Arcos Dorados Holdings Inc. has exercised its option to renew its Master Franchise Agreement with McDonald’s, with a new 20-year agreement expected to be effective from January 1, 2045. The new agreement is anticipated to include a royalty of Gross Sales of 6.0% for the first ten years, 6.25% for the subsequent five years, and 6.5% for the final five years, reflecting the company's and McDonald’s belief in significant growth opportunities across the Company’s 20 countries and territories.