A. Operating Results The following discussion of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023, and the notes thereto, included elsewhere in this annual report, as well as the information presented under “Presentation of Financial and Other Information” and “Item 3. Key Information—A. Selected Financial Data.” The following discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including those set forth in “Forward-Looking Statements” and “Item 3. Key Information—D. Risk Factors.” Segment Presentation Our operating segments are comprised of three geographic divisions: (i) Brazil; (ii) NOLAD, which consists of Costa Rica, Mexico, Panama, Puerto Rico, Martinique, Guadeloupe, French Guiana, St. Martin, and the U.S. Virgin Islands of St. Croix and St. Thomas; and (iii) SLAD, which consists of Argentina, Chile, Ecuador, Peru, Uruguay, Colombia, Venezuela, Trinidad and Tobago, Aruba, and Curaçao. As of December 31, 2025, 48.8% of our restaurants were located in Brazil, 26.6% in NOLAD and 24.6% in SLAD. 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. We are required to report information about operating segments in our financial statements in accordance with ASC 280. Operating segments are components of a company about which separate financial information is available that is regularly evaluated by the chief operating decision maker(s) in deciding how to allocate resources and assess performance. We have determined that our reportable segments are those that are based on our method of internal reporting, and we manage our business and operations through our three geographic divisions (Brazil, NOLAD and SLAD). The accounting policies of the segments are the same as those for the Company on a consolidated basis. 57 Table of Contents Principal Income Statement Line Items Revenues We generate revenues primarily from two sources: sales by Company-operated restaurants and revenue from franchised restaurants, which primarily consists of rental income, typically based on the greater of a flat fee or a percentage of sales reported by our franchised restaurants. This rent, along with occupancy and operating rights, is stipulated in our franchise agreements. These agreements typically have a 20-year term but may be shorter if necessary to mirror the term of the real estate lease. In both 2025 and 2024, sales by Company-operated restaurants and revenues from franchised restaurants represented 95.4% and 4.6% of our total revenues, respectively. In 2023, sales by Company-operated restaurants and revenues from franchised restaurants represented 95.5% and 4.5% of our total revenues, respectively. Since 2023, the Company has offered a loyalty program in which our customers in certain territories are awarded loyalty points when purchases at Company-operated and franchised restaurants are completed. Loyalty points can be redeemed for free products. The company defers revenue associated with the estimated selling price of points earned towards free products as each point is earned and a corresponding liability is established in deferred revenue. This deferral is based on the estimated value of the product for which the reward is expected to be redeemed, net of estimated unredeemed points. Loyalty points expire six months after issuance. When a customer redeems an earned reward, or the loyalty points expire, we recognize revenue for the redeemed product and reduce the related deferred revenue. Operating Costs & Expenses Our sales are heavily influenced by brand advertising, menu selection and initiatives to improve restaurant operations. Sales are also affected by the timing of restaurant openings and closures. We do not record sales from our franchised restaurants as revenues. Company-operated restaurants incur four types of operating costs and expenses: • food and paper costs, which represent the costs of the products that we sell to customers in Company-operated restaurants; • payroll and employee benefit costs, which represent the wages paid to Company-operated restaurant managers and crew, as well as the costs of benefits and training, and which tend to increase as we increase sales; • occupancy and other operating expenses, which represent all other direct costs of our Company-operated restaurants, including advertising and promotional expenses, the costs of outside rent, which are generally tied to sales and therefore increase as we increase our sales, outside services, such as delivery fee, security and cash collection, building and leasehold improvement depreciation, depreciation on equipment, amortization of intangible assets, repairs and maintenance, insurance, restaurant operating supplies and utilities; and • royalties, which we pay to McDonald’s pursuant to the MFAs, which are determined as a percentage of gross sales. Franchised restaurant occupancy expenses include, mainly, as applicable, the costs of depreciating and maintaining the land and buildings upon which franchised restaurants are situated or the cost of leasing that property. A significant portion of our leases establish that rent payments are based on the greater of a flat fee or a specified percentage of the restaurant’s sales. We promote the McDonald’s brand and our products by advertising in all of the Territories. The MFAs require us to spend at least 5% of our gross sales on advertisement and promotion activities, unless otherwise agreed with McDonald’s. These activities are guided by our overall marketing plan, which identifies the key strategic platforms that we leverage to drive sales. Our sub‑franchisees are generally required to pay us a certain percentage of their gross sales to cover advertising expenditures related to their restaurants. In Mexico, both we and our sub-franchisees contribute funds to a cooperative that is responsible for advertisement and promotion activities. We account for these payments as a deduction to our advertising expenses. As a result, our advertising expenses only reflect the expenditures related to Company-operated restaurants. Advertising expenses are recorded within the “Occupancy and other operating expenses” line item in our consolidated statement of income. 58 Table of Contents General and administrative expenses include the cost of overhead, including salaries and facilities, travel expenses, depreciation of office equipment, buildings and vehicles, amortization of intangible assets, occupancy costs, professional services, the cost of field management for Company-operated and franchised restaurants, and severance payments, among others. Other operating income, net, includes gains and losses on asset acquisitions and dispositions, gains related to sales and exchange of restaurant businesses, write-offs of long-lived assets, insurance recovery, impairment charges, rental income and depreciation expenses of excess properties, accrual for contingencies, write-offs of inventory, recovery of taxes, results from equity method investments and other miscellaneous items. Other Line Items Net interest expense and other financing results primarily includes interest expense on our short-term and long-term debt, interest income and other financing results. (Loss) gain from derivative instruments relates to the results of derivatives that are not designated for hedge accounting. Foreign currency exchange results relates to the impact of remeasuring monetary assets and liabilities denominated in currencies other than our functional currencies. See “—Foreign Currency Translation.” Other non-operating expenses, net, primarily includes certain results related to tax credits, asset taxes that we are required to pay in certain countries, and other non-operating charges. Income tax expense, net includes both current and deferred income taxes. Current income taxes represent the amount accrued during the period to be paid to the tax authorities while deferred income taxes represent the earnings impact of the change in deferred tax assets and liabilities that are recognized in our balance sheet for future income tax consequences. Net income attributable to non-controlling interests relates to the participation of non-controlling interests in the net income of certain subsidiaries that collectively owned 19 restaurants as of December 31, 2025 (16 restaurants as of December 31, 2024). Impact of Inflation and Changing Prices Some of the countries in which we operate have experienced, or are currently experiencing, high rates of inflation. In general, we believe that, over time, we have demonstrated the ability to manage inflationary environments effectively. During 2025 and 2024, our revenues were favorably impacted by our pricing strategy in many of these inflationary environments, as we were able to keep average check growth roughly in-line with inflation in each period. Key Business Measures We track our results of operations and manage our business by using three key business measures: comparable sales growth, average restaurant sales, and sales growth in constant currency. In analyzing business trends, management considers a variety of performance and financial measures which are considered to be non-GAAP including: comparable sales growth, average restaurant sales, constant currency measures, Adjusted EBITDA, and systemwide data. 59 Table of Contents Comparable Sales and comparable sales growth Comparable sales is a key performance indicator used within the retail industry and is indicative of the success of our initiatives as well as local economic, competitive and consumer trends. Comparable sales are driven by changes in traffic and average check, which is affected by changes in pricing and product mix. Increases or decreases in comparable sales represent the percent change in sales from the prior year for all restaurants in operation for at least 13 months, including those temporarily closed. Some of the reasons restaurants may close temporarily include reimaging or remodeling, rebuilding, road construction, natural disasters and/or other circumstances such as pandemics. With respect to restaurants where there are changes in ownership, all previous months’ sales are reclassified according to the new ownership category when reporting comparable sales. As a result, there will be discrepancies between the sales figures used to calculate comparable sales and our results of operations. We report on a calendar basis, and therefore the comparability of the same month, quarter and year with the corresponding period for the prior year is impacted by the mix of days. The number of weekdays, weekend days and timing of holidays in a period can impact comparable sales positively or negatively. We refer to these impacts as calendar shift/trading day adjustments. These impacts vary geographically due to consumer spending patterns and have the greatest effect on monthly comparable sales while annual impacts are typically minimal. We calculate and analyze comparable sales and average check in our divisions and systemwide on a constant currency basis, which means that sales in local currencies, including the Argentine peso and Venezuelan bolívar, are converted to U.S. dollars using the same exchange rate in the applicable division or systemwide, as applicable, over the periods under comparison to remove the effects of currency fluctuations from the analysis. We believe these constant currency measures, which are considered to be non-GAAP measures, provide a more meaningful analysis of our business by identifying the underlying business trend without distortion from the effect of foreign currency fluctuations. Company-operated comparable sales growth refers to comparable sales growth for Company-operated restaurants and franchised comparable sales growth refers to comparable sales growth for franchised restaurants. We believe comparable sales growth is a key indicator of our performance, as influenced by our strategic initiatives and those of our competitors. Average Restaurant Sales Average restaurant sales, or “ARS,” is an important measure of the financial performance of our systemwide restaurants and changes in the overall direction and trends of sales. ARS is calculated by dividing the sales for the relevant period by the arithmetic mean of the number of restaurants at the beginning and end of such period. ARS is influenced mostly by comparable sales performance and restaurant openings and closures. As ARS is provided in nominal terms, it is affected by movements in foreign currency exchange rates. Sales Growth and sales growth in constant currency Sales growth refers to the change in sales by all restaurants, whether operated by us or by sub‑franchisees, from one period to another. We present sales growth both in nominal terms and on a constant currency basis, which means the latter is calculated by converting sales in local currencies, including the Argentine peso and Venezuelan bolívar, to U.S. dollar using the same exchange rate over the periods under comparison to remove the effects of currency fluctuations from the analysis. Adjusted EBITDA We use Adjusted EBITDA to facilitate operating performance comparisons from period to period. Adjusted EBITDA is defined as our operating income (loss) plus depreciation and amortization plus/minus the following losses/gains included within other operating income (expenses), net, and within general and administrative expenses in our statement of income: gains from sales, insurance recovery and contribution in equity method investments of property and equipment; write-offs of long-lived assets; impairment of long-lived assets and goodwill; and reorganization and optimization plan expenses. See “Item 3. Key Information—A. Selected Financial Data.” We believe Adjusted EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures (affecting net interest expense and other financing results), taxation (affecting income tax expense, net) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for different companies for reasons unrelated to operating performance. In addition, we exclude gains from sales, insurance recovery and contribution in equity method investments of property and equipment not related to our core business; write-offs of long-lived assets, impairment of long-lived assets and goodwill that do not result in cash payments, and reorganization and optimization plan expenses. While a GAAP measure for purposes of 60 Table of Contents our segment reporting, Adjusted EBITDA is a non-GAAP measure for reporting our total Company performance. Our management believes, however, that disclosure of Adjusted EBITDA provides useful information to investors, financial analysts and the public in their evaluation of our operating performance. Systemwide data Systemwide data represents measures for both Company-operated and franchised restaurants. While sales by sub‑franchisees are not recorded as revenues by us, management believes the information is important in understanding our financial performance because these sales are the basis on which we calculate and record franchised restaurant