McDonald's is bullish on Latin America thanks to strong growth so far and a 100 percent franchise model.
BY JOACHIM BAMRUD
CHICAGO – J.C. Gonzalez-Mendez is bullish on Latin America. Despite the recent volatility in world financial markets and a growing U.S. crisis, the president of McDonalds Latin America sees a bright future for his company. “I’m very optimistic,” he says. “I don’t have any concern about credit for a company like McDonald’s [and Latin America is] a more stable market place than it has ever been.”
His optimism is also fueled by strong results so far. In the first nine months, McDonald’s Latin America sales grew by 22.1 percent. "These results are no small feat given the political and economic complexities that are present in the region," Jose Armario, McDonalds group vice president for Canada and Latin America, said last week at a press briefing in Chicago.
The results this year through September mark 28 consecutive months of double-digit growth and 60 consecutive months (or five years) of positive growth. "Were elated with those results," Gonzalez-Mendez says.
McDonalds operates some 1,800 restaurants in Latin America, according to Gonzalez-Mendez. By comparison, Burger King – its nearest rival – boasts a little over 1,000 outlets in Latin America.
After the third quarter last year, McDonald’s no longer releases financial quarterly details for Latin America, as its operations in the region are now operated by privately-held licensees. However, McDonald’s says total sales in Latin America amount to...
Keywords: Arcos Dorados, Argentina, Brazil, Cofiño, Hospitality, McCafe, Mexico