BUENOS AIRES, Argentina--(BUSINESS WIRE)--Arcos Dorados (NYSE:ARCO) (“the Company”) today announced that it has kicked off its asset monetization strategy with the sale of one of its restaurant locations in Mexico City and the re-franchising of more than twenty of its Company-operated, Brazilian restaurants. The inaugural agreements form part of a three-year plan to enhance profitability and shareholder value by monetizing the value of some of the Company’s real estate assets. Proceeds from the asset monetization strategy, which was announced in March 2015, are expected to total $250 million by the end of 2017, and will be used to reduce total debt levels.
The Company is conducting a process managed by CB Richard Ellis for the sale or re-development of a limited number of additional properties in Mexico. The Company expects to raise proceeds of $200 million by the end of 2017 through this initiative. This first property sale involves relocating a restaurant in Mexico City.
Arcos Dorados also entered into agreements to re-franchise more than twenty of its Company-operated, Brazilian restaurants. All agreements were reached with existing franchisee-operators. Given their in-depth knowledge of the business environment, their eagerness to invest is a testament to their confidence in the continued opportunity for the McDonald’s brand in Latin America. The re-franchising strategy is expected to raise $50 million by the end of 2017.
“Our asset monetization strategy forms a key component of our plan to strengthen Arcos Dorados’ leadership position and capture the long-term potential of the quick service restaurant industry in Latin America. We have made strong progress so far, and I have no doubt that we will generate significant shareholder value as we continue to execute our plan,” said Sergio Alonso, Chief Executive Officer of Arcos Dorados.
About Arcos Dorados
Arcos Dorados is the world’s largest McDonald’s franchisee in terms of systemwide sales and number of restaurants, operating the largest quick service restaurant chain 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, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guyana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad & Tobago, Uruguay and Venezuela. The Company operates or franchises 2,122 McDonald’s-branded restaurants with over 90,000 employees serving more than 4 million customers a day, as of September 30, 2015. Recognized as one of the best companies to work for in Latin America, Arcos Dorados is traded on the New York Stock Exchange (ARCO). To learn more about the Company, please visit the Investors section of our website: www.arcosdorados.com