revenues and are indicative of the financial health of our sub-franchisee base. Systemwide results are driven primarily by our Company-operated restaurants, as 71.4% of our systemwide restaurants are Company-operated as of December 31, 2025. Foreign Currency Translation The financial statements of our foreign operating subsidiaries are translated in accordance with guidance in ASC 830, Foreign Currency Matters. Except for our Venezuelan and Argentine operations, the functional currencies of our foreign operating subsidiaries are the local currencies of the countries in which we conduct our operations. Therefore, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rates as of the balance sheet date, and revenues and expenses are translated at the average exchange rates prevailing during the period. Translation adjustments are included in the “Accumulated other comprehensive loss” component of shareholders’ equity. We record foreign currency exchange results related to monetary assets and liabilities transactions, including intercompany transactions, denominated in currencies other than our functional currencies in our consolidated statement of income. Under U.S. GAAP, an economy is considered to be highly inflationary when its three-year cumulative rate of inflation meets or exceeds 100%. Since January 1, 2010 and July 1, 2018, respectively, Venezuela and Argentina were considered to be highly inflationary, and as such, the financial statements of each of these subsidiaries are remeasured as if its functional currency was the reporting currency of the relevant subsidiary’s immediate parent company (U.S. dollars). As a result, remeasurement gains and losses are recognized in earnings rather than in the cumulative translation adjustment component of “Accumulated other comprehensive loss” within shareholders’ equity. See “Item 3. Key Information—A. Selected Financial Data—Exchange Rates and Exchange Controls” for information regarding exchange rates for the Argentine currency. Critical Accounting Estimates This management’s discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses as well as related disclosures. On an ongoing basis, we evaluate our estimates and judgments based on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under varying assumptions or conditions. We consider an accounting estimate to be critical if: •the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change; and •the impact of the estimates and assumptions on our financial condition or operating performance is material. We believe that of our significant accounting policies, the following encompass a higher degree of judgment and/or complexity. 61 Table of Contents Depreciation of Property and Equipment Accounting for property and equipment involves the use of estimates for determining the useful lives of the assets over which they are to be depreciated. We believe that the estimates we make to determine an asset’s useful life are critical accounting estimates because they require our management to make estimates about technological evolution and competitive uses of assets. We depreciate property and equipment on a straight-line basis over their useful lives based on management’s estimates of the period over which these assets will generate revenue (not to exceed the lease term plus renewal options for leased property). The useful lives are estimated based on historical experience with similar assets, taking into account anticipated technological or other changes. We periodically review these lives relative to physical factors, economic considerations and industry trends. If there are changes in the planned use of property and equipment, or if technological changes occur more rapidly than anticipated, the useful lives assigned to these assets may need to be shortened, resulting in the recognition of increased depreciation and amortization expense or write-offs in future periods. No significant changes to useful lives have been recorded in the past. A significant change in the facts and circumstances that we relied upon in making our estimates may have a material impact on our operating results and financial condition. Impairment of Long-Lived Assets and Goodwill We review long-lived assets (including property and equipment, intangible assets with definite useful lives and lease right of use assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We review goodwill for impairment annually, primarily during the fourth quarter, or when an impairment indicator exists. In assessing the recoverability of our long-lived assets and goodwill, we consider changes in economic conditions and make assumptions regarding, among other factors, estimated future cash flows by market and by restaurant, discount rates by country and the fair value of the assets. Estimates of future cash flows are highly subjective judgments based on our experience and knowledge of our operations. These estimates can be significantly impacted by many factors, including changes in global and local business and economic conditions, operating costs, inflation, competition, and consumer and demographic trends. See Note 3 to our consolidated financial statements for a detail of markets for which we performed impairment tests of our long-lived assets and goodwill, as well as impairment charges recorded. If our estimates or underlying assumptions change in the future, we may be required to record additional impairment charges. Accounting for Taxes We record a valuation allowance to reduce the carrying value of deferred tax assets if it is more likely than not that some portion or all of our deferred assets will not be realized. Our valuation allowance as of December 31, 2025, 2024, and 2023 amounted to $235.8 million, $204.9 million and $218.7 million, respectively. We have considered future taxable income and ongoing prudent and feasible tax strategies in assessing the need for the valuation allowance. This assessment is carried out on the basis of internal projections, which are updated to reflect our most recent operating trends, such as the expiration date for tax loss carryforwards. Because of the imprecision inherent in any forward-looking data, the further into the future our estimates project, the less objectively verifiable they become. Therefore, we apply judgment to define the period of time to include projected future income to support the future realization of the tax benefit of an existing deductible temporary difference or carryforward and whether there is sufficient evidence to support the projections at a more-likely-than-not level for this period of time. Determining whether a valuation allowance for deferred tax assets is necessary often requires an extensive analysis of positive (e.g., a history of accurately projecting income) and negative evidence (e.g., historic operating losses) regarding realization of the deferred tax assets and inherent in that, an assessment of the likelihood of sufficient future taxable income. In 2025, we recognized net loss amounting to $13.2 million as compared to net loss amounting to $22.4 million in 2024 and net loss of $22.6 million in 2023. If these estimates and assumptions change in the future, we may be required to adjust the valuation allowance. This could result in a charge to, or an increase in, income in the period this determination is made. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The Company assesses the likelihood of any adverse judgments or outcomes on its tax positions, including income tax and other taxes, based on the technical merits of a tax position derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position. It is reasonably possible that, as a result of audit progression within the next 12 months, there may be new information that causes the Company to reassess its tax positions because the outcome of tax audits cannot be predicted with certainty. 62 Table of Contents While the Company cannot estimate the impact that new information may have on its unrecognized tax benefit balance, it believes that the liabilities recorded are appropriate and adequate as determined under ASC 740 and ASC 450. See Notes 3 and 17 to our consolidated financial statements. Provision for Contingencies We have certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings, including those involving labor, tax and other matters. Accounting for contingencies involves the use of estimates for determining the probability of each contingency and the estimated amount to settle the obligation, including related costs. We accrue liabilities when it is probable that future costs will be incurred and the costs can be reasonably estimated. These accruals are based on all the information available at the issuance date of the consolidated financial statements, including our estimates of the outcomes of these matters and our lawyers’ experience in contesting, litigating and settling similar matters. If we are unable to reliably measure the obligation, no provision is recorded and information is then presented in the notes to our consolidated financial statements. As the scope of the liabilities becomes better defined, there may be changes in the estimates of future costs. Because of the inherent uncertainties in this estimation, actual expenditures may be different from the originally estimated amount recognized. See “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Legal Proceedings” for a description of significant claims, lawsuits and other proceedings. See Notes 19 and 26 to our consolidated financial statements. Results of Operations We have based the following discussion on our consolidated financial statements. You should read it along with these financial statements, and it is qualified in its entirety by reference to them. In a number of places in this annual report, in order to analyze changes in our business from period to period, we present our results of operations and financial condition on a constant currency basis, which is considered to be a non-GAAP measure. Constant currency results isolate the effects of foreign exchange rates on our results of operations and financial condition. In particular, we have isolated the effects of appreciation and depreciation of local currencies in the Territories against the U.S. dollar because we believe that doing so is useful in understanding the development of our business. For these purposes, we eliminate the effect of movements in the exchange rates by converting the balances in local currency for both periods being compared from their local currencies to the U.S. dollar using the same exchange rate. Key Business Measures The following tables present sales, sales growth, sales growth on a constant currency basis, comparable sales growth and average restaurant sales increases: Systemwide Sales Sales growth Sales growth in constant currency Comparable sales growth For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, 2025 2024 2023 2025(1) 2024(3) 2025(1) 2024(3) 2025(2) 2024(4) (in thousands of U.S. dollars, except percentages) Company-operated restaurants 4,465,177 4,266,748 4,137,675 4.7 % 3.1 % 15.6 % 40.4 % 12.4 % 35.9 % Franchisedrestaurants(5) 1,608,932 1,534,410 1,477,990 4.9 % 3.8 % 17.8 % 28.0 % 14.8 % 24.2 % Total restaurants 6,074,109 5,801,158 5,615,665 4.7 % 3.3 % 16.2 37.1 % 13.0 % 32.8 % (1) In nominal terms, sales increased during 2025 due to comparable sales growth of 13.0%, as a result of the increase in average check in Brazil and SLAD, together with higher traffic in SLAD and NOLAD. This was partially offset by the negative impact of the depreciation of currencies, mainly in Venezuela, Argentina, Brazil and Mexico. We had 1,800 Company-operated restaurants and 720 franchised restaurants as of December 31, 2025, compared to 1,725 Company-operated restaurants and 703 franchised restaurants as of December 31, 2024. 63 Table of Contents (2) Our comparable sales increase on a systemwide basis in 2025 was driven by the increase in average check in Brazil and SLAD, together with higher traffic in SLAD and NOLAD. This was partially offset by lower traffic in Brazil and a decrease in average check in NOLAD. (3) In nominal terms, sales increased during 2024 due to comparable sales growth of 32.8%, as a result of higher traffic in NOLAD and Brazil, together with the increase in average check in all divisions. This was partially offset by lower traffic in SLAD and the negative impact of the depreciation of currencies, mainly in Argentina, Brazil, Chile, Venezuela, and Mexico. We had 1,725 Company-operated restaurants and 703 franchised restaurants as of December 31, 2024, compared to 1,678 Company-operated restaurants and 683 franchised restaurants as of December 31, 2023. (4) Our comparable sales increase on a systemwide basis in 2024 was driven by the increase in traffic in most of our markets, together with the increase of average check in all divisions. (5) Franchised restaurant sales correspond to sales generated by franchised restaurants, which we do not collect. Revenues from franchised restaurants primarily consist of rental income. By division Systemwide Sales Sales growth Sales growth in constant currency Comparable sales growth For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, 2025 2024 2023 2025 2024 2025 2024 2025 2024 (in thousands of U.S. dollars, except percentages) Company-operated restaurants: Brazil $ 1,632,177 $ 1,635,954 $ 1,574,792 (0.2) % 3.9 % 3.3 % 12.4 % (0.5) % 6.8 % NOLAD 1,230,695 1,187,689 1,097,980 3.6 % 8.2 % 4.5 % 8.5 % 0.7 % 5.4 % SLAD 1,602,305 1,443,105 1,464,903 11.0 % (1.5) % 38.9 % 94.3 % 37.2 % 90.8 % Total Sales by Company-operated restaurants 4,465,177 4,266,748 4,137,675 4.7 % 3.1 % 15.6 % 40.4 % 12.4 % 35.9 % Franchised-restaurants:(3) Brazil 1,056,132 1,017,972 979,973 3.7 % 3.9 % 7.4 % 12.4 % 4.6 % 9.5 % NOLAD 271,958 284,823 265,453 (4.5) % 7.3 % (0.7) % 10.0 % 3.7 % 11.2 % SLAD 280,842 231,615 232,564 21.3 % (0.4) % 86.0 % 114.7 % 68.6 % 96.2 % Total sales by Franchised restaurants 1,608,932 1,534,410 1,477,990 4.9 % 3.8 % 17.8 % 28.0 % 14.8 % 24.2 % Total restaurants: Brazil 2,688,309 2,653,926 2,554,765 1.3 % 3.9 % 4.9 % 12.4 % 1.5 % 7.9 % NOLAD 1,502,653 1,472,512 1,363,433 2.0 % 8.0 % 3.2 % 8.8 % 1.3 % 6.5 % SLAD 1,883,147 1,674,720 1,697,467 12.4 % (1.3) % 45.4 % 97.1 % 41.9 % 91.6 % Total sales by restaurants 6,074,109 5,801,158 5,615,665 4.7 % 3.3 % 16.2 % 37.1 % 13.0 % 32.8 % Systemwide Sales Number of restaurants Average restaurant sales For the Years Ended December 31, For the Years Ended December 31, For the YearsEnded December 31, 2025 2024 2023 2025 2024 2023 2025(1) 2024(2) (in thousands of U.S. dollars, except for number of restaurants) Company-operated restaurants $ 4,465,177 $ 4,266,748 $ 4,137,675 1,800 1,725 1,678 $ 2,481 $ 2,473 Franchised restaurants(3) 1,608,932 1,534,410 1,477,990 720 703 683 2,235 2,183 Total restaurants 6,074,109 5,801,158 5,615,665 2,520 2,428 2,361 2,410 2,389 64 Table of Contents (1) Our ARS increased in 2025 due to the increase in average check in Brazil and SLAD, together with higher traffic in SLAD and NOLAD. This was partially offset by lower traffic in Brazil, a decrease in average check in NOLAD and the negative impact of the depreciation of currencies, mainly in Venezuela, Argentina, Mexico, Brazil, and Uruguay. (2) Our ARS increased in 2024 due to higher traffic mainly in NOLAD and Brazil, together with an increase in average check across all divisions. This was partially offset by lower traffic in SLAD and the negative impact of depreciation of currencies, mainly in Argentina, Brazil, Chile, Venezuela, and Mexico. (3) Franchised restaurant sales correspond to sales generated by franchised restaurants, which we do not collect. Revenues from franchised restaurants primarily derive from rental income. Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Set forth below are our results of operations for the years ended December 31, 2025 and 2024. For the Years Ended December 31, %Change 2025 2024 (in thousands of U.S. dollars) Sales by Company-operated restaurants $ 4,465,177 $ 4,266,748 4.7 % Revenues from franchised restaurants 213,082 203,414 4.8 % Total revenues 4,678,259 4,470,162 4.7 % Company-operated restaurant expenses: Food and paper (1,606,076) (1,498,853) 7.2 % Payroll and employee benefits (835,109) (797,620) 4.7 % Occupancy and other operating expenses (1,300,420) (1,238,220) 5.0 % Royalty fees (273,018) (265,382) 2.9 % Franchised restaurants – occupancy expenses (89,518) (83,665) 7.0 % General and administrative expenses (312,750) (279,859) 11.8 % Other operating income, net 103,025 17,952 473.9 % Total operating costs and expenses (4,313,866) (4,145,647) 4.1 % Operating income 364,393 324,515 12.3 % Net interest expense and other financing results (13,660) (47,238) (71.1) % (Loss) gain from derivative instruments (3,078) 941 (427.1) % Foreign currency exchange results (4,859) (15,063) (67.7) % Other non-operating expenses, net (1,484) (3,873) (61.7) % Income before income taxes 341,312 259,282 31.6 % Income tax expense, net (128,728) (109,903) 17.1 % Net income 212,584 149,379 42.3 % Less: Net income attributable to non-controlling interests (468) (620) (24.5) % Net income attributable to Arcos Dorados Holdings Inc. $ 212,116 $ 148,759 42.6 % 65 Table of Contents Set forth below is a summary of changes to our systemwide, Company-operated and franchised restaurant portfolios in 2025 and 2024. Systemwide Restaurants For the Years EndedDecember 31, 2025 2024 Systemwide restaurants at beginning of period 2,428 2,361 Restaurant openings 102 85 Acquisition of restaurants (1) 3 — Restaurant closings (13) (18) Systemwide restaurants at end of period 2,520 2,428 Company-Operated Restaurants For the Years EndedDecember 31, 2025 2024 Company-operated restaurants at beginning of period 1,725 1,678 Restaurant openings 73 62 Acquisition of restaurants (1) 3 — Restaurant closings (9) (17) Net conversions of franchised restaurants to Company-operated restaurants 8 2 Company-operated restaurants at end of period 1,800 1,725 (1) Related to St. Martin. Franchised Restaurants For the Years EndedDecember 31, 2025 2024 Franchised restaurants at beginning of period 703 683 Restaurant openings 29 23 Restaurant closings (4) (1) Net conversions of franchised restaurants to Company-operated restaurants (8) (2) Franchised restaurants at end of period 720 703 Revenues For the Years Ended December 31, % Change 2025 2024 (in thousands of U.S. dollars) Sales by Company-operated restaurants Brazil $ 1,632,177 $ 1,635,954 (0.2) % NOLAD 1,230,695 1,187,689 3.6 % SLAD 1,602,305 1,443,105 11.0 % Total 4,465,177 4,266,748 4.7 % Revenues from franchised restaurants Brazil 138,124 132,357 4.4 % NOLAD 35,434 38,062 (6.9) % SLAD 39,524 32,995 19.8 % Total 213,082 203,414 4.8 % Total revenues Brazil 1,770,301 1,768,311 0.1 % NOLAD 1,266,129 1,225,751 3.3 % SLAD 1,641,829 1,476,100 11.2 % Total 4,678,259 4,470,162 4.7 % 66 Table of Contents Sales by Company-operated Restaurants Total sales by Company-operated restaurants increased by $198.4 million, or 4.7%, from $4,266.7 million in 2024 to $4,465.2 million in 2025. This growth was mainly driven by the increase in average check of 13.6% partially offset by the decrease in traffic in the Territories of 1.1%, which led to an increase in comparable sales by Company-operated restaurants of 12.4%, equivalent to $527.8 million. In addition, the opening of 135 Company-operated restaurants, the closure of 26 Company-operated restaurants, the net conversion of 10 franchised restaurants into Company-operated restaurants since January 1, 2024 and the acquisition of three restaurants, contributed $143.1 million to sales. This was partially offset by the depreciation of currencies, based on average foreign exchange rates during 2025 and 2024 against the U.S. dollar, which resulted in a $469.3 million sales decline, mainly in Argentina, Venezuela, Brazil and Mexico. In Brazil, sales by Company-operated restaurants decreased by $3.8 million, or 0.2%, to $1,632.2 million in 2025. This was primarily due to the depreciation of the Brazilian real against the U.S. dollar, based on average foreign exchange rates during 2025 and 2024, that resulted in a sales decrease of $57.5 million, together with a decrease in comparable sales of 0.5%, as a result of lower traffic of 6.8%, while average check grew by 6.8%, which resulted in a sales decrease of $7.9 million. This was partially offset by 69 net restaurants openings coupled with the conversion of 4 franchised restaurants into Company-operated restaurants since January 1, 2024, which resulted in a $62.9 million increase in sales. In NOLAD, sales by Company-operated restaurants increased by $43.0 million, or 3.6%, to $1,230.7 million in 2025. This was primarily due to the opening of 22 Company-operated restaurants, the conversion of 12 franchised restaurants into Company-operated restaurants, the closing of 9 Company-operated restaurants since January 1, 2024 and the acquisition of three restaurants, which had a positive impact of $43.9 million in sales, together with an increase in comparable sales growth of 0.7%, as a result of higher traffic of 2.2%, while average check decreased by 1.5%, which resulted in a sales increase of $8.9 million. This was partially offset by the depreciation of local currencies, based on average foreign exchange rates during 2025 and 2024, explained by Mexico, which had a $10.0 million negative impact on sales. In SLAD, sales by Company-operated restaurants increased by $159.2 million, or 11.0%, to $1,602.3 million in 2025. This was primarily driven by an increase in comparable sales of 37.2%, mainly driven by the increase in average check of 31.6%, primarily due to the inflationary context in Argentina and Venezuela, and an increase in traffic of 4.3%, which resulted in a sales increase of $526.8 million. In addition, the opening of 36 Company-operated restaurants and the closure of 9 Company-operated restaurants, coupled with the conversion of 6 Company-operated restaurants into franchised restaurants, since January 1, 2024, contributed $36.3 million to sales. This was partially offset by the depreciation of currencies against the U.S. dollar, based on average foreign exchange rates during 2025 and 2024, in particular the Argentinian peso and the Venezuelan Bolivar, which caused sales to decrease by $401.8 million. Revenues from Franchised Restaurants Our total revenues from franchised restaurants increased by $9.7 million, or 4.8%, from $203.4 million in 2024 to $213.1 million in 2025. Higher revenues are mainly driven by an increase in comparable sales, which caused revenues to grow by $27.4 million. In addition, the net opening of 47 franchised restaurants, partially offset by the net conversion of 10 franchised restaurant into Company-operated restaurants, since January 1, 2024, increased revenues by $6.9 million. This was partially offset by a lower rental income as a percentage of sales from franchised restaurants that reduced revenues from franchised restaurants in $0.4 million as well as the depreciation of currencies against the U.S. dollar, based on average foreign exchange rates during 2025 and 2024, which caused revenues to decrease by $24.2 million. In Brazil, revenues from franchised restaurants increased by $5.8 million, or 4.4%, to $138.1 million in 2025, which was mainly driven by higher comparable sales of 4.6%, which increased revenues by $6.1 million. Additionally, the net opening of 31 franchised restaurants, partially offset by the conversion of 4 franchised restaurants into Company-operated restaurants, since January 1, 2024, caused revenues from franchised restaurants to increase by $3.8 million. The increase in rental income as a percentage of sales contributed $0.8 million to revenues, while the depreciation of the real against the U.S. dollar, based on average foreign exchange rates during 2025 and 2024 decreased revenues by $4.9 million. 67 Table of Contents In NOLAD, revenues from franchised restaurants decreased by $2.6 million, or 6.9%, to $35.4 million in 2025. This decrease was driven by the conversion of 12 franchised restaurants into Company-operated restaurants, coupled with closure of 1 franchised restaurants partially offset by the opening of 7 franchised restaurant since January 1, 2024, which caused revenues to decrease by $1.5 million. This was coupled with the depreciation of local currencies, based on average foreign exchange rates during 2025 and 2024, which had a negative impact of $1.4 million, and a decrease in rental income as a percentage of sales that decreased revenues by $1.0 million. This was partially offset by higher comparable sales of 3.7%, which resulted in a $1.2 million increase in revenues. In SLAD, revenues from franchised restaurants increased by $6.5 million, or 19.8%, to $39.5 million in 2025. This increase was driven by higher comparable sales of 68.6%, highly driven by hyperinflation in Argentina and Venezuela, which resulted in a $20.1 million increase in revenues. This was coupled with the opening of 11 franchised restaurants and the conversion of 6 Company-operated restaurants into franchised restaurants, partially offset by 1 closure since January 1, 2024, which increased revenues by $4.6 million. This was partially offset by the depreciation of currencies against the U.S. dollar in the division, based on average foreign exchange rates during 2025 and 2024, which caused a decrease in revenues of $17.9 million, together with a lower rental income as a percentage of sales, reducing revenues by $0.2 million. Operating Costs and Expenses Food and Paper Our total food and paper costs increased by $107.2 million, or 7.2%, to $1,606.1 million in 2025, as compared to 2024. As a percentage of our total sales by Company-operated restaurants, food and paper costs increased 0.8 percentage points to 36.0%. This increase is explained by higher cost increases as compared to price increases in several markets, which was partially offset by better waste management. In Brazil, food and paper costs increased by $30.5 million, or 5.4%, to $595.5 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, food and paper costs increased by 2.0 percentage points to 36.5%, primarily as a result of higher cost increases as compared to price increase, which was partially offset by a favorable product mix. In NOLAD, food and paper costs increased by $17.3 million, or 4.1%, to $438.8 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, food and paper costs increased by 0.2 percentage points to 35.7%, mainly explained by higher cost increase as compared to price increase in Mexico and a less favorable product mix in Costa Rica and Puerto Rico, partially offset by higher price increases as compared to costs in Panama, Costa Rica and Puerto Rico. In SLAD, food and paper costs increased by $59.4 million, or 11.6%, to $571.8 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, food and paper costs increased by 0.2 percentage points to 35.7%, mainly explained by worse product mix, mainly in Argentina, partially offset by better waste management. Payroll and Employee Benefits Our total payroll and employee benefits costs increased by $37.5 million, or 4.7%, to $835.1 million in 2025, as compared to 2024. As a percentage of our total sales by Company-operated restaurants, payroll and employee benefits costs remained in line with 2024 at 18.7%. In Brazil, payroll and employee benefits costs increased by $17.2 million, or 6.3%, to $290.2 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, payroll and employee benefits costs increased by 1.1 percentage points to 17.8%, mainly as a result of a recovery related to social security contributions in 2024 compared with no such recovery in 2025, which was partially offset by efficiencies in crew and management payroll. In NOLAD, payroll and employee benefits costs increased by $3.1 million, or 1.2%, to $252.8 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, payroll and employee benefits costs decreased by 0.5 percentage points to 20.5%, mainly due to higher crew productivity which was partially offset by the growth of crew hour costs above average check growth in several markets of the division. In SLAD, payroll and employee benefits costs increased by $17.2 million, or 6.3%, to $292.1 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, payroll and employee benefits decreased by 0.8 percentage points to 18.2% due to higher crew productivity coupled with management payroll efficiencies. 