ernie44
8 years ago
when did they get out of OIL/ERL ????
Mr. Beauchamp has over 30 years of experience in the oil and gas industry. He worked for Sun International for 10 years, as a production geologist and an exploration geologist in the U.S., North Sea/Europe, Africa, South America, and the Middle East. Additionally, he worked for ARCO as a senior geophysicist in the Middle East, Africa, and South America, most recently as the New Venture Manager for TransAtlantic Petroleum in Morocco, Turkey and Romania. Mr. Weldon received a B.A. degree in geology from New England College, a M.S. degree in Geology from Oklahoma State University, and a Ph.D. in Geophysics from Cornell University. With a strong background in structural geology, remote sensing and geophysics, he is a member of the American Association of Petroleum Geologists, certified by the State of Texas Board of Professional Geoscientists, Society of Exploration Geophysicists, American Geophysical Union, and Geological Society of America. He is an adjunct faculty member of the University of Texas at Dallas.
GIIGLE Mr. Beauchamp
johnsyn
13 years ago
Arcos Dorados Announces Pricing of Secondary Offering of Class A Shares
Arcos Dorados Holdings Com Npv CL A (NYSE:ARCO)
Today : Thursday 20 October 2011
Arcos Dorados Holdings Inc. (NYSE: ARCO) ("Arcos Dorados") announced today the pricing of its underwritten secondary offering of 40,432,690 Class A shares at a price to the public of $22.00 per share.
All of the Class A shares are being offered by certain selling shareholders. The selling shareholders have granted the underwriters the option to purchase up to an additional 4,043,268 class A shares at the public offering price less the underwriting discount to cover over-allotments.
J.P. Morgan, Morgan Stanley, Citigroup, BofA Merrill Lynch, Itau BBA and Credit Suisse are acting as joint bookrunners for the offering.
A registration statement relating to this offering was declared effective by the United States Securities and Exchange Commission on October 19, 2011. Any offer or sale may be made solely by means of a written prospectus forming part of the effective registration statement. Copies of the final prospectus relating to the offering may be obtained from J.P. Morgan, telephone: 866-803-9204; from Morgan Stanley, 180 Varick Street 2nd Floor, New York, NY 10014, attention: Prospectus Department, telephone: 866-718-1646; from Citigroup, Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220, telephone: 800-831-9146; from BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, attention: Prospectus Department, or e-mail dg.prospectus_requests@baml.com; from Itau BBA, 767 Fifth Avenue 50th Floor, New York, NY 10153, USA, Att.: Equity Sales Desk by phone at +1 (212) 710-6756; or from Credit Suisse, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010 or by calling 1-800-221-1037, or e-mail newyork.prospectus@credit-suisse.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
About Arcos Dorados
Arcos Dorados is the world's largest McDonald's franchisee, in terms of systemwide sales and number of restaurants, and the largest quick service restaurant chain in Latin America and the Caribbean, with restaurants in 20 countries and territories.
johnsyn
13 years ago
Arcos Dorados Announces Expectations for Third Quarter 2011 Results
Arcos Dorados Holdings Com Npv CL A (NYSE:ARCO)
Intraday Stock Chart
Today : Monday 17 October 2011
Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”) announced certain guidance today with respect to its expectations for third quarter 2011 results.
On a constant currency basis, the Company’s sales growth for the third quarter of 2011 improved upon the growth the Company experienced in the first half of the year. As evidence of this trend, the Company expects its systemwide comparable sales growth in the third quarter of 2011 to be within a range of 14.8% to 16.2%, as compared to the same period in the prior year.
However, in light of certain factors which have affected its results in prior periods and which it has previously reported, the Company expects its net income for the third quarter of 2011 when compared to the net income for the third quarter of 2010 to be negatively impacted by:
•an increase in compensation expense related to the outstanding awards granted under the Company’s long-term incentive plan (in light of the increase in the current quoted market price of the Company’s class A shares (based on a closing price of $23.19 per share as of September 30, 2011, compared to $21.09 as of June 30, 2011)),
•certain one-time charges associated with the partial redemption of the Company’s 2019 Notes, and
•the depreciation of certain local currencies against the U.S. dollar during September 2011, which primarily generated a non-cash charge over certain balance sheet accounts. This depreciation was offset, in part, by gains from certain foreign currency derivative transactions.
