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Food company Arcos Dorados Holdings has decided to be with McDonald's for more time. On December 30, 2024, it renewed its agreement with the fast-food chain for 20 years from 2025. According to reports, the renewal came into effect on January 1, 2025, thereby replacing the previous one.
The food company holds a greater percentage of the restaurant chains in Latin America. Besides Latin America, Arcos Dorados looks after approximately 2,400 restaurants in the Caribbean too. Moreover, it independently holds the largest Golden Arches franchise.
According to Nation’s Restaurant News, the company currently has a market capitalization of $1.8 billion, and its share price has increased by roughly 60% over the past decade.
The renewal notice was sent by McDonald’s on August 1, 2024. The new Master Franchise Agreement (MFA) reportedly includes a renewal option at McD’s discretion for a new 20-year contract that will begin on January 1, 2045, if it has a royalty rate on gross sales of 6% during the first ten years, 6.25% during the next five years and 6.5% during the final five years.
Arcos Dorados' executive chairman, Woods Staton, expressed satisfaction with the renewed agreement to extend the company's successful partnership with McDonald's. He highlighted the franchise's commitment to generating long-term shareholder value and positively impacting the communities it serves.
Staton emphasized the company's dedication to strengthening market leadership over the next 20 years to benefit all stakeholders.
The renewed agreement with McDonald’s is anticipated to drive further growth in the franchisee's operations across its 20 countries and territories, with plans to open around 90 to 100 new locations in 2025.
McDonald’s to launch its McValue platform this month
In November 2024, the Golden Arches announced the launch of its new McValue platform which will begin operations on January 7, 2025. This platform will have interesting deals like the ‘Buy One, Add One for $1’ offer and the $5 Meal Deal.
Joe Erlinger, President of McDonald’s USA, mentioned it was important for the value offerings to be flexible. He emphasized the collaboration with franchisees to develop a platform that allows customers to tailor value to their preferences.
The initiative will include personalized deals on favorite orders and options, providing customers with more opportunities to save during their visits. With the Buy One, Add One for $1 offer, foodies can choose a full-priced menu item from the McValue menu. They can then add another item of their choice for just $1.
Under this offer, breakfast options include the Sausage McMuffin®, Sausage Biscuit, Sausage Burrito, and Hash Browns, while lunch and dinner choices feature 6-piece Chicken McNuggets, Double Cheeseburger, McChicken®, and Small Fries.
Similarly, the $5 Meal Deal includes a choice between a McDouble® or McChicken® sandwich, paired with small fries, a 4-piece Chicken McNuggets®, and a small soft drink.
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From January 7, 2025, customers can either visit their nearest restaurants or place their orders from the official app to secure the optimum benefits of the McValue platform.
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