A. History and Development of the Company Overview We were incorporated as Arcos Dorados Holdings Inc. on December 9, 2010 under the laws of the British Virgin Islands as a direct, wholly owned subsidiary of Arcos Dorados Limited, the prior holding company for the Arcos Dorados business. On December 13, 2010, Arcos Dorados Limited effected a downstream merger into and with us, with us as the surviving entity. Following the merger, we replaced Arcos Dorados Limited in the corporate structure and replicated its governance structure. We are a BVI business company limited by shares incorporated in the British Virgin Islands and our affairs are governed by the provisions of our memorandum and articles of association, as amended and restated from time to time, and by the provisions of applicable British Virgin Islands law, including the BVI Business Companies Act (As Revised) or the “BVI Act.” Our company number in the British Virgin Islands is 1619553. As provided in sub-regulation 4.1 of our memorandum of association, subject to British Virgin Islands law, we have full capacity to carry on or undertake any business or activity, do any act or enter into any transaction and, for such purposes, full rights, powers and privileges. Our principal executive offices are located at Río Negro 1338, First Floor, Montevideo, Uruguay (CP 11100). Our telephone number at this address is +598 2626-3000. Our registered office in the British Virgin Islands is Maples Corporate Services (BVI) Limited, Kingston Chambers, P.O. Box 173, Road Town, Tortola, British Virgin Islands. The SEC maintains an internet website that contains reports, proxy, information statements and other information about issuers, like us, that file electronically with the SEC. The address of that website is www.sec.gov. Our website address is www.arcosdorados.com. The information contained on, or that can be accessed through, our website is not part of, and is not incorporated into, this annual report. Important Events The Acquisition McDonald’s Corporation has a longstanding history in Latin America and the Caribbean, dating to the opening of its first restaurant in Puerto Rico in 1967. Since then, McDonald’s expanded its presence across the region as consumer markets and opportunities arose, opening its first stores in Brazil in 1979, in Mexico and Venezuela in 1985 and in Argentina in 1986. 32 Table of Contents We commenced operations on August 3, 2007, as a result of the Acquisition of McDonald’s LatAm business. Woods Staton, our Executive Chairman and controlling shareholder, was the joint venture partner of McDonald’s Corporation in Argentina for over 20 years prior to the Acquisition and also served as President of McDonald’s South Latin American division from 2004 until the Acquisition. We hold our McDonald’s franchise rights pursuant to the MFA (as defined below) for all of the Territories except Brazil, as amended and restated, entered into by us, Arcos Dorados B.V. (the “Master Franchisee”), certain subsidiaries of the Master Franchisee, Arcos Dorados Group B.V., Los Laureles, Ltd. and McDonald’s. Our subsidiary Arcos Dourados Comercio de Alimentos S.A., the “Brazilian Master Franchisee,” and McDonald’s entered into the separate, but substantially identical, Brazilian MFA, as amended and restated. See “Item 10. Additional Information―C. Material Contracts―The MFAs.” The Axionlog Split-off Until March 2011, we managed the distribution of most of our food and paper supplies in Argentina, Chile, Mexico and Venezuela, which operations and related assets we refer to as Axionlog (formerly known as Axis). In March 2011, we effected a split-off of Axionlog to our existing shareholders. For additional information about the split-off of Axionlog, see “Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions—The Axionlog Split-off.” Capital Expenditures and Divestitures Under the MFAs, we have agreed with McDonald’s on a restaurant opening plan and a reinvestment plan to reimage a certain percentage of our eligible restaurants on an annual basis. The restaurant opening plan specifies the number and type of new restaurants to be opened in the Territories during the applicable period, while the reinvestment plan specifies the number of restaurants to be remodeled or upgraded in the Territories during the applicable period. Prior to the expiration of the then-applicable period we must agree with McDonald’s on a subsequent reinvestment plan. In the event that we are unable to reach an agreement on a subsequent reinvestment plan, the MFAs provide for an automatic increase of 20% in the required amount of reinvestments as compared to the then-existing reinvestment plan. We may also propose, subject to McDonald’s prior written consent, amendments to any restaurant opening plan and/or reinvestment plan to adapt to changes in economic or political conditions. Under the terms of the MFAs we have agreed to with McDonald’s on a restaurants opening plan. Between these restaurant openings and the reimaging of existing restaurants, we expect to invest between $275 million to $325 million on capital expenditures in 2026. As a result of our previous restaurant opening plan and reinvestment plan, property and equipment expenditures were $281.4 million, $327.6 million and $360.1 million in 2025, 2024 and 2023 respectively. In 2025, we opened 102 restaurants, reimaged 144 existing restaurants, and opened 139 Dessert Centers. In 2024, we opened 85 restaurants, reimaged 160 existing restaurants, and opened 164 Dessert Centers. In 2023, we opened 81 restaurants, reimaged 241 existing restaurants, and opened 117 Dessert Centers. 33 Table of Contents B. Business Overview Overview We are the world’s largest independent McDonald’s franchisee in terms of systemwide sales and number of restaurants, according to McDonald’s, representing 4.4% of McDonald’s global sales in 2025. We have the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 21 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Martin, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela, which we refer to collectively as the Territories. As of December 31, 2025, we operated or franchised 2,520 McDonald’s-branded restaurants, which represented 5.8% of McDonald’s total franchised restaurants worldwide. In 2025 and 2024, we accrued $273.0 million and $265.4 million, respectively, in royalties to McDonald’s (not including royalties accrued on behalf of our sub‑franchisees). We operate in the QSR sub-segment of the fast food segment of the Latin American and Caribbean food service industry. In Latin America and the Caribbean, the fast food segment has benefited from the region’s increasing modernization, as people in more densely populated areas adopt lifestyles that increasingly seek convenience, speed and value. We commenced operations on August 3, 2007 as a result of the Acquisition. We operate McDonald’s-branded restaurants under two different operating formats, Company-operated restaurants and franchised restaurants. As of December 31, 2025, of our 2,520 McDonald’s-branded restaurants in the Territories, 1,800 (or 71.4%) were Company-operated restaurants and 720 (or 28.6%) were franchised restaurants. We generate revenues primarily from two sources: sales by Company-operated restaurants and revenues from franchised restaurants. Revenues from franchised restaurants primarily consist of rental income, which is generally based on the greater of a fixed rent or a percentage of sales reported by franchised restaurants. As of December 31, 2025, 48.8% of our restaurants were located in Brazil, 26.6% in NOLAD and 24.6% in SLAD. We believe our diversified market presence reduces our dependence on any one market and helps stabilize the impact of individual countries’ economic cycles on our revenues. We focus on our customers by managing operations at the local level, including marketing campaigns and special offers, menu management and monitoring customer satisfaction, while leveraging our size by conducting administrative and strategic functions at the divisional or corporate level, as appropriate. The following table presents a breakdown of total revenues by division: For the Years Ended December 31, 2025 2024 2023 (in thousands of U.S. dollars) Total Revenues Brazil $ 1,770,301 $ 1,768,311 $ 1,701,547 NOLAD 1,266,129 1,225,751 1,132,912 SLAD 1,641,829 1,476,100 1,497,419 Total 4,678,259 4,470,162 4,331,878 Our Operations Company-Operated and Franchised Restaurants We operate our McDonald’s-branded restaurants under two basic structures: (i) Company-operated restaurants operated by us and (ii) franchised restaurants operated by sub‑franchisees. Under both operating alternatives, the real estate location may either be owned or leased by us. We own, fully manage and operate Company-operated restaurants and retain any operating profits generated by such restaurants, after paying operating expenses and the franchise and other fees owed to McDonald’s under the MFAs. In Company-operated restaurants, we assume the capital expenditures for the building and equipment of the restaurant and, if we own the real estate location, for the land as well. 34 Table of Contents In contrast to Company-operated restaurants, franchised restaurants are operated and managed by the sub-franchisee with technical and operational support from us as master franchisee, including training programs, operations manuals, access to our supply and distribution network, and marketing assistance. Under our conventional franchise arrangements, sub‑franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and decor of their restaurants, and by reinvesting in the business over time. We are required by the MFAs to own the real estate or to secure long-term leases for franchised restaurant sites. We subsequently lease or sublease the property to sub‑franchisees. This arrangement allows for long-term occupancy of the property and assists in the alignment of our sub‑franchisees’ interests with our own. In exchange for the lease and services, sub‑franchisees pay a monthly rent to us, generally based on the greater of a fixed rent or a certain percentage of gross sales. In addition to this monthly rent, our sub-franchisees pay a monthly royalty, which we in turn pay to McDonald’s pursuant to the MFAs. However, if a sub-franchisee fails to pay its monthly royalties, we remain liable for payment in full of these royalties to McDonald’s. Pursuant to the MFAs, sub‑franchisees pay an initial franchise fee in connection with the opening of a new franchised restaurant and a transfer fee upon transfer of a franchised restaurant, both of which are subsequently shared between McDonald’s and us. See “Item 10. Additional Information—C. Material Contracts—The MFAs—Initial Franchise Fees.” The chart below illustrates the economics for Company-operated restaurants and franchised restaurants in the case of owned and leased real estate: Source: Arcos Dorados In addition, we are party to joint ventures that own restaurants in Argentina, Chile and Mexico. For more information, see “Presentation of Financial and Other