Arcos Dorados (ARCO) is the largest McDonald's franchisee in the world. They have the exclusive right to operate McDonald's restaurants from south of the Rio Grande all the way to the tip of Chile: No other company or person may operate a McDonald's in Latin America. Based in Argentina and operating in 20 Latin American countries, Arcos Dorados runs over 1,840 McDonald's restaurants. Exclusive rights to operate this iconic brand in an under-exposed, fast-growing region means this Arcos Dorados has tremendous potential. The company is still fairly small, with a market cap of only $2.65 billion. For investors who lament missing out on McDonald's (MCD) heyday of growth, Arcos Dorados is a tempting choice.
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