<SEC-DOCUMENT>0000950103-21-004147.txt : 20210317
<SEC-HEADER>0000950103-21-004147.hdr.sgml : 20210317
<ACCEPTANCE-DATETIME>20210317074101
ACCESSION NUMBER: 0000950103-21-004147
CONFORMED SUBMISSION TYPE: 6-K
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 20210317
FILED AS OF DATE: 20210317
DATE AS OF CHANGE: 20210317
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Arcos Dorados Holdings Inc.
CENTRAL INDEX KEY: 0001508478
STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812]
IRS NUMBER: 000000000
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 6-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-35129
FILM NUMBER: 21748450
BUSINESS ADDRESS:
STREET 1: DR. LUIS BONAVITA 1294, OFFICE 501
STREET 2: WTC FREE ZONE
CITY: MONTEVIDEO
STATE: X3
ZIP: 11300
BUSINESS PHONE: 598 2626-3000
MAIL ADDRESS:
STREET 1: DR. LUIS BONAVITA 1294, OFFICE 501
STREET 2: WTC FREE ZONE
CITY: MONTEVIDEO
STATE: X3
ZIP: 11300
</SEC-HEADER>
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<TYPE>6-K
<SEQUENCE>1
<FILENAME>dp147902_6k.htm
<DESCRIPTION>FORM 6-K
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>
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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 6-K</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B> <BR>
</B></P>
<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.85pt; text-align: center; text-indent: -6.85pt"><B>REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">For the month of March, 2021</P>
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Commission File Number: 001-35129</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<P STYLE="font: 28pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Arcos Dorados Holdings Inc.</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact name of registrant as specified
in its charter)</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Dr. Luis Bonavita 1294, Office 501</B></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Montevideo, Uruguay, 11300 WTC Free Zone
</B></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Address of principal executive office)</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></P>
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<TR STYLE="vertical-align: top">
<TD STYLE="width: 29%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Form 20-F</FONT></TD>
<TD STYLE="width: 14%"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt">X</FONT></P></TD>
<TD STYLE="width: 15%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="width: 28%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Form 40-F</FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; width: 14%"></TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></P>
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<TD STYLE="width: 29%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Yes</FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; width: 14%"></TD>
<TD STYLE="width: 15%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="width: 28%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">No</FONT></TD>
<TD STYLE="width: 14%"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt">X</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
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<TD STYLE="width: 29%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Yes</FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; width: 14%"></TD>
<TD STYLE="width: 15%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="width: 28%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">No</FONT></TD>
<TD STYLE="width: 14%"><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt">X</FONT></P></TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B> </B></FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>ARCOS
DORADOS HOLDINGS INC.</B></FONT></P>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>TABLE
OF CONTENTS</B></FONT></P>
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<TD STYLE="width: 9%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>ITEM</B></FONT></TD>
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<TR STYLE="vertical-align: top">
<TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">1.</FONT></TD>
<TD><P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0.1in"><FONT STYLE="font-size: 10pt">Arcos Dorados Holdings
Inc. – Condensed Consolidated Financial Statements as of December 31, 2020 and 2019 and for each of the three years
in the period ended December 31, 2020</FONT></P></TD></TR>
</TABLE>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>SIGNATURE</B></FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"> </FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-size: 10pt">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-size: 10pt"> </FONT></P>
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<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD COLSPAN="3"><FONT STYLE="font-size: 10pt"><B>Arcos Dorados Holdings Inc.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD COLSPAN="3"><FONT STYLE="font-size: 10pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD COLSPAN="3"><FONT STYLE="font-size: 10pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD><FONT STYLE="font-size: 10pt">By: </FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Juan David Bastidas</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 60%"><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">Name: </FONT></TD>
<TD STYLE="width: 36%"><FONT STYLE="font-size: 10pt">Juan David Bastidas</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Chief Legal Counsel</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Date:
March 17, 2021</FONT></P>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 10pt"><B>Item 1</B></FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"> </P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Arcos Dorados Holdings Inc.</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Consolidated Financial Statements</B></P>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December 31, 2020 and 2019 and for each of the three
years in the period ended December 31, 2020</P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INDEX TO FINANCIAL STATEMENTS</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Audited Consolidated Financial Statements
– Arcos Dorados Holdings Inc.</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 93%"><FONT STYLE="font-size: 10pt">Report of Independent Registered Public Accounting Firm</FONT></TD>
<TD STYLE="width: 7%; text-align: center"><FONT STYLE="font-size: 10pt">F-3</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Consolidated Statements of (Loss) Income for the fiscal years ended December 31, 2020, 2019 and 2018</FONT></TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-5</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Consolidated Statements of Comprehensive (Loss) Income for the fiscal years ended December 31, 2020, 2019 and 2018</FONT></TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-6</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Consolidated Balance Sheet as of December 31, 2020 and 2019</FONT></TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-7</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Consolidated Statements of Cash Flows for the fiscal years ended December 31, 2020, 2019 and 2018</FONT></TD>