Information—Operating Data.” 35 Table of Contents Restaurant Categories We classify our restaurants into four categories: (i) freestanding, (ii) food court, (iii) in-store and (iv) mall stores. Freestanding restaurants are the largest type of restaurant, have ample indoor seating and include a drive-thru area and parking lot. Food court restaurants are located in malls and consist primarily of a front counter and kitchen and do not have their own seating area. In-store restaurants are part of a larger building, but they do not have a drive-thru area or a parking lot. Mall stores are located in malls like food court restaurants, but have their own seating areas. As of December 31, 2025, 1,384 (or 54.9%) of our restaurants (including non-traditional satellite stores) were freestanding, 586 (or 23.3%) were food courts, 262 (or 10.4%) were in-stores and 288 (or 11.4%) were mall stores. These percentages vary by country, and may shift as opportunities in malls and more densely populated areas become available in some of the Territories. Below are examples of each of our restaurant categories: Source: Arcos Dorados Returns on investment in each type of restaurant vary significantly due to the different capital expenditures required and their different sales potential; mall stores generally provide the highest return on investment while freestanding restaurants generally provide the lowest. Moreover, returns vary significantly on a country-by-country basis. Reimaging An important component of our development plan is the reimaging of existing restaurants. During the twelve month period ended December 31, 2025, we completed the reimaging of 144 restaurants. We have committed to maintain an image for our restaurants that offers a contemporary dining environment. Over the last few years, we have invested substantially in the reimaging of our restaurants, and, pursuant to the MFAs, we have committed to a significant reimaging plan. See “Item 10. Additional Information—C. Material Contracts.” 36 Table of Contents Objectives of the reimaging include elevating the customer’s perception of McDonald’s and creating a more sophisticated and highly aspirational environment. We have developed systemwide guidelines for the interior and exterior design of reimaged restaurants. When carrying out a reimaging project, we try to minimize the impact on the operations and sales of the restaurants, for instance, when possible, by keeping the restaurants open and operating during the renovations and working in specific areas of the location at particular times. Additionally, we participate in the restaurant operations improvement process designed by McDonald’s, under which Company-operated and franchised restaurants are visited at least ten times in any 12-month cycle to identify system opportunities to continuously improve our operations and guest experience. Visits are conducted by our operation consultants, who assess restaurants based on food quality, food safety, service and cleanliness, among others. Below are images of the exterior of a few of our restaurants that have benefited from reimaging: Source: Arcos Dorados 37 Table of Contents McCafé Locations and Dessert Centers Our brand extension efforts focus on the development of additional McCafé locations and Dessert Centers. McCafé locations are stylish areas within restaurants where customers can purchase a variety of customizable beverages, including lattes, cappuccinos, mochas, hot and iced premium coffees, and hot chocolate. McCafé locations create a different customer experience, optimize the use of our restaurants at all hours of operation, and generally provide a higher profit margin than our regular restaurant operations. We believe the primary benefit of McCafé locations is that they attract new customers by increasing the variety of our product offerings and improving our image. McCafé locations have been a key factor in adding value to our customers’ experience. As of December 31, 2025, there were 467 McCafé locations in the Territories, of which 15.4% were operated by sub‑franchisees. Brazil and Argentina, with 203 and 100 locations each, have the greatest number of McCafé locations. The first McCafé in Latin America was opened in Argentina in 1999. Pursuant to the MFAs, we have the right to add McCafé locations to the premises of our restaurants. Below are images of the interior of two of our McCafé locations: Dessert Center - Ice Cube Source: Arcos Dorados 38 Table of Contents Dessert Centers operate both as part of our existing restaurant locations and separately, as standalone locations. For those Dessert Center locations that operate separately from our restaurant locations, they depend on our restaurants for supplies and operational support. For example, a mall store restaurant can provide support for several Dessert Centers located in different locations throughout the same mall. Our Dessert Centers are conveniently located to attract customers, thereby serving as important transaction generators and providing an effective method of extending our brand presence to non-traditional areas. At Dessert Centers, customers can purchase a variety of dessert items, including the McFlurry and soft-serve ice cream. Dessert Centers generally require low capital expenditures and provide returns on investment and operating margins that are significantly higher than our regular restaurant operations. As such, we believe they are an important driver in increasing our market penetration. As of December 31, 2025, there were 3,279 Dessert Centers in the Territories. Dessert Centers are highly successful in Brazil, where we have 2,028 locations. The first Dessert Center was created in Brazil in 1979. The following maps set forth our McCafé locations and Dessert Centers in each of the Territories as of December 31, 2025: Network of McCafé Locations Network of Dessert Centers 467 total McCafé locations 3,279 total Dessert Centers Source: Arcos Dorados 39 Table of Contents The McDonald’s Brand Kantar BrandZ, a brand consulting firm, ranked McDonald’s eighth among the top twenty global brands in 2025. In addition, we believe that in Latin America and the Caribbean, the McDonald’s brand benefits from an aspirational cachet as a “destination” restaurant with a reputation for safe, fresh, affordable and good-tasting food in an attractive setting. McDonald’s strong brand equity stems from the dedicated execution of its brand promise and its ability to associate with the local community where it operates. McDonald’s sets the standard in the restaurant industry worldwide for brand stewardship and marketing leadership. Product Offerings A crucial part of delivering the brand to guests depends on our product offerings, or more specifically, our menu strategy and management. The key objective of our menu strategy is the development and offering of quality food choices that attract customers to our restaurants on a regular basis. The elements we utilize to achieve this goal include offering McDonald’s core menu, our product innovation initiatives and our focus on food safety. Our menus feature three tiers of products: (i) affordable entry-level options, such as our Economequi in Brazil, McTrio 3x3 and Elige tu fav in Mexico, McCombo del Día in Colombia, McXMenos in Chile and McMenu in Panama, (ii) core menu options made with beef and chicken, such as the Big Mac, Quarter Pounder, McNuggets, McChicken, McCrispy Chicken and Happy Meal, and (iii) premium options, such as the Signature Collection in Colombia, Chile and Uruguay and the Grands Platform in Argentina, Mexico and Peru, and salads for guests seeking an alternative to our sandwiches and other menu items. These platforms can be based on the type of products, such as beef, chicken, salads or desserts, or on the type of customer targeted, such as the value platforms or Happy Meal offerings. We have offered a menu with reduced calories, sugar and sodium in the majority of our Territories since 2011. Since 2013, we have offered dairy products, fruits or vegetables with our Happy Meals in all of the Territories except Venezuela. In November 2019, we joined McDonald’s Corporation in its mission to serve foods that are a win-win for families, providing delicious and nutritious food that appeal to both kids and parents. In the markets in which we operate, except for Venezuela, we are offering a Happy Meal menu that complies with the following criteria: less than 600 calories, less than 30% of calories from total fat, less than 10% of calories from saturated fat, less than 650 mg sodium, less than 10% of calories from added sugar, no artificial flavors and no added colors from artificial sources and balanced fruit and vegetable content. Arcos Dorados’ new nutritional policy was publicly endorsed by major health and nutrition bodies of various countries, such as Inter-American Society of Cardiology, the Brazilian Association of Nutrition (ABRAN), the Argentine Cardiology Foundation, the Peruvian Nutrition Society (SOPENUT), and the Uruguayan Association of Dietitians and Nutritionists. Our core menu is the most important element of our menu strategy as it includes most of our product offerings and well‑recognized food choices that have global customer acceptance. Products from our core menu are what customers repeatedly order at McDonald’s-branded restaurants worldwide. We expanded our core products with new options such as the Spicy McNuggets, Big Mac Bacon and Quarter Pounder Western BBQ in many countries, which are being offered for a limited time only. In line with our commitment to the core menu, we are expanding the Best Burger program for beef products into new markets. The program has now been fully rolled out in 15 markets, delivering positive results in sales, quality, and taste while maximizing the impact of our core menu offerings. Product Development We closely follow consumer trends in all the markets in which we operate to identify opportunities to keep evolving our products. In recent years, for instance, we have identified consumer preference for more natural food, and, as a result, we have been working with our supply chain teams to remove artificial flavors and colors from various core ingredients, including the Big Mac sauce, cheddar cheese, ketchup, mustard, and vanilla ice cream, among others. In turn, these changes have allowed us to transform our core products in response to consumer trends, including the Big Mac, Quarter Pounder with Cheese, Chicken McNuggets, Happy Meal products, hamburgers and cheeseburgers. While we fully aim to evolve our products along with consumer trends and provide new and better options on our menu, we also recognize the importance of preserving the very characteristic of McDonald’s delicious flavors and food safety standards. We work closely with McDonald’s to develop new product offerings and McDonald’s considers our recommendations regarding regional tastes and preferences, working with us to accommodate such tastes and preferences. We continue to benefit from McDonald’s product development efforts following the Acquisition