Arcos Dorados Continues to Enhance Happy Meal by Offering More Nutritional Foods and Ingredients

Company reaffirms commitment to families in Latin America and updates children’s menu with more nutritious and balanced options, including more fruits and vegetables, as well as less fat, sodium and added sugars

MONTEVIDEO, Uruguay--()--Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, continues to use its Scale for Good to make a positive impact on the communities it serves. The Happy Meals served at the Company’s restaurants will now include more fruits and vegetables and contain less fat, sodium and added sugars. Under new dietary guidelines endorsed by the Inter-America Society of Cardiologists, among other health organizations, Happy Meal options at all McDonald’s restaurants throughout Latin America and the Caribbean* now contain less than 600 calories in total and comprise the four basic food groups, offering enhanced nutritional value for children.

Arcos Dorados has traditionally made a strong commitment to child nutrition. Since 2011, the Company has been modifying the Happy Meal to improve the nutritional balance of this iconic and popular menu item. Arcos Dorados was the first quick service restaurant chain to undertake this type of initiative in the Latin American region, by leveraging its large scale to offer meals that families like best for being delicious, balanced and always fun. In recent years, new flavors and ingredients have been added to Happy Meals, such as yogurts, apples and cherry tomatoes. In 2019, the Happy Meal menu is evolving further, offering combinations that include:

- 100% applesauce with no added sugars or additives
- Fruit juices, with no added sugars
- Burger with lettuce and tomato (or customized, lettuce only or tomato only)

“At Arcos Dorados, we have always been committed to society and to the many thousands of families that visit us daily throughout Latin America. We continually evolve our menus, paying careful attention to our customers’ changing lifestyles and consumption habits, in order to offer meals and experiences aligned with their expectations. Our new Happy Meal is popular with children for being delicious and fun, and with parents for being nutritious,” said Marcelo Rabach, Chief Executive Officer of Arcos Dorados.

Arcos Dorados’ nutrition modifications to the Happy Meal are aligned with the evolving eating habits of society. Families currently have more dietary information than in the past, which is why there is a greater awareness about providing children more balanced and nutritious food than in previous generations. This phenomenon was revealed by an opinion study conducted by the research consultancy Trendsity** in partnership with Arcos Dorados. Although parents encountered challenges to provide a more nutritious diet, 60% of those surveyed believe their children eat healthier foods than they did at the same age. For example, 7 out of 10 parents have added to, or increased the consumption of natural juices in, their children’s diets. The study also revealed parents’ growing concern about the consumption of products that contain sugar, with 8 out of 10 parents indicating they have reduced their children’s consumption of sugary foods and beverages.

Arcos Dorados will continue to evolve its children’s menu by adding new offerings in the future, as part of the Company’s long-term business plan and ongoing commitment to child nutrition. Current efforts include exploring how best to work within the basic food group guidelines recommended by the World Health Organization to maintain a balanced diet comprised of whole grains, lean proteins, dairy and more fruits and vegetables. Arcos Dorados will also focus on offering more menu novelties through innovative packaging and more playful formats, making the Happy Meal more fun as well as more nutritious.

“We remain committed to the evolving needs of our customers and are already taking the next steps to further enhance the food and ingredient options of our children’s menu in the coming years. Our priority continues to be serving quality food that creates delightful moments for families,” added Mr. Rabach.

Professional Guarantee

Arcos Dorados’ new nutrition policy was developed with the highest standards of social responsibility. “We support Arcos Dorados’ initiatives to promote the health and well-being of families in the Americas. We believe it is extremely important to limit to 600 calories the caloric content of food offered in the Happy Meal, as well as offer menu combinations with options among the four basic food groups, such as fruits and vegetables, whole grains, lean proteins and dairy products,” said Dr. Fernando Wyss Quintana, President of the Inter-American Society of Cardiology.

In addition to this regional endorsement, the recent nutrition changes made to the Happy Meal are endorsed by major health and nutrition organizations of various countries, such as the Brazilian Association of Nutrition (ABRAN), the Argentine Cardiology Foundation, the Peruvian Nutrition Society (SOPENUT), and the Uruguayan Association of Dietitians and Nutritionists.

Arcos Dorados children’s menus are aligned with the global objectives established worldwide by the McDonald´s system and reinforce the Company’s commitment to generate a positive impact on the communities where its restaurants are located.

*Except for Martinique, Guadeloupe and French Guiana

**Opinion study conducted in 2019, based on a sample of 2,300 cases (50% of millennial parents; 50% of older parents) in the following countries: Argentina (350 cases), Colombia (350 cases), Peru (350 cases), Chile (350 cases), Brazil (450 cases) and Mexico (450 cases)

About Arcos Dorados

Arcos Dorados is the world’s largest independent McDonald’s franchise, both in total system sales and in number of restaurants. The Company is the largest fast food service chain in Latin America and the Caribbean, with exclusive rights to own, operate and grant franchises for McDonald’s restaurants in 20 countries and territories, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad & Tobago, Uruguay, and Venezuela. The Company operates or franchises out over 2,200 McDonald’s restaurants with more than 90,000 employees and is acknowledged as one of the best companies to work for in Latin America. Arcos Dorados is listed 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 statements about the Company’s business prospects, its ability to attract customers, its affordable platform, its expectation for revenue generation and its outlook and guidance for 2019. 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

Media
In Latin America and the Caribbean:
David Grinberg
Vice President, Corporate Communications & Investor Relations
Latin America & Caribbean / Arcos Dorados (NYSE: ARCO)
P: + 55 11 4196-9642 / C: +55 11 97035-3003
david.grinberg@br.mcd.com

In the US:
Ivan Peill
InspIR Group
ivan@inspirgroup.com
P: +1 917 710 9686

Contacts

Media
In Latin America and the Caribbean:
David Grinberg
Vice President, Corporate Communications & Investor Relations
Latin America & Caribbean / Arcos Dorados (NYSE: ARCO)
P: + 55 11 4196-9642 / C: +55 11 97035-3003
david.grinberg@br.mcd.com

In the US:
Ivan Peill
InspIR Group
ivan@inspirgroup.com
P: +1 917 710 9686