Arcos Dorados : ARCO Virtual Investor Update (01/2021)

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INVESTOR UPDATE

Arcos Dorados Holdings, Inc.

Disclaimer | Forward-Looking Statements

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.

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Today's Webcast

4Q & FY 2020	2021 Guidance	Receta del Futuro
Comparable Sales	Strategic Priorities	Recipe for the Future
Recent Operating Trends	Restaurant Openings	ESG Program
Capital Structure	Capital Expenditures	Latest News
	Capital Structure Outlook

"None of us is as good as all of us"

- Ray Kroc

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2020 Systemwide Comparable Sales1 Strong Sequential Improvement Since 2Q

Arcos Dorados2

Brazil

Caribbean2

Strong Growth throughout 2020

Driven by Arcos Dorados'

Digital Transformation

SLADNOLAD

>35%

of total

sales

in 2020

1Shown as a percentage of prior year period's comparable sales level

2Excluding Venezuela

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Latin America's Safest

Restaurant Experience

Arcos Dorados Guests' Trust in Safety Protocols1

~10x

McDonald's	Competitor	Competitor
1Source: Company Research	1	2

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Driving Sales

• 2019 - Pre-Pandemic
• • 22% of company-operated restaurant sales
• 2020 - Main Sales Driver
• • Sales up almost 40%, in constant currency, accounting for ~38% of sales
• 2021 - Permanently Higher
• • Expected to contribute ~33% of company-operated restaurant sales, on strong growth

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MCDOWELL DIGITAL

MEDIA, INC.

Doubling Down on

Drive-Thru

Increase Awareness and Traffic

Digital Capabilities & Loyalty Programs

Fun Guest Experiences

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Delivering Growth

McDelivery sales in 2020 grew >150% in constant currency and will contribute a higher percentage of total sales moving forward:

2018	2019	2020	2021 (est.)
<2%	5%	14%	10-15%

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Delivery Squad

Optimize 3PO Relationships

Expanded Delivery Options

Delivery-focused Marketing

Multi-Disciplinary Team devoted to making

Operational Improvements and

Generating Efficiencies for the Long-Term

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Marketing

Back to Basics

Simplified Menu focused on Core Items

Menu Innovation & Limited Time Offers

Re-Energize Family Business

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Winning the Digital Race

EOTF Kick Off

• Opened first Experience of the Future restaurants (Digital kiosks and Menu Boards, enhanced WiFi, Modern décor)

Digital Marketing	2016
Foundation
▪ Arcos App Launch	2017

(Deals & Offers)

			Digital Marketing 1.0
			▪ Coupon-based	Agile Methodology
Delivery			Segmentation
		▪ Set-up of First Agile
		▪ Push notification
▪ Launched
		& emails	Squad: McDelivery
McDelivery,					ADvance
partnering
with food	EOTF 1.0	2019	▪ Added Digital Marketing
aggregators
▪	Introduced		and eCommerce squads
		▪ Artificial Intelligence
		Table Service
	▪	Expanded to		supporting engagement
		new markets
2018					2020

a

el slide

Strengthen Leadership Position

• "Moon Shot" Objectives
• Increase Sales on Digital Platform
• Expand eCommerce capabilities

2021

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Capitalizing on 46 Million Downloads…and Counting

	New Users		Data Capture	Engagement	Lapsed Users
				Targeted push/emails based on	Exclusive deals via email and
Advertising using artificial	Welcome to App benefits,
intelligence for cost control,	customer profile enrichment	favorite product, deal use	segmented advertising for lapsed
creatives A/B Testing and	and push for first transaction	frequency and engagement level	users and high value guests
conversion optimization

Target

Objective

No McDonald's App	New App Install	Customer Segments:	Lapsed Users &
Favorite Products	High Value Guests
App Install	First Conversion &	Increase Frequency	Retention &
	Data Enrichment	& Profitability	Win Back Guests

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2021 Guidance &

Recent Developments

New Restaurant Openings = 40 to 50

1. ~80% Free-Standing

o Flexibility & Adaptability	McDonald's to Provide Growth Support
o ~80% in Brazil
o 2021 Consolidated Effective Royalty Rate ~5.3%
	o Aligned Openings & Capex Plans
	o MFA Leverage Ratios waived through 2021

Total Capital Expenditures = $110 to $130 million

o Restaurants, Dessert Centers & McCafé

o EOTF Modernizations & Required Maintenance

1. Digital Capabilities & Other Information Technology

Strong Balance Sheet

o YE 2020 Leverage better-than-expectedo YE 2021 Leverage to approach target range

o Renewed revolving credit facility to Dec. 2021

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Climate Change Packaging & Recycling

• Deploying 7,000 UBQTM serving trays in pilot restaurants across several Brazilian state capitals.
• Bio-basedmaterial made entirely of unsorted household waste originally destined for landfills.
• Climate positive and cost-competitive material that sustainably substitutes oil-based plastic products.

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Questions &

Answers

Minimize the slides to submit your questions in the Chat Section of the Webcast.

IR Contacts

Dan Schleiniger

Vice President of Investor Relations [e-mail]

Patricio "Iñaki" Esnaola

Director of Investor Relations

[e-mail]

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Thankyou!