[6-K] ARCOS DORADOS HOLDINGS INC. Current Report (Foreign Issuer)
Arcos Dorados (NYSE: ARCO) obtained an initial long-term issuer rating of 鈥淏BB-鈥� with a Stable Outlook from S&P Global Ratings. The agency cited the Company鈥檚:
- Leading QSR market share in Latin America and exclusive McDonald鈥檚 Master Franchise Agreement, recently renewed through 2044 with a 20-year option.
- Conservative leverage, with S&P-adjusted debt/EBITDA 鈮� 2.0x and FFO/debt 鈮� 35%.
- Sound liquidity, no near-term maturities and committed credit facilities.
- Geographic diversification and ability to endure a potential Brazilian sovereign stress scenario.
This is Arcos Dorados鈥� second investment-grade rating, following Fitch鈥檚 upgrade to 鈥淏BB-鈥� in January 2025, giving the Company full investment-grade status. Both agencies emphasized prudent financial policy, strong operating performance and a comfortable debt schedule. Management views the dual ratings as validation of its disciplined capital structure and long-term strategy.
Arcos Dorados (NYSE: ARCO) ha ottenuto un rating iniziale di emittente a lungo termine pari a 鈥淏BB-鈥� con Outlook Stabile da S&P Global Ratings. L鈥檃genzia ha evidenziato:
- La posizione di leadership nel mercato QSR in America Latina e l鈥檈sclusivo Contratto di Master Franchise McDonald鈥檚, recentemente rinnovato fino al 2044 con un鈥檕pzione di 20 anni.
- Una leva finanziaria prudente, con debito rettificato da S&P/EBITDA 鈮� 2,0x e FFO/debito 鈮� 35%.
- Una solida liquidit脿, assenza di scadenze a breve termine e linee di credito impegnate.
- La diversificazione geografica e la capacit脿 di resistere a un possibile scenario di tensione sovrana brasiliana.
Questo rappresenta il secondo rating investment-grade per Arcos Dorados, dopo l鈥檜pgrade di Fitch a 鈥淏BB-鈥� nel gennaio 2025, conferendo all鈥檃zienda lo status completo di investment-grade. Entrambe le agenzie hanno sottolineato una politica finanziaria prudente, una forte performance operativa e un piano di debito sostenibile. La direzione considera i doppi rating una conferma della struttura di capitale disciplinata e della strategia a lungo termine.
Arcos Dorados (NYSE: ARCO) obtuvo una calificaci贸n inicial de emisor a largo plazo de 鈥淏BB-鈥� con Perspectiva Estable por parte de S&P Global Ratings. La agencia destac贸:
- La posici贸n l铆der en el mercado QSR en Am茅rica Latina y el exclusivo Acuerdo de Master Franchise de McDonald鈥檚, recientemente renovado hasta 2044 con una opci贸n de 20 a帽os.
- Una apalancamiento conservador, con deuda ajustada por S&P/EBITDA 鈮� 2.0x y FFO/deuda 鈮� 35%.
- Una s贸lida liquidez, sin vencimientos a corto plazo y l铆neas de cr茅dito comprometidas.
- La diversificaci贸n geogr谩fica y la capacidad para soportar un posible escenario de estr茅s soberano brasile帽o.
Este es el segundo rating investment-grade para Arcos Dorados, tras la mejora de Fitch a 鈥淏BB-鈥� en enero de 2025, otorgando a la compa帽铆a el estatus completo de grado de inversi贸n. Ambas agencias destacaron una pol铆tica financiera prudente, un s贸lido desempe帽o operativo y un calendario de deuda c贸modo. La direcci贸n considera las calificaciones duales como una validaci贸n de su estructura de capital disciplinada y estrategia a largo plazo.
Arcos Dorados (NYSE: ARCO)電� S&P 旮�搿滊矊 霠堨澊韺呾姢搿滊秬韯� 鞛リ赴 氚滍枆鞛� 鞁犾毄霌标笁 'BBB-'鞕� 鞎堨爼鞝� 鞝勲鞚� 觳橃潓鞙茧 氚涭晿鞀惦媹雼�. 旮瓣磤鞚� 須岇偓鞚� 雼れ潓 靷暛鞚� 鞏戈笁頄堨姷雼堧嫟:
- 霛柬嫶 鞎勲⿺毽勾 QSR 鞁滌灔 鞝愳湢鞙� 靹犽弰 氚� 2044雲勱箤歆� 20雲� 鞓奠厴鞚� 韽暔霅� 霃呾爯 毵ル弰雮犽摐 毵堨姢韯� 頂勲灉彀澊歃� 瓿勳暯 臧膘嫚.
