Ana M. López
Research expert covering travel, tourism and hospitality
McDonald's in Latin America - statistics & facts
McDonald's is the world's most valuable fast-food brand. Estimated at around 191 million U.S. dollars in 2023, it outranked other household names for the quick-service restaurant industry, such as KFC and Subway. In Latin America and the Caribbean, the history of this fast-food chain dates to the opening of its first restaurant in Puerto Rico, back in 1967. Since the late-2000s, McDonald’s operations in the region have mostly been under the management of Arcos Dorados Holdings Inc., the brand’s largest franchisee worldwide.
Arcos Dorados’ business model
Arcos Dorados – which translates to 'Golden Arches', inspired by the brand’s famous logo – is headed by Colombian entrepreneur Woods Staton, though it is headquartered in the Uruguayan capital of Montevideo. The company generates most of its revenue by directly managing McDonald's-branded outlets unlike the U.S.-based McDonald's Corporation which earns the largest share of its revenue by franchising restaurants around the world. Considered one of the most successful food service companies in the Americas, the annual revenue generated by Arcos Dorados climbed to more than 4.3 billion U.S. dollars in 2023 – the highest figure recorded in more than one decade.Latin America’s most successful market for McDonald’s
Brazil is the Latin American country where the fast-food brand has proved most profitable in the past years. The first McDonald’s was established in the country in the late 1970s. By 2020, the region’s largest economy was home to more than one thousand establishments, roughly half of the restaurants operated by Arcos Dorados. The country was followed by the company’s North Latin American subregion. Brazil also harbors the highest amount of McDonald's Dessert Centers in Latin America. In the case of McCafé outlets, the holding’s South American subregion (which also includes some Caribbean islands) takes the lead. However, Brazil alone accounts for approximately one-third of establishments of this sort.The role of advertising
In Latin America, the McDonald's brand plays in the big leagues of advertisement. In 2023, the fast-food chain was the most recognized fast-food brand in Argentina, Brazil, Chile, and Panama. In the case of Arcos Dorados, the advertising expenses surpassed 226 thousand U.S. dollars that year.
