Document

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 May, 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

Form 40-F

ARCOS DORADOS HOLDINGS INC.

TABLE OF CONTENTS

ITEM

1. Arcos Dorados Holdings Inc. Unaudited Condensed Consolidated Financial Statements as of March 31, 2025 and December 31, 2024 and for the three-month period ended March 31, 2025 and 2024 (Unaudited)

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: May 14, 2025

Arcos Dorados Holdings Inc.

Condensed Consolidated Financial Statements

As of March 31, 2025 and December 31, 2024 and for the three-month period ended March 31, 2025 and 2024 (Unaudited)

F-1

Arcos Dorados Holdings Inc.

Consolidated Statements of Income

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated


	2025		2024
REVENUES
Sales by Company-operated restaurants	$	1,027,531	$	1,031,422
Revenues from franchised restaurants	49,061		49,934
Total revenues	1,076,592		1,081,356

OPERATING COSTS AND EXPENSES
Company-operated restaurant expenses:
Food and paper	(366,612)		(360,987)
Payroll and employee benefits	(197,749)		(201,960)
Occupancy and other operating expenses	(308,065)		(299,053)
Royalty fees	(63,411)		(65,003)
Franchised restaurants – occupancy expenses	(21,044)		(21,990)
General and administrative expenses	(73,325)		(68,658)
Other operating (expenses) income, net	(1,239)		3,846
Total operating costs and expenses	(1,031,445)		(1,013,805)
Operating income	45,147		67,551
Net interest expense and other financing results	(16,592)		(16,438)
Gain (loss) from derivative instruments	110		(1,933)

Foreign currency exchange results	(1,961)		(998)
Other non-operating expenses, net	(122)		(429)
Income before income taxes	26,582		47,753
Income tax expense, net	(12,505)		(18,961)
Net income	14,077		28,792
Less: Net income attributable to non-controlling interests	(147)		(283)
Net income attributable to Arcos Dorados Holdings Inc.	$	13,930	$	28,509


Earnings per share information:
Basic net income per common share attributable to Arcos Dorados Holdings Inc.	$	0.07	$	0.14
Diluted net income per common share attributable to Arcos Dorados Holdings Inc.	0.07		0.14

See Notes to the Condensed Consolidated Financial Statements.

F-2

Arcos Dorados Holdings Inc.

Consolidated Statements of Comprehensive Income

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars


	2025		2024
Net income	$	14,077	$	28,792
Other comprehensive income (loss), net of tax:
Foreign currency translation	41,639		(8,986)




Cash flow hedges:
Net (loss) gain recognized in accumulated other comprehensive loss	(10,189)		2,509
Reclassification of net loss (gain) to consolidated statement of income	12,444		(1,917)
Cash flow hedges (net of deferred income taxes of $(2,125) and $(80))	2,255		592
Securities available for sale:
Unrealized loss on available for sale securities	(77)		(155)

Securities available for sale (net of deferred income taxes of $(33) and $(27))	(77)		(155)
Total other comprehensive income (loss)	43,817		(8,549)
Comprehensive income	57,894		20,243
Less: Comprehensive income attributable to non-controlling interests	(167)		(207)
Comprehensive income attributable to Arcos Dorados Holdings Inc.	$	57,727	$	20,036

See Notes to the Condensed Consolidated Financial Statements.

F-3

Arcos Dorados Holdings Inc.

Consolidated Balance Sheet

As of March 31, 2025 and December 31, 2024

Amounts in thousands of US dollars, except for share data and as otherwise indicated


	As of
	March 31, 2025		As of
	(Unaudited)		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	404,606	$	135,064
Short-term investments	90,185		3,529
Accounts and notes receivable, net	148,628		119,441
Other receivables	41,916		42,469
Inventories	51,874		51,650
Prepaid expenses and other current assets	123,468		115,834

Derivative instruments	132		416
Total current assets	860,809		468,403
Non-current assets
Miscellaneous	100,426		93,581
Collateral deposits	2,500		2,500
Property and equipment, net	1,175,979		1,127,042
Net intangible assets and goodwill	133,823		66,644
Deferred income taxes	106,010		90,287
Derivative instruments	75,169		79,874

Equity method investments	14,362		14,346
Lease right of use asset	997,942		949,977
Total non-current assets	2,606,211		2,424,251
Total assets	$	3,467,020	$	2,892,654
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	297,609	$	347,895
Royalties payable to McDonald’s Corporation	27,813		20,860
Income taxes payable	35,078		39,004
Other taxes payable	81,369		79,462
Accrued payroll and other liabilities	155,076		113,259
Provision for contingencies	1,198		1,199
Interest payable	21,873		7,798
Short-term debt	38,366		60,251
Current portion of long-term debt	244,495		2,624
Derivative instruments	2,877		1,292

Operating lease liabilities	95,278		92,280
Total current liabilities	1,001,032		765,924
Non-current liabilities
Accrued payroll and other liabilities	90,763		20,928
Provision for contingencies	33,015		29,157
Long-term debt, excluding current portion	930,913		715,974
Derivative instruments	181		—
Deferred income taxes	2,094		2,084
Operating lease liabilities	892,259		849,158
Total non-current liabilities	1,949,225		1,617,301
Total liabilities	2,950,257		2,383,225
Equity
Class A shares of common stock	389,967		389,967
Class B shares of common stock	132,915		132,915
Additional paid-in capital	8,659		8,659
Retained earnings	627,760		664,390
Accumulated other comprehensive loss	(624,687)		(668,484)
Common stock in treasury	(19,367)		(19,367)
Total Arcos Dorados Holdings Inc. shareholders’ equity	515,247		508,080
Non-controlling interests in subsidiaries	1,516		1,349
Total equity	516,763		509,429
Total liabilities and equity	$	3,467,020	$	2,892,654

See Notes to the Condensed Consolidated Financial Statements.

F-4

Arcos Dorados Holdings Inc.