- S&P 臁办爼 攵�毂�/EBITDA 鈮� 2.0氚�, FFO/攵�毂� 鈮� 35%鞚� 氤挫垬鞝侅澑 霠堧矂毽.
- 瓴碃頃� 鞙犽彊靹�, 雼赴 毵岅赴 鞐嗢潓, 頇曥爼霅� 鞁犾毄 鞁滌劋.
- 歆�毽爜 雼り皝頇� 氚� 鞛犾灛鞝� 敫岆澕歆� 欤缄秾 鞙勱赴 鞁滊倶毽槫毳� 瓴敎 靾� 鞛堧姅 電ル牓.
鞚措矆鞚� Arcos Dorados鞚� 霊� 氩堨Ц 韴瀽霌标笁 鞁犾毄韽夑皜搿�, 2025雲� 1鞗� Fitch鞚� 'BBB-' 靸來枼 臁办爼 鞚错泟 須岇偓鞐� 鞕勳爠頃� 韴瀽霌标笁 歆�鞙勲ゼ 攵�鞐暕雼堧嫟. 鞏� 旮瓣磤 氇憪 鞁犾頃� 鞛 鞝曥眳, 臧曤牓頃� 鞖挫榿 鞁れ爜, 鞎堨爼鞝侅澑 攵�毂� 鞚检爼鞐� 欤茧頄堨姷雼堧嫟. 瓴届榿歆勳潃 鞚挫 霌标笁鞚� 鞛愳偓鞚� 鞐勱博頃� 鞛愲掣 甑“ 氚� 鞛リ赴 鞝勲灥鞐� 雽�頃� 瓴�歃濎溂搿� 氤搓碃 鞛堨姷雼堧嫟.
Arcos Dorados (NYSE : ARCO) a obtenu une premi猫re notation d鈥櫭﹎etteur 脿 long terme de 芦 BBB- 禄 avec une perspective stable de la part de S&P Global Ratings. L鈥檃gence a soulign茅 :
- La part de march茅 dominante dans le secteur QSR en Am茅rique latine et l鈥檃ccord exclusif de franchise ma卯tre McDonald鈥檚, r茅cemment renouvel茅 jusqu鈥檈n 2044 avec une option de 20 ans.
- Un levier financier prudent, avec une dette ajust茅e par S&P/EBITDA 鈮� 2,0x et un FFO/dette 鈮� 35 %.
- Une liquidit茅 solide, aucune 茅ch茅ance 脿 court terme et des facilit茅s de cr茅dit engag茅es.
- La diversification g茅ographique et la capacit茅 脿 supporter un 茅ventuel sc茅nario de stress souverain br茅silien.
Il s鈥檃git de la deuxi猫me notation investment-grade pour Arcos Dorados, suite 脿 la mont茅e en gamme de Fitch 脿 芦 BBB- 禄 en janvier 2025, conf茅rant 脿 la soci茅t茅 un statut pleinement investment-grade. Les deux agences ont mis en avant une politique financi猫re prudente, une solide performance op茅rationnelle et un calendrier d鈥檈ndettement confortable. La direction consid猫re ces doubles notations comme une validation de sa structure de capital disciplin茅e et de sa strat茅gie 脿 long terme.
Arcos Dorados (NYSE: ARCO) erhielt von S&P Global Ratings eine erste langfristige Emittentenbewertung von 鈥濨BB-鈥� mit stabilem Ausblick. Die Agentur hob hervor:
- Marktf眉hrerschaft im QSR-Bereich in Lateinamerika und den exklusiven McDonald鈥檚 Master Franchise-Vertrag, der k眉rzlich bis 2044 mit einer 20-j盲hrigen Option verl盲ngert wurde.
- Konservative Verschuldung mit einem S&P-bereinigten Verschuldungsgrad von ca. 2,0x Debt/EBITDA und FFO/Schulden von ca. 35 %.
- Solide Liquidit盲t, keine kurzfristigen F盲lligkeiten und zugesagte Kreditlinien.
- Geografische Diversifikation und die F盲higkeit, ein m枚gliches brasilianisches Staatsrisiko zu bew盲ltigen.
Dies ist die zweite Investment-Grade-Bewertung f眉r Arcos Dorados, nach dem Upgrade von Fitch auf 鈥濨BB-鈥� im Januar 2025, das dem Unternehmen den vollen Investment-Grade-Status verleiht. Beide Agenturen betonten eine vorsichtige Finanzpolitik, starke operative Leistung und einen komfortablen Schuldenplan. Das Management sieht die Doppelbewertung als Best盲tigung der disziplinierten Kapitalstruktur und langfristigen Strategie.