and have access to a library of products developed globally for the McDonald’s system. For example, in 2021, we took the McCrispy Chicken sandwich platform from the U.S. and successfully launched it in Puerto Rico and Mexico. In 2022, we introduced the McCrispy Chicken 40 Table of Contents sandwich platform to additional markets: Panama, Costa Rica, Ecuador, Colombia, Chile, Trinidad, Brazil, Argentina and Uruguay. This McCrispy Chicken platform consists of three to four different chicken sandwiches made with a special bread and 100% chicken breast, among the chicken sandwich options is a “hero” sandwich, the McCrispy Deluxe, which is a large‑mainstream sandwich that can flex to the top tier by adding toppings and sauces. In 2025, we successfully launched a range of limited-time offers for McCrispy Chicken, including Bacon Ranch, Cajun, and Legend, across key markets. These initiatives drove strong consumer engagement and contributed to short-term sales growth. We also launched several limited-time line extensions of our most iconic products, including the Chicken Big Mac in 2023 and 2024 in Mexico, Costa Rica, and Panama; the Quarter Pounder BBQ Bacon in 2023 and 2024 in Chile, Costa Rica, Panama, Puerto Rico, Uruguay, and Ecuador; and the Quarter Pounder Cheesy Jalapeño in 2024 in Mexico and Ecuador. Additionally, we introduced other innovations, such as the McRib in 2023 in Costa Rica and Ecuador and the McFish in 2024 in Brazil, Costa Rica, Panama, Puerto Rico, Aruba, and Curaçao. In 2025, we successfully launched key Big Mac core extensions across our top markets, including the Double Big Mac and Big Mac Bacon, strengthening our flagship platform and reinforcing the distinctiveness of our core product portfolio. We also launched a core extension campaign featuring the QPC to celebrate our iconic products, aligned with our sponsorship of Formula 1, further amplifying brand visibility and reinforcing our connection with key consumer segments. In key countries, our understanding of the local market has enabled us to successfully introduce new items to appeal to local tastes and to provide our guests with additional menu options. Our chicken-based offerings include bone-in chicken in markets such as Peru, Panama and Costa Rica. We carefully monitor the sales of our menu items and are able to quickly modify them if necessary. In addition, we continue to benefit from the Hamburger Universities in the United States and Brazil and the experimental kitchen located in Brazil that aims to develop locally relevant products for the region. The Hamburger Universities and the food studio models have been McDonald’s main global source of people and product development. The Hamburger Universities provide restaurant managers, mid-managers and owner/operators with training on best practices in different aspects of the business, like restaurant and people management, sales and accounting, while emphasizing consistent restaurant operations procedures, service, quality and cleanliness. Product and Pricing Strategy Value perceptions change significantly between markets and even between areas within a single market. In order to adjust pricing to meet customers’ expectations in each market, we have developed local expertise aimed at understanding the dynamics of the local marketplace and the characteristics of its customers using data analytics and digital tools. We collaborate closely with McDonald´s Global Pricing team to implement a structured pricing methodology across our markets. This approach provides a comprehensive framework to refine pricing decisions based on customer insights. The program has been introduced in multiple regions, where ongoing research helps identify optimal value propositions and pricing strategies. Since 2023, Brazil has taken the lead in driving this initiative, leveraging advanced tools to generate data-driven price recommendations and enhance overall business performance. Building on the positive results observed in Brazil, we are rolling out these tools in additional markets. Implementation began in Colombia in 2025, and we plan to expand into new markets, including Chile and Mexico, in 2026. Across most markets, we are also developing tailored methodologies to optimize pricing architecture and ensure alignment with customer willingness to pay. We also examine trends in the pricing of raw materials, packaging, product-related operating costs as well as individual items sales volumes to fully understand profitability by item. In addition, we use international consultants with particular experience in this area to understand marketplace dynamics and consumer characteristics. These insights feed into the local markets’ menu, promotional and pricing strategy as well as the marketing plan that is disseminated to both Company-operated and franchised restaurants. Restaurants may then adjust pricing and/or item offerings as they choose in an attempt to optimize sales, profitability and local preferences. This cycle is part of an overall revenue management philosophy and is part of our business management practices utilized throughout the region. Advertisement & Promotion We believe that sales in the QSR sub-segment can be significantly affected by the frequency and quality of our advertising and promotional programs. In particular, we benefit from the strength of McDonald’s global resources, including its global alliances with some of the largest multinational conglomerates and sponsorship of sporting events such as the FIFA World Cup and participation in various movie promotions, which provides us with important advertising and promotion opportunities. 41 Table of Contents We are enhancing brand equity by scaling high-impact collaborations with globally recognized entertainment franchises such as Minecraft and Stranger Things. These partnerships strengthen cultural relevance among key consumer segments while supporting our core portfolio through product innovation and differentiated sauce offerings, reinforcing brand affinity and long-term customer loyalty. We are leveraging the rapid growth of the Formula 1 fan base in Latin America by associating with a high-profile global sport that strongly resonates with younger audiences, serving as a strategic sponsorship platform across our markets. Beef and chicken campaigns reinforced our sales expansion, while this sponsorship allowed us to carry out campaigns in all markets, especially promoting the use of our digital platforms and McDelivery by customers. Under the MFAs, we are required to develop and implement a marketing plan for each Territory, which must be approved in advance by McDonald’s and adhere to guidelines provided by McDonald’s. We promote the McDonald’s brand and our products through advertising and promotional activities across all of the Territories. While we are responsible for creating, developing and coordinating these marketing plans and promotional activities, McDonald’s reserves the right to review and approve any advertising materials and related promotional efforts. McDonald’s may also request that we discontinue the use of any materials or promotional activities it deems detrimental to its brand image. The MFAs require us to spend at least 5% of our gross sales on advertising and promotional activities, unless otherwise agreed with McDonald’s. Our advertising and promotional efforts are guided by a comprehensive marketing plan that outlines key strategic platforms aimed at driving sales. Our advertisement and promotion activities are guided by our overall marketing plan, which identifies the key strategic platforms that we aim to leverage to drive sales. The advertisement and promotion program is formulated based on the amount of advertisement and promotion support needed for each strategic platform for the year. Our key strategic platforms include menu relevance, by introducing premium products and extending core product lines, convenience, digital and strengthening the kids and family experience. In terms of pricing, we understand that our customers seek great-tasting food at affordable prices and that their perception of value while at the restaurant is a significant factor in determining overall satisfaction and frequency of visits. Other initiatives included the “Book or Toy” campaign in ten Latin American markets, through which we have delivered more than 30 million books to our restaurants since 2013, aiming to foster children’s creativity. In 2025, we continued focusing our efforts to promote our mobile app and new digital channels such as “Pide y Retira” (“order and pick up”). We strengthened sales channels like McDelivery with special offers and repositioned the drive-thru sales channel in order to adapt to the new mobility trends. In addition, we successfully rebuilt our family business with the introduction of family bundles like the Family Box. All advertised Happy Meal bundles in the markets in which we operate comply with McDonald’s Corporation’s Global Marketing to Children Policy, including its Global Happy Meal Nutrition Criteria. To unlock further growth, we will continue investing in the digitalization of our business. We have a dedicated department that is working under agile methodologies to accelerate our digital offerings. We are doubling down on our digital marketing capabilities to acquire, activate and engage customers through personalization. Through the execution of these initiatives, we work to enhance the McDonald’s experience for customers throughout the Territories and increase our sales and customer counts. We aim to position ourselves as a “forever young” brand that provides its customers delicious “feel good moments” through a youthfully energetic, distinctly casual, personally engaging and delightful dining/brand experience. 