Brazil prosecutor targets McDonald's and Arcos Dorados

|About: Arcos Dorados (ARCO)|By:, SA News Editor

McDonald's (NYSE:MCD) and franchise operator Arcos Dorados Holdings (NYSE:ARCO) are the targets of a civil investigation by a federal prosecutor in Brazil.

Labor groups in the nation continue have raised issues against the companies that range from labor violations to tax evasion. The practice of franchisees buying ingredients from exclusive providers is also under scrutiny.

Shares of McDonald's are up 19% over the last 52 weeks, while Arco's market cap has been halved over the same time frame amid currency headaches.

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