Agenda

ARCOS DORADOS

“MORGAN STANLEY

CONSUMER CONFERENCE”November 15, 2011

Woods Staton

Chief Executive Officer

Disclaimer

This presentation contains forward-looking statements that represent our beliefs, projections and

predictions about future events or our future performance. Forward-looking statements can be

identified by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “plan,”

“anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms or

other similar expressions or phrases. These forward-looking statements are necessarily subjective and

involve known and unknown risks, uncertainties and other important factors that could cause our actual

results, performance or achievements or industry results to differ materially from any future results,

performance or achievement described in or implied by such 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. 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.

THE LATIN AMERICAN ASPIRATIONAL McDONALD’S EXPERIENCE

Acquired McDonald’s Latam operations in August 2007

• Exclusive right to own, operate and sub-franchise McDonald’s restaurants in 20 countries and

territories

World’s largest McDonald’s franchisee based on systemwide sales and number of restaurants

• 5.1% of McDonald’s 2010 global sales

• 6.7% of McDonald’s 2010 total franchised restaurants

• Over 85,000 employees

Undisputed leader in the QSR industry in Latin America

• 1,777 restaurants, 1,306 dessert centers and 267 McCafés

Solid management team with successful track record

• 17 years average experience in the McDonald’s system

Growth from core McDonald’s and new format developments

• Double-digit growth in key financial metrics since 2007

• Brand extensions: dessert centers, McCafés

Arcos Dorados:

the leading QSR player in Latin America

IPO April 14, 2011

Note: Class A shares are entitled to one vote per share and class B shares are entitled to five votes per share

SHARES

Class A: 129.5 million (NYSE: ARCO)

Class B: 80.0 million

Votes B/A= 5:1

Exclusive right to own, operate and grant McDonald’s

restaurants until 2027

Use of McDonald’s intellectual property with flexibility

to adapt

AD pays royalties and fees to McDonald’s

• Responsible for sub-franchisees

MFA requirements:

• Controlling shareholder must own over 51% voting

and 30% economic interest

• AD exclusivity with McDonald’s

• Operating and openings targets

ControllingShareholder,

39.7%

Float, 60.3%

Relationship with McD’s and ownership structure

Key MFA Highlights ARCO Ownership Structure

More than 85,000 employees throughout the region

Restaurants are owned, fully

managed and operated by AD

Restaurants are managed and

operated by the franchisee

• AD retains operating profits generated

by operated restaurants

• Franchisees pay a monthly rent to

Arcos Dorados, which leases the

property to franchisees

AD controls all real estate through ownership or lease depending on optimal capital

allocation and leases the restaurants to the franchisee.

Arcos Dorados’ model is unique vis-à-vis McDonald’s as a majority of restaurants are company-

operated

We operate and sub-franchise restaurants

Restaurants

Company-operated (74%) Franchised (26%)

SLAD

Brazil

Caribbean

NOLAD

Number of systemwide

restaurants(1)

533

627

144

473

(1) As of September 30, 2011; does not include McCafé units & Dessert Centers

30%

35%

8%

27%

1,777 100%

Unique platform with geographic diversification

Unmatched footprint in the region

Favorable macro fundamentals with attractive growth prospects

Large and growing QSR market

Dominant position in Latin America

Substantial growth and value–creation opportunities

Right “Zip Code”

Right Industry

Right Brand

Right Strategy

Experienced

Management TeamProven track record of delivering growth and profitability

Investment highlights

Dominant QSR brand in the region

2.3%

1.0%

1.2%

1.9%

3.3%

10.4%Mac

Burgerking

Subw ay

Habbs

oxxo

Bobs

Source: Company F-1

3.2x

Combined market

share: 9.7%

Superior brand recognition and leadership position

MAJOR FAST FOOD RESTAURANTS IN LATIN AMERICA: 2010 MARKET SHARE

% of Population between 15-34 years old

Latin America: attractive consumer market complements brand attributes

Sources: US Census Bureau, EIU (as of November 2010), FGV, IBGE and LCA prepared by the Brazilian Ministry of Finance

2003 2009

Class D/E Class C Class A/B

96

(55%)

13

(8%) 66

(37%)

73

(39%)

20

(11%)95

(50%)

~30mm

(mm individuals and % population)

7.1%

5.2%4.6%

3.5%

1.8%

Argentina Brazil ChileColombia Mexico

33.6%

31.8%

34.5%33.7%

27.4%

ArgentinaBrazil ColombiaMexico US

Our Region:

Favorable economic & demographic dynamics

Superior GDP per capita growth

2006-2010 CAGR (%)

Young and growing population

Changing socio-economic profile in Brazil

Improving economic conditions

Source: Company F-1

Note: (1) Selected Latin American countries include Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Venezuela

Other QSR 5%

Chicken 6%

Latin American

F. Food 6% Bakery 25%

Burger

19%

Others

46%

Arcos Dorados

54%

Burger segment sales: $8 bn

Latam fast food sales: $43 bn 2.7%

9.8%

US Latin America¹

Fast food industry 2006-2010 growth (% p.a.)