The Company also expects that its effective tax rate for the third quarter of 2011 will be higher than its effective tax rate for the first half of 2011 as a result of several factors, including (i) the partial recovery of its valuation allowance related to its deferred tax assets during the first half of 2011 and (ii) withholding tax and additional expenses of its holding company.
As a result of these factors, for the three months ended September 30, 2011, the Company anticipates that its revenues will likely range from $970 to $990 million, its operating income will likely range from $69 to $75 million and its net income will likely range from $18 to $20 million, representing an approximately 23.0% to 25.5% increase, an approximately 0.4% to 9.1% increase and an approximately 38.2% to 31.3% decrease, respectively, as compared to the three months ended September 30, 2010.
The Company believes the estimated financial information presented above was prepared on a reasonable basis, reflects the best currently available estimates and judgments, and presents, to the best of the Company’s knowledge and belief, the Company’s expected performance for the third quarter of 2011. However, this information is not fact and no assurances can be given that the Company’s actual systemwide comparable sales growth, revenues, operating income and net income for the three months ended September 30, 2011 will not differ from these estimated amounts. Readers of this press release are cautioned not to place undue reliance on the estimates. These estimated amounts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These estimated amounts are preliminary, are based on management’s internal estimates and are subject to further internal review by management and approval by the Company’s audit committee. These estimated amounts may or may not be realized, and they may be based upon judgments or assumptions that prove to be incorrect. The Company’s actual systemwide comparable sales growth, revenues, operating income and net income for the three months ended September 30, 2011 may vary from these estimated amounts.
About Arcos Dorados
Arcos Dorados is the world’s largest McDonald’s franchisee, in terms of systemwide sales and number of restaurants, and the largest quick service restaurant chain in Latin America and the Caribbean, with restaurants in 20 countries and territories.
johnsyn
13 years ago
Arcos Dorados Announces Filing of Registration Statement for a Secondary Offering of Class A Shares
Arcos Dorados Holdings Com Npv CL A (NYSE:ARCO)
Intraday Stock Chart
Today : Friday 7 October 2011
Arcos Dorados Holdings Inc. (NYSE: ARCO) ("Arcos Dorados") announced today the filing of a registration statement for a secondary offering of Class A shares. All of the Class A shares to be sold in the offering will be offered by certain selling shareholders. The Class A shares will be registered with the U.S. Securities and Exchange Commission and will trade on the New York Stock Exchange under the symbol “ARCO.”
J.P. Morgan, Morgan Stanley, Citigroup, BofA Merrill Lynch, Itau BBA and Credit Suisse are acting as joint bookrunners for the offering. The offering will be made only by means of a prospectus. A prospectus meeting the requirements of Section 10 of the Securities Act of 1933, when available, may be obtained from J.P. Morgan, telephone: 866-803-9204; from Morgan Stanley, 180 Varick Street 2nd Floor, New York, NY 10014, attention: Prospectus Department, telephone: 866-718-1646; from Citigroup, Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220, telephone: 800-831-9146; from BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, attention: Prospectus Department, or e-mail dg.prospectus_requests@baml.com; from Itau BBA, 767 Fifth Avenue 50th Floor, New York, NY 10153, USA, Att.: Equity Sales Desk by phone at +1 (212) 710-6756; or from Credit Suisse, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010 or by calling 1-800-221-1037.
A registration statement on Form F-1 relating to the securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
About Arcos Dorados
Arcos Dorados is the world's largest McDonald's franchisee, in terms of systemwide sales and number of restaurants, and the largest quick service restaurant chain in Latin America and the Caribbean, with restaurants in 20 countries and territories.
johnsyn
13 years ago
Arcos Dorados Reports Strong 2Q Revenue, Lifts Outlook AUGUST 1, 2011, 6:15 P.M. ET.Arcos Dorados Reports Strong 2Q Revenue, Lifts Outlook
By Shane Romig /MARKETWATCH
Of DOW JONES NEWSWIRES BUENOS AIRES (Dow Jones)--Latin American McDonald's operator Arcos Dorados Holdings Inc. (ARCO) reported a solid gain in profits during the second quarter and lifted its 2011 outlook due to strong sales.