Condensed Consolidated Statements of Cash Flows

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars


	2025		2024
Operating activities
Net income attributable to Arcos Dorados Holdings Inc.	$	13,930	$	28,509
Adjustments to reconcile net income attributable to Arcos Dorados Holdings Inc. to cash used in operating activities:
Non-cash charges and credits:
Depreciation and amortization	46,295		43,091

Gain on sales of restaurants businesses	—		(1,331)

Foreign currency exchange results	5,536		4,466
(Gain) Loss from derivative instruments	(110)		1,933
Others, net	(9,787)		(4,573)
Changes in assets and liabilities	(69,300)		(81,483)
Net cash used in operating activities	(13,436)		(9,388)
Investing activities
Property and equipment expenditures	(48,810)		(61,214)

Purchases of restaurant businesses paid at acquisition date	—		(5,023)
Proceeds from sales of property and equipment, restaurant businesses and related advances	68		2,187

Proceeds from short-term investments	—		45,000
Acquisition of short-term investments	(86,700)		(30,000)
Other investing activity	(254)		(134)
Net cash used in investing activities	(135,696)		(49,184)
Financing activities
Dividend payments to Arcos Dorados Holdings Inc.’s shareholders	(12,640)		(12,639)


Cash Tender of 2027 Senior Notes	(136,145)		—
Issuance of 2032 Notes	597,498		—






Short-term borrowings	11,303		5,635
Payment of short-term debt	(34,493)		(31)


Other financing activities	(6,848)		(1,010)
Net cash provided by (used in) financing activities	418,675		(8,045)
Effect of exchange rate changes on cash and cash equivalents	(1)		(2,548)
Increase (decrease) in cash and cash equivalents	269,542		(69,165)
Cash and cash equivalents at the beginning of the year	135,064		196,661
Cash and cash equivalents at the end of the period	$	404,606	$	127,496

Supplemental cash flow information:
Cash paid during the period for:
Interest	$	4,768	$	1,414
Income tax	26,564		33,558
Non-cash investing and financing activities:

Dividend declared pending of payment	37,920		37,918
Seller financing pending of payment	—		297
Settlement of franchise receivables related to purchases of restaurant businesses	—		510

See Notes to the Condensed Consolidated Financial Statements.

F-5

Arcos Dorados Holdings Inc.

Consolidated Statement of Changes in Equity

For the three-month period ended March 31, 2025 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated


	Arcos Dorados Holdings Inc. Shareholders’ Equity
	Class A shares of common stock			Class B shares of common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Common stock in treasury			Total		Non- controlling interests		Total
	Number	Amount		Number	Amount								Number	Amount
Balances at beginning of fiscal year	132,972,119	$	389,967	80,000,000	$	132,915	$	8,659	$	664,390	$	(668,484)	(2,309,062)	$	(19,367)	$	508,080	$	1,349	$	509,429
Net income for the period (Unaudited)	—	—		—	—		—		13,930		—		—	—		13,930		147		14,077
Other comprehensive income (Unaudited)	—	—		—	—		—		—		43,797		—	—		43,797		20		43,817
Cash Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.24 per share) (Unaudited)	—	—		—	—		—		(50,560)		—		—	—		(50,560)		—		(50,560)








Balances at end of period (Unaudited)	132,972,119	$	389,967	80,000,000	$	132,915	$	8,659	$	627,760	$	(624,687)	(2,309,062)	$	(19,367)	$	515,247	$	1,516	$	516,763

See Notes to the Condensed Consolidated Financial Statements.

F-6

Arcos Dorados Holdings Inc.

Consolidated Statement of Changes in Equity

For the three-month period ended March 31, 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated


	Arcos Dorados Holdings Inc. Shareholders’ Equity
	Class A shares of common stock			Class B shares of common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Common stock in treasury			Total		Non- controlling interests		Total
	Number	Amount		Number	Amount								Number	Amount
Balances at beginning of fiscal year	132,964,031	$	389,907	80,000,000	$	132,915	$	8,719	$	566,188	$	(563,081)	(2,309,062)	$	(19,367)	$	515,281	$	1,558	$	516,839
Net income for the period (Unaudited)	—	—		—	—		—		28,509		—		—	—		28,509		283		28,792
Other comprehensive loss (Unaudited)	—	—		—	—		—		—		(8,473)		—	—		(8,473)		(76)		(8,549)
Cash Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.24 per share) (Unaudited)	—	—		—	—		—		(50,557)		—		—	—		(50,557)		—		(50,557)

Issuance of shares in connection with the partial vesting of outstanding restricted share units under the 2011 Equity Incentive Plan (Unaudited)	2,082	16		—	—		(16)		—		—		—	—		—		—		—


Balances at end of period (Unaudited)	132,966,113	$	389,923	80,000,000	$	132,915	$	8,703	$	544,140	$	(571,554)	(2,309,062)	$	(19,367)	$	484,760	$	1,765	$	486,525

See Notes to the Condensed Consolidated Financial Statements.

F-7

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

1. Organization and nature of business

Arcos Dorados Holdings Inc. (the “Company”) is a company limited by shares incorporated and existing under the laws of the British Virgin Islands. The Company’s fiscal year ends on the last day of December. The Company has through its wholly-owned company Arcos Dorados Group B.V., a 100% equity interest in Arcos Dorados B.V. (“ADBV”).

On August 3, 2007 the Company, indirectly through its wholly-owned subsidiary ADBV, entered into a Stock Purchase Agreement and Master Franchise Agreements (“MFAs”) with McDonald’s Corporation pursuant to which the Company completed the acquisition of the McDonald’s business in Latin America and the Caribbean (“LatAm business”). Prior to this acquisition, the Company did not carry out operations. The Company’s rights to operate and franchise McDonald’s-branded restaurants in the Territories, and therefore the ability to conduct the business, derive exclusively from the rights granted by McDonald’s Corporation in the MFAs through 2027. The initial term of the MFA for French Guiana, Guadeloupe and Martinique was ten years through August 2, 2017 with an option to extend the agreement for these territories for an additional period of ten years, through August 2, 2027. On July 20, 2016, the Company has exercised its option to extend the MFA for these three territories.

The Company, through ADBV’s wholly-owned and majority owned subsidiaries, operates and franchises McDonald’s restaurants in the food service industry. The Company has operations in twenty territories as follows: Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas (USVI) and Venezuela. All restaurants are operated either by the Company’s subsidiaries or by independent entrepreneurs under the terms of sub-franchisee agreements (franchisees).

Effective from January 1, 2025, the Company entered into two new MFAs with McDonald´s Corporation that replaced the prior agreements. The term of the new MFAs is 20 years for all of the Territories other than French Guiana, Guadeloupe and Martinique (which are subject to 10 year terms with an option to extend such terms for an additional term of 10 years).

2. Basis of presentation and principles of consolidation

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) for interim financial information and include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company has elected to report its consolidated financial statements in United States dollars (“$” or “US dollars”).

The accompanying condensed consolidated financial statements do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted for purposes of this presentation. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated annual financial statements of the Company as of December 31, 2024.

The accompanying condensed consolidated financial statements are unaudited and include, in the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are considered necessary for the fair presentation of the information in the consolidated financial statements.

Operating results for the three-month period ended March 31, 2025 are not necessarily indicative of results that may be expected for any future periods.

F-8

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

3. Summary of significant accounting policies

The following is a summary of significant accounting policies followed by the Company in the preparation of the consolidated financial statements.