Other Fast Food

39%

Latam QSR sales: $26 bn

Large & growing QSR industry which remains

underpenetrated

QSR/Fast Food Industry

Proven organic growth potential

Latam Fast Food

Burger Segment

Top line growth drivers and earnings enhancements

Substantial growth and value-creation opportunities

Reimagings since Aug. 2007

380

9 month 2011 Comp sales growth (%)

14%

McCafé and Dessert Center openings since Aug. 2007

Dessert Centers

McCafés

Restaurant openings (gross) since Aug 2007

195 68Company-operated

Franchised

263

530

MFY: Restaurants updated

Increase in Comparable Sales

Reimaging of Existing Restaurants

New Restaurant Openings

Brand Extension

Additional Earnings

Enhancements

148 606

>

GLOBAL INITIATIVES

Product

CORE MENU

Price Strategy

GRANDES PLACERES,

PEQUEÑOS PRECIOS

Promotion

LOCAL PROMOTIONSPREMIUM PRODUCTS MCTRIO / MCCOMBO DEL DÍA

Delivering relevant and value-oriented menus, while leveraging the local and global reach of the brand

Growth in comparable sales driven

by a three “P” strategy

Reimaging adds an average of 5% to restaurant sales revenue

Restaurants reimaged since acquisition 380

% of restaurants with updated image ~ 40%

Reimaging & iconic locations reinforce aspirational

status & brand strength

Highlights

New standard Image

2008 2009 2010 2011

Caribbean

NOLAD

SLAD

Brazil

Accelerating new openings in the region

Restaurants (end of period)1,640 1,7551,680

Net openings by division:Gross openings

85

5864

Source: Morgan Stanley Research (May, 2011)

>100

Substantial opportunity for new restaurant openings

Increased Openings Pace Fast Food Spending / Foodservice Spending

(2009)

• Market Potential

• Unit economics of nearby restaurants

• Balanced risk/return analysis by country

• Shopping center development trends

• Level of competition

• Logistics

1. Determine unit potential

2. Prioritize (based on risk/return)

• Capital allocation

• Territory mapping

3. Site selection & negotiation

• Business case per restaurant

• Signing

4. Permit & construction bidding

5. Construction

6. Opening

Openings plan: key metrics

CRITERIA FOR OPENINGS PLAN

OPENINGS PROCESS & STEPS

Highlights

Expanding Arcos Dorados’ proven business concept

56

13

148

69

8

403

205

762

Total number of locations 286 1,378

Average return on investment ~

46% 207%

% of total transactions (1)

~ 9% 33%

% of total sales (1)

5% 10%

Note: (1) Based on restaurants that contain a McCafé and/or a Dessert Center

Brand extension initiatives

Geographic footprint as of Dec 2010 McCafe

Dessert Centers

Improving cost structure and leveraging business scope

Additional earnings enhancement opportunities

MADE FOR YOU SCALE

LOCAL SOURCING PAN-REGIONAL INFRASTRUCTURE

19 years in the Company

18 years in the Company

3 years in the Company

17 years in the Company

20 years in the Company

23 years in the Company

VP COO

S. Alonso

VP CFO

G. Lemonnier

VP HR

P. Rodriguez de la Torre

VP Development

S. Magnasco

VP Marketing

R. Mandia

VP Supply Chain

H. Sbrolla

President & CEO

W. Staton 25 years in the Company

17 year average experience in the McDonald’s system

Experienced management team

with an unmatched track record in the industry

Management Team

Agenda

Financial Highlights

Note: (1) 2007 figures are the annualized results of the last 5 months of operation in that year

(US$mm)

Strong and improving operations

NET REVENUES

ADJ. EBITDA

2,259

2,6072,665

3,018

2,151

2,699

2007 Ann. 2008 2009 2010 9 mo. '10 9 mo. '11

Ex Vzla Vzla

(US$mm)

(1)

218

288266

299

201235

2007 Ann. 2008 2009 2010 9 mo. '10 9 mo. '11(1)

0.91.0

1.41.2

4Q10 1Q11 2Q11 3Q11

Net Financial Debt /LTM Adj EBITDA Covenant < = 2.5x

Note: Figures as of September 30, 2011

Solid Capital Structure to support expansion

LEVERAGE RATIO EVOLUTION

CONSOLIDATED FINANCIAL DEBT DEBT MATURITY PROFILE

Total :$ 548 million

Net Financial Debt : $ 297 million

306214

27

2019 Senior Notes(US $)

2016 BRL Notes(R $)

Other

306214

12

2012 ~ 2016 ~ 2019

Senior Notes Short Term Debt Other LT Debt

Right “Zip Code”

Right Industry

Right Brand

Arcos Dorados is strategically positioned to capture an

increasing share of a growing marketplace

Right Strategy

Experienced

Management Team

Investment summary

Agenda

Thank you