68 Table of Contents Occupancy and Other Operating Expenses Our total occupancy and other operating expenses increased by $62.2 million, or 5.0%, to $1,300.4 million in 2025, as compared to 2024. As a percentage of our total sales by Company-operated restaurants, occupancy and other operating expenses increased 0.1 percentage points to 29.1%, driven by higher depreciation costs and outside rent, partially offset by lower delivery costs and operating supplies costs. In Brazil, occupancy and other operating expenses increased by $1.4 million, or 0.3%, to $464.5 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, occupancy and other operating expenses increased by 0.2 percentage points to 28.5%, mainly due to higher outside rent and higher depreciation costs partially offset by lower delivery costs. In NOLAD, occupancy and other operating expenses increased by $18.5 million, or 5.4%, to $360.4 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, occupancy and other operating expenses increased by 0.5 percentage points to 29.3% due to higher depreciation costs and outside rent partially offset by lower delivery costs. In SLAD, occupancy and other operating expenses increased by $41.9 million, or 9.7%, to $475.1 million in 2025. As a percentage of the division’s sales by Company-operated restaurants, occupancy and other operating expenses decreased by 0.4 percentage points to 29.6%, due to lower operating supplies, utilities and collection costs. Royalty Fees Our total royalty fees increased by $7.6 million, or 2.9%, to $273.0 million in 2025, as compared to 2024. As a percentage of sales by Company-operated restaurants, royalty fees decreased by 0.1 percentage points to 6.1% mainly due to royalty fee percentage change due to the renewal of the MFA in 2025, partially offset by the absence of growth support funding provided by McDonald’s to Arcos Dorados. In Brazil, royalty fees increased by $22.1 million, or 25.3%, to $109.7 million in 2025. As a percentage of sales by Company-operated restaurants, royalty fees increased by 1.4 percentage points to 6.7% mainly due to the absence of growth support funding provided by McDonald’s to Arcos Dorados, partially offset by royalty fee percentage change due to the renewal of the MFA in 2025. In NOLAD, royalty fees decreased by $9.6 million, or 11.6%, to $72.6 million in 2025, as compared to 2024. As a percentage of sales by Company-operated restaurants, royalty fees decreased by 1.0 percentage points, closing 2025 at 5.9%, driven by royalty fee percentage change due to the renewal of the MFA in 2025. In SLAD, royalty fees decreased by $4.9 million, or 5.1%, to $90.7 million in 2025 as compared to 2024. As a percentage of sales by Company-operated restaurants, royalty fees decreased by 1.0 percentage points, closing 2025 at 5.7%, driven by royalty fee percentage change due to the renewal of the MFA in 2025. Franchised Restaurants—Occupancy Expenses Occupancy expenses from franchised restaurants increased by $5.9 million or 7.0%, to $89.5 million in 2025, as compared to 2024, mainly due to higher rent expenses for leased properties, as a consequence of higher comparable sales from franchised restaurants. This was partially offset by depreciation of currencies, especially in Venezuela, Brazil, Argentina and Mexico, against the U.S. dollar. In Brazil, occupancy expenses from franchised restaurants increased by $3.4 million, or 5.6%, to $63.6 million in 2025, as compared to 2024. This increase in occupancy expenses from franchised restaurants was primarily due to higher rent expenses for leased properties, as a consequence of the increase in comparable sales from franchised restaurants, higher taxes and a higher bad debt reserve, partially offset by the depreciation of the Brazilian real against the U.S. dollar. 69 Table of Contents In NOLAD, occupancy expenses from franchised restaurants decreased by $0.3 million, or 2.5%, to $12.7 million in 2025, as compared to 2024, mainly due to the depreciation of the Mexican peso against the U.S. dollar coupled with lower rent expenses for leased properties, as a consequence of the net conversions of franchised restaurants to Company-operated restaurants, partially offset by the increase in comparable sales from franchised restaurants. In SLAD, occupancy expenses from franchised restaurants increased by $2.8 million, or 26.6%, to $13.2 million in 2025, as compared to 2024, mainly due to higher rent expenses for leased properties, as a consequence of the increase in comparable sales from franchised restaurants. This was partially offset by the depreciation of the Argentinean peso, Venezuelan bolívar and the Chilean peso against the U.S. dollar. Set forth below are the margins for our franchised restaurants in 2025 as compared to 2024. The margin for our franchised restaurants is expressed as a percentage and is equal to the difference between revenues from franchised restaurants and occupancy expenses from franchised restaurants, divided by revenues from franchised restaurants. For the Years EndedDecember 31, 2025 2024 Brazil 54.0 % 54.5 % NOLAD 64.1 % 65.8 % SLAD 66.5 % 68.3 % Total 58.0 % 58.9 % General and Administrative Expenses General and administrative expenses increased by $32.9 million, or 11.8%, from $279.9 million in 2024 to $312.8 million in 2025. The increase was primarily explained by higher payroll expenses, severance expenses, and bonuses and other variable compensation. In addition, higher outside services and occupancy expenses together with higher travel expenses and other expenses. This was partially offset by the depreciation of various currencies against the U.S. dollar, including the Venezuelan bolivar, the Argentine peso and the Brazilian real. In Brazil, general and administrative expenses increased by $11.4 million, or 16.8%, from $67.6 million in 2024 to $79.0 million in 2025. The increase resulted mainly from higher payroll expenses of $5.8 million and severance expenses of $2.6 million, higher occupancy expenses of $3.0 million, an increase in bonuses and other variable compensation of $1.5 million, an increase in outside services of $0.9 million and higher travel expenses of $0.5 million. This was partially offset by the depreciation of the Brazilian real against the U.S. dollar, which contributed in a reduction of general and administrative expenses by $2.4 million, together with a decrease in other expenses of $0.5 million. In NOLAD, general and administrative expenses increased by $9.2 million, or 17.8%, from $51.8 million in 2024 to $61.1 million in 2025. This increase was driven by higher bonuses and other variable compensations expenses of $2.8 million, higher payroll expenses of $2.4 million and higher occupancy expenses of $1.7 million. Moreover, the division recorded severance expenses amounting to $1.6 million, higher outside services of $1.3 million and to a lesser extent, an increase in travel expenses of $0.5 million. This was partially offset by the depreciation of currencies, particularly the Mexican peso, with a total impact of $0.8 million and lower other expenses of $0.3 million. In SLAD, general and administrative expenses increased by $7.3 million, or 11.9%, from $60.9 million in 2024 to $68.1 million in 2025. This increase was mainly explained by higher payroll expenses amounting to $21.0 million, primarily in Venezuela and Argentina due to their inflationary environment, together with higher outside services amounting to $5.4 million, and higher occupancy expenses amounting to $3.7 million. In addition, severance expenses drove an increase in general and administrative expenses amounting to $3.1 million, along with higher bonuses and other variable compensation expenses of $2.1, and an increase in other expenses and travel of $1.2 million and $1.0 million, respectively. These effects were partially offset by the depreciation of various currencies against the U.S. dollar, mainly the Venezuelan bolivar and the Argentine peso, which resulted in a reduction of general and administrative expenses of $30.4 million. 70 Table of Contents General and administrative expenses for Corporate and others increased by $5.0 million, or 5.0%, from $99.5 million in 2024 to $104.5 million in 2025. This increase was mainly driven by higher payroll expenses of $15.8 million, together with severance expenses amounting to $2.7 million, higher bonuses and other variable compensations of $2.1 million, an increase in other expenses and outside services of $1.7 million and, to a lesser degree, higher travel expenses of $0.2 million. This was partially offset by the depreciation of key currencies within the division, such as the Argentine peso and the Brazilian real, which, combined with other minor fluctuations, resulted in a reduction in expenses of $15.5 million, and a decrease in occupancy expenses of $1.9 million. Other Operating Income, net Other operating income, net increased by $85.1 million, to a gain of $103.0 million in 2025. This increase was primarily attributable to the positive impact of a recovery related to a net tax credit in Brazil for $109.6 million partially offset by an increase in write-offs of long-lived assets for $3.9 million, and by the absence in 2025 of a $5.6 million positive effect recognized in 2024, related to a recovery of social security contributions in Brazil. Operating Income For the Years EndedDecember 31, % Change 2025 2024 (in thousands of U.S. dollars) Brazil $ 278,043 $ 269,019 3.4 % NOLAD 71,144 67,412 5.5 % SLAD 119,959 87,406 37.2 % Corporate and other and purchase price allocation (104,753) (99,322) (5.5) % Total 364,393 324,515 12.3 % Operating income increased by $39.9 million, or 12.3%, to $364.4 million in 2025 from $324.5 million in 2024, as a result of the foregoing factors discussed above. Net Interest Expense and other financing results Net interest expense and other financing results decreased by $33.6 million, or 71.1%, to $13.7 million in 2025, as compared to 2024. The decrease was primarily explained by the interest income recorded from the net tax credit in Brazil for $52.9 million, partially offset by an increase for $17.5 million due to the issuance of the 2032 Senior Notes net of the settlement of the 2027 Senior Notes. (Loss) gain from Derivative Instruments (Loss) gain from derivative instruments decreased by $4.0 million to a loss of $3.1 million in 2025, from a gain of $0.9 million in 2024, attributable to the results of derivatives instruments not designated as hedge accounting. Foreign Currency Exchange Results Foreign currency exchange results decreased by $10.2 million, from a loss of $15.1 million in 2024 to a loss of $4.9 million in 2025. The variation was primarily attributable to a favorable impact of $12.4 million by the appreciation of the Brazilian real of 11.4% between December 31, 2024 and December 31, 2025. Other Non-operating Expenses, Net Other non-operating expenses, net decreased by $2.4 million to $1.5 million in 2025, as compared to $3.9 million in 2024. Income Tax Expense, net Income tax expense, net increased by $18.8 million, from $109.9 million in 2024 to $128.7 million in 2025, mainly related to changes in pre-tax income. The consolidated effective tax rate was 37.7% in 2025, as compared to 42.4%, primarily explained by an increase in earnings before tax in Brazil. 71 Table of Contents See Note 17 to our consolidated financial statements for additional information. Net Income Attributable to Non-controlling Interests Net income attributable to non-controlling interests was $0.5 million in the full year ended December 31, 2025. Net Income Attributable to Arcos Dorados Holdings Inc. As a result of the foregoing, net income attributable to Arcos Dorados Holdings Inc. increased by $63.3 million from a gain of $148.8 million in 2024, to a gain of $212.1 million in 2025. 72 Table of Contents Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Set forth below are our results of operations for the years ended December 31, 2024 and 2023. For the Years Ended December 31, %Change 2024 2023 (in thousands of U.S. dollars) Sales by Company-operated restaurants $ 4,266,748 $ 4,137,675 3.1 % Revenues from franchised restaurants 203,414 194,203 4.7 % Total revenues 4,470,162 4,331,878 3.2 % Company-operated restaurant expenses: Food and paper (1,498,853) (1,457,720) 2.8 % Payroll and employee benefits (797,620) (790,042) 1.0 % Occupancy and other operating expenses (1,238,220) (1,154,334) 7.3 % Royalty fees (265,382) (249,278) 6.5 % Franchised restaurants – occupancy expenses (83,665) (83,359) 0.4 % General and administrative expenses (279,859) (285,000) (1.8) % Other operating income, net 17,952 1,894 847.8 % Total operating costs and expenses (4,145,647) (4,017,839) 3.2 % Operating income 324,515 314,039 3.3 % Net interest expense and other financing results (47,238) (32,275) 46.4 % Gain (loss) from derivative instruments 941 (13,183) (107.1) % Foreign currency exchange results (15,063) 10,774 (239.8) % Other non-operating expenses, net (3,873) (1,238) 212.8 % Income before income taxes 259,282 278,117 (6.8) % Income tax expense, net (109,903) (95,702) 14.8 % Net income 149,379 182,415 (18.1) % Less: Net income attributable to non-controlling interests (620) (1,141) (45.7) % Net income attributable to Arcos Dorados Holdings Inc. $ 148,759 $ 181,274 (17.9) % Set forth below is a summary of changes to our systemwide, Company-operated and franchised restaurant portfolios in 2024 and 2023. Systemwide Restaurants For the Years EndedDecember 31, 2024 2023 Systemwide restaurants at beginning of period 2,361 2,312 Restaurant openings 85 81 Restaurant closings (18) (32) Systemwide restaurants at end of period 2,428 2,361 Company-Operated Restaurants For the Years EndedDecember 31, 2024 2023 Company-operated restaurants at beginning of period 1,678 1,633 Restaurant openings 62 60 Restaurant closings (17) (27) Net conversions of franchised restaurants to Company-operated restaurants 2 12 Company-operated restaurants at end of period 1,725 1,678 73 Table of Contents Franchised Restaurants For the Years EndedDecember 31, 2024 2023 Franchised restaurants at beginning of period 683 679 Restaurant openings 23 21 Restaurant closings (1) (5) Net conversions of franchised restaurants to Company-operated restaurants (2) (12) Franchised restaurants at end of period 703 683 Revenues For the Years Ended December 31, % Change 2024 2023 (in thousands of U.S. dollars) Sales by Company-operated restaurants Brazil $ 1,635,954 $ 1,574,792 3.9 % NOLAD 1,187,689 1,097,980 8.2 % SLAD 1,443,105 1,464,903 (1.5) % Total 4,266,748 4,137,675 3.1 % Revenues from franchised restaurants Brazil 132,357 126,755 4.4 % NOLAD 38,062 34,932 9.0 % SLAD 32,995 32,516 1.5 % Total 203,414 194,203 4.7 % Total revenues Brazil 1,768,311 1,701,547 3.9 % NOLAD 1,225,751 1,132,912 8.2 % SLAD 1,476,100 1,497,419 (1.4) % Total 4,470,162 4,331,878 3.2 % Sales by Company-operated Restaurants Total sales by Company-operated restaurants increased by $129.1 million, or 3.1%, from $4,137.7 million in 2023 to $4,266.7 million in 2024. This growth was mainly driven by the increase in traffic in the Territories of 0.8%, together with the increase in average check of 34.8%, which led to an increase in comparable sales by Company-operated restaurants of $1,477.1 million. In addition, the opening of 122 Company-operated restaurants, the closure of 44 Company-operated restaurants and the conversion of 14 franchised restaurants into Company-operated restaurants since January 1, 2023, contributed $195.2 million to sales. This was partially offset by the depreciation of currencies against the U.S. dollar, which resulted in a $1,541.5 million sales decline, mainly in Argentina, Brazil and Chile, and the deferral of sales related to points accrued by customers under our loyalty program decreased sales in the period by $1.7 million. In Brazil, sales by Company-operated restaurants increased by $61.2 million, or 3.9%, to $1,636,0 million in 2024. This was primarily due to an increase of comparable sales of 6.8%, as a result of higher traffic of 1.4%, and an average check growth of 5.4%, which resulted in a sales increase of $107.9 million. In addition, 61 net restaurants openings coupled with the conversion of 6 franchised restaurants into Company-operated restaurants since January 1, 2023 resulted in a $88.9 million increase in sales. This was partially offset by the depreciation of the Brazilian real against the U.S. dollar, that resulted in a sales decrease of $134.8 million and the deferral of sales related to points accrued by customers under our loyalty program decreased sales in the period by $0.8 million. 