Use of estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Foreign currency matters

The financial statements of the Company’s foreign operating subsidiaries are translated in accordance with guidance in ASC 830 Foreign Currency Matters. Except for the Company’s Venezuelan and Argentinian operations, the functional currencies of the Company’s foreign operating subsidiaries are the local currencies of the countries in which they conduct their operations. Therefore, assets and liabilities are translated into US dollars at the balance sheet date exchange rates, and revenues, expenses and cash flow are translated at average rates prevailing during the periods. Translation adjustments are included in the “Accumulated other comprehensive loss” component of shareholders’ equity. The Company includes foreign currency exchange results related to monetary assets and liabilities transactions, including intercompany transactions, denominated in currencies other than its functional currencies in its statements of income.

Since January 1, 2010 and July 1, 2018, Venezuela and Argentina, respectively, were considered to be highly inflationary, and as such, the financial statements of these subsidiaries are remeasured as if its functional currency was the reporting currency of the immediate parent company (US 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.

In addition, in these territories, there are foreign currency restrictions. Since 2019, in Argentina several measures have been adopted including, among others: (i) limitation to hoarding and consumption in foreign currency for natural persons, (ii) taxes to increase the official exchange rate for certain services and goods, (iii) approvals required from the Central Bank of Argentina to access foreign currency to settle imports of goods or services, principal and interest from financial payables to foreign parties and dividends. Furthermore, Venezuela has currency restrictions which have been in place for several years under different currency exchange regulations. Although during 2019, the Central Bank of Venezuela loosened those restrictions by permitting financial institution to participate as intermediaries in foreign currency operations, the Company’s ability to immediately access cash through repatriations continues to be limited. Additionally, the Venezuelan market is subject to price controls. Its government issued a regulation establishing a maximum profit margin for companies and maximum prices for certain goods and services. However, the Company was able to increase prices during the three-month period ended March 31, 2025.

As of March 31, 2025, Argentina’s and Venezuela’s net nonmonetary asset positions were $183.5 million and $20.2 million, respectively, mainly fixed assets.

Intangible assets, net

Intangible assets include computer software costs, initial franchise fees, reacquired rights under franchise agreements and letter of credit fees.

The Company follows the provisions of ASC 350-40-30 within ASC 350 Intangibles, Subtopic 40 Internal Use Software which requires the capitalization of costs incurred in connection with developing or obtaining software for internal use. These costs are amortized over a period of three years on a straight line basis.

F-9

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

The Company is required to pay to McDonald’s Corporation an initial franchisee fee upon opening of a new restaurant. The initial franchise fee related to Company-operated restaurants is capitalized as an intangible asset and amortized on a straight-line basis over the term of the franchise. In addition, as of March 31, 2025, intangible assets included $67,592 related to the initial franchise fee for each franchised restaurant in operation as of January 1, 2025, payable from August, 2027. The related liability is included within Accrued payroll and other liabilities, non-current portion.

A reacquired franchise right is recognized as an intangible asset as part of the business combination in the acquisition of franchised restaurants apart from goodwill with an assigned amortizable life limited to the remaining contractual term (i.e., not including any renewal periods). The value assigned to the reacquired franchise right excludes any amounts recognized as a settlement gain or loss and is limited to the value associated with the remaining contractual term and operating conditions for the acquired restaurants. The reacquired franchise right is measured using a valuation technique that considers restaurant's cash flows after payment of an at-market royalty rate to the Company. The cash flows are projected for the remaining contractual term, regardless of whether market participants would consider potential contractual renewals in determining its fair value.

Accounts payable outsourcing

In the ordinary course of business, the Company looks to obtain extended payment terms during the negotiation process with suppliers, which payment terms can vary from 15 days to up to 180 days after the invoice date. In this context, the Company offers its suppliers access to an accounts payable services arrangement provided by third party financial institutions. Independent from the Company, the financial institutions offer suppliers to voluntarily sell their receivables to them in an arrangement separately negotiated by the supplier and the financial institution. This service also allows the Company’s suppliers to view its scheduled payments online, enabling them to better manage their cash flow and reduce payment processing costs. The Company’s responsibility is limited to making payment on the original due dates of the invoice negotiated with the supplier, regardless of whether the supplier sells its receivable. The Company is not permitted to remit payment to the financial institution or the supplier on a date later than the original due date of the invoice under any circumstances. The payment terms and purchase price of the original invoice do not change once the supplier elects to participate. Those payment terms vary from 45 days to up to 180 days after the invoice date. The Company has no economic interest in the sale of these receivables and no direct relationship with the financial institutions concerning the sale of receivables. As a result, the Company does not pay any fee to the financial institutions for purchasing the suppliers' receivables and it does not receive any fee, commission, refund or discount from the financial institutions for the accounts payable services arrangement. The Company retains the right to all early pay discounts offered by suppliers if they do not sell their receivables.

As of March 31, 2025 and December 31, 2024, the amounts under the accounts payable services arrangement and included in Accounts Payable in the Balance Sheet were $17,022 and $14,849, respectively.

Recent accounting pronouncements

Income Taxes

In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The pronouncement expands the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are currently in the process of determining the impact that ASU 2023-09 will have on the Company’s consolidated financial statement disclosures.

F-10

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

Income Statement Expenses - Disaggregation

In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses". The pronouncement expands the disclosure requirements for expenses, specifically by providing more detailed information about the types of expenses in commonly presented expense captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. We are currently in the process of determining the impact that ASU 2024-03 will have on the Company's consolidated financial statement disclosures.

No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on the Company’s consolidated financial statements.

4. Short-term debt

Short-term debt consists of the following:


	As of
	March 31, 2025		As of
	(Unaudited)		December 31, 2024

Bank overdrafts	1,100		686
Short-term bank loans	$	37,266	$	55,065
Revolving Credit Facility	—		4,500
Total	$	38,366	$	60,251

Short-term bank loans

As of March 31, 2025, the Company had drawn short term bank loans in Chile and Uruguay, amounting to $37,266. As of December 31, 2024, short-term bank loans were comprised of short-term bank loans in Chile, Uruguay, Puerto Rico and Panama, amounting to $55,065.

The following table presents additional information related to short-term bank debt:


				Principal as of
Territories	Entity	Currency	Annual interest rate	March 31, 2025 (Unaudited)		December 31, 2024		Maturity


Panama	Citibank N.A.	USD	SOFR + 2.10%	—		5,000		February, 2025
Puerto Rico	Citibank N.A.	USD	SOFR + 2.10%	—		14,000		February, 2025
Chile	Banco de Chile	CLP	6.84%	—		8,677		March, 2025
			7.08%	9,076		—		May, 2025
	Banco Itaú Chile		7.53%	18,190		17,388		June, 2025
Uruguay	Banco Itaú Uruguay S.A.	USD	5.74%	8,000		8,000		May, 2025
	Banco Bilbao Vizcaya Argentaria Uruguay S.A.		5.55%	2,000		2,000
Total				$	37,266	$	55,065

On May 6, 2025, the Company renewed its short-term bank loans with Banco Itau Uruguay S.A. and Banco Bilbao Vizcaya Argentaria Uruguay S.A. for the same total amount of $8,000 and $2,000, respectively, now maturing both on November 6, 2026, which will bear interest annually at 3.90% and 3.95%, respectively.

