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Arcos Dorados: McDonald's franchise owner in Latin America with 57.6% upside potential.


What's the idea? A successful Digital, Delivery, Drive-Through strategy allows Arcos Dorados to consistently increase restaurant sales ahead of the competition and above inflation. The company plans to renovate and open 40–45 restaurants by the end of the year, with the 37 locations opened in Q2 2024 already contributing to sales growth. The company increased its market share by 2.9 percentage points at the end of Q2 2024. Arcos Dorados renewed its franchise agreement with McDonald's for the next 20 years. The company is rapidly growing its loyalty programme membership, which has surpassed 11 million in less than a year. The Latin American fast-food restaurant market is expected to grow from $78.56 billion to $151.27 billion between 2024 and 2030, at a compound annual growth rate (CAGR) of 9.8%. The size of the prepared food delivery market in the region is forecast to grow from $13.49 billion to $17.93 billion, at a CAGR of 7.37%.


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