Arcos Dorados saw its second quarter revenue climb to $888.5 million, up 28.7% on the year or up 18.5% on the year on a constant-currency basis, the company reported Monday.
The Buenos Aires-based company holds the exclusive right to own, operate and grant franchises of McDonald's restaurants in 19 countries in Latin America and the Caribbean.
The company's revenue growth was driven by gains across all of its divisions, the company said.
Brazil, the Company's largest division, reported revenue growth of 26.9% on the year. Revenue from Mexico, Panama and Costa Rica increased by 21.8% on the year. Revenue in Argentina, Venezuela, Colombia, Chile, Peru, Ecuador, and Uruguay grew by 43.2% on the year.
Arcos Dorados went public in April at a price of $17 per share and its stock has soared since then. The company's shares closed at $23.51 Monday, but were up 4% at $24.47 in after-hours trading.
Based on the strong performance so far this year and the current outlook for operations and currencies, Arcos Dorados raised its outlook for the full year 2011. The company is expecting revenue growth of 22% to 24% and net income growth of 35% to 45% on the year.
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@dowjones.com
johnsyn
13 years ago
CITIGROUP RAISE ARCO PRICE TARGET TO $32
Citigroup (C) Analysts Raise Price Target on Arcos Dorados Holdings Inc. Class A Shares (ARCO) to $32.00
Thursday, August 04, 2011 11:13 AM
Equities research analysts at Citigroup (NYSE: C) boosted their price target on shares of Arcos Dorados Holdings Inc. Class A Shares (NASDAQ: ARCO) to $32.00 in a research note to investors on Thursday. The analysts currently have a "buy" rating on the stock.
Separately, analysts at Bank of America Merrill Lynch initiated coverage on shares of Arcos Dorados Holdings Inc. Class A Shares in a research note to investors on Tuesday, May 24th. They set a "buy" rating and a $27.00 price target on the stock. Also, analysts at Morgan Stanley (NYSE: MS) initiated coverage on shares of Arcos Dorados Holdings Inc. Class A Shares in a research note to investors on Tuesday, May 24th. They set an "overweight" rating and a $26.00 price target on the stock.
Shares of Arcos Dorados Holdings Inc. Class A Shares traded down 1.54% during mid-day trading on Friday, hitting $25.01. Arcos Dorados Holdings Inc. Class A Shares has a 52 week low of $19.70 and a 52 week high of $25.95. The stock's 50-day moving average is $21.83 and its 200-day moving average is $22.12.
Arcos Dorados Holdings Inc. Class A Shares last announced its quarterly results on Monday, August 1st. The company reported $0.07 earnings per share (EPS) for the previous quarter, beating the Thomson Reuters consensus estimate of $0.03 EPS by $0.04. The company’s quarterly revenue was up 28.7% on a year-over-year basis. On average, analysts predict that Arcos Dorados Holdings Inc. Class A Shares will post $0.25 EPS next quarter.
johnsyn
13 years ago
Arcos Dorados shares soar 25% after IPO
April 14, 2011, 4:36 p.m. EDT
Arcos Dorados shares soar 25% after IPO / By William Spain, MarketWatch
CHICAGO (MarketWatch) — Shares of Arcos Dorados Holdings Inc. soared more than 25% Thursday, rallying as investors embraced an initial public offering made by the Buenos Aires, Argentina-based McDonald’s franchisee.
The shares — which came out of the gate priced at $17, above their expected range of $13 to $15 — traded up $4.28 to $21.28. The company /quotes/zigman/4725620/quotes/nls/arco ARCO -1.41% sold 73.4 million shares in the offering.
The company runs McDonald’s franchises through Latin America and ranks as the largest franchisee of McDonald’s Corp. /quotes/zigman/233369/quotes/nls/mcd MCD +0.82% restaurants in the world, in terms of sales and restaurant count. It’s also the biggest fast-food chain in Latin America and the Caribbean, with units in 19 countries and territories.
Four years ago, McDonald’s sold almost all of its 1,600 restaurants in the market to Woods Staton, former president of McDonald’s Latin America South division, as well as a group of investors for $700 million. They assumed ownership of about 1,100 McDonald’s-owned restaurants and became the franchiser for 500 others.
