Arcos Dorados Repays in Full Brazilian Real Denominated Senior Notes Due 2016

MONTEVIDEO, Uruguay--()--Arcos Dorados (NYSE:ARCO) (“the Company”) announces that yesterday it repaid all outstanding principal of its 10.25% Brazilian real denominated senior notes, maturing on July 13, 2016.

Proceeds from a four-year R$613.9 million secured loan agreement signed by the Company’s Brazilian subsidiary on March 29, 2016 were used to repay the maturing Brazilian real denominated senior notes. When Arcos Dorados announced the secured loan agreement, it had already repurchased a portion of the Brazilian real denominated senior notes, bringing the principal of the notes broadly in line with the amount of the new loan. On April 8, 2016, the Company announced a cash tender offer for the remaining Brazilian real notes, and as announced on May 10, 2016, was successful in repurchasing R$425.8 million of the outstanding notes prior to maturity.

The Brazilian real denominated senior notes were originally issued in two tranches: one of R$400 million on July 13, 2011 and a second tranche of R$275 million on April 19, 2012.

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 (“QSR”) 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 over 2,100 McDonald’s-branded restaurants with over 90,000 employees and is recognized as one of the best companies to work for in Latin America. Arcos Dorados is traded on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit the Investors section of our website: www.arcosdorados.com/ir.

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements. The forward-looking statements contained herein include expectations about the Company’s financial prospects, its long term strategy and its deleveraging goals. These statements are subject to the general risks inherent in Arcos Dorados' business. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, Arcos Dorados' business and operations involve numerous risks and uncertainties, many of which are beyond the control of Arcos Dorados, which could result in Arcos Dorados' expectations not being realized or otherwise materially affect the financial condition, results of operations and cash flows of Arcos Dorados. Additional information relating to the uncertainties affecting Arcos Dorados' business is contained in its filings with the Securities and Exchange Commission. The forward-looking statements are made only as of the date hereof, and Arcos Dorados does not undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events.

Contacts

Investor Relations:
Arcos Dorados
Daniel Schleiniger, +54 11 4711-2675
Sr. Director of Corporate Communications & IR
ir@ar.mcd.com
or
Media:
MBS Value Partners
Katja Buhrer, +1-212-661-7004
katja.buhrer@mbsvalue.com

Contacts

Investor Relations:
Arcos Dorados
Daniel Schleiniger, +54 11 4711-2675
Sr. Director of Corporate Communications & IR
ir@ar.mcd.com
or
Media:
MBS Value Partners
Katja Buhrer, +1-212-661-7004
katja.buhrer@mbsvalue.com