74 Table of Contents In NOLAD, sales by Company-operated restaurants increased by $89.7 million, or 8.2%, to $1,187.7 million in 2024. This was due to a comparable sales growth of 5.4%, as a result of higher traffic of 5.3%, and an average check growth of 0.1%, which resulted in a sales increase of $59 million. The opening of 23 Company-operated restaurants, the conversion of 10 franchised restaurants into Company-operated restaurants and the closing of 9 Company-operated restaurants since January 1, 2023, had a positive impact of $34.9 million to sales. This was partially offset by the depreciation of local currencies, mainly explained by Mexico, which had a $3.7 million negative impact on sales and the deferral of sales related to points accrued by customers under our loyalty program decreased sales in the period by $0.4 million. In SLAD, sales by Company-operated restaurants decreased by $21.8 million, or 1.5%, to $1,443.1 million in 2024. This was driven by the depreciation of currencies against the U.S. dollar, in particular the Argentine and in a much lesser extent the Chilean peso, and the Venezuelan bolívar, which caused sales to decrease by $1,403.0 million. In addition, the deferral of sales related to points accrued by customers under our loyalty program decreased sales in the period by $0.4 million. This was partially offset by an increase in comparable sales of 90.8%, mainly driven by the increase in average check of 96.2%, primarily due to the inflationary context in Argentina and Venezuela, and a traffic contraction of 2.8%, mostly explained by the economic context in Argentina, which resulted in a sales increase of $1,310.2 million. In addition, the opening of 32 Company-operated restaurants and the closure of 29 Company-operated restaurants, coupled with the conversion of 2 Company-operated restaurants into franchised restaurants, since January 1, 2023, contributed $71.4 million to sales. Revenues from Franchised Restaurants Our total revenues from franchised restaurants increased by $9.2 million, or 4.7%, from $194.2 million in 2023 to $203.4 million in 2024. Higher revenues are mainly driven by an increase in comparable sales, which caused revenues to grow by $47.2 million. In addition, the net opening of 38 franchised restaurants, partially offset by the net conversion of 14 franchised restaurant into Company-operated restaurants, since January 1, 2023, increased revenues by $8.2 million. Moreover, the increase in the percentage of rental income over sales from franchised restaurants improved revenues from franchised restaurants in $1.7 million. This was partially offset by the depreciation of currencies against the U.S. dollar, which caused revenues to decrease by $47.9 million. In Brazil, revenues from franchised restaurants increased by $5.6 million, or 4.4%, to $132.4 million in 2024, which was mainly driven by higher comparable sales of 9.5%, which increased revenues by $12.0 million. Additionally, the net opening of 28 franchised restaurants, partially offset by the conversion of 6 franchised restaurants into Company-operated restaurants, since January 1, 2023, caused revenues from franchised restaurants to increase by $3.8 million. The increase in rental income as a percentage of sales contributed $0.7 million to revenues, while the depreciation of the real against the U.S. dollar decreased revenues by $10.8 million. In NOLAD, revenues from franchised restaurants increased by $3.1 million, or 9.0%, to $38.1 million in 2024. This increase was driven by higher comparable sales of 11.2%, which resulted in a $3.9 million growth in revenues. This was coupled with an increase in rental income as percentage of sales that contributed $0.5 million to sales. This was partially offset by the depreciation of local currencies which had a negative impact of $1.0 million, and the conversion of 10 franchised restaurants into Company-operated restaurants, partly offset by the net opening of 2 franchised restaurants since January 1, 2023, which caused revenues to decrease by $0.3 million. In SLAD, revenues from franchised restaurants increased by $0.5 million, or 1.5%, to $33.0 million in 2024. This increase was driven by higher comparable sales of 96.2%, highly driven by hyperinflation in Argentina and Venezuela which resulted in a $31.4 million increase in revenues. This was coupled with the opening of 8 franchised restaurants and the conversion of 2 Company-operated restaurants into franchised restaurants since January 1, 2023, which increased revenues by $4.8 million. Moreover, higher rental income as a percentage of sales, contributed $0.5 million to revenues. This was partially offset by the depreciation of currencies against the U.S. dollar in the division, which caused a decrease in revenues of $36.2 million. Operating Costs and Expenses Food and Paper Our total food and paper costs increased by $41.1 million, or 2.8%, to $1,498.9 million in 2024, as compared to 2023. As a percentage of our total sales by Company-operated restaurants, food and paper costs decreased 0.1 percentage points to 35.1%. This decrease is explained by higher price increases as compared to cost increases in several markets and better waste management. 75 Table of Contents In Brazil, food and paper costs increased by $23.0 million, or 4.2%, to $564.9 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, food and paper costs increased by 0.1 percentage points to 34.5%, primarily as a result of a less favorable product mix, partially offset by higher price increases as compared to costs and better waste management. In NOLAD, food and paper costs increased by $30.4 million, or 7.8%, to $421.5 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, food and paper costs decreased by 0.1 percentage points to 35.5%, mainly explained by product mix, partially offset by higher cost increases as compared to prices in Mexico, Panama and Puerto Rico. In SLAD, food and paper costs decreased by $12.3 million, or 2.3%, to $512.4 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, food and paper costs decreased by 0.3 percentage points to 35.5%, mainly explained by a better waste management and higher price increases as compared to costs, mainly in Argentina, Colombia and Uruguay. Payroll and Employee Benefits Our total payroll and employee benefits costs increased by $7.6 million, or 1.0%, to $797.6 million in 2024, as compared to 2023. As a percentage of our total sales by Company-operated restaurants, payroll and employee benefits costs decreased 0.4 percentage points to 18.7%. The decrease as a percentage of sales was mostly attributable to a recovery related to social security contributions in Brazil coupled with efficiencies in crew payroll. In Brazil, payroll and employee benefits costs decreased by $17.6 million, or 6.0%, to $273.0 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, payroll and employee benefits costs decreased by 1.8 percentage points to 16.7%, mainly as a result of a recovery related to social security contributions coupled with efficiencies in crew payroll, partially offset by higher management expenses. In NOLAD, payroll and employee benefits costs increased by $24.3 million, or 10.8%, to $249.7 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, payroll and employee benefits costs increased by 0.5 percentage points to 21.0%, mainly due to growth of crew hour costs above average check growth in several markets of the division, driven by increases in minimum wage salaries, partially offset by higher crew productivity. In SLAD, payroll and employee benefits costs increased by $0.9 million, or 0.3%, to $274.9 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, payroll and employee benefits increased by 0.3 percentage points to 19.0%. This is mainly explained by an increase in crew hour costs above average check growth in most markets of the division partially offset by efficiencies in crew productivity. Occupancy and Other Operating Expenses Our total occupancy and other operating expenses increased by $83.9 million, or 7.3%, to $1,238.2 million in 2024, as compared to 2023. As a percentage of our total sales by Company-operated restaurants, occupancy and other operating expenses increased 1.1 percentage points to 29.0%, driven by higher delivery costs coupled with depreciation costs and utilities. In Brazil, occupancy and other operating expenses increased by $19.8 million, or 4.5%, to $463.1 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, occupancy and other operating expenses increased by 0.2 percentage points to 28.3%, mainly due to higher delivery costs partially offset by lower collection costs and efficiencies in fixed costs. In NOLAD, occupancy and other operating expenses increased by $34.0 million, or 11.0%, to $341.9 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, occupancy and other operating expenses increased by 0.7 percentage points to 28.8% due to higher depreciation costs, delivery costs and IT services expenses. In SLAD, occupancy and other operating expenses increased by $30.0 million, or 7.4%, to $433.1 million in 2024. As a percentage of the division’s sales by Company-operated restaurants, occupancy and other operating expenses increased by 2.5 percentage points to 30.0%, due to higher delivery, depreciation costs coupled with higher utilities, IT services an Operating Supplies expenses. 76 Table of Contents Royalty Fees Our total royalty fees increased by $16.1 million, or 6.5%, to $265.4 million in 2024, as compared to 2023. As a percentage of sales, royalty fees increased by 0.2 percentage points to 6.2% mainly due to higher sales compared to lower growth support funding, as a percentage of sales, provided by McDonald’s to Arcos Dorados, coupled with higher taxes over royalties. In Brazil, royalty fees increased by $13.1 million, or 17.5%, to $87.6 million in 2024. As a percentage of sales, royalty fees increased by 0.6 percentage points to 5.4% mainly due to higher sales compared to lower growth support funding, as a percentage of sales, provided by McDonald’s to Arcos Dorados, coupled with higher taxes over royalties. In NOLAD, royalty fees increased by $6.4 million, or 8.4%, to $82.2 million in 2024, as compared to 2023. As a percentage of sales, royalty fees remained unchanged, closing 2024 at 6.9%. In SLAD, royalty fees decreased by $3.3 million, or 3.3%, to $95.6 million in 2024 due to lower sales in Argentina, as compared to 2023. As a percentage of sales, royalty fees decreased by 0.1 percentage points to 6.6%. Franchised Restaurants—Occupancy Expenses Occupancy expenses from franchised restaurants increased by $0.3 million or 0.4%, to $83.7 million in 2024, as compared to 2023, mainly due to higher rent expenses for leased properties, as a consequence of higher comparable sales from franchised restaurants coupled with higher taxes in Brazil. This was partially offset by depreciation of currencies, especially in Argentina, Brazil and Chile, against the U.S. dollar. In Brazil, occupancy expenses from franchised restaurants decreased by $0.7 million, or 1.1%, to $60.2 million in 2024, as compared to 2023. This decrease in occupancy expenses from franchised restaurants was primarily due to depreciation of the Brazilian real against the U.S. dollar coupled with a lower bad debt reserve which was partially offset by higher rent expenses for leased properties, as a consequence of the increase in comparable sales from franchised restaurants, and higher taxes. In NOLAD, occupancy expenses from franchised restaurants increased by $0.5 million, or 3.6%, to $13.0 million in 2024, as compared to 2023, mainly due to higher rent expenses for leased properties, as a consequence of higher comparable sales from franchised restaurants partially offset by the depreciation of the Mexican peso against the U.S. dollar. In SLAD, occupancy expenses from franchised restaurants increased by $0.5 million, or 5.1%, to $10.5 million in 2024, as compared to 2023, mainly due to higher rent expenses for leased properties, as a consequence of the increase in comparable sales from franchised restaurants. This was partially offset by the depreciation of the Argentinean peso, the Chilean peso and Venezuelan bolívar against the U.S. dollar. Set forth below are the margins for our franchised restaurants in 2024 as compared to 2023. The margin for our franchised restaurants is expressed as a percentage and is equal to the difference between revenues from franchised restaurants and occupancy expenses from franchised restaurants, divided by revenues from franchised restaurants. For the Years EndedDecember 31, 2024 2023 Brazil 54.5 % 52.0 % NOLAD 65.8 % 64.0 % SLAD 68.3 % 69.4 % Total 58.9 % 57.1 % 77 Table of Contents General and Administrative Expenses General and administrative expenses decreased by $5.1 million, or 1.8%, from $285.0 million in 2023 to $279.9 million in 2024. This is explained primarily by the depreciation of currencies, especially the Argentine peso, that contributed $154.0 million to the reduction in general and administrative expenses and lower bonuses and other variable compensation. This was partially offset by higher payroll, outside services and occupancy expenses, mainly related to inflation in Argentina. In Brazil, general and administrative expenses decreased by $2.8 million, or 4.0%, from $70.5 million in 2023 to $67.6 million in 2024. The decrease is explained by the depreciation of the Brazilian real against the U.S. dollar amounting to $5.3 million as well as lower payroll expenses of $0.8 million, coupled with a reduction in outside services expenses of $0.2 million. This was partially offset by higher occupancy expenses of $2.5 million, together with higher other expenses of $0.6 million and bonuses and other variable compensation of $0.3 million. In NOLAD, general and administrative expenses increased by $2.7 million, or 5.5%, from $49.1 million in 2023 to $51.8 million in 2024. This increase is a result of higher outside services amounting to $3.0 million, coupled with higher payroll expenses of $2.3 million and higher occupancy expenses of $0.8 million as well as higher other expenses of $0.3 million and travel expenses of $0.2 million. This was partially offset by lower bonuses and other variable compensations expenses of $3.5 million and the depreciation of the Mexican Peso against the U.S. dollar, which contributed in a reduction of general and administrative expenses by $0.3 million. In SLAD, general and administrative expenses increased by $7.2 million, or 13.4%, from $53.7 million in 2023 to $60.9 million in 2024. This increase is mainly explained by higher payroll expenses amounting to $29.1 million, together with bonuses and other variable compensation amounting to $6.2 million, mainly in Argentina due to its inflationary environment, and higher occupancy expenses amounting to $15.3 million. In addition, there were higher outside services amounting to $5.9 million, higher other expenses of $3.1 million, and higher travel expenses of $2.7 million. This was partially offset by the depreciation of various currencies against the U.S. dollar, mainly the Argentine peso, Venezuelan bolivar and Chilean peso, which resulted in a reduction of general and administrative expenses of $55.1 million. General and administrative expenses for Corporate and others decreased by $12.2 million, or 10.9%, from $111.7 million in 2023 to $99.5 million in 2024. This decrease is mainly driven by the depreciation of various currencies against the U.S. dollar, mainly the Argentine peso and Brazilian real, amounting to $93.3 million, coupled with lower bonuses and other variable compensations of $15.0 million. This was partially offset by higher expenses mainly related to Argentina’s inflation, as a portion of our Corporate expenses are denominated in Argentine pesos. Payroll expenses increased $51.2 million, while outside services grew $28.0 million and other expenses increased by $7.4 million. In addition, there were higher travel expenses amounting to $5.5 million and higher occupancy expenses amounting to $3.8 million. Other Operating Income, net Other operating income, net increased by $16.1 million, to a gain of $18.0 million in 2024. This increase was primarily driven by a $5.6 million positive impact from a recovery related to social security contributions in Brazil recognized in 2024, a reduction in write-offs and impairment of long-lived assets by $7.3 million and a higher gain from sale and insurance recovery of property and equipment of $3.5 million. Operating Income For the Years EndedDecember 31, % Change 2024 2023 (in thousands of U.S. dollars) Brazil $ 269,019 $ 230,024 17.0 % NOLAD 67,412 73,237 (8.0) % SLAD 87,406 121,683 (28.2) % Corporate and other and purchase price allocation (99,322) (110,905) 10.4 % Total 324,515 314,039 3.3 % Operating income increased by $10.5 million, or 3.3%, to $324.5 million in 2024 from $314.0 million in 2023, as a result of the foregoing factors discussed above. 