McDonald’s outlets have been steady performers during the economic downturn as consumers “trade down” from pricier restaurant fare. The company also has been aggressively adding new items to its menus, many with local flavors, while expanding hours and benefiting from reduced pressure on labor costs.
Shares of McDonald’s, part of the Dow Jones Industrial Average /quotes/zigman/627449/delayed DJIA +0.92% , traded slightly higher to $77.11.
Bank of America Merrill Lynch, J.P. Morgan, Morgan Stanley, Itau BBA and CitiGroup are acting as joint book-runners for the Arcos Dorados offering.
William Spain is a MarketWatch staff writer in Chicago.
Copyright © 2011 MarketWatch, Inc. All rights reserved.
By using this site, you agree to the Terms of Service and Privacy Policy.
johnsyn
13 years ago
ARCO QUARTERLY EARNINS OUT TODAY
Investors Business Daily Stock News for
Arcos Dorados Hldgs Cl A (ARCO): Earnings Report Focus
Find out how IBD Rates:
ARCO
Fundamental
Arcos Dorados Hldgs Cl A will report quarterly earnings on July 28. Arcos Dorados Hldgs Cl A has an Earnings Per Share Rating of 94 from IBD, meaning that recent earnings growth has outperformed 94% of all stocks in IBD's database. In its latest quarter, profit grew 50%. In the last three quarters, profit growth has averaged 15%. In its latest quarter, sales grew 23% to $826.66 million. Focus on stocks showing strong quarterly earnings growth in recent quarters, at least 25% or more. IBD studies of past market winners showed big earnings and sales growth in recent quarters before big price moves. Arcos Dorados Hldgs Cl A's annual profit margin is 3.6%. That means the company is generating 3.6 cents in profit for each $1 in sales.
Technical
Arcos Dorados Hldgs Cl A is 11.66% off its 52-week high. In the past four weeks, Arcos Dorados Hldgs Cl A is up 2.57%. Year-to-date, it's up 7.33%. IBD research has consistently shown that stocks showing strong relative price performance in the market have the best chance of being market leaders. Rather than try to catch stocks on sale, target the leading price performers in the market. Arcos Dorados Hldgs Cl A has an Up/Down volume ratio of 1.1 which indicates that volume on up days is exceeding volume on down days. A ratio above 1.0 implies positive demand for shares.
Arcos Dorados Hldgs Cl A's volume % change is -59.6%. That means volume is on pace to be 59.6% below average. A stock's volume percent change can tell you if institutional investors are fueling a stock's gain or decline. Big volume always gives them away. Big investors like mutual funds, banks and insurance companies account for about 75% of the trading volume each day on the exchanges so it's important to pay attention to what they're buying and selling.
Arcos Dorados Hldgs Cl A's stock price is $22.92 and it has a 50-day average volume of 789,500 shares. It's generally best to focus on higher-priced, liquid names rather than low-priced, illiquid ones. Mutual funds and other big investors rarely look at stocks priced under $10 that are thinly traded. Institutional investors generally prefer liquid names so they can buy and sell easily.
About ARCO
ARGENTINIAN OPERATOR AND FRANCHISOR OF 1,755 MCDONALD'S FASTFOOD RESTAURANTS IN LATIN AMERICA AND THE CARIBBEAN.
johnsyn
13 years ago
McDonald’s Restaurants in Latin America Evolve Menu 27/07/2011 10:05 (1 Day 03:52 minutes ago)
The FINANCIAL -- Buenos Aires, Argentina, July 26th, 2011 – Arcos Dorados, responsible for the operation of the McDonald’s brand in 19 countries and territories in Latin America, announced today a number of menu items’ evolution, in benefit of the nutritional composition of food for children and adults, offered at the restaurants it operates throughout the region.
These developments will start to be implemented in the Latin American countries managed by Arcos Dorados from October 1st and are part of the constant menu evolution that the brand has been building on, in the past years, as well as a reinforcement of its commitment to a good quality of life.
“This is a clear and firm demonstration of the high level of our evolving commitment with the welfare of our customers. Our company is committed to being at the forefront of the trends and preferences of society, and to do so, we want to be sure that we offer even more menu options that are aligned with a healthy and balanced lifestyle. Likewise, we will continue to support initiatives that promote physical activities,” said Woods Staton, President and CEO of Arcos Dorados.