42 Table of Contents Digital, Delivery, Drive-Thru and Development Strategy We are focused on leveraging our competitive strengths by building a digital strategy we believe will help continue the growth of our digital, delivery and drive-thru channels. Our industry-leading digital platform offers guests greater choices for how to enjoy our brand experience, while the connection with families remains at the core of its appeal. As a result, during 2025, we saw strong growth in on-premise sales, while also generating strong off-premise sales growth. In 2025, our digital channels (the mobile app, delivery, self-order kiosks and order ahead) comprised 61% of our systemwide sales, representing $3.7 billion in digital sales. We leveraged our structural competitive advantages, including the largest free‑standing restaurant portfolio in the Latin American and Caribbean QSR industry and our industry-leading digital platform to generate robust digital sales growth. Since the nationwide launch of the loyalty program “Meu Méqui” in Brazil in October 2023, we have continued expanding the platform across the region. By the end of 2025, the program had been implemented in nine markets - Brazil, Uruguay, Costa Rica, Argentina, Colombia, Ecuador, Puerto Rico, Mexico and Chile - representing more than 90% of our system footprint. The program strengthens customer affinity with the brand by leveraging guest data to deliver more relevant and rewarding experiences, increasing visit frequency and lifetime value. Through our digital platform, we offer customers personalized, fast and convenient experiences that drive engagement and repeat visits. Our lifecycle management efforts, combined with the rollout of our loyalty programs across multiple markets, have resulted in double-digit increases in purchase frequency among digital customers. We plan to continue expanding our loyalty program across the markets in which we operate. Our mobile app is currently available in 19 markets and over 2,500 restaurants and reached more than 187 million cumulative downloads by the end of 2025. The mobile app had more than 19 million average monthly active users. In 2025, digital sales, generated through our mobile app, delivery and self-order kiosks, accounted for approximately 61% of our systemwide sales. In addition, identified sales, which reflect transactions linked to registered users, represented more than 26% of our total sales in December 2025. Arcos Dorados’ CRM platform had more than 115 million unique registered users by the end of December 2025, including more than 27 million as part of our Loyalty program. The platform provides convenient solutions, combined with insights from the Company’s data analytics capabilities, driving a more personalized experience and higher guest lifetime value. We continued to generate significant growth in our delivery sales channel in 2025, which increased 109% since 2021. Trends in drive-thru also reflected the structural competitive advantage of our free-standing restaurant portfolio. Sales in this channel were up 19.5% between 2021 and 2025. Guest experience is the main driver of frequency and sales growth, so we made operational improvements over the last several years to speed up total experience times and reduce inaccuracy that strengthened customer satisfaction. As a result, we have the highest drive-thru market share among all restaurants in the markets in which we operate. 43 Table of Contents Regional Operations The Company is managed across three geographic divisions: Brazil, NOLAD and SLAD. The divisions are subsequently divided into sub-groups comprised of individual Territories or regions. The presidents of the divisions report directly to our chief operating officer. The following map sets forth the number of our restaurants in each of our operating divisions as of December 31, 2025: (1) Non-traditional satellite restaurants are included. Source: Arcos Dorados We remain close to customers by managing operations at the local level, including implementing recruiting centers, conducting marketing campaigns and promotions, monitoring consumer perception and managing menu offerings. We conduct administrative and strategic activities at either the divisional level or at our headquarters, as appropriate. In addition, we have designed standardized crew recruiting manuals and have implemented a new modernized training system for crew and managers. These centralized operations help us maintain consistent procedures, quality control and brand management across all of our markets. 44 Table of Contents Set forth below is a summary of our restaurant portfolio as of December 31, 2025. Ownership Store Type(1) Real Property(2) Portfolio by Division Company-Operated Franchised Total Freestanding Food Court In-Store Mall Store Dessert Centers McCafé Locations Owned Leased Brazil 762 468 1,230 678 354 90 108 2,028 203 109 1121 NOLAD 522 147 669 426 134 48 61 511 20 204 460 SLAD 516 105 621 280 98 124 119 740 244 161 460 Total 1,800 720 2,520 1,384 586 262 288 3,279 467 474 2,041 (1) Non-traditional satellite restaurants are included in these figures. (2) Developmental licenses and mobile stores are not included in these figures. Brazil Brazil is our largest division in terms of restaurants, with 1,230 restaurants as of December 31, 2025 and $1,770.3 million in revenues in 2025, representing 48.8% and 37.8% of our total restaurants and revenues, respectively. Our operations in Brazil are headquartered in São Paulo and McDonald’s has been present in Brazil since opening its first restaurant in Rio de Janeiro in 1979. NOLAD NOLAD includes 10 countries with 669 restaurants as of December 31, 2025 and $1,266.1 million in revenues in 2025, representing 26.6% and 27.1% of our total restaurants and revenues, respectively. Its primary market is Mexico, where the division’s management is based. McDonald’s has been present in Mexico since opening its first restaurant in Mexico City in 1985. As of December 31, 2025, Mexico represented 57.1% of NOLAD’s restaurants and 38.0% of NOLAD’s revenues in 2025. Mexico is our second-largest market in terms of restaurants. SLAD SLAD includes ten countries with 621 restaurants as of December 31, 2025 and $1,641.8 million in revenues in 2025, representing 24.6% and 35.1% of our total restaurants and revenues, respectively. The division’s management is based in Colombia and its primary market is Argentina, where McDonald’s has been present since opening its first restaurant in Buenos Aires in 1986. As of December 31, 2025, Argentina represented 37.2% of SLAD’s restaurants and 42.5% of SLAD’s revenues in 2025. Argentina is our third-largest market in terms of restaurants. Seasonality Our sales and revenues are generally greater in the second half of the year than in the first half. Although the impact on our results of operations is relatively small, this impact is due to increased consumption of our products during the winter and summer holiday seasons, affecting July and December, respectively. Supply Chain and Distribution Supply chain management is a key component of our success and a critical factor in optimizing our profitability. We currently operate an integrated and centralized supply chain management system designed to: (i) uphold the highest quality and food safety standards, (ii) secure competitive market pricing that remains stable, predictable and sustainable over time, and (iii) leverage local, regional and global sourcing strategies to achieve competitive advantages. 45 Table of Contents This system consists of the selection and development of suppliers capable of meeting McDonald’s rigorous quality and food safety requirements and establishing the appropriate type of relationship with each approved supplier. These standards, aligned with the highest industry benchmarks recognized by the Global Food Safety Initiative (“GFSI”), such as the British Retail Consortium (BRC) standards, among others, include strict expectations for suppliers’ food safety and quality management systems, product consistency and on-time performance, compliance with or exceeding applicable local food regulations and adherence to our policies, procedures, and guidelines. The supplier quality management system includes compliance with strict requirements such as: •Food safety and quality policies •Food safety system based on Hazard Analysis Critical Control Point (“HACCP”), an internationally recognized method of identifying and managing food safety risk addressed through the analysis and control of biological, chemical and physical hazards from raw material production, procurement, handling, manufacturing and distribution to help prevent contamination and food-borne illnesses •Crisis management •Contingency plans •Facility security and food defense, including efforts to ensure defense against acts of intentional food adulteration or tampering •Good manufacturing practices •Material handling, storage and transport •Testing •Traceability •Food fraud prevention, including efforts to ensure prevention of fraudulent and intentional substitution, dilution, addition or misrepresentation of food, food ingredients or food packaging or labeling made for economic gain that could adversely impact consumer health •Product quality, including product and raw material specification, sensory attributes, process validation and capability •Verification and continuous improvement, including management of customer complaints As a result of our supply chain management practices described above, we believe our products enjoy a competitive advantage as they incorporate unique attributes that enhance their appeal to our customers. For example, our Chicken McNuggets are made with 100% white meat; our frying oil in almost all our markets is 100% free of trans fatty acids; the dairy mix for our sundaes and the McFlurry is produced from best quality ingredients and subjected to heat treatment processes to ensure best-in-class quality and safety; our leafy vegetables are grown following good agricultural practices and are washed and sanitized to uphold our food safety standards, and our beef patties are made with 100% pure beef and do not contain additives or preservatives. Pursuant to the MFAs, we purchase core products and services, such as beef, chicken, pork, buns, potatoes, produce, sauces, cheese and dairy mixes, from approved suppliers and distribution centers that meet the above mentioned requirements. If McDonald’s determines that a product or service offered by an approved supplier no longer meets its standards, that supplier’s approved status may be revoked. Beyond the purchase of core products and services, we have no restrictions on which suppliers we may use, as long as they meet the requirements for approval. We have largely continued the supply relationships that McDonald’s had established prior to the Acquisition, and we developed relationships with new suppliers in accordance with McDonald’s product and supplier requirements, including the following: Supplier Quality Management System (“SQMS”), Supply Chain Human Rights (“SCHR”), Distributor Quality Management Program (DQMP), Animal Health and Welfare (AH&W) and Global Quality & Safety Requirements for Disposable Packaging (GQSR), among others. 