78 Table of Contents Net Interest Expense and other financing results Net interest expense and other financing results increased by $14.9 million, or 46.4%, to $47.2 million in 2024, as compared to 2023. The increase was primarily explained by lower net financing gains during 2024 compared to 2023 for $34.9 million partially offset by the positive impact in the loss from securities transactions during 2024 compared to 2023 for $20.6 million. Gain (loss) from Derivative Instruments Gain (loss) from derivative instruments increased by $14.1 million to a gain of $0.9 million in 2024, from a loss of $13.2 million in 2023, attributable to the results of derivatives instruments not designated as hedge accounting. Foreign Currency Exchange Results Foreign currency exchange results decreased by $25.9 million, from a gain of $10.8 million in 2023 to a loss of $15.1 million in 2024. The variation was primarily attributable to the impact of the depreciation of the Brazilian real of 27.2% which resulted in a loss of $16.1 million on the outstanding U.S. dollar-denominated intercompany loans partially offset by a gain in derivatives in 2024, compared to a gain of $7.8 million in 2023. Other Non-operating Expenses, Net Other non-operating expenses, net increased by $2.7 million to $3.9 million in 2024, as compared to $1.2 million in 2023. Income Tax Expense, net Income tax expense, net increased by $14.2 million, from $95.7 million in 2023 to $109.9 million in 2024. The consolidated effective tax rate was 42.4% in 2024, as compared to 34.4%, primarily explained by remeasurement and inflationary impacts, which decreased income tax by $2.6 million in 2024 compared to a decrease by $16.2 million in 2023. See Note 17 to our consolidated financial statements for additional information. Net Income Attributable to Non-controlling Interests Net income attributable to non-controlling interests was $0.6 million in the full year ended December 31, 2024. Net Income Attributable to Arcos Dorados Holdings Inc. As a result of the foregoing, net income attributable to Arcos Dorados Holdings Inc. decreased by $32.5 million from a gain of $181.3 million in 2023, to a gain of $148.8 million in 2024. 79 Table of Contents B. Liquidity and Capital Resources Financial strategy overview As part of our day-to-day operations, we manage our financial strategy considering, among other things, our liquidity risk and refinancing risk, our debt profile (including our indebtedness level and leverage ratios), the market risk and interest rate risk of our treasury investments as well as our financial debt and our foreign exchange risk. In order to achieve our financial strategy, we hold several assets on our balance sheet, mainly cash positions in foreign currencies needed to support operations in each of the markets where we operate, treasury investments to reduce the negative carry of our debt, derivatives positions to hedge our exposure to foreign exchange risks, and other non-material financial assets. We also have several key processes to address macroeconomic and financial challenges such as multi-year planning, periodic re-projections, internal reporting, and key human resources to supervise the outcomes of the financial strategy. While these processes cannot predict or fully mitigate any risk we may encounter in the future, we believe they help us adapt to different circumstances and more effectively implement our financial strategy. Cash position, credit lines and liquidity risk We generate significant cash from operations and, consistent with prior years, we expect existing cash flows from operations, working capital and our ability to issue debt or incur additional indebtedness will continue to be sufficient to fund our operating, investing and financing activities, including the day-to-day operations of our business, our credit profile to enter in new commercial agreements, the payment of the interests generated by our financial agreements and notes outstanding, the payment of dividends, and our capital expenditures plan. To further support our cash position, we maintain a revolving credit facility at the holding company level with a syndicate of banks for a total amount of $200 million, which can be drawn at any time and will mature in September 2029. See “—Revolving Credit Facility”. We are comfortable we maintain sufficient uncommitted credit facilities in excess of our daily cash needs as of the end of 2025. As of December 31, 2025, we had a total cash, cash equivalents and short-term investments position of $422.3 million, which is more than seven times the annual interest payment due on our outstanding senior notes. Furthermore, considering the committed credit lines available to us, we have more than three times the annual interest payment on our outstanding senior notes in available cash under such credit lines. As of December 31, 2025 our cash position (cash and cash equivalents and short-term investments) in Argentina and Venezuela, which are considered highly inflationary markets represented 6.2% and 1.4%, respectively, of our consolidated cash position. Although these markets are subject to restrictions on cash remittances, these limitations did not materially affect our operations, as both countries have in place alternative legal mechanisms to obtain U.S. dollars. See “Item 3. Key Information—A. Selected Financial Data—Exchange Rates and Exchange Controls” for further information regarding exchange controls for Argentina. In addition, over the years we have been able to mitigate cost increases tied to inflation in these markets through our revenue management strategy. Moreover, in case we need to incur indebtedness in these markets, we also have available sufficient instruments to fund such incurrence. Debt Profile We evaluate our debt profile considering the following variables: •Total indebtedness level •Total senior notes annual interest payments and yield •Total cash and equivalents position •Debt maturities and average life of debt •Gross and net leverage 80 Table of Contents •Interest coverage •Other financial covenants including in financial arrangements Through these variables, we evaluate our liquidity and refinancing risk. For more information on liquidity risk, see above “—Cash position, credit lines and liquidity risk.” As of the date of this report, regarding refinancing risk, the Company faces the following material maturities: Maturity date Outstanding amount (in thousands of U.S. Dollars) Interest rate 2027 Senior Notes April 4, 2027 — 5.875 % 2029 Senior Notes May 27, 2029 214,804 6.125 % 2032 Senior Notes January 29, 2032 600,000 6.375 % In January 2025, we announced an any and all tender offer to repurchase $379.3 million of our 2027 Senior Notes outstanding, as a result of which we repurchased $136.1 million of our 2027 Senior Notes, plus accrued and unpaid interest. On April 4, 2025, we redeemed the entirety of the 2027 Senior Notes then outstanding at 100% of the aggregate principal amount outstanding, plus accrued and unpaid interest, as a result of which the 2027 Senior Notes have been cancelled. In January 2026, we announced a tender offer to repurchase up to $150.0 million of our 2029 Senior Notes outstanding, as a result of which we repurchased $135.2 million of our 2029 Senior Notes, plus accrued and unpaid interest. Therefore, the refinancing risk as a whole is considerably reduced in the short and medium term. Additionally, the notes’ maturities are denominated in U.S. dollars with a fixed interest rate, which mitigates our interest rate risk exposure. Derivatives An important part of our financial strategy is the analysis of our foreign exchange risk, given that a substantial part of the cash flow we generate is denominated in local currencies such as Brazilian reais, Chilean pesos, Euros, Uruguayan pesos, Argentinian pesos, Colombian pesos and Mexican pesos, among others. Conversely, part of our liabilities are denominated in U.S. dollars. To help reduce our exposure to foreign exchange risk, we focus on purchasing locally sourced products to the extent possible. With respect to the products and supplies that are not locally sourced, we have a risk management policy to hedge our exposure with a rolling hedges strategy, taking hedges of nine months or more, of up to 50% of our projected exposure. Furthermore, we are subject to foreign exchange risk because most of our debt is denominated in U.S. dollars. See “—2029 Sustainability-Linked Notes” and “—2032 Senior Notes”. To mitigate this exposure, we entered into a series of long-term derivative instruments (See Note 14 to our consolidated financial statements for more detail.). This allows us to synthetically convert U.S. dollar denominated debt into local currency denominated debt, such as Brazilian reais. While this generates an additional interest payment (due to local currency rates being higher than U.S. dollar interest rates), it reduces the refinancing risk in events of sudden currency depreciation. Our derivatives portfolio is intended to balance the cost of hedging and the resulting risk mitigation. Overview Net cash provided by operations increased by $29.5 million, from $266.8 million in 2024 to $296.3 million in 2025. Cash used in our investing activities was $335.0 million in 2025, compared to $280.3 million in 2024. Cash provided by financing activities was $288.8 million in 2025, compared to cash used in financing activities of $37.2 million in 2024. In 2025, cash provided by financing activities included $597.5 million deriving from the issuance of the 2032 Senior Notes, net of cash used in connection with the cash tender offer and repurchase of our 2027 Senior Notes of $379.3 million. Net cash provided by operations decreased by $115.2 million, from $382.0 million in 2023 to $266.8 million in 2024. Cash used in our investing activities was $280.3 million in 2024, compared to $380.3 million in 2023. Cash used in financing activities was $37.2 million in 2024, compared to cash used in financing activities of $11.8 million in 2023. In 2024, Cash 81 Table of Contents used in financing activities included $15.3 million deriving from the payment of derivative instruments and derivative premiums, and dividend payments of $50.6 million. As of December 31, 2025, our total financial debt was $1,101.7 million (including interest payable), consisting of $1,137.7 million in long-term debt (of which $597.7 million related to the 2032 Senior Notes, including the original issue discount, $348 million related to the 2029 Senior Notes, including the original issue discount, $185.0 million in long-term bank loans, and $11.7 million in finance lease obligations, partially offset by $7.0 million related to deferred financing costs), and $18.9 million in interest payable, the amount of which was offset by $54.9 million related to the fair market value of our outstanding net derivative instruments position. As of December 31, 2024, our total financial debt was $707.6 million (including interest payable), consisting of $718.6 million in long-term debt (of which $378.3 million related to the 2027 Senior Notes, including the original issue discount, $331.2 million related to the 2029 Senior Notes, including the original issue discount, and $9.1 million in finance lease obligations, partially offset by $2.8 million related to deferred financing costs), $7.8 million in interest payable and $60.3 million in short-term debt, the amount of which was offset by $79 million related to the fair market value of our outstanding net derivative instruments position. Cash and cash equivalents were $373.4 million at December 31, 2025 and $135.1 million at December 31, 2024. Comparative Cash Flows The following table sets forth our cash flows for the periods indicated: For the Years Ended December 31, 2025 2024 2023 (in thousands of U.S. dollars) Net cash provided by operating activities $ 296,344 $ 266,847 $ 381,965 Net cash used in investing activities (335,027) (280,331) (380,349) Net cash provided by (used in) financing activities 288,754 (37,162) (11,823) Effect of exchange rate changes on cash and cash equivalents (11,697) (10,951) (60,069) Increase (decrease) in cash and cash equivalents 238,374 (61,597) (70,276) Operating Activities For the Years Ended December 31, 2025 2024 2023 (in thousands of U.S. dollars) Net income attributable to Arcos Dorados Holdings Inc. $ 212,116 $ 148,759 $ 181,274 Non-cash charges and credits 213,838 178,399 178,074 Changes in assets and liabilities (129,610) (60,311) 22,617 Net cash provided by operating activities 296,344 266,847 381,965 For the year ended December 31, 2025, net cash provided by operating activities was $296.3 million, compared to $266.8 million in 2024. The $29.5 million increase is attributable to the increase of net income and non-cash charges and credits contributed by $98.8 million, net of the decrease of the change in assets and liabilities of $69.3 million. For the year ended December 31, 2024, net cash provided by operating activities was $266.8 million, compared to $382 million in 2023. The $115.2 million decrease is attributable to the decrease of net income net of non-cash charges and credits contributed by $32.2 million, and the decrease of the change in assets and liabilities of $82.9 million. 