- S&P assigned inaugural investment-grade rating of 鈥淏BB-鈥� with Stable Outlook.
- Full investment-grade status now confirmed by both S&P and Fitch.
- Conservative leverage: S&P-adjusted debt/EBITDA 鈮� 2.0脳; FFO/debt 鈮� 35%.
- Renewed Master Franchise Agreement with McDonald鈥檚 valid through 2044 plus 20-year option.
- None.
Insights
TL;DR: Second 鈥淏BB-鈥� rating secures full investment grade, underscoring low leverage and ample liquidity鈥攃learly positive for ARCO鈥檚 credit profile.
S&P鈥檚 inaugural rating aligns with Fitch鈥檚 January action, confirming ARCO鈥檚 creditworthiness at the lowest investment-grade notch. Key credit metrics鈥�2.0脳 adjusted debt/EBITDA and 35% FFO/debt鈥攕it comfortably within IG thresholds, while the renewed Master Franchise Agreement through 2044 locks in brand access for two decades. The stable outlook and absence of near-term maturities reduce refinancing risk. From a bondholder perspective, tighter spreads and broader institutional demand are likely; equity holders benefit indirectly via lower financing costs and strategic flexibility.
TL;DR: Dual IG ratings broaden investor base and may lower cost of capital; operational dominance in LATAM underpins credit strength.
Achieving full investment grade allows ARCO to access IG-only mandates and EM crossover funds, expanding liquidity for future debt issuance. S&P鈥檚 stress test on Brazil鈥擜RCO鈥檚 largest market鈥攕uggests resilience, mitigating sovereign-linked volatility. The renewed 20-year McDonald鈥檚 agreement locks in brand equity and supply-chain advantages, supporting cash-flow visibility. With leverage at 2.0脳, management retains headroom for growth or shareholder returns without jeopardizing ratings. Overall impact is materially positive for both debt and equity investors.
Arcos Dorados (NYSE: ARCO) ha ottenuto un rating iniziale di emittente a lungo termine pari a 鈥淏BB-鈥� con Outlook Stabile da S&P Global Ratings. L鈥檃genzia ha evidenziato:
- La posizione di leadership nel mercato QSR in America Latina e l鈥檈sclusivo Contratto di Master Franchise McDonald鈥檚, recentemente rinnovato fino al 2044 con un鈥檕pzione di 20 anni.
- Una leva finanziaria prudente, con debito rettificato da S&P/EBITDA 鈮� 2,0x e FFO/debito 鈮� 35%.
- Una solida liquidit脿, assenza di scadenze a breve termine e linee di credito impegnate.
- La diversificazione geografica e la capacit脿 di resistere a un possibile scenario di tensione sovrana brasiliana.
Questo rappresenta il secondo rating investment-grade per Arcos Dorados, dopo l鈥檜pgrade di Fitch a 鈥淏BB-鈥� nel gennaio 2025, conferendo all鈥檃zienda lo status completo di investment-grade. Entrambe le agenzie hanno sottolineato una politica finanziaria prudente, una forte performance operativa e un piano di debito sostenibile. La direzione considera i doppi rating una conferma della struttura di capitale disciplinata e della strategia a lungo termine.
Arcos Dorados (NYSE: ARCO) obtuvo una calificaci贸n inicial de emisor a largo plazo de 鈥淏BB-鈥� con Perspectiva Estable por parte de S&P Global Ratings. La agencia destac贸:
- La posici贸n l铆der en el mercado QSR en Am茅rica Latina y el exclusivo Acuerdo de Master Franchise de McDonald鈥檚, recientemente renovado hasta 2044 con una opci贸n de 20 a帽os.
- Una apalancamiento conservador, con deuda ajustada por S&P/EBITDA 鈮� 2.0x y FFO/deuda 鈮� 35%.
- Una s贸lida liquidez, sin vencimientos a corto plazo y l铆neas de cr茅dito comprometidas.
- La diversificaci贸n geogr谩fica y la capacidad para soportar un posible escenario de estr茅s soberano brasile帽o.
Este es el segundo rating investment-grade para Arcos Dorados, tras la mejora de Fitch a 鈥淏BB-鈥� en enero de 2025, otorgando a la compa帽铆a el estatus completo de grado de inversi贸n. Ambas agencias destacaron una pol铆tica financiera prudente, un s贸lido desempe帽o operativo y un calendario de deuda c贸modo. La direcci贸n considera las calificaciones duales como una validaci贸n de su estructura de capital disciplinada y estrategia a largo plazo.