F-11

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

Revolving credit facilities

As of March 31, 2025, the Company maintained the followings revolving credit facilities:

Bank

Currency

Maturity

Interest rate

Amount

Itau Unibanco S.A. (i)

April 14, 2025

TERM SOFR + range between 2.65% to 4.85%

25,000

J.P. Morgan

February 17, 2026

SOFR + 3.10%

25,000

Banco Santander (Brasil) S.A. (ii)

October 31, 2026

TERM SOFR + range between 3.20% to 3.60%

25,000

(i) Maintained by its wholly-owned subsidiary ADBV.

(ii) Maintained by both, the Company and its wholly-owned subsidiary ADBV.

On April 15, 2025, the Company, through its wholly-owned subsidiary ADBV, renewed its revolving credit facility with Itau Unibanco S.A. for the same total amount of $25 million, now maturing on April 14, 2026, which will bear interest annually at TERM SOFR plus a range between 2.80% and 4.90%.

In addition, for the J.P. Morgan and Santander agreements, the Company is required to comply, as of the last day of each quarter during the agreement, with a consolidated net indebtedness (including interest payable for the J.P. Morgan agreement) to EBITDA ratio. As of March 31, 2025, these ratio were as follows:


Bank	Ratio	Required Maximum Ratio	As of March 31, 2025
J.P. Morgan	Net Indebtedness (including interest payable) to EBITDA	3.00	1.39
Banco Santander (Brasil) S.A.	Net Indebtedness (not including interest payable) to EBITDA	3.00	1.34
	Net Indebtedness (not including interest payable) to EBITDA (i)	3.00	0.51

(i) Ratio maintained by its wholly-owned subsidiary ADBV.

As of March 31, 2025 the Company and ADBV were in compliance with all the ratios.

These revolving credit facilities permit the Company to borrow money from time to time to cover its working capital needs and for other general corporate purposes. Principal is due upon maturity. However, prepayments are permitted without premium or penalty.

The obligations of the Company, and ADBV for the Santander agreement, under the revolving credit facilities are jointly and severally guaranteed by certain of the Company’s subsidiaries on an unconditional basis. The revolving credit facilities include 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; (vi) engage in transactions that violate certain anti-terrorism laws.

The revolving credit facilities provide for customary events of default, which, if any of them occurs, would permit or require the lender to terminate its obligation to provide loans under the revolving credit facility and/or to declare all sums outstanding under the loan documents immediately due and payable.

No amounts are due at the date of issuance of these condensed consolidated financial statements in connection with these revolving credit facilities.

F-12

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

5. Long-term debt

Long-term debt consists of the following:


	As of
	March 31, 2025		As of
	(Unaudited)		December 31, 2024
2032 Notes	$	600,000	$	—
2029 Notes	334,200		334,200
2027 Notes	243,120		379,265

Finance lease obligations	9,145		9,087
Other long-term borrowings	2,819		2,791
Subtotal	1,189,284		725,343
Discount on 2032 Notes	(2,542)		—
Discount on 2029 Notes	(3,103)		(3,294)
Discount on 2027 Notes	(999)		(1,753)
Premium on 2029 Notes	289		308
Premium on 2027 Notes	447		783

Deferred financing costs	(7,968)		(2,789)
Total	$	1,175,408	$	718,598
Current portion of long-term debt	244,495		2,624
Long-term debt, excluding current portion	$	930,913	$	715,974

2032, 2029 and 2027 Notes

On January 15, 2025, the Company announced the commencement of an offer to purchase for cash any and all of its outstanding 2027 Notes.

Furthermore, on January 29, 2025, the Company’s subsidiary ADBV (the “Issuer”) issued Senior Notes for an aggregate principal amount of $600 million which matures in 2032 (the "2032 Notes"). Interest on the notes will accrue at a rate of 6.375% per annum.

As a result, the proceeds from 2032 Notes were used to fund the cash tender offer redeemed on January 29, 2025 consisting of 35.27% of its outstanding principal of 2027 Notes for a total amount of $136,145 plus accrued and unpaid interest and were used on April 4, 2025 to redeem all of its outstanding 2027 Notes announced on February 28 ,2025 at a redemption price equal to 100% for a total amount of $243,120 plus accrued and unpaid interest, and for general corporate purposes. Periodic payments of principal are not required and interest is paid semi-annually commencing on July 29, 2025.

The 2032 Notes are guaranteed on a senior unsecured basis by the Company and certain of its subsidiaries.

The following table presents additional information related to the 2032, 2029 and 2027 Notes (the “Notes”):


				Principal as of
	Annual interest rate		Currency	March 31, 2025 (Unaudited)		December 31, 2024		Maturity
2032 Notes	6.375	%	USD	$	600,000	$	—	January 29, 2032
2029 Notes	6.125	%	USD		334,200		334,200	May 27, 2029
2027 Notes	5.875	%	USD		243,120		379,265	April 4, 2027

F-13

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

The following table presents additional information for the three-month period ended March 31, 2025 and 2024:


	Interest Expense (i)				DFC Amortization (i)				Amortization of Premium/Discount, net (i)
	2025 (Unaudited)		2024 (Unaudited)		2025 (Unaudited)		2024 (Unaudited)		2025 (Unaudited)		2024 (Unaudited)
2032 Notes	$	6,588	$	—	$	144	$	—	$	64	$	—
2029 Notes		5,117		5,117		118		118		172		173
2027 Notes		4,193		5,570		320		114		314		116

(i)These charges are included within “Net interest expense and other financing results” in the consolidated statements of income.

6. Derivative instruments

The Company’s derivatives that are designated for hedge accounting consist of cross-currency interest rate swaps, foreign currency forwards, principal only swap, call spreads, interest coupon only swaps and sustainability linked ESG principal only swap. All these derivatives are classified as cash flow hedges. Further details are in “Derivatives designated as hedging instruments” section.

Additionally, the Company enters into certain derivatives that are not designated for hedge accounting. The Company has entered into foreign currency forwards to mitigate the foreign currency fluctuations on foreign currency denominated liabilities. Further details are explained in the “Derivatives not designated as hedging instruments” section.