82 Table of Contents Investing Activities Investments in new restaurants and the modernization of existing restaurants are primarily concentrated in markets with opportunities for long-term growth and returns on investment above a pre-defined threshold that is significantly above our cost of capital. Average development costs vary widely by market depending on the types of restaurants built and the real estate and construction costs within each market and are affected by foreign currency fluctuations. These costs, which include land, buildings and equipment, are managed through the use of optimally sized restaurants, construction and design efficiencies and the leveraging of best practices. The following table presents our cash used in by investing activities by type: For the Years Ended December 31, 2025 2024 2023 (in thousands of U.S. dollars) Property and equipment expenditures $ (281,350) $ (327,636) $ (360,097) Purchases of restaurant businesses paid at acquisition date (7,057) (6,083) (2,081) Proceeds from sales of property and equipment, restaurant businesses and related advances 2,569 8,210 2,540 Proceeds from short-term investments 88,669 76,114 66,735 Acquisitions of short-term investments (134,164) (30,000) (86,719) Other investing activity (3,694) (936) (727) Net cash used in investing activities (335,027) (280,331) (380,349) The following table presents our property and equipment expenditures by type: For the Years Ended December 31, 2025 2024 2023 (in thousands of U.S. dollars) New restaurants $ 140,586 $ 127,109 $ 141,591 Existing restaurants 83,263 141,036 162,393 Other(1) 57,501 59,491 56,113 Total property and equipment expenditures 281,350 327,636 360,097 (1)Primarily software and information technology expenditures. In 2025, net cash used in investing activities was $335.0 million, compared to $280.3 million in 2024. This $54.7 million increase was primarily attributable to an increase in the acquisition of short-term investments amounting to $104.2 million, partially offset by the increase of the proceeds from short-term investments of $12.6 million and the decrease in property and equipment expenditures of $46.3 million in comparison with 2024. Property and equipment expenditures decreased by $46.3 million, from $327.6 million in 2024 to $281.3 million in 2025. The decrease in property and equipment expenditures is explained by a decrease in existing restaurants of $57.8 million, a decrease in software and information technology expenditures of $2.0 million partially offset by an increase in investment in new restaurants of $13.5 million. In 2025, we opened 102 restaurants and closed 13 restaurants. Other investing activities increased by $2.8 million in 2025, mainly due to an increase of the initial franchise fee for new restaurants that opened in 2025. In 2024, net cash used in investing activities was $280.3 million, compared to $380.3 million in 2023. This $100.0 million decrease was primarily attributable to a decrease in property and equipment expenditures of $32.5 million, to the acquisition of short-term investments amounting to $56.7 million, and the increase of proceeds from short-term investments of $9.4 million in comparison with 2023. 83 Table of Contents Property and equipment expenditures decreased by $32.5 million, from $360.1 million in 2023 to $327.6 million in 2024. The decrease in property and equipment expenditures is explained by a decrease in existing restaurants of $21.4 million, a decrease in investment in new restaurants of $14.5 million partially offset by an increase in software and information technology expenditures of $3.4 million. In 2024, we opened 85 restaurants and closed 18 restaurants. Other investing activities increased by $0.2 million in 2024, mainly due to less proceeds from franchised notes in 2024. Financing Activities For the Years Ended December 31, 2025 2024 2023 (in thousands of U.S. dollars) Issuance of 2032 Senior Notes $ 597,498 $ — $ — Proceeds from sale of 2029 Senior Notes 16,156 — — Open Market Repurchases of 2029 Senior Notes — — — Cash tender, Open Market Repurchases and Settlement at maturity of 2023, 2027 and 2029 Senior Notes (379,265) — (22,941) Dividend payments to Arcos Dorados Holdings Inc. shareholders (50,560) (50,557) (40,022) Short and long-term borrowings 176,447 77,240 29,679 Payment of short and other long-term debt (58,819) (43,572) (1,095) Payments for debt issue costs (6,720) — — Collection of derivative instruments 1,870 331 30,880 Payments related to derivative instruments and derivative premiums (708) (15,274) (3,296) Other financing activities (7,145) (5,330) (5,028) Net cash provided by (used in) financing activities 288,754 (37,162) (11,823) Net cash provided by financing activities was $288.8 million in 2025, compared to the net cash used in financing activities of $37.2 million in 2024. The $326.0 million increase in the amount of cash provided by financing activities was primarily attributable to the issuance of our 2032 Senior Notes of $597.5 million and to short and long-term borrowings of $99.2 million, which was partially offset by the cash tender of our 2027 Senior Notes for $379.3 million. Net cash used in financing activities was $37.2 million in 2024, compared to $11.8 million in 2023. The $25.4 million increase in the amount of cash used in financing activities was primarily attributable to the payments related to derivative instruments and derivative premiums of $12.0 million, to the dividends paid in cash of $10.6 million, and the decrease of the collection of derivative instruments of $30.6 million, partially offset by the settlement at maturity of the 2023 Senior Notes during 2023 for $18.2 million. The company may opportunistically seek to incur new debt to refinance any of its existing debt or for other corporate purposes, including potential capital expenditure requirements, from time to time, if market conditions permit. Revolving Credit Facility On September 30, 2025, the Company entered into a revolving credit facility with a syndicate of banks including JPMorgan Chase Bank, N.A., Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, Banco Santander (Brasil) S.A.- Grand Cayman Branch, Bank of America, N.A., BNP Paribas, Banco de Credito del Peru and Firstbank Puerto Rico. Pursuant to the revolving credit facility, we are required to comply with a net indebtedness (including interest payable) to EBITDA ratio of less than 3.00 to 1.00 as of the last day of each fiscal quarter. Each loan made to the Company under this revolving credit facility bears interest at an annual rate equal to either Daily Simple SOFR or Term SOFR base rate plus 2.10% to 2.40%. The revolving credit facility will mature on September 30, 2029. 84 Table of Contents The obligations of Company under the revolving credit facility are jointly and severally guaranteed by certain of the Company’s subsidiaries on an unconditional basis. Furthermore, the revolving credit facility includes customary covenants including, among others, restrictions on the ability of the Company, the guarantors and certain material subsidiaries to: (i) incur liens, (ii) enter into any merger, consolidation or amalgamation; (iii) sell, assign, lease or transfer all or substantially all of the borrower’s or guarantor’s business or property; (iv) enter into transactions with affiliates; (v) engage in substantially different lines of business; and (vi) engage in transactions that violate certain anti-terrorism laws. The revolving credit facility provides for customary events of default, which, if any of them occurs, would permit or require the banks to terminate their obligation to provide loans under the revolving credit facility and/or to declare all sums outstanding under the loan documents immediately due and payable. As of December 31, 2025, our net indebtedness (including interest payable) to EBITDA ratio was 1.15x and as such we were in compliance with such ratio. Arcos Dourados Credit Agreements On December 19, 2025, our Brazilian subsidiary, Arcos Dourados Comercio de Alimentos S.A. (“Arcos Dourados”), entered into three separate credit agreements under the 4131 Brazilian Law, each in a principal amount of $50 million with Bank of America, N.A., Citibank N.A. and JPMorgan Chase Bank, N.A. (jointly, the “Arcos Dourados Credit Agreements”). Each of the loans was fully drawn on December 23, 2025. Pursuant to the Arcos Dourados Credit Agreements, we are required to maintain a net indebtedness to EBITDA ratio of less than 3.00 to 1.00 as of the last day of each fiscal quarter. On the same date, the Company and Arcos Dourados entered into certain derivative instruments in order to manage the interest rate and maintain the foreign currency exposure of its long-term debt. The loans made by Bank of America, N.A., Citibank N.A. and JPMorgan Chase Bank, N.A. under the Arcos Dourados Credit Agreements bear interest at annual rates of 4.40%, 4.39% and 4.71%, respectively, and mature on January 2, 2029. The obligations of Arcos Dourados under each of the Arcos Dourados Credit Agreements are fully and unconditionally guaranteed by the Company. Furthermore, each Arcos Dourados Credit Agreement contain customary covenants including, among others, restrictions on the ability of Arcos Dourados and the Company to: (i) incur liens, (ii) enter into any merger, consolidation or amalgamation; (iii) sell, assign, lease or transfer all or substantially all of Arcos Dourados or the Company’s business or property; (iv) enter into transactions with affiliates; (v) engage in substantially different lines of business; and (vi) engage in transactions that violate certain anti-terrorism laws. Each Arcos Dourados Credit Agreement also contains customary events of default, which upon their occurrence and continuance, permit the respective lender to terminate its commitment and declare all amounts outstanding under such loan immediately due and payable. The proceeds of the Arcos Dourados Credit Agreements were used to fund the cash tender offer of the 2029 sustainability-linked notes. 2029 Sustainability-Linked Notes In April 2022, our subsidiary Arcos Dorados B.V. issued sustainability-linked Senior Notes for an aggregate principal amount of $350 million under an indenture dated April 27, 2022, which we refer to as the 2029 Senior Notes. The 2029 Senior Notes mature on May 27, 2029 and bear interest of 6.125% per year. Interest on the notes will accrue at a rate of 6.125% per annum from April 27, 2022, payable semi-annually in arrears on May 27 and November 27, commencing on November 27, 2022, and, from and including May 27, 2026 (the “Interest Rate Step-Up Date”), the interest rate payable on the notes may be increased to 6.250% per annum or 6.375% per annum if either or both sustainability performance targets (as described below), respectively, have not been satisfied by December 31, 2025. In January 2026, we announced a tender offer to repurchase up to $150.0 million of our 2029 Senior Notes outstanding, as a result of which we repurchased $135.2 million of our 2029 Senior Notes, plus accrued and unpaid interest. For purposes of the 2029 Senior Notes, Arcos Dorados B.V. selected each of the Scope 1 and 2 2025 sustainability target (the “Scope 1 and 2 2025 Sustainability Target”) and the Scope 3 2025 sustainability target (the “Scope 3 2025 Sustainability Target” and, together with the Scope 1 and 2 2025 Sustainability Target, the “Sustainability Performance Targets”) as the sustainability performance targets, as updated in October 2023. 85 Table of Contents Under the terms of the notes, if (1) Arcos Dorados B.V. delivers a satisfaction notification in accordance with the indenture to the trustee on or prior to April 27, 2026 (the “Notification Date”) certifying that each Sustainability Performance Target was satisfied at or prior to the Notification Date, and that the satisfaction of each Sustainability Performance Target was confirmed by the external verifier in accordance with its customary procedures prior to the Notification Date, the interest rate payable on the notes will remain at the initial rate of interest of 6.125% per annum from and including the Interest Rate Step-Up Date to, and including, the maturity date; (2) Arcos Dorados B.V. delivers a satisfaction notification to the trustee on or prior to the Notification Date certifying that only the greenhouse gas (GHG) emission intensity reduction (Scope 3) Sustainability Performance Target was satisfied at or prior to the Notification Date, and that the satisfaction of the greenhouse gas (GHG) emission intensity reduction (Scope 3) Sustainability Performance Target was confirmed by the external verifier in accordance with its customary procedures, the interest rate payable on the notes will be increased by 12.5 basis points to 6.250% per annum (the “First Step-Up Interest Rate”), which First Step-Up Interest Rate will apply for each interest period from and including the Interest Rate Step-Up Date to, and including, the maturity date; (3) Arcos Dorados B.V. delivers a satisfaction notification to the trustee on or prior to the Notification Date certifying that only the absolute greenhouse gas (GHG) emissions reduction (Scope 1 and 2) Sustainability Performance Target was satisfied at or prior to the Notification Date, and that the satisfaction of the absolute greenhouse gas (GHG) emissions reduction (Scope 1 and 2) Sustainability Performance Target was confirmed by the external verifier in accordance with its customary procedures, the interest rate payable on the notes will be increased by 12.5 basis points to 6.250% per annum (the “Second Step-Up Interest Rate”), which Second Step-Up Interest Rate will apply for each interest period from and including the Interest Rate Step-Up Date to, and including, the maturity date or (4) (i) Arcos Dorados B.V. delivers a satisfaction notification to the trustee on or prior to the Notification Date certifying that neither Sustainability Performance Target was satisfied at or prior to the Notification Date and/or that the external verifier has not confirmed satisfaction of both Sustainability Performance Targets by the Notification Date, or (ii) Arcos Dorados B.V. fails, or is unable, to provide the satisfaction notification to the trustee by the Notification Date, the interest rate payable on the notes will be increased by 25 basis points to 6.375% per annum (the “Third Step-Up Interest Rate” and, together with the First Step-Up Interest Rate and the Second Step-Up Interest Rate, the “Subsequent Rate of Interest”), which Third Step-Up Interest Rate will apply for each interest period from and including the Interest Rate