New Happy Meal
The new version of the Happy Meal will now be composed of four items, with the addition of a serving of fresh fruit, which will change according to the season of the year.
All of the combinations of the four-item Happy Meal in Latin America will now have less than 600 calories, which equates to one third of the daily requirement for calories recommended by the WHO for children ages 6 to 10. For that, the company will implement a series of evolutions that will improve the nutritional profile of the Happy Meal:
A new size of French fries has been created exclusively for the Happy Meal, with an average of 100 calories, less than half of the previous calories amount.
McDonald’s restaurants in Latin America have also reduced the amount of sodium by an average of 10% in the buns, in the McNuggets, in the cheese and in the ketchup, improving the nutritional profile of the three Happy Meal options: Hamburger, Cheeseburger and McNuggets.
In addition, the amount of sugar added to the fruit juices will be reduced by almost 40%, reaching no more than 5gr of added sugar per 100ml.
With all of these innovations, the menu will have an enhanced nutritional composition, which is even more adequate to children: more vitamins and more fiber, with less sodium, less sugar and fewer calories, while maintaining the same great taste of McDonald’s menu items.
“We are very glad to learn about the reformulation of McDonald's / Arcos Dorados products in regards to the reduction of salt, sugar and calories per portion, and the increase of the use of fruits and vegetables in the children's menus. The changes just announced certainly seem to be going in the right direction", said James Hospedales, Senior Advisor of the Panamerican Health Organization’s Department of Control and Prevention of Chronical Diseases.
With all that, the Happy Meal will now be offered in the McDonald’s restaurants in Latin America in various combinations of four menu items, which the customers can decide for according to their preferences: a main item (Hamburger, Cheeseburger and McNuggets), a side (French fries or, in certain markets, another option of local vegetable), a drink (fruit juice of soda with or without calories), and a portion of seasonal fruit.
Adult Menu
Likewise, the other regular Combos will offer a new salad as an option for the side dish of sandwiches and beverages. The new side salad, that will have less than 10 calories without the dressing, will be a mix of green leaves and tomatoes. This will represent a reduction in the total of calories of an Extra Value Meal, compared to the choice of fries as the side option.
With sodium reduction in all its core sandwich buns, the cheese and the ketchup, McDonald’s is also reducing the amount of sodium in all its sandwiches on the core menu (including the Big Mac, the Quarter Pounder, the Hamburger, the Cheeseburger and the line of chicken sandwiches).
To assure that the menu items will keep the same delicious taste characteristics, the McDonald’s restaurants in Latin America have dedicated two years to research, with the support of its suppliers and, during 2011, has tested and validated this nutritional improvement with customers.
buzz lightyear
13 years ago
5-Star Stocks Poised to Pop: Arcos Dorados
Brian D. Pacampara - July 13, 2011
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Arcos Dorados Holdings (NYSE: ARCO), which operates McDonald's (NYSE: MCD) franchises in South America, has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Arcos Dorados' business and see what CAPS investors are saying about the stock right now.
Arcos Dorados facts
Swipe left/right to view wide tables
Headquarters (Founded) Buenos Aires, Argentina (2007)
Market Cap $2.8 billion
Industry Restaurants
Trailing-12-Month Revenue $3.17 billion
Management Chairman/CEO Woods Staton CFO German Lemonnier
Trailing-12-Month Operating Margin 6.8%
Cash/Debt $141.2 million / $471.5 million
Competitors Yum! Brands (NYSE: YUM)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 152 members who have rated Arcos Dorados believe the stock will outperform the S&P 500 going forward. These bulls include TMFTypeoh and All-Star TMFBreakerForce.
Late last month, TMFTypeoh succinctly summed up the Arcos Dorados bull case: "Risky, but it's like investing in [McDonald's] 30 years ago. If it holds true, we've got a multibagger!"
Over the next five years, in fact, Arcos Dorados is expected to grow its bottom line at a brisk rate of 27% annually. That's much faster than other restaurant stocks like Yum! Brands (13%) and Starbucks (Nasdaq: SBUX) (18%).
CAPS All-Star TMFBreakerForce expands on the outperform argument:
Arcos Dorados (Golden Arches) is the world's largest McDonald's Franchisee. They operate in all of South America, Parts of Central America, and the Caribbean.