The following table presents the fair values of derivative instruments included in the consolidated balance sheets as of March 31, 2025 and December 31, 2024:


		Assets					Liabilities
Type of Derivative	Balance Sheets Location	As of		As of		Balance Sheets Location	As of		As of
		March 31, 2025 (Unaudited)		December 31, 2024			March 31, 2025 (Unaudited)		December 31, 2024
Derivatives designated as hedging instruments
Cash Flow hedge
Forward contracts	Other receivables	$	238	$	2,093	Accrued payroll and other liabilities	$	(513)	$	—
Principal only swap	Derivative instruments	457		—		Derivative instruments	(946)		—
Call spread + coupon-only swap	Derivative instruments	15,816		16,998		Derivative instruments	(864)		(179)
Sustainability-linked ESG principal only swap	Derivative instruments	24,579		25,617		Derivative instruments	(216)		(207)
Cross-currency interest rate swap	Derivative instruments	34,449		37,627		Derivative instruments	(1,032)		(620)
Subtotal		$	75,539	$	82,335		$	(3,571)	$	(1,006)
Derivatives not designated as hedging instruments
Forward contracts	Derivative instruments	$	—	$	48	Derivative instruments	$	—	$	(286)





Subtotal		$	—	$	48		$	—	$	(286)
Total derivative instruments		$	75,539	$	82,383		$	(3,571)	$	(1,292)

F-14

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

Derivatives designated as hedging instruments

Cash flow hedge

The Company has entered into various forward contracts in a few territories to hedge a portion of the foreign exchange risk associated with forecasted imports of goods. The effect of the hedges results in fixing the cost of goods acquired (i.e. the net settlement or collection adjusts the cost of inventory paid to the suppliers). As of March 31, 2025, the Company estimated that the whole amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into earnings within the next 12 months.

Moreover, the Company, through its Brazilian subsidiary, has entered into certain instruments designated as cash flow hedge to reduce the exposure to variability in expected future cash flows related to intercompany loans (principal and interest). The Company uses principal only swap, call spread, coupon-only swaps, cross-currency interest rate swap and a sustainability-linked ESG principal only swap. As of March 31, 2025, the Company estimated that the whole amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into earnings within the next 4 years.

The following table presents the notional amounts of the Company’s outstanding derivative instruments classified as cash flow hedge:


	Notional amount as of
	March 31, 2025 (Unaudited)		December 31, 2024
Forward contracts	$	58,414	$	48,799
Call spread + coupon-only swap	89,000		89,000
Sustainability-linked ESG principal only	50,000		50,000
Cross-currency interest rate swap	80,000		80,000
Principal only swap	15,000		—

F-15

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

Additional disclosures

The following table presents the pretax amounts affecting income and other comprehensive income (loss) for the three-month period ended March 31, 2025 and 2024 for each type of derivative relationship:


Derivatives in Cash Flow Hedging Relationships	(Loss) Gain Recognized in Accumulated OCI on Derivative (Unaudited)				Loss (Gain) Reclassified from Accumulated OCI into income (Unaudited)
	2025		2024		2025		2024
Forward contracts (i)	$	(1,667)	$	81	$	(701)	$	666
Principal only swap (ii)	(470)		—		1,086		—
Cross-currency interest rate swaps (ii)	(6,484)		2,227		6,699		(1,962)
Call spread (ii)	(506)		310		8,006		(298)
Coupon-only swap (ii)	(2,593)		179		104		(122)
Sustainability linked ESG principal only swap (ii)	(3,115)		962		4,021		(1,531)
Total	$	(14,835)	$	3,759	$	19,215	$	(3,247)

(i)The results recognized in income related to forward contracts were recorded as an adjustment to food and paper.

(ii)The net (loss) gain recognized in income is presented as follows:


	For the three-month period ended March 31,
Adjustment to:	2025 (Unaudited)		2024 (Unaudited)
Net interest expense and other financing results	$	(760)	$	(519)

Foreign currency exchange results	(19,156)		4,432
Total	$	(19,916)	$	3,913

Derivatives not designated as hedging instruments

The Company has entered into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately within “Gain (loss) from derivative instruments”.

The following table presents the notional amounts of the Company’s outstanding derivative instruments not designed as hedging instruments:


	Notional amount as of
	March 31, 2025 (Unaudited)		December 31, 2024
Forward contracts	$	—	$	5,000

F-16

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

7. Share-based compensation

Phantom RSU Award

In May 2019, the Company implemented a new long-term incentive plan (called Phantom RSU Award) to reward employees giving them the opportunity to share the success of the Company in the creation of value for its shareholders. In accordance with this plan, the Company granted units (called “Phantom RSU”) to certain employees, pursuant to which they are entitled to receive, when vested, a cash payment equal to the closing price of one Class A share per unit on the respective day in which this benefit is due and the corresponding dividends per-share (if any) formally declared and paid during the service period. However, in the event of death, disability or retirement of the employee, any unvested portion of the annual award will be fully vested.

The following table provides information about the awards granted by the Company and pending of vesting as of March 31, 2025:


Grant	Units	Vesting period
2022	786,293	May 2025

2023	721,492	May 2026
2024	28,800	April 2025
	611,436	May 2027

The Company recognizes compensation expense related to these benefits on a straight-line basis over the requisite service period. As a consequence, when the award includes multiple vesting periods, it is considered as multiple awards.

The total compensation (expense) benefit for the three-month period ended March 31, 2025 and 2024 amounts to $(1,455) and $659 respectively, which has been recorded under “General and administrative expenses” within the consolidated statement of income. The accrued liability is remeasured at the end of each reporting period until settlement.

The following table summarizes the activity under the plan as of March 31, 2025:


	Units	Settlement
Outstanding at December 31, 2024	2,178,314	$	—




Forfeited	(30,293)	—
Outstanding at March 31, 2025	2,148,021	—

F-17

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

The following table provides a summary of the plan as of March 31, 2025:


	Total Non-vested (i)
Number of units outstanding (i)	2,148,021
Share price as of March 31, 2025	8.06
Total fair value of the plan	17,313
Weighted-average accumulated percentage of service	66.12	%
Accrued liability (ii)	11,447
Compensation expense not yet recognized (iii)	5,866

(i)Related to awards that will vest between April 2025 and May 2027.

(ii)Presented within “Accrued payroll and other liabilities” in the Company’s current and non-current liabilities balance sheet.

(iii)Expected to be recognized in a weighted-average period of 1.68 years.

8. Commitments and contingencies

Commitments

The MFAs require the Company and its MF subsidiaries, among other obligations:

(i)to agree with McDonald’s on a restaurant opening plan. Under the terms of the plan the Company have agreed, the Company expect to open 90-100 restaurants in 2025. In addition, the Company have agreed to use its best efforts to reimage at least 10% of its eligible restaurants. The Company may also propose, subject to McDonald’s consent, amendments to any restaurant opening plan and/or reinvestment plan to adapt to changes in economic or political conditions;

(ii)to pay to McDonald’s Corporation an initial franchise fee for each new restaurant opened. In addition, the Company will pay an initial franchise fee for each franchised restaurant in operation as of January 1, 2025 (which will be payable in two installments of 50% each (one on August 1, 2027, and the other on August 1, 2037)).

