Arcos Dorados, McDonald’s largest global franchisee is preparing for what will be one of Latin America’s biggest IPOs ever.
Buenos Aires-based Arcos, the group that owns the largest chain of restaurants in South America, will formally announce the IPO in the next week, and sources say shares could begin trading as early as April.
According to Cronista, Bank of America, JPMorgan and Morgan Stanley were chosen as lead underwriters for the deal which could top US$1 billion. It is still not clear how much of the company the group will sell or if they will seek additional funds. Some analysts are already looking at the IPO and investor response to it as a broader indicator of confidence in the region and the ability of a global brand like McDonald’s to capitalize on emerging markets and attractive demographics in South America.
The IPO announcement comes four years after McDonald’s was pressured to cut loose under-performing outlets in regions like South America. The company that emerged in 2007, Arcos Dorados, then went on a regional tear opening new restaurants throughout Latin America and growing market share with aggressive marketing and new store offerings like the popular McCafes. Arcos CEO Woods Staton, recently named LatinTrade’s CEO of the Year, oversaw revenue growth to US$3.6 billion in 2009 and expansion to 1,800 outlets in 19 countries. (Full Story in Spanish)
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