46 Table of Contents Given that the process of becoming an approved supplier is lengthy, costly, and requires demonstrated compliance with McDonald’s high quality standards, we have found that informal agreements with our approved suppliers are generally sufficient to ensure a reliable supply of high-quality food products. As a result, we have developed long-term relationships with most of our suppliers. In addition, we typically enter into written agreements with most of our suppliers regarding product pricing, which may be based on pricing protocols, formula-based costing, benchmarking or open bidding processes, as appropriate. Our 32 largest suppliers account for approximately 76% of our supplies, and no single supplier or group of related suppliers account for more than 13% of our total food and paper costs. Among our main suppliers are Marfrig Global Foods SA; McCain Foods Group Inc.; Coca Cola Company; Bimbo S.A. de C.V.; Axionlog B.V.; Reyes Holdings L.L.C.; HAVI Group L.P.; BRF S.A.; American Beef S.A.; Savencia Fromage & Dairy; Frima S.A.; Tyson Foods; Schreiber Foods Inc.; J.R. Simplot Company; Kerry Group plc; F C & Natural Salads Distribuidora de Produtos Hortifrutigranjeiros Ltda; Panifresh S.A.; Griffith Foods Worldwide Inc.; Bunge Limited; Lactalis Group; BO Packaging S.A.; Brasilgrafica S.A.; Lacteos de Poblet S.A.; Golden State Foods; Terbium Industrial S.A.; Granja Tres Arroyos S.A.; Interbake Chile S.A.; Alpina Productos Alimenticios S.A.; Cellier Alimentos do Brasil Ltda.; Empresas Carozzi S.A. and Fortunato Mangravita S.A. Our integrated supply chain management approach optimizes value by working closely with suppliers to develop effective pricing protocols, inventory management practices, planning processes and product quality standards. As of December 31, 2025, approximately 23.3% of our restaurant costs, primarily related to food and paper, were exposed to fluctuations in foreign exchange rates. This percentage varies among the Territories; for example, 37.8% of the products consumed in Mexico are exposed to fluctuations in foreign exchange rates, while 18.4% and 6.8% of the products consumed in Brazil and Argentina, respectively, are exposed. This includes the toys distributed to our restaurants, which are imported from China. Certain supplies, such as beef, dairy and produce, must often be locally sourced due to restrictions on their importation. Although we maintain contingency plans to back up restaurant supplies, fluctuations in exchange rates coupled with the MFAs’ requirement to purchase certain core supplies from approved suppliers, may mean that we are unable to quickly find alternate or additional supplies in the event a vendor is unable to meet our orders. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Operations—From time to time, we depend on oral agreements with third-party suppliers and distributors for the provision of products and services that are necessary for our operations.” The suppliers deliver almost all of their products to distribution centers that are responsible for reception, transportation, warehousing, financial administration, demand and inventory planning and customer service. The distribution centers interact directly with our Company-operated and franchised restaurants. Until March 2011, we managed the distribution of most of our food and paper supplies in Argentina, Chile, Mexico and Venezuela, which operations and related assets we refer to as Axionlog. Since the split-off, Axionlog has provided us with comprehensive 3PL services, including storage (dry, frozen and chilled), transportation, planning, and logistics management services pursuant to a master commercial agreement with Axionlog on arm’s-length terms. Axionlog currently provides us some or all of these services in most of our territories. For additional information about our transactions with Axionlog, see “Item 7. Major Shareholders and Related Party Transactions—B. Related Party Transactions—The Axionlog Split-off.” Supply Chain Management and Quality Assurance All menu products meet McDonald’s and Arcos Dorados’ specifications, including new products and promotions (except branded products, such as McFlurry toppings, condiments, or Coca-Cola beverages, which follow standards specified by their brands and approved by McDonald’s). We work closely with our suppliers, distribution centers and restaurants to implement and maintain rigorous food safety and quality standards through established policies and procedures. These standards are reinforced through ongoing training programs across our supply chain. During 2025, we continued to enhance our regional training programs, focusing on food safety, quality assurance, supplier standards, risk mitigation and the consistent implementation of our policies and procedures across our supply chain. To verify compliance with our food safety and quality requirements, we conduct annual independent third-party audits. When opportunities for improvement are identified, we require the implementation of corrective action plans supported by root-cause analysis. In addition, we have implemented a Supplier Manual that outlines the requirements suppliers must meet to be part of our system. Suppliers are required to acknowledge and comply with these standards. 47 Table of Contents We require our suppliers of raw materials to comply with stringent food safety and quality standards and to successfully complete audits covering areas such as manufacturing practices, traceability, food safety systems and supply chain human rights. Animal health and welfare standards are defined on a species-specific basis and are verified through recurring independent audits. When instances of non-compliance are identified, we work with suppliers to strengthen their practices and implement corrective action plans. At processing facilities, we apply McDonald’s supply chain quality management systems, which promote continuous improvement and are regularly measured, scored and audited by independent third parties. Suppliers are also required to implement measures designed to prevent risks to individuals, products and processes, including facility security, controlled access, incident reporting protocols and risk assessments of ingredients and raw materials. We conduct unannounced audits at high-risk and core suppliers and monitor compliance through periodic on-site visits by our internal teams. In addition, we provide ongoing training and support to suppliers to promote continuous improvement. We also maintain a corporate social responsibility auditing program to assess suppliers’ practices in areas such as labor standards, health and safety, environmental management and business ethics. We have established global supplier standards that address areas such as human rights, workplace conditions, business integrity and grievance mechanisms. Compliance is monitored through self-assessments, third-party audits and corrective action plans. We maintain a Global Restricted Substances List (“GRSL”) that defines chemical substances prohibited or restricted in food-contact materials. Compliance with these standards is required for all materials entering our system and is supported by supplier approval processes, testing and validation procedures. We encourage suppliers to adopt globally recognized food safety certification schemes aligned with international best practices. To monitor product quality, we implement sensory evaluation programs that assess key product attributes to ensure consistency and compliance with specifications. We have implemented guidelines to prevent and manage foreign objects within supplier manufacturing processes, with a focus on strengthening preventive controls across our supply chain. At the distribution stage, we apply McDonald’s Distribution Quality Management Program, which establishes comprehensive requirements related to food safety, operational controls, traceability, contingency planning and regulatory compliance. We conduct unannounced third-party food safety audits at our restaurants on a periodic basis. We also gather customer feedback through McDonald’s global customer satisfaction programs, which allow us to monitor operational performance and identify opportunities for improvement across our restaurants. We have implemented a HACCP-based food safety management approach across our restaurants, focused on systematic risk analysis and the identification and control of potential hazards. This approach is supported by a robust set of operational procedures, including sanitation, training, supplier management and pest control. We also promote a culture of food safety and continuous improvement across our organization through ongoing engagement initiatives involving suppliers and internal teams. Our Competition We compete with international, national, regional and local retailers of food products. We compete on the basis of price, convenience, service, menu variety and product quality. Our competition in the broadest perspective includes restaurants, quick-service eating establishments, pizza parlors, coffee shops, street vendors, ice cream vendors, convenience food stores, delicatessens and supermarkets. 48 Table of Contents Our Guests We aim to provide our guests with safe, fresh and great-tasting food at a good value and an enjoyable dining experience in the family friendly environment demanded by our target demographic of young adults and families with children. Based on data from the United Nations Economic Commission for Latin America and the Caribbean, the Territories represented a market of approximately 565 million people in 2025—equivalent to the combined population of the United States, Germany, France and the United Kingdom—of which approximately 21.8% are under 14 years old and 35.7% are under 25 years old. As a business focused on young adults in the 14 to 35 age range and families with children, our operations have benefited, and we expect to continue to benefit, from our Territories’ population size, age profile when compared to more developed markets and improving socio-economic conditions. The McDonald’s brand in Latin America is positioned as an aspirational experience and a destination for our guests. In order to maintain that brand positioning, we have implemented several initiatives focused on providing our guests with a differentiated customer experience. McDonald’s digital strategies provides an innovative experience with a noticeable change in the areas of service, hospitality, and atmosphere in the restaurant. We will evolve to an integrated vision, based on 5 fundamental pillars to transversally deliver the expected experience for our guest: atmosphere, people, family, menu and technology. Despite ongoing risks generally associated with international business operations, the confluence of favorable factors throughout many of the Territories, including growth in our target demographic markets, offer an opportunity of profitable growth and the ability to serve an ever-increasing number of guests. Regulation We are subject to various multi-jurisdictional federal, regional and local laws in the countries in which we operate affecting the operation of our business, as are our sub‑franchisees and suppliers. Each restaurant is subject to licensing and regulation by a number of governmental authorities, which include zoning, health, safety, sanitation, tax, operating, environmental, building and fire agencies in the jurisdiction in which the restaurant is located. Difficulties in obtaining, or the failure to obtain, required licenses or approvals can delay or prevent the opening of a new restaurant in a particular area. Restaurant operations are also subject to federal and local laws governing matters such as wages, working conditions and overtime. We are also subject to tariffs and regulations on imported commodities and equipment and laws regulating foreign investment. Substantive laws that regulate the franchisor/franchisee relationship presently exist in several of the countries in which we operate. These laws often limit, among other things, the duration and scope of non-competition provisions, the ability of a franchisor to terminate or refuse to renew a franchise and the ability of a franchisor to designate sources of supply and regulate franchise sales communications. Price Controls Certain countries in which we conduct operations have imposed, and may continue to impose, price controls that restrict our ability, and the ability of our sub‑franchisees, to adjust the prices of our products. For example, in Venezuela, the Fair Price Act has been in force since 2013, which seeks to lower high inflation by controlling prices and costs in the chain of production. The Fair Price Act generally sets forth a profit cap of 30% on the cost structure of goods and services, thus reducing management’s ability to freely determine final prices. According to regulations passed under the Fair Price Act, to determine a final and fair price, management must observe and consider all of the costs of production, including (i) acquisition costs of raw materials, the determination of which must comply with existing regulations on transfer pricing (i.e., price, freight, primary storage, non-recoverable taxes and other costs directly attributable to the acquisition of raw materials), (ii) labor costs, and (iii) indirect costs of production. The Fair Price Act also empowers the National Agency for the Defense of Socio-economic Rights to implement provisions and regulations on “fair pricing” and to oversee and audit businesses in Venezuela. Breaches of the Fair Price Act can result in criminal charges against merchants or business people. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Results of Operations and Financial Condition—Price controls and other similar regulations in certain countries have affected, and may in the future affect, our results of operations.” Although we managed to navigate the negative impact of the price controls on our operations from 2013 through 2025, the existence of such laws and regulations continues to present a risk to our business. We continue to closely monitor developments in this dynamic environment. 49 Table of Contents In Argentina, the current administration, which took office in December 2023, has repealed Law No. 26,992, titled the “Creation of the Observatory of Prices and Availability of Inputs, Goods and Services Act”, pursuant to Decree No. 70/2023, issued on December 21, 2023. Decree No. 70/2023, which remains in force and subject to congressional and judicial review, also repealed and amended various existing regulations with the purpose of deregulating the Argentine economy. Labor Regulation We are subject to labor laws and regulations in the countries in which we operate. Changes in labor legislation, including increases in minimum wages, modifications to working hour regimes, new employee benefit obligations, or additional employment-related taxes or social contributions, may increase our labor costs and operating expenses and affect the way we manage our workforce. Several of the jurisdictions in which we operate have recently adopted or proposed reforms affecting employment conditions, compensation structures and workplace flexibility. For example, certain countries in our region have implemented increases to statutory minimum wages, introduced new employee benefits, or adopted measures that may increase overtime premiums or reduce the standard workweek. In other jurisdictions, broader labor reforms have been proposed or enacted that could modify rules relating to hiring practices, severance, probationary periods and other employment conditions. The scope, implementation and interpretation of these measures vary across jurisdictions and may continue to evolve. Any further changes to labor legislation, or the adoption of additional employee protections, could increase our labor costs, require adjustments to our operations or adversely affect our results of operations and financial condition. Consumer Regulation We are also subject to increasing consumer regulation. For instance, in Peru, draft legislation has been introduced that could increase obligations on companies regarding consumer protection and safety and may result in an increase in consumer claims. Enactment of this type of regulation may lead to higher costs and could adversely affect our results of operations and financial condition. Such proposals are still under evaluation by the Peruvian Congress. In addition, we may become subject to legislation or regulation seeking to regulate high-fat and/or high-sodium foods, particularly in Brazil and Chile. Moreover, restrictions on advertising by food retailers and QSRs have been proposed or adopted in Argentina, Brazil, Chile, Colombia, Mexico and Peru, including proposals to restrict our ability to sell toys in conjunction with food. Certain jurisdictions in the United States are considering curtailing or have curtailed McDonald’s ability to sell children’s meals including free toys if these meals do not meet certain nutritional criteria. Similar restrictions, if imposed in the Latin American countries where we do business, may have a negative impact on our results of operations. We will comply with any laws or regulations that may be enacted, and we can provide no assurance of the effect that any possible future laws and regulations will have on our operating results. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Industry—Restrictions on promotions and advertisements directed at families with children and regulations regarding the nutritional content of children’s meals may harm McDonald’s brand image and our results of operations.” Insurance We maintain insurance policies in accordance with the requirements of the MFAs and as appropriate beyond those requirements, to the extent we believe additional coverage is necessary. Our insurance policies include commercial general liability, workers compensation, “all risk” property and business interruption insurance, among others. See “Item 10. Additional Information—C. Material Contracts—The MFAs—Insurance.” Environmental Issues To the best of our knowledge, there are currently no international, federal, state or local environmental laws, rules or regulations that we expect will materially affect our results of operations or our position with respect to our competitors. However, we can provide no assurance of the effect that any possible future environmental laws will have on our operating results. There are several countries and cities with regulations either already being enforced or in the legislative process. However, those laws have not had a material effect on our operations thus far. In the city of São Paulo, single-use plastic is banned. In Chile and in Mexico City, single-use plastic is also banned. In our French Caribbean territories, the Circular Economy Law presents certain challenges that will potentially require structural investments and could potentially have an impact on our business results due to the inherent specifications of the law and its applicability in the quick service industry. 50 Table of Contents Youth Opportunity Youth unemployment is one of the most critical issues facing countries in Latin America. Through our Youth Opportunity initiative, we promote social mobility by providing training and employment opportunities to young people in Latin America that help them develop valuable customer service, soft skills and leadership skills that can be applied to a wide range of career paths in the future. We are implementing this initiative through strategic alliances and by leveraging our track record and experience in this field. We are also developing projects for labor participation that include technical training and programs to support the employment of people with disabilities, as well as financial literacy for our employees. We increased our focus on Youth Opportunity because it has been one of the most significant problems facing Latin American countries in recent years. According to the Inter-American Development Bank (IDB), 48% of the working-age population in the region is young, between the ages of 15 and 29 years old. The unemployment rate of this particular age bracket is 20%, more than double the unemployment level of the general population and more than three times that of adults. Informality in the youth job sector in our region is among the largest in the world, reaching more than 60% according to the International Labour Organization, and we play a significant role in helping to address this issue. In conjunction with our Latin American branch of Hamburger University, we created the training platform McCampus Comunidad, which was designed as an Arcos Dorados and McDonald’s employee training system, but has been opened to the general public, particularly to young people seeking formal job opportunities. McCampus Comunidad offers over 40 free, online soft skills courses, related to leadership, digital capabilities, IT and customer services, all of which offer an official, formal certificate issued by the Hamburger University. Since we established the McCampus online through December 31, 2025, over 200,000 young people have enrolled in the platform. We have also continued to strengthen our partnerships with other organizations that focus on soft skills training, such as Aldeas SOS (Mexico, Costa Rica and Peru), Instituto Ayrton Senna (Brazil), Fundación Cimientos (Argentina), Liceo Impulso (Uruguay), Mi Sangre (Colombia), among others. In 2025, we donated over $8.4 million in connection with our solidarity days, Gran Día and McHappy Day. Those funds were transferred to non-governmental organizations that support the development of soft skills and the employability skills of young people across the region and to support the local chapters of Ronald McDonald House Charities. We also developed a soft skills program called “Meu Jeito” in partnership with Instituto Ayrton Senna, which in its first stage was implemented in Brazil with the participation of more than 38,900 members of our crew. Climate Change As much as possible, Arcos Dorados seeks to carefully identify, control and minimize the environmental impact generated by its operation. Environmental management must permeate the entire supply chain, which is why we work with suppliers who have shared values, ensuring they comply with best practices, endorsed or recognized under international seals. To implement these initiatives, we have developed strategic partnerships with prestigious organizations such as the World Wildlife Fund (“WWF”), the Nature Conservancy, the Rainforest Alliance and the Forest Stewardship Council (“FSC”), among others. In order to achieve reductions in our environmental impact at the restaurant level, we are taking specific actions, such as advancing our transition to renewable energy sourcing. To that end, we have signed renewable energy contracts in Mexico, Puerto Rico, Costa Rica, Panama, Guadeloupe, Colombia, Chile, Argentina and Brazil. We expect to publish the results of our scopes 1, 2 and 3 greenhouse gas emissions as of December 31, 2025, in our Social Impact and Sustainable Development Report, which is scheduled to be released in May 2026. Arcos Dorados has implemented a sustainable construction policy for its restaurants. This means that all new projects include technologies and designs to drive efficiency in the use of energy and water, as well as the use of recycled materials and incorporate features to recycle waste. As a result, restaurants are being designed and built to maximize energy efficiency and lower water usage by including low-consumption equipment, climate-efficient architecture and systems for reusable water, while at the same time, improving accessibility for our guests and employees. We also continue to work to improve processes, such as implementing responsible use and recycling of natural resources, promoting waste sorting and separation and encouraging the use of efficient air conditioning systems. 