(iii)to pay monthly royalties commencing at a rate of 6% of gross sales of the restaurants, during the first 10 years. This percentage will increase to 6.25% and 6.5% for the subsequent two five-year periods of the agreement;

(iv)to commit to funding a specified Strategic Marketing Plan; that includes the expenditure of at least 5% of the Company’s gross sales on Advertising and Promotion activities, unless otherwise agreed with McDonald’s;

(v)to own (or lease) directly or indirectly, the fee simple interest in all real property on which any franchised restaurant is located; and

(vi)to maintain a minimum fixed charge coverage ratio (as defined therein) at least equal to 1.50 as well as a maximum leverage ratio (as defined therein) of 4.25.

If the Company would not be in compliance with these commitments under the MFA, it could be in material breach. A breach of the MFA would give McDonald’s Corporation certain rights, including the ability to acquire all or portions of the business.

F-18

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

For the three-month period ended March 31, 2025, the Company was in compliance with the ratio requirements mentioned in point (v) above. The ratios for the period mentioned, were as follows:


			March 31, 2025 (Unaudited)
Fixed Charge Coverage Ratio			2.14

Leverage Ratio			3.80

In addition, the Company, through its wholly-owned subsidiary ADBV, maintains standby letters of credit in favor of McDonald’s Corporation as collateral for the obligations assumed under the MFAs, for a total aggregate drawing amount of $80 million. These letters of credit can be drawn if certain events occur, including the failure to pay royalties. No amounts have been drawn at the date of issuance of these financial statements. The following table presents information related to the standby letters of credit:


Bank	Currency	Amount
Itaú	$	15,000
Banco Bilbao Vizcaya Argentaria, S.A.	$	45,000
J.P. Morgan	$	20,000

These letters of credit contain a limited number of customary affirmative and negative covenants, including a maximum indebtedness to EBITDA ratio, as follows:

Bank

Ratio

Required Maximum Ratio

March 31, 2025 (Unaudited)

Itaú

Net indebtedness to EBITDA (not including interest payable)

4.50

0.51

Banco Bilbao Vizcaya Argentaria, S.A.

Net indebtedness to EBITDA (including interest payable)

4.00

0.48

J.P. Morgan

Indebtedness to EBITDA

4.50

1.32

For the three-month period ended March 31, 2025 all the ratios were in compliance.

Provision for contingencies

The Company has certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings, including those involving labor, tax and other matters. As of March 31, 2025 and December 31, 2024, the Company maintains a provision for contingencies, net of judicial deposits, amounting to $34,213 and $30,356, respectively, presented as follows: $1,198 and $1,199 as a current liability and $33,015 and $29,157 as a non-current liability, respectively. The breakdown of the provision for contingencies is as follows:


	As of
	March 31, 2025		As of
	(Unaudited)		December 31, 2024
Tax contingencies in Brazil	$	25,451	$	22,113
Labor contingencies in Brazil	9,380		8,821
Others	5,714		5,763
Subtotal	40,545		36,697
Judicial deposits	(6,332)		(6,341)
Provision for contingencies	$	34,213	$	30,356

F-19

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

As of March 31, 2025, there are certain matters related to the interpretation of tax, customs, labor and civil laws for which there is a reasonable possibility that a loss may have been incurred in accordance with ASC 450-20-50-4 within a range of $474 million and $517 million. In accordance with ASC 450-20-50-6, unasserted claims or assessments that do not meet the conditions mentioned have not been included.

As of March 31, 2025, there are certain matters related to the interpretation of income tax laws which could be challenged by tax authorities in an amount of $182 million, related to assessments for the fiscal years 2009 to 2017. No formal claim has been made for fiscal years within the statute of limitation by Tax authorities in any of the mentioned matters, however those years are still subject to audit and claims may be asserted in the future.

Pursuant to Section 9.3 of the Stock Purchase Agreement, McDonald’s Corporation indemnifies the Company for certain Brazilian claim. As of March 31, 2025, the provision for contingencies includes $1,287 ($1,179 as of December 31, 2024), related to this claim. As a result, the Company has recorded a non-current asset in respect of McDonald’s Corporation’s indemnity within “Miscellaneous” in the consolidated balance sheet.

9. Segment and geographic information

The Company is required to report information about operating segments in annual financial statements and interim financial reports issued to shareholders 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. ASC 280 also requires disclosures about the Company’s products and services, geographic areas and major customers.

As discussed in Note 1, the Company through its wholly-owned and majority-owned subsidiaries operates and franchises McDonald’s restaurants in the food service industry. The Company has determined that its reportable segments are those that are based on the Company’s method of internal reporting. The Company manages its business as distinct geographic segments and its operations are divided into three geographic divisions, as follows: (i) Brazil, (ii) the North Latin American division, or “NOLAD,” which is comprised of Costa Rica, Mexico, Panama, Puerto Rico, Martinique, Guadeloupe, French Guiana and the U.S. Virgin Islands of St. Croix and St. Thomas and (iii) the South Latin American division, or “SLAD,” which is comprised of Argentina, Chile, Ecuador, Peru, Uruguay, Colombia, Venezuela, Trinidad and Tobago, Aruba and Curaçao. The accounting policies of the segments are the same as those described in Note 3 of the Consolidated Financial Statements as of December 31, 2024.

The Company's chief operating decision maker is the Chief Executive Officer ("CEO”) and adjusted EBITDA is the measure of segment's profit or loss used to evaluate segment performance and resource allocation.

F-20

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

The following tables present information about profit, or loss, significant expenses, other segment items and assets for each reportable segment:


	For the three-month period ended
	March 31,
	2025		2024
	(Unaudited)		(Unaudited)
Revenues:
Brazil	$	400,302	$	448,937
NOLAD	281,700		302,721
SLAD	394,590		329,698
Total revenues	$	1,076,592	$	1,081,356

Significant expenses (a)
Company-operated restaurant expenses
Brazil	$	(325,002)	$	(346,054)
NOLAD	(239,536)		(259,853)
SLAD	(335,476)		(288,100)
Total Company-operated restaurant expenses	$	(900,014)	$	(894,007)

Franchised restaurants-occupancy expenses
Brazil	$	(13,509)	$	(15,015)
NOLAD	(2,564)		(2,652)
SLAD	(2,850)		(2,004)
Total Franchised restaurants-occupancy expenses	$	(18,923)	$	(19,671)

General and administrative expenses
Brazil	$	(13,052)	$	(14,566)
NOLAD	(13,346)		(13,002)
SLAD	(15,296)		(13,722)
Corporate	(23,486)		(19,785)
Total General and administrative expenses	$	(65,180)	$	(61,075)

Other segment items
Brazil	$	830	$	2,144
NOLAD	(14)		1,388
SLAD	(1,908)		(1,131)
Corporate	(104)		(69)
Total Other segment items (a) (b)	$	(1,196)	$	2,332





Adjusted EBITDA:
Brazil	$	49,569	$	75,446
NOLAD	26,240		28,602
SLAD	39,060		24,741
Total reportable segments	114,869		128,789
Corporate and others (i)	(23,590)		(19,854)
Total adjusted EBITDA	$	91,279	$	108,935

F-21

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

(a) Depreciation & amortization are not included within the significant expenses, such as Company-operated restaurant expenses, Franchised restaurants-occupancy expenses, Selling, general & administrative expenses and Other segment items.