Arcos Dorados (NYSE: ARCO)電� S&P 旮�搿滊矊 霠堨澊韺呾姢搿滊秬韯� 鞛リ赴 氚滍枆鞛� 鞁犾毄霌标笁 'BBB-'鞕� 鞎堨爼鞝� 鞝勲鞚� 觳橃潓鞙茧 氚涭晿鞀惦媹雼�. 旮瓣磤鞚� 須岇偓鞚� 雼れ潓 靷暛鞚� 鞏戈笁頄堨姷雼堧嫟:
- 霛柬嫶 鞎勲⿺毽勾 QSR 鞁滌灔 鞝愳湢鞙� 靹犽弰 氚� 2044雲勱箤歆� 20雲� 鞓奠厴鞚� 韽暔霅� 霃呾爯 毵ル弰雮犽摐 毵堨姢韯� 頂勲灉彀澊歃� 瓿勳暯 臧膘嫚.
- S&P 臁办爼 攵�毂�/EBITDA 鈮� 2.0氚�, FFO/攵�毂� 鈮� 35%鞚� 氤挫垬鞝侅澑 霠堧矂毽.
- 瓴碃頃� 鞙犽彊靹�, 雼赴 毵岅赴 鞐嗢潓, 頇曥爼霅� 鞁犾毄 鞁滌劋.
- 歆�毽爜 雼り皝頇� 氚� 鞛犾灛鞝� 敫岆澕歆� 欤缄秾 鞙勱赴 鞁滊倶毽槫毳� 瓴敎 靾� 鞛堧姅 電ル牓.
鞚措矆鞚� Arcos Dorados鞚� 霊� 氩堨Ц 韴瀽霌标笁 鞁犾毄韽夑皜搿�, 2025雲� 1鞗� Fitch鞚� 'BBB-' 靸來枼 臁办爼 鞚错泟 須岇偓鞐� 鞕勳爠頃� 韴瀽霌标笁 歆�鞙勲ゼ 攵�鞐暕雼堧嫟. 鞏� 旮瓣磤 氇憪 鞁犾頃� 鞛 鞝曥眳, 臧曤牓頃� 鞖挫榿 鞁れ爜, 鞎堨爼鞝侅澑 攵�毂� 鞚检爼鞐� 欤茧頄堨姷雼堧嫟. 瓴届榿歆勳潃 鞚挫 霌标笁鞚� 鞛愳偓鞚� 鞐勱博頃� 鞛愲掣 甑“ 氚� 鞛リ赴 鞝勲灥鞐� 雽�頃� 瓴�歃濎溂搿� 氤搓碃 鞛堨姷雼堧嫟.
Arcos Dorados (NYSE : ARCO) a obtenu une premi猫re notation d鈥櫭﹎etteur 脿 long terme de 芦 BBB- 禄 avec une perspective stable de la part de S&P Global Ratings. L鈥檃gence a soulign茅 :
- La part de march茅 dominante dans le secteur QSR en Am茅rique latine et l鈥檃ccord exclusif de franchise ma卯tre McDonald鈥檚, r茅cemment renouvel茅 jusqu鈥檈n 2044 avec une option de 20 ans.
- Un levier financier prudent, avec une dette ajust茅e par S&P/EBITDA 鈮� 2,0x et un FFO/dette 鈮� 35 %.
- Une liquidit茅 solide, aucune 茅ch茅ance 脿 court terme et des facilit茅s de cr茅dit engag茅es.
- La diversification g茅ographique et la capacit茅 脿 supporter un 茅ventuel sc茅nario de stress souverain br茅silien.
Il s鈥檃git de la deuxi猫me notation investment-grade pour Arcos Dorados, suite 脿 la mont茅e en gamme de Fitch 脿 芦 BBB- 禄 en janvier 2025, conf茅rant 脿 la soci茅t茅 un statut pleinement investment-grade. Les deux agences ont mis en avant une politique financi猫re prudente, une solide performance op茅rationnelle et un calendrier d鈥檈ndettement confortable. La direction consid猫re ces doubles notations comme une validation de sa structure de capital disciplin茅e et de sa strat茅gie 脿 long terme.
Arcos Dorados (NYSE: ARCO) erhielt von S&P Global Ratings eine erste langfristige Emittentenbewertung von 鈥濨BB-鈥� mit stabilem Ausblick. Die Agentur hob hervor:
- Marktf眉hrerschaft im QSR-Bereich in Lateinamerika und den exklusiven McDonald鈥檚 Master Franchise-Vertrag, der k眉rzlich bis 2044 mit einer 20-j盲hrigen Option verl盲ngert wurde.