51 Table of Contents The outcome of all these initiatives should be reflected in our complete scope 1,2,3 inventory of greenhouse gas emissions, which we expect to publish in our upcoming 2025 Social Impact and Sustainable Development Report, due to be published at the end of May 2026. Circular Economy Recycling infrastructure, regulations and consumer behaviors vary city to city and country to country, but we are committed to be part of the solution and help influence powerful change. In 2025, we achieved 93.2% of compliance with our packaging sourcing commitment. We continue to deploy waste sorting bins in our restaurants and educate our consumers about the importance of properly sorting and recycling materials where and when possible. On a yearly basis, we offer sustainability workshops in our restaurants and organize beach clean-up activities in several markets, such as Argentina, Chile, Ecuador, Uruguay, Peru and Puerto Rico. We plan to expand these opportunities within our communities. Our strategy focuses on prioritizing certain processes: eliminating or minimizing the use of packaging through design innovation, recovering and recycling where possible, and aiming to close the loop by using more recycled materials in our packaging and restaurants, which in turn helps to drive global demand for recycled materials. Our packaging is made with 21.3% recycled materials. To reduce the impact on the environment as a result of virgin plastic waste, Arcos Dorados has developed a series of initiatives over the last few years. Starting in 2018 with the “Straws on Demand” program, through which restaurants stopped offering straws in nearly all markets and only provided straws upon customer request. To date, we have eliminated plastic straws in almost every market. Additionally, we streamlined a series of initiatives. The main actions contributing to this reduction are: •Straw only upon customer request, with the additional removal of lids from cold drinks served in restaurants and replacement of plastic cups in some markets. •Cutlery redesign (the spoon delivered with desserts redesigned to reduce plastic per unit by 40%) or replacement with fiber-based material. •Plastic salad bowls and breakfast containers were replaced with a 100% biodegradable cardboard box. •Plastic lids on cold beverages for delivery service were replaced by paper/ PE seals. Currently, our packaging includes 10,268 tons of recycled material (which amounts to 21.3% of recycled material in our packaging); that does not come into direct contact with food, showcasing our commitment to reducing packaging and increasing recycled material for a circular economy. When it comes to fiber materials, it is important to ensure that our fiber suppliers support deforestation-free supply chains. Since 2020, we are focused on fiber-based packaging and committed to sourcing 100% of primary fiber-based guest packaging from chain-of-custody certified or third-party verified recycled sources, where no deforestation occurs. At the end of 2025, 99.64% of our fiber packaging was certified as either FSC® (Forest Stewardship Council) or Programme for the Endorsement of Forest Certification (“PEFC”). Reverse logistics is another component of our recycling program. We are leveraging our logistics providers to recover cardboard from our restaurants, which is then recycled and reused to generate new packaging. The solution is being tested in several markets. In 2025, we recovered more than 1,454 tons of cardboard, which were reused in our value chain, providing us with opportunities to recycle and reduce waste. We aim to continue increasing the number of collected cardboard tons in the coming years. We also use reverse logistics for our used oil recycling program. We recycle used cooking oil in all our restaurants, which is then reused according to local regulations. For instance, in 2025, more than 5,000,000 litters of used cooking oil were recycled for further use, including as biofuel. 52 Table of Contents Composting continues to expand as part of our circular economy approach. In 2025, we expanded our composting initiatives in Chile and Colombia, increasing both the volume of organic waste recovered and the number of participating restaurants. Brazil continued to lead these efforts, with 76 restaurants implementing composting systems, including select locations with on-site solutions. The compost generated through these initiatives is used in local gardens to cultivate vegetables that are shared with employees and applied in community focused projects, creating a tangible link between waste management and local food production. In 2025 we managed to compost 435 tons of organic waste in 135 restaurants with composting initiatives. We are also committed to reducing food waste. This requires identifying products that have lost commercial value but remain safe and suitable for consumption. By redirecting these items, we help prevent food waste while supporting people in vulnerable situations. Through structured donation programs across company-operated and franchised restaurants, food is recovered and delivered to social organizations, helping reduce waste while creating social value. In 2025, our logistics partner Martin Brower strengthened this effort by donating 32 tons of our products to food banks as part of its responsible inventory management practices. In 2025 we donated 64 tons of food from 510 restaurants participating in the initiative. This is equivalent to 385,000 meals provided. Sustainable Sourcing We have been supporting sustainable food production and forest conservation efforts for years. We work hard to continuously improve how we source our ingredients in a way that allows people, animals and the planet to thrive. Deforestation remains a material environmental risk, and we support initiatives that promote sustainable food production and protect vulnerable ecosystems in our operation. We require strict sustainability standards across the key priority commodities, ensuring raw materials meet traceability, responsible production, and socio-environmental standards. We also drive industry sustainability through initiatives like promoting regenerative agriculture practices in our supply chain. As one of the largest buyers of beef in the region, we are serious about our responsibility to help lead the industry towards more sustainable production practices. We implement the McDonald´s Deforestation‑Free Beef Procurement Policy (DFBPP) in Brazil and Argentina. We apply this policy in high‑risk sourcing biomes in these countries, working closely with suppliers to ensure compliance with requirements related to deforestation monitoring, protection of Indigenous lands, adherence to environmental regulations, and respect for human rights. We monitor 100% of the beef sourced from direct suppliers in these markets using satellite and remote‑sensing tools provided by third‑party partners such as Proforest and Agrotools. These measures strengthen our supply chain oversight and help advance responsible beef production in the region. In 2025, we achieved 99.8% compliance with the deforestation-free beef procurement policy. We ensure that the beef purchased from direct suppliers complies with the deforestation-free beef procurement policy. If any raw material supplier is found not to be in compliance with the policy, it is removed from our supply chain. We believe in driving industry-wide change and encouraging collective action through strategic partnerships. That’s why we actively participate in global and local roundtables that promote sustainable beef productions. In Argentina, we are active members of the Steering Committee of the Argentine Roundtable For Sustainable Beef (MACS). In Brazil, we are part of the Brazilian Roundtable for Sustainable Beef (MBPS), and in Uruguay, we joined the Uruguayan Sustainable Beef Roundtable (MUCS). These strategic actions align with and strengthen the mission of the Global Roundtable for Sustainable Beef (GRSB). We work with recognized certifications and closely collaborate with suppliers to meet rigorous standards. While we don’t use palm oil in our cooking processes, we work with our suppliers to guarantee that when they use oil as an ingredient, it is certified under the Roundtable on Sustainable Palm Oil (RSPO) standards. Our coffee is certified under the Rainforest Alliance certification. We ask our chicken suppliers to source their soy in chicken feed from low-deforestation regions or comply with specific requirements if it is sourced from countries where there are protected biomes, such as Brazil, Argentina and Paraguay. Arcos Dorados is a member of the Round Table on Responsible Soy (RTRS). Arcos Dorados is engaged with chicken suppliers and the origin of soy used as an ingredient of their feed, supporting responsible production of soy through the purchase of RTRS credits. Additionally, our fish, in the Territories in which we offer it on the menu, is sustainably raised to protect long term fish production and improve the marine ecosystem. 