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Arcos Dorados Holdings Inc. (ARCO) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Arcos Dorados Holdings Inc (NYSE:ARCO) is the largest McDonald's franchise in the world in terms of sales and number of restaurants. Arcos Dorados operates in Latin America and the Caribbean and has exclusive rights to operate and grant franchises of McDonald's restaurants to 19 countries in the region. They operate 1,757 McDonald's restaurants or 6.7% of all McDonald's franchised restaurants. The company makes money through sales within their restaurants and through revenues and rental income from franchised restaurants that are not operated by Arcos Dorados.[1]
Arcos Dorados divides its operations along 4 geographical lines:
- Brazil (53% of 2010 total sales)
- SLAD (28% of 2010 total sales) This region consists of North Latin America including Costa Rica, Mexico and Panama.
- NOLAD(10% of 2010 total sales) This region consists of South Latin America including Argentina, Chile, Colombia, Ecuador, Peru, Uruguay, and Venezuela.
- Caribbean (9% of 2010 total sales)
In addition, the company derives 74% of its revenue through sales within restaurants it operates. The remaining 26% of revenue comes from rental income and sales through restaurants that they do not operate, but are franchises.[2]
The company's initial public offering of stock on the NYSE occurred on April 13, 2011. The company offered 73.5M shares each for $17. This was above the $13-$15 initial price range. This offering raised a total of $1.25B. This was 25% above the initial proceed of $1.03B expected at the center of the initial price range. The lead underwriter of the IPO were Bank of America (BAC), J P Morgan Chase (JPM), and Morgan Stanley (MS).[3]
For the fiscal year 2010, Arcos reported a total revenue of $3.02B. This was a 13% increase over the previous year. The company also reported a net income of $107M. This was a %33% increase over the previous year.[4]
References
- ↑ ARCO 2011 F-1 PROSPECTUS SUMMARY "Overview" pg 1
- ↑ ARCO 2011 F-1 PROSPECTUS SUMMARY "Overview" pg 2
- ↑ Renaissance Capital - IPO Home "Arcos Dorados prices upsized IPO at $17, above the range" 13 April 2011
- ↑ ARCO 2011 F-1 PROSPECTUS SUMMARY "SUMMARY FINANCIAL AND OTHER INFORMATION" pg 13
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