- Konservative Verschuldung mit einem S&P-bereinigten Verschuldungsgrad von ca. 2,0x Debt/EBITDA und FFO/Schulden von ca. 35 %.
- Solide Liquidit盲t, keine kurzfristigen F盲lligkeiten und zugesagte Kreditlinien.
- Geografische Diversifikation und die F盲higkeit, ein m枚gliches brasilianisches Staatsrisiko zu bew盲ltigen.
Dies ist die zweite Investment-Grade-Bewertung f眉r Arcos Dorados, nach dem Upgrade von Fitch auf 鈥濨BB-鈥� im Januar 2025, das dem Unternehmen den vollen Investment-Grade-Status verleiht. Beide Agenturen betonten eine vorsichtige Finanzpolitik, starke operative Leistung und einen komfortablen Schuldenplan. Das Management sieht die Doppelbewertung als Best盲tigung der disziplinierten Kapitalstruktur und langfristigen Strategie.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2025
Commission File Number: 001-35129
Arcos Dorados Holdings Inc.
(Exact name of registrant as specified in its charter)
Río Negro 1338, First Floor
Montevideo, Uruguay, 11100
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | X | Form 40-F |
ARCOS DORADOS HOLDINGS INC.
TABLE OF CONTENTS
| ITEM | |
| 1. | Press Release dated July 31, 2025 titled “Arcos Dorados Achieves Full Investment Grade with S&P’S Initial Rating of ‘BBB-’” |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Arcos Dorados Holdings Inc. | |||
| By: | /s/ Juan David Bastidas | ||
| Name: | Juan David Bastidas | ||
| Title: | Chief Legal Counsel | ||
Date: July 31, 2025
Item 1
FOR IMMEDIATE RELEASE |
 |
ARCOS DORADOS ACHIEVES FULL INVESTMENT GRADE WITH S&P’S INITIAL RATING OF ‘BBB-’
Montevideo, Uruguay, July 31, 2025 – Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”) announced that S&P Global Ratings (S&P) assigned an investment grade long-term issuer credit rating of ‘BBB-’ with a Stable Outlook for the Company. This marks the second investment grade rating received by Arcos Dorados, following Fitch Ratings’ upgrade to ‘BBB-’ in January 2025, thereby achieving full investment grade status.
In its report, the agency highlighted Arcos Dorados’ leading position in the quick service restaurant (QSR) industry in Latin America, its exclusive rights to the McDonald’s brand through its Master Franchise Agreement (MFA), and its consistent track record of maintaining a conservative financial profile. These strengths support stable credit metrics, with S&P-adjusted debt to EBITDA of approximately 2.0x and S&P-adjusted Funds from Operations to Debt near 35%.
S&P also emphasized the strategic benefits of the recently renewed MFA with McDonald’s, valid through the end of 2044, with an additional 20-year renewal option. This agreement grants Arcos Dorados exclusive access to one of the world’s most recognized brands across 20 countries in the region, providing a significant competitive advantage in terms of brand strength, supply chain integration, and access to global operational know-how.
S&P further noted Arcos Dorados’ sound liquidity position, broad geographic footprint, and capacity to withstand a potential Brazilian sovereign stress scenario. The Company’s prudent financial risk management, lack of near-term debt maturities, and access to committed credit facilities further strengthen its credit profile according to the rating agency.
S&P and Fitch both highlighted Arcos Dorados’ operating performance and prudent financial policy as key drivers of long-term credit quality. Fitch pointed to the Company’s continued strong operating performance, good liquidity and comfortable debt maturity profile to support its upgrade in January 2025.
Achieving full investment grade status reinforces Arcos Dorados’ commitment to maintaining a solid financial position and enhances its standing in global capital markets, reflecting strong confidence in the Company’s financial discipline and long-term strategic execution.
Investor Relations Contact
Dan Schleiniger VP of Investor Relations Arcos Dorados |
Media Contact David Grinberg VP of Corporate Communications Arcos Dorados |
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About Arcos Dorados |
Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating in Latin America and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 20 Latin American and Caribbean countries and territories with more than 2,400 restaurants, operated or franchised by the Company or by its sub-franchisees, that together employ more than 100,000 people (as of 03/31/2025). The Company is also committed to the development of the communities in which it operates, to providing young people their first formal job opportunities and to utilize its Recipe for the Future to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: www.arcosdorados.com/ir.
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FAQ
What rating did S&P assign to Arcos Dorados (ARCO)?
Why did S&P give Arcos Dorados an investment-grade rating?
Is this Arcos Dorados鈥� first investment-grade rating?
How long is the McDonald鈥檚 Master Franchise Agreement valid?
What leverage metrics did S&P highlight for Arcos Dorados?