The bought all of MCD's South American franchises for less than book value back in 2007. The company has turned around the underperforming business, and is improving margins. They currently operate over 1,700 chains. According to the prospectus, the company intends to open at least 250 new locations by 2013.
It is estimated that the company could open at least 5,000 chains in the next decade, as the economies in the major countries in South America (Brazil, Argentina, Chile) continue to improve.
They have some debt outstanding but generated almost $264 Million in Cash Flow from Operations in 2010, so meeting debt obligations will not be an issue.
momentum74
14 years ago
Re Pasted ARCO CEO buying 2 million shares at IPO price
By Lynn Cowan
Of DOW JONES NEWSWIRES
The world's largest McDonald's Corp. (MCD) franchisee encountered supersized demand for its initial public offering Thursday, with the stock rising 24% in early trading.
Arcos Dorados Holdings Inc. (ARCO) opened at $21 a share on the New York Stock Exchange, up 23.6% from its initial public offering price of $17; shares were changing hands recently at $21.10, up 24%. A total of 73.5 million Class A shares, 11 million more than expected, were sold at a price above its expected $13 to $15 range.
Headquartered in Argentina but incorporated in the British Virgin Islands, Arcos Dorados holds the exclusive right to own, operate and grant franchises of McDonald's restaurants in 19 countries in Latin America and the Caribbean. It's the largest fast food chain in that region, with 12% of systemwide sales in 2009, according to Euromonitor. Among the countries it operates in are Brazil, Chile, Mexico, Colombia, Argentina and Peru.
Latin America and the Caribbean are fast-growing areas for McDonald's as more people in that region gravitate towards fast food chains. Euromonitor estimated that the fast food segment there grew 97% from 2004 to 2009, 27 percentage points higher than the food service industry as a whole in those regions. The compound annual growth rate equates to 14.5%, well above the 3% seen in the U.S. fast food industry.
And among the chains in Latin America and the Caribbean, McDonald's rules, with nearly three times the sales of its closest competitor, Burger King, according to Euromonitor. Further expansion is a given: Arcos Dorados has committed to open at least 250 new restaurants from 2011 to 2013 under its agreement with McDonald's.
Of the total shares sold, the majority--50,000--came from prior owners, so those proceeds won't benefit the company. Sellers included Gavea Investment AD, LP, Capital International Private Equity Funds, DLJ South American Partners LP and DLJSAP Restco Co-investments LLC.
Arcos Dorados' largest shareholder, Chairman and Chief Executive Woods Staton, didn't sell any of his stake, and in fact purchased 2 million more shares at the IPO price. Staton, who continues to retain more than 75% of the voting control of the company post-IPO, was the president of McDonald's South Latin America division from 2004 until August 2007, when Arcos Dorados purchased McDonald's Latin American business.
The company expects to use most of its IPO proceeds for capital expenditures, including for opening and upgrading restaurants.
Total revenues rose throughout the economic downturn, increasing 13% to $3 billion in 2010. Although operating income declined 1% in 2010 compared to 2009, net income rose 32% to $106 million in 2010 as net interest expenses, derivative losses, foreign exchange and income tax expense went down. Comparative restaurant sales increased 15% in 2010 for both company-operated and franchised stores.
One of the biggest risks for Arcos Dorados is its operations in Venezuela, where it has 138 restaurants. The country's currency controls eroded its financial performance there, with Venezuelan revenue in 2010 declining to 6% from 17% of total company revenue in 2009, and net income declining to 2% from 9% in the same periods.
Arcos Dorados has also been engaged in tax disputes with Venezuelan tax authorities that resulted in temporary closures of its restaurants in 2005 and 2008. In addition, the country's current government has promoted increased state ownership of privately run businesses and corporations, so there's always a threat that Venezuela could try to transform McDonald's outlets into state-run entities
Bank of America Merrill Lynch (BAC), J.P. Morgan Chase & Co., Morgan Stanley (MS), Itau BBA USA Securities Inc. and Citigroup Inc. (C) managed the company's IPO.
-By Lynn Cowan, Dow Jones Newswires; 301-270-0323; lynn.cowan@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/nae/al?rnd=EWKGvNA1pxdb6SRnrEX4Cw%3D%3D. You can use this link on the day this article is published and the following day.
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