(b) Other segment items includes gains related to sales and exchange of restaurant businesses, rental income of excess properties, accrual for contingencies, recovery of taxes, results from equity method investments, write-offs of inventory and other miscellaneous items.


	For the three-month period ended
	March 31,
	2025		2024
	(Unaudited)		(Unaudited)
Adjusted EBITDA reconciliation:
Total adjusted EBITDA	$	91,279	$	108,935

(Less) Plus items excluded from computation that affect operating income:
Depreciation and amortization	(46,295)		(43,091)
Gains from sale and insurance recovery of property and equipment	501		1,801
Write-offs of long-lived assets	(338)		(94)


Operating income	45,147		67,551

(Less) Plus:
Net interest expense and other financing results	(16,592)		(16,438)
Gain (loss) from derivative instruments	110		(1,933)

Foreign currency exchange results	(1,961)		(998)
Other non-operating expenses, net	(122)		(429)
Income tax expense, net	(12,505)		(18,961)
Net income attributable to non-controlling interests	(147)		(283)
Net income attributable to Arcos Dorados Holdings Inc.	$	13,930	$	28,509


	For the three-month period ended
	March 31,
	2025		2024
	(Unaudited)		(Unaudited)
Depreciation and amortization:
Brazil	$	17,756	$	18,358
NOLAD	13,292		11,904
SLAD	13,114		10,433
Total reportable segments	44,162		40,695
Corporate and others (i)	2,133		2,396

Total depreciation and amortization	$	46,295	$	43,091

F-22

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated


	For the three-month period ended
	March 31,
	2025		2024
	(Unaudited)		(Unaudited)
Property and equipment expenditures:
Brazil	$	22,238	$	18,939
NOLAD	5,688		17,544
SLAD	20,848		24,727
Others	36		4
Total property and equipment expenditures	$	48,810	$	61,214


	As of
	March 31,
	2025		December 31,
	(Unaudited)		2024
Total assets:
Brazil	$	1,290,697	$	1,164,179
NOLAD	967,100		959,403
SLAD	857,853		822,342
Total reportable segments	3,115,650		2,945,924
Corporate and others (i)	447,827		40,366
Purchase price allocation (ii)	(96,457)		(93,636)
Total assets	$	3,467,020	$	2,892,654

(i)Primarily relates to corporate general and administrative expenses, corporate supply chain operations in Uruguay, and related assets. Corporate general and administrative expenses consist of corporate office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training. As of March 31, 2025 corporate assets primarily include cash and cash equivalents and short-term investments. As of December 31, 2024, corporate assets primarily include cash and cash equivalents, short-term investments and lease right of use.

(ii)Relates to the purchase price allocation adjustment made at corporate level, which reduces the accounting value of our long-lived assets (excluding Lease right of use) and goodwill. As of March 31, 2025 and December 31, 2024, primarily related with the reduction of goodwill.

F-23

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

10. Shareholders’ equity

Authorized capital

The Company is authorized to issue a maximum of 500,000,000 shares, consisting of 420,000,000 Class A shares and 80,000,000 Class B shares of no par value each.

Issued and outstanding capital

As of March 31, 2025 and December 31, 2024, the Company issued 212,972,119 shares with no par value, consisting of 132,972,119 Class A shares and 80,000,000 Class B shares for each period.

As of March 31, 2025 and December 31, 2024, the Company had 2,309,062 shares in treasury.

Therefore, as of March 31, 2025 the Company had 210,663,057 shares outstanding, consisting of 130,663,057 Class A shares and 80,000,000 Class B shares.

Rights, privileges and obligations

Holders of Class A shares are entitled to one vote per share and holders of Class B shares are entitled to five votes per share. Except with respect to voting, the rights, privileges and obligations of the Class A shares and Class B shares are pari passu in all respects, including with respect to dividends and rights upon liquidation of the Company.

Distribution of dividends

The Company can only make distributions to the extent that immediately following the distribution, its assets exceed its liabilities, and the Company is able to pay its debts as they become due.

On March 11, 2025, the Company approved a cash dividend distribution to all Class A and Class B shareholders of $0.24 per share to be paid in four installments, as follows: $0.06 per share in March 27, June 27, September 26 and December 26, 2025, respectively. As of March 31, 2025, the Company paid $12,640 of cash dividends.

F-24

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

Accumulated other comprehensive loss

The following tables set forth information with respect to the components of “Accumulated other comprehensive loss” as of March 31, 2025 and 2024, respectively, and their related activity during the three-month period ended:


	Foreign currency translation		Cash flow hedges		Securities available for sale (i)		Total Accumulated other comprehensive loss
Balances at December 31, 2024	$	(667,652)	$	3,231	$	(4,063)	$	(668,484)
Other comprehensive income (loss) before reclassifications (Unaudited)	41,619		(10,189)		(77)		31,353
Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income (Unaudited)	—		12,444		—		12,444
Net current-period other comprehensive income (loss) (Unaudited)	41,619		2,255		(77)		43,797
Balances at March 31, 2025 (Unaudited)	$	(626,033)	$	5,486	$	(4,140)	$	(624,687)


	Foreign currency translation		Cash flow hedges		Securities available for sale (i)		Total Accumulated other comprehensive loss
Balances at December 31, 2023	$	(555,781)	$	(3,015)	$	(4,285)	$	(563,081)
Other comprehensive (loss) income before reclassifications (Unaudited)	(8,910)		2,509		(155)		(6,556)
Net income reclassified from accumulated other comprehensive loss to consolidated statement of income (Unaudited)	—		(1,917)		—		(1,917)
Net current-period other comprehensive (loss) income (Unaudited)	(8,910)		592		(155)		(8,473)
Balances at March 31, 2024 (Unaudited)	$	(564,691)	$	(2,423)	$	(4,440)	$	(571,554)

(i)Related to unrealized results on available for sale securities. For the three-month period ended March 31, 2025 and 2024 the Company maintains Securities classified as available for sale in accordance with guidance in ASC 320 Investments – Debt and Equity Securities amounting to $3,485 and $4,977, respectively, included within “Short-term investments” in the Consolidated Balance Sheet. The amortized cost at acquisition amounted to $7,744 and $9,968 for the three-month period ended March 31, 2025 and 2024, respectively.

F-25

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

11. Earnings per share

The Company is required to present basic earnings per share and diluted earnings per share in accordance with ASC 260. Earnings per share are based on the weighted average number of shares outstanding during the period after consideration of the dilutive effect, if any, for common stock equivalents, including stock options and restricted share units. Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock outstanding and dilutive securities outstanding during the period under the treasury method.