Step-Up Date to, and including, the maturity date. On April 7, 2026, we delivered a satisfaction notice to the trustee of the 2029 Senior Notes certifying that each of the Sustainability Performance Targets were satisfied prior to the Notification Date and that such performance was confirmed by the external verifier. As a consequence, the interest rate payable on the 2029 Senior Notes will remain at the initial rate of interest of 6.125% per annum from and including the Interest Rate Step-Up Date to, and including, the maturity date. In October 2023, we re-issued our Sustainability-Linked Financing Framework 2022, which contains a new set of improved methodologies to track our progress with respect to our sustainability plan, including the Sustainability Performance Targets set under Arcos Dorados B.V.’s 2029 Senior Notes. The revised Sustainability-Linked Financing Framework 2022 does not change our improvement targets, when measured as a percentage compared to the baseline, but adjusts the underlying calculations to provides a better base for performance comparability and consistency between years as we keep progressing in our decarbonization strategy. To maintain the measurability of our progress towards our sustainable performance targets, including those included in Arcos Dorados B.V.’s 2029 sustainability-linked notes, we applied these changes and performed a re-baseline that contains: i) an update of our 2021 emissions inventory, ii) a recalculation of our sustainable performance targets in order to maintain ambitious sustainability goals, while adjusting for the new baseline figures to maintain comparability. We are maintaining the targeted reduction percentages and, all the inventory re-baseline figures have been audited by a third party as required by the International Capital Markets Association (“ICMA”). The 2021 re-baseline figures for our key performance indicators have been prepared by South Pole Carbon Asset Management Ltd. (“South Pole”). The changes implemented to our Sustainability-Linked Financing Framework 2022 are in line with the Greenhouse Gas Protocol as well as the Sustainability-Linked Bond Principles 2020 (“SLBP”), published by the ICMA, given that the changes implemented were made retrospectively in order to maintain the comparability with past figures. Under the terms of the re-issued Sustainability-Linked Financing Framework 2022, the new sustainability targets that will be used to track our performance are the following: a.Scope 1 And 2 2025 Sustainability Target: absolute greenhouse gas (GHG) emissions to be equal to or lower than 231,791 tCO2e by the end of 2025. 86 Table of Contents b.Scope 3 2025 Sustainability Target: reduce greenhouse gas (GHG) emission intensity to be equal to or lower than 8.67 tCO2e per total annual tons of food and packaging by the end of 2025. The proceeds from the issuance of the 2029 Senior Notes were used to fund the cash tender offers for the 2023 and 2027 Senior Notes and the subsequent redemption of the remaining 2023 Senior Notes. The 2029 Senior Notes are redeemable at our option at any time at the applicable redemption prices set forth in the indenture. The 2029 Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by us and certain of our subsidiaries. The 2029 sustainability-linked notes and guarantees (i) are senior unsecured obligations and rank equal in right of payment with all of our and the guarantors’ existing and future senior unsecured indebtedness; (ii) will be effectively junior to all of our and the guarantors’ existing and future secured indebtedness to the extent of the assets securing that indebtedness; and (iii) are structurally subordinated to all obligations of our subsidiaries that are not guarantors. The indenture governing the 2029 Senior Notes limits Arcos Dorados B.V., our and our subsidiaries’ ability to, among other things, (i) incur additional indebtedness; (ii) make certain restricted payments; (iii) create certain liens; (iv) enter into sale and lease-back transactions; and (v) consolidate, merge or transfer assets. These covenants are subject to important qualifications and exceptions. Additionally, as a result of our credit rating increasing to investment grade, as of January 16, 2025, covenants in our indenture related to the incurrence of additional indebtedness and making restricted payment, among others, have been suspended. If our credit rating were to be downgraded again, these covenants shall be reinstated. The indenture governing the 2029 Senior Notes also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and interest on all of the then-outstanding 2029 Senior Notes to be due and payable immediately. 2032 Senior Notes In January 2025, our subsidiary Arcos Dorados B.V. issued Senior Notes for an aggregate principal amount of $600 million under an indenture dated January 29, 2025, which we refer to as the 2032 Senior Notes. The 2032 Senior Notes mature on January 29, 2032 and bear interest of 6.375% per year. Interest is paid semiannually on January 29 and July 29, commencing on July 29, 2025. The proceeds from the issuance of the 2032 Senior Notes were used to fund the tender offer and redemption for cash of any and all of our 2027 Senior Notes and for general corporate purposes. The 2032 Senior Notes are redeemable at our option under certain circumstances as set forth in the indenture at the applicable redemption prices set forth therein. The 2032 Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of our subsidiaries. The 2032 Senior Notes and guarantees (i) are senior unsecured obligations and rank equal in right of payment with all of our and the guarantors’ existing and future senior unsecured indebtedness; (ii) will be effectively junior to all of our and the ‘guarantors’ existing and future secured indebtedness to the extent of the assets securing that indebtedness; and (iii) are structurally subordinated to all obligations of our subsidiaries that are not guarantors. The indenture governing the 2032 Senior Notes limits our and our subsidiaries’ ability to, among other things, (i) create certain liens; (ii) enter into sale and lease-back transactions; and (iii) consolidate, merge or transfer assets. These covenants are subject to important qualifications and exceptions. The indenture governing the 2032 Senior Notes also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and interest on all of the then-outstanding 2032 Senior Notes to be due and payable immediately. 87 Table of Contents Contractual Obligations The following table presents information relating to our contractual obligations as of December 31, 2025. Payment Due by Period Contractual Obligations Total 2026 2027 2028 2029 2030 Thereafter (in thousands of U.S. dollars) Finance lease obligations(1) $ 16,100 $ 2,109 $ 2,109 $ 2,110 $ 1,984 $ 1,895 $ 5,893 Operating lease obligations $ 2,223,849 176,498 170,013 161,788 154,931 149,358 1,411,261 Contractual purchase obligations(2) $ 399,843 153,133 99,805 45,851 28,931 20,053 52,070 2029 and 2032 Senior Notes(1) (3) $ 1,273,656 59,688 59,688 59,688 398,967 38,250 657,375 Other long term borrowings $ 210,367 18,315 33,609 6,917 150,079 42 1,405 Derivative instruments $ 52,684 (1,455) 46,564 824 6,751 — — Total $ 4,176,499 $ 408,288 $ 411,788 $ 277,178 $ 741,643 $ 209,598 $ 2,128,004 (1) Includes interest payments. (2) Includes automatic annual renewals, which contains only enforceable and legally binding unconditional obligations corresponding to prevailing agreements without considering future undefined renewals when the agreement is cancellable by us. This type of purchase obligation represents $8.7 million of contractual obligations for 2025 only. (3) Does not include the impact of the deferred financing costs and the net discount related to the issue of the 2029 and 2032 Senior Notes. The table set forth above excludes projected payments on our restaurant opening plans and reinvestment plans pursuant to the MFAs in respect of which we do not yet have any contractual commitments. For a description of our restaurant opening and reinvestment plans, see “Item 4. Information on the Company—A. History and Development of the Company—Capital Expenditures and Divestitures.” Off-balance Sheet Arrangements We do not have any off-balance sheet arrangements. C. Research and Development, Patents and Licenses, etc. We have not had significant research and development activities for the past three years because we rely primarily on McDonald’s research and development. McDonald’s operates research and development facilities in the United States, Europe and Asia, and independent suppliers also conduct research activities that benefit McDonald’s and us. D. Trend Information Our business and results of operations have also recently experienced the following material trends, which we expect will continue in the near term: • Social upward mobility in Latin America and the Caribbean: Historically, our sales have benefited, and we expect to continue to benefit, from our Territories’ population size, younger age profile and improving socio-economic conditions when compared to more developed markets. This has led to a modernization of consumption patterns and increased affordability of our offerings across socio-economic segments, leading to greater demand for our offerings. While consumer behavior will continue to be cyclical and dependent on macroeconomic activity, we expect to continue to benefit from this trend in the long term. • Nutrition & Healthier products: Consumers are increasingly seeking so called “healthier” options and showing greater interest in understanding their nutritional content. Additionally, they are demanding more transparency about the origin of our products and how they are sourced. 88 Table of Contents • Food offerings: Our beverages, core meals, desserts, breakfast items, reduced-calorie and sodium items have helped us remain relevant to our customers, especially as many are increasingly choosing products with offer prices, particularly through our digital channels. • Increased competition in some markets: The popularity of the QSR concept in Latin America has attracted new competitors. Even though we have been able to protect our market share in many of these markets, mergers and acquisitions or additional funding by some of our competitors could lead them to expand, which might bring additional pressure to our market leadership and affect gross margins. • Inflationary environment: Over the last few years, we have been able through our revenue management strategy to partially mitigate cost increase tied to inflation. However, inflation has been, and will continue to be, an important factor affecting our results of operations, specifically impacting our labor costs, supply chain, food and paper costs, occupancy and other operating expenses and general administrative expenses. • Increased volatility of foreign exchange rates and impact of currency controls: Our results of operations have been impacted by increased volatility in foreign exchange rates in many of the Territories, particularly the significant devaluation of local currencies against the U.S. dollar. We expect that foreign exchange rates will continue to be an important factor affecting our foreign currency exchange results and the “Accumulated other comprehensive income (loss)” component of shareholders’ equity and, consequently, our results of operations and financial condition. • Social unrest: The recent politically and economically complex scenario in the world, and specifically in Latin America has sparked social unrest in several countries, including Argentina, Brazil, Colombia, Mexico, Perú, Venezuela and Ecuador. Some of these events have disrupted our operations due to roadblocks, curfews, labor issues and other security-related measures, and in certain cases have resulted in property damage. In Mexico, for example, recent episodes of cartel-related violence have led to temporary disruptions in commercial activity and operations in certain areas. In addition, Mexico, has experienced waves of cartel-related violence in the recent past, following the death of the leader of the Jalisco New Generation Cartel, which led to the temporary closure of a significant number of our restaurants in Mexico during that time. Any continuation of or increase in social unrest in 2026 could lead to additional operational costs, a decline in sales or other negative impacts on our results. • Environmental Consciousness: Over the last few years, our customers have demonstrated a growing interest in sustainable practices, including as it relates to limiting food waste and sourcing our ingredients and paper and packaging costs. In particular, movements such as the anti-plastic movement have gained momentum in recent years and caused us to make changes in the sourcing of our raw materials. We may need to make further changes in our supply chain and food and paper costs in the future in order to adequately respond to our customers’ focus on sustainability. •Changing Consumer Trends: In 2023 and 2024, the restaurant industry continued to reflect a blending of “dining out” and “ordering in,” with consumers balancing value, convenience and experience as behaviors evolved following the pandemic. In 2025, however, the restaurant industry in Brazil experienced a significant decline in traffic, including in our restaurants, reflecting a more cautious consumer environment. At the same time, longer‑term trends such as demand for value, digital and mobile ordering, and personalization continued to shape diner expectations. Emerging health and wellness trends, including increased awareness and use of GLP‑1‑based medications, may also influence consumer eating habits and frequency of restaurant visits over time, although the full impact remains uncertain. •Diversity & Inclusion Consciousness: There has been a growing consciousness in Latin American and Caribbean societies generally in living in a more respectful and tolerant environment. Activism on this matter has been growing, increasing the visibility and awareness of companies’ diversity and inclusion policies and activities. In particular, there has been a growing focus on activism in support of gender equality. We are making some changes in our operations, in line with our support of more gender equality, including, but not limited to, the implementation of gender neutral bathrooms in our restaurants. •Artificial Intelligence: The rapid spread of the AI tools and their usage is changing the world and redefining many aspects of business. This brings many opportunities to manage the business more efficiently, also providing customers with more convenient, superior experiences. We are already using and testing several AI-generated tools in many aspects of the business to capture their full potential. 89 Table of Contents E. Critical Accounting Estimates See “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Critical Accounting Estimates.” F. Safe Harbor See “Forward-Looking Statements.”