Arcos Dorados Incorporates ESG Indicators Into its Executive Variable Compensation Policy

Becoming the first Latin American restaurant company to take this important step, further reinforcing the significance of ESG to the long-term sustainability of its business and stimulating shared responsibility for meeting its social and environmental commitments

MONTEVIDEO, Uruguay--(BUSINESS WIRE)--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, announced that, as of 2021, the variable compensation policy* for the Company’s executives will include ESG (Environmental, Social & Governance) indicators. Arcos Dorados is the first company in the region’s restaurant industry to adopt such a measure, which reinforces the significance of ESG to the long-term sustainability of its business and promotes shared responsibility for the fulfillment of its established social and environmental commitments.

“Arcos Dorados has a long track record of contributing to the communities where we operate. As a leading company in our region, I have always believed we have a responsibility to be an agent of change in Latin American society, which is what led to the development of our Recipe for the Future,” said Woods Staton, Executive Chairman of Arcos Dorados. “Although research published by leading compensation consulting firms indicates that only around 30% of companies in the global consumer discretionary industry incorporate ESG indicators in their compensation programs, we believe this is a crucial step to ensuring we stay true to making a positive impact on youth opportunity, sustainable sourcing, packaging and recycling, climate change and family wellbeing,” he concluded.

“Last year was the most challenging in our history. Fortunately, we proactively and aggressively pivoted our business to successfully meet our guests’ changing needs and, just as importantly, demonstrated how seriously we take our responsibility to positively impact the environment and the communities we serve. Looking ahead, by tying a portion of our executives’ variable compensation to ESG indicators, we are further aligning the Company with the long-term social and environmental commitments we made in recent years and ensuring Arcos Dorados is recognized as one of the most socially-responsible companies in Latin America," explained Marcelo Rabach, Chief Executive Officer of Arcos Dorados.

Integrating ESG indicators to determine the variable compensation of its executives adds to a series of initiatives within the Company’s Recipe for the Future platform, which establishes socio-environmental commitments across five pillars: youth opportunity, sustainable sourcing, packaging and recycling, climate change and family wellbeing.

To learn more about all of the Company’s initiatives, please visit the Spanish-language site www.recetadelfuturo.com or download the Company’s most recent Social Impact and Sustainable Development Report (in English) here.

*Employees eligible for the company's variable compensation program.

About Arcos Dorados

Arcos Dorados is the world’s largest independent McDonald’s franchisee, 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 with more than 2,200 restaurants, operated by the Company or by its sub-franchisees, that together employ over 100 thousand people (as of 12/31/2020). The Company is also committed to the development of the communities in which it operates, to providing young people their first formal job opportunities and to utilize its Scale for Good to achieve a positive environmental impact. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit our website: www.arcosdorados.com/ir