ongoing restaurant modernization.