The following table sets forth the computation of basic and diluted net income per common share attributable to Arcos Dorados Holdings Inc. for all periods presented:


	For the three-month period ended
	March 31,
	2025		2024
	(Unaudited)		(Unaudited)
Net income attributable to Arcos Dorados Holdings Inc. available to common shareholders	$	13,930	$	28,509
Weighted-average number of common shares outstanding - Basic	210,663,057		210,655,747

Incremental shares from vesting of restricted share units	—		—
Weighted-average number of common shares outstanding - Diluted	210,663,057		210,655,747

Basic net income per common share attributable to Arcos Dorados Holdings Inc.	$	0.07	$	0.14
Diluted net income per common share attributable to Arcos Dorados Holdings Inc.	$	0.07	$	0.14

12. Related party transactions

The Company has entered into a master commercial agreement on arm’s length terms with Axionlog, a company under common control that operates the distribution centers in Argentina, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay, Venezuela, French Guiana, Guadeloupe, Martinique, Aruba, Curaçao, the USVI and Trinidad and Tobago (the “Axionlog Business”). Pursuant to this agreement Axionlog provides the Company distribution inventory, storage and transportation services in the countries in which it operates.

F-26

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

The following table summarizes the outstanding balances between the Company and the Axionlog Business as of March 31, 2025 and December 31, 2024:


	As of
	March 31,
	2025	December 31,
	(Unaudited)	2024


Other receivables	4,871	5,995

Miscellaneous	4,104	4,031
Accounts payable	(20,195)	(27,261)

The following table summarizes the transactions between the Company and the Axionlog Business for the three-month period ended March 31, 2025 and 2024:


	For the three-month period ended
	March 31,
	2025		2024
	(Unaudited)		(Unaudited)
Food and paper (i)	$	(80,457)	$	(79,808)
Occupancy and other operating expenses	(2,757)		(2,487)

(i)Includes $18,007 of distribution fees and $62,450 of supplier purchases managed through the Axionlog Business for the three-month period ended March 31, 2025; and, $15,287 and $64,521, respectively, for the three-month period ended March 31, 2024.

The following table summarizes the outstanding balances between the Company and its equity method investments as of March 31, 2025 and December 31, 2024:


	2025				2024
	Lacoop II, S.C		Saile (i)		Lacoop II, S.C		Saile (i)
Other receivables	$	1,874	$	1,630	$	2,091	$	978
Accounts payable	(3,582)		—		(5,936)		—

(i) Operadora de Franquicias Saile S.A.P.I. de C.V.

13. Disclosures about fair value of financial instruments

As defined in ASC 820 Fair Value Measurement and Disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The valuation techniques that can be used under this guidance are the market approach, income approach or cost approach. The market approach uses prices and other information for market transactions involving identical or comparable assets or liabilities, such as matrix pricing. The income approach uses valuation techniques to convert future amounts to a single discounted present amount based on current market conditions about those future amounts, such as present value techniques, option pricing models (e.g. Black-Scholes model) and binomial models (e.g. Monte-Carlo model). The cost approach is based on current replacement cost to replace an asset.

F-27

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observance of those inputs. The guidance establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to level 1 measurements and the lowest priority to level 3 measurements, and accordingly, level 1 measurement should be used whenever possible.

The three levels of the fair value hierarchy as defined by the guidance are as follows:

Level 1: Valuations utilizing quoted, unadjusted prices for identical assets or liabilities in active markets that the Company has the ability to access. This is the most reliable evidence of fair value and does not require a significant degree of judgment. Examples include exchange-traded derivatives and listed equities that are actively traded.

Level 2: Valuations utilizing quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability.

Financial instruments that are valued using models or other valuation methodologies are included. Models used should primarily be industry-standard models that consider various assumptions and economic measures, such as interest rates, yield curves, time value, volatilities, contract terms, current market prices, credit risk or other market-corroborated inputs. Examples include most over-the-counter derivatives (non-exchange traded), physical commodities, most structured notes and municipal and corporate bonds.

Level 3: Valuations utilizing significant unobservable inputs provides the least objective evidence of fair value and requires a significant degree of judgment. Inputs may be used with internally developed methodologies and should reflect an entity’s assumptions using the best information available about the assumptions that market participants would use in pricing an asset or liability. Examples include certain corporate loans, real-estate and private equity investments and long-dated or complex over-the-counter derivatives.

Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under this guidance, the lowest level that contains significant inputs used in valuation should be chosen. Pursuant to ASC 820-10-50, the Company has classified its assets and liabilities into these levels depending upon the data relied on to determine the fair values. The fair values of the Company’s derivatives are valued based upon quotes obtained from counterparties to the agreements and are designated as Level 2.

F-28

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024:


	Quoted Prices in Active Markets For Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
	As of		As of		As of		As of		As of		As of		Balance as of		Balance as of
	March 31, 2025 (Unaudited)		December 31, 2024		March 31, 2025 (Unaudited)		December 31, 2024		March 31, 2025 (Unaudited)		December 31, 2024		March 31, 2025 (Unaudited)		December 31, 2024
Assets
Cash equivalents	$	338,689	$	61,579	$	—	$	—	$	—	$	—	$	338,689	$	61,579
Short-term Investments	86,700		—		3,485		3,529		—		—		90,185		3,529
Derivatives	—		—		75,539		82,383		—		—		75,539		82,383
Total Assets	$	425,389	$	61,579	$	79,024	$	85,912	$	—	$	—	$	504,413	$	147,491
Liabilities
Derivatives	$	—	$	—	$	3,571	$	1,292	$	—	$	—	$	3,571	$	1,292


Total Liabilities	$	—	$	—	$	3,571	$	1,292	$	—	$	—	$	3,571	$	1,292

The derivative contracts were valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and currency rates that were observable for substantially the full term of the derivative contracts.

Certain financial assets and liabilities not measured at fair value

As of March 31, 2025, the fair value of the Company’s short term and long-term debt was estimated at $1,195,979, compared to a carrying amount of $1,235,647. This fair value was estimated using various pricing models or discounted cash flow analysis that incorporated quoted market prices and is similar to Level 2 within the valuation hierarchy. The carrying amount for notes receivable approximates fair value.

Non-financial assets and liabilities measured at fair value on a nonrecurring basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). As of March 31, 2025, no material fair value adjustments or fair value measurements were required for non-financial assets or liabilities.

14. Subsequent events

Long-term debt

On April 4, 2025, the Company redeemed all of the outstanding principal of 2027 Notes at a redemption price equal to 100%. The total payment was $243,120, plus accrued and unpaid interest.

F-29

Arcos Dorados Holdings Inc.

Notes to the Condensed Consolidated Financial Statements

For the three-month period ended March 31, 2025 and 2024 (Unaudited)

Amounts in thousands of US dollars, except for share data and as otherwise indicated

Short-term debt

F-30