Arcos Dorados renews master franchise agreement with McDonald’s

Arcos Dorados (ARCO) announced that it renewed its master franchise agreement with McDonald’s (MCD). The parties have finalized a new, 20-year MFA, that became effective on January 1 and replaced the previous MFA. The new MFA also includes a renewal option, at McDonald’s discretion, for a new, 20-year MFA, beginning January 1, 2045. As previously announced, the new MFA includes a royalty fee of gross sales of 6% for the first ten years, 6.25% for the subsequent five years and 6.5% for the final five years.