53 Table of Contents As part of our Recipe for the Future, we pledged to source 100% cage-free fresh eggs by the end of 2025. Although we have only achieved a migration of 95.3% of the volume of fresh eggs served in McDonald’s restaurants across Latin America to cage-free systems, as part of our continued commitment to sustainable sourcing and animal welfare, we have successfully transitioned to cage-free fresh eggs in major continental countries with fresh eggs in their menu. Furthermore, the responsible use of antibiotics is important for animal health, as well as to ensure the future effectiveness of antimicrobial medicines. Arcos Dorados aligns with McDonald’s antibiotic stewardship, following health guidelines established by the World Health Organization (WHO) and the World Organization for Animal Health. Our efforts are outlined in McDonald’s 2017 Vision for Antibiotic Stewardship, emphasizing responsible antibiotic use across chicken, beef, and pork. In Brazil, we successfully removed Highest Priority Critically Important antibiotics (HPCIA as per WHO classification of antibiotics) from chicken in 2018. Additionally, we actively contributed to McDonald’s Antibiotic Policy for Beef, outlining expectations in compliance with local regulations. Commitment to Families The well-being of the communities where we operate is of considerable importance to us and we are engaged in a wide range of programs focused on positively impacting those communities. In addition to the support we give to Ronald McDonald House Charities, both currently and historically, we continue expanding our reach to the areas of Youth Opportunity and Sustainable Development and further strengthened our efforts in these areas in 2025, across the entire company, to reinforce our position as a socially responsible company. In 2025, we executed our yearly Gran Día and McHappy Day campaigns, which seek to broaden our social impact. Through these campaigns, funds raised through the sale of Big Macs were donated to local organizations supporting youth employment and the Ronald McDonald House Charities. We raised more than $8.4 million in 2025. Besides the Ronald McDonald Houses, in 2025, we collaborated with more than 20 NGOs, including Aldeas Infantiles SOS in Peru, Mexico, and Costa Rica, Voces Vitales in Panama, Mi Sangre in Colombia, Ayrton Senna Institute in Brazil, Fundación Cimientos in Argentina, Fundación Coanil in Chile, Fundación El Triangulo in Ecuador, Liceo Impulso in Uruguay, Centro Man Na Obra in Aruba and Fonditut in Curaçao, among others. We also contribute to the communities in which we operate through the Ronald McDonald House Charities, which is dedicated to creating, finding and supporting programs that directly improve the health and well-being of children by providing “a home away from home” to children undergoing medical treatment in hospitals and their families. As part of our commitment to offering nutritious and high‑quality food, we actively promote a balanced lifestyle by providing reliable and accessible information to support informed nutritional choices. We were the first restaurant chain in Latin America to disclose complete nutritional and calorie information for our menu items on our websites in each of the Territories. Nutritional information for all of our products is available on Company owned websites and mobile applications. We have eliminated artificial colors and flavors from core menu items and Happy Meal bundled offerings in most of the regions in which we operate. Throughout this process, we remain focused on maintaining our quality standards, including the use of 100% pure beef for our hamburgers and high‑quality potatoes for our McFries. As of August 2019, Happy Meal offerings in all of our markets complied with the nutritional criteria set by the Global McDonald’s Happy Meal Nutrition Criteria. We presented important changes in our famous Happy Meal, such as the reduction of sodium, calories and fat, and included an option for pure fruit juice with no added sugar to help promote the consumption of recommended food groups. These changes were endorsed by groups such as the Interamerican Society of Cardiology, the Brazilian Association of Nutrition, the Argentine Foundation of Cardiology, the Peruvian Society of Nutrition and the Uruguayan Association of Dieticians and Nutritionists. We continue with our responsible marketing practice complying with the Global Happy Meal Goals. 54 Table of Contents From a safety and quality perspective, we only use ingredients that have passed strict quality and food safety controls throughout the cooking chain, inside our restaurants and up to the moment they are served to our customers. These products are sourced from our approved supplier network for all McDonald’s restaurants. We believe we developed and continue to have one of the highest food safety standards in the industry, closely monitoring and enforcing adherence to those standards. All of our restaurants are audited on a yearly basis by a third-party entity. In order to ensure the quality and safety of our offerings, we have also implemented a supplier audit program, as described above, held by an independent audit firm, which includes Supplier Workplace Accountability (SWA), Supplier Quality Management System (SQMS) and Packaging Supplier Quality Management System Paper (PQMS). As part of our commitment to safeguarding the well-being of Arcos Dorados employees, guests and third-party operators, we continue to reinforce our safety procedures in the kitchen, which establishes a guide that combines strict hygiene, cleanliness and sanitation protocols that characterize our brand. In addition to reinforcing existing safety measures, such as requiring that our employees wash their hands at least every half hour and sanitize their hands every fifteen minutes, hand sanitizer is made available at the lobby of our restaurants and other locations throughout the restaurants. We also encourage our customers to use contactless payment methods, such as credit cards. Additionally, we use double bags and triple sealing to ensure isolation of food for McDelivery and sanitize bags that transport food supplies to our restaurants. Puertas Abiertas (“Open Doors”) is Arcos Dorados’ flagship quality control program that proactively invites guest and key stakeholders to visit our kitchens and other parts of our behind-the-counter operations. This program promotes greater transparency and has hosted over 450 thousand customers across the region since it was resumed in late 2022. Diversity and Inclusion Diversity, equity, and inclusion are central to our values and long-term success. We believe that fostering a culture of inclusion and respect strengthens our workforce, enhances organizational performance, and drives innovation. By valuing diverse perspectives and experiences, we promote equal opportunities for growth and create a more inclusive and engaged work environment. Our commitment is reflected in the implementation of programs, policies, and initiatives designed to support the professional and personal development of our employees. In January 2018, Arcos Dorados established a Diversity and Inclusion Committee to guide our strategy and promote an inclusive culture in which differences—such as gender, race, culture, sexual orientation or gender identity, religion, socioeconomic background, and political beliefs—are valued as a source of strength and innovation. Since its creation, the Committee has contributed to strengthening employees’ sense of belonging and fostering a more connected workforce. In 2025, the Committee focused on the following key areas: •Gender Equity - Women’s Network: Our Women’s Network promotes gender equality and supports the professional development of women across all levels of the organization. In collaboration with Hamburger University and external partners such as UN Women, we provide training, mentorship, and development opportunities. Between 2021 and 2024, we increased female representation across several professional levels, including at senior leadership positions. We have also implemented initiatives such as maternity support programs, lactation spaces, and employee assistance resources. In several countries, we have received “Espacio Seguro” certifications recognizing workplaces free from violence. •Gender Identity and Sexual Orientation Diversity (LGBTQI+): We promote a safe and inclusive environment for our LGBTQI+ employees through internal networks, training, and awareness initiatives. In 2022, we launched an LGBTQI+ guide to foster respectful interactions and reinforce a zero-tolerance policy for discrimination. We have also implemented inclusion measures such as gender-neutral uniforms. •Health and Wellness: We are committed to supporting the physical and mental well-being of our employees. In several markets, we offer wellness programs, training, and initiatives aimed at promoting preventive care and healthy lifestyles. •Inclusion of People with Disabilities: We promote workforce inclusion for individuals with disabilities through partnerships with organizations across Latin America, focusing on recruitment, training, and workplace integration. We also conduct internal assessments and provide training and guidelines to support an inclusive work environment. 55 Table of Contents C. Organizational Structure We conduct substantially all of our business through our indirect, wholly owned Dutch subsidiary Arcos Dorados B.V. Our controlling shareholder is Los Laureles Ltd., a British Virgin Islands company, which is beneficially owned by Mr. Woods Staton, our Executive Chairman. Under the MFAs, Los Laureles Ltd. is required to hold at all times at least 51% of our voting interests and 30% of our economic interest, which is accomplished through its ownership of 100% of the class B shares of Arcos Dorados Holdings Inc., each having five votes per share. See “Item 7. Major Shareholders and Related Party Transactions—A. Major Shareholders—Los Laureles Ltd.” Arcos Dorados B.V. owns all the equity interests of LatAm, LLC, and owns, directly or indirectly, all the equity interests of the subsidiaries operating our restaurants in the Territories. The following chart shows our corporate structure as of December 31, 2025. (1) Includes class A shares and class B shares beneficially owned by Mr. Woods Staton, our Executive Chairman. Los Laureles Ltd. is beneficially owned by Mr. Woods Staton. See “Item 7. Major Shareholders and Related Party Transactions—A. Major Shareholders—Los Laureles Ltd.” (2) Includes operating subsidiaries held directly and, in some cases, indirectly through certain intermediate subsidiaries. Other than as described above, all of our significant subsidiaries are wholly owned by us, except Arcos Dorados Argentina S.A., of which Mr. Woods Staton owns 0.003%. 56 Table of Contents D. Property, Plants and Equipment Property Operations Our long-standing presence in Latin America and the Caribbean has allowed us to build a significant property portfolio with hard-to-replicate locations in key markets across the region that enhance our customers’ experience and ultimately support our brand and market position. As of December 31, 2025, we owned the land for 474 of our 2,520 restaurants. We lease the remaining real estate property where we operate. Accordingly, we are able to charge rent on the real estate that we own and lease to our sub‑franchisees. The rental payments generally are based on the greater of a flat fee or a percentage of sales reported by franchised restaurants. When we lease land, we match the term of our sublease to the term of the franchise. We may charge a higher rent to sub‑franchisees than that which we pay on our leases, thereby deriving additional rental income. The selection, construction and maintenance of our restaurant locations and other related real estate assets (totaling approximately 1.2 million square meters), which is a key element of our performance, is determined based on an evaluation of expected returns on investment and the most efficient allocation of our capital expenditures. In addition to our 474 restaurant properties, we own our corporate offices in Brazil and Argentina, an industrial center called Food Town in São Paulo, Brazil (where our logistics operator is located), and training centers in São Paulo, Brazil and Buenos Aires, Argentina. In total, we own 529 properties.