<TD STYLE="text-align: center">F-<FONT STYLE="font-size: 10pt">8</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Consolidated Statements of Changes in Equity for the fiscal years ended December 31, 2020, 2019 and 2018</FONT></TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-9</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD>Notes to the Consolidated Financial Statements as of December
31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</TD>
<TD STYLE="text-align: center">F-10</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the Board of Directors and Shareholders
of</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>ARCOS DORADOS HOLDINGS INC.:</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Opinion on the Financial Statements</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have audited the
accompanying consolidated balance sheets of Arcos Dorados Holdings Inc. (the “Company”) as of December 31, 2020 and
2019, and the related consolidated statements of (loss) income, comprehensive (loss) income, changes in equity and cash flows for
each of the three years in the period ended December 31, 2020, and the related notes (collectively referred to as the “consolidated
financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of the Company at December 31, 2020 and 2019, and the results of its operations and its cash flows for each
of the three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Adoption of New Accounting Standards</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As discussed in note 3 to the consolidated
financial statements, the Company changed its method of accounting for leases. <FONT STYLE="color: #333333">The Company adopted
Accounting Standard Codification Topic 842, Leases (“ASC 842”), on January 1, 2019.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Basis for Opinion</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial
statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United
States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws
and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We conducted our audits
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included
performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Critical Audit Matters</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The critical audit
matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the
financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical
audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not,
by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the account
or disclosure to which they relate.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 5pt; width: 16%; text-align: justify"> </TD>
<TD STYLE="padding: 5pt; width: 2%; text-align: justify"> </TD>
<TD STYLE="padding: 5pt; width: 82%; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Impairment of long-lived assets for markets with impairment indicators </I></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 5pt; text-align: justify"><FONT STYLE="font-size: 10pt"><I>Description of the Matter</I></FONT></TD>
<TD STYLE="padding: 5pt; text-align: justify"> </TD>
<TD STYLE="padding: 5pt">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2020, the carrying
amount of long-lived assets is thousands of $1,618,946, including PPE, Leases right of use assets, net, and intangible
assets. As a result of its impairment assessment exercise, the Company recorded a loss of thousands of $6,636, during
2020.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company operates in twenty countries
in Latin America and the Caribbean with different economic and political circumstances. As explained in note 3 to the consolidated
financial statements, management carries out an impairment assessment on long-lived assets annually, or whenever events or changes
in circumstances indicate the carrying value of the asset may not be recoverable, that includes identifying the existence of impairment
indicators at the country level. When impairment indicators are identified for any given country, an estimate of undiscounted future
cash flows is prepared by the Company for each individual restaurant located in that country. The estimation of future cash flows
requires management to make assumptions about the future business performance and other key inputs that entail significant judgments
by management. These estimates can be significantly impacted by many factors, including changes in global and local business and
economic conditions, including the effects of the COVID-19 outbreak mentioned in note 1, operating costs, inflation, competition
and consumer and demographic trends.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Auditing this area is especially challenging
because the process of estimation of undiscounted future cash flows implies the determination of key assumptions that are complex
and highly judgmental. The key assumptions used by management in the impairment calculation include country economic indicators
projections of sales, margin growth rates, capital expenditures and useful lives of long-lived assets. These key assumptions are
forward looking and could be affected by future economic and market conditions.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P></TD></TR>
</TABLE>
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<TR STYLE="vertical-align: top">
<TD STYLE="padding: 5pt; width: 16%; text-align: justify"><FONT STYLE="font-size: 10pt"><I>How We Addressed the Matter in Our Audit</I></FONT></TD>
<TD STYLE="padding: 5pt; width: 2%; text-align: justify"> </TD>
<TD STYLE="padding: 5pt; width: 82%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We obtained an understanding, evaluated
the design, and tested controls of the impairment calculation process. For example, we identified and tested the operating effectiveness
of the Company’s controls around the consistency of the estimation model inputs with the accounting records and the evaluation
of the key assumptions made by management.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To test management assessment of impairment
of long lived assets our audit procedures included, among others, testing the macroeconomic variables used by management, such
as inflation rates and GDP growth, assessing the consistency between the estimated cash flows in the model and the business plan
approved by management, comparing the remaining life of fixed assets with the accounting records and the clerical accuracy of the
computations. Additionally, we evaluated the valuation methods used by management, including the key assumptions used in determining
the undiscounted future cash flows of each restaurant. We also involved our valuation specialists to assist in evaluating the methodology
and the key assumptions used in the future cash flows estimation by management. We also compared forecasts to business plans and
previous forecasts of projected cash flows to actual results to assess management estimation process.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We also assessed the completeness of the
related disclosures in note 3 to the consolidated financial statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 5pt; width: 14%"> </TD>
<TD STYLE="padding: 5pt; width: 2%; text-align: justify"> </TD>
<TD STYLE="padding: 5pt; width: 84%; text-align: justify"><FONT STYLE="font-size: 10pt"><B><I>Tax and labor contingencies</I></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 5pt"><FONT STYLE="font-size: 10pt"><I>Description of the Matter</I></FONT></TD>
<TD STYLE="padding: 5pt; text-align: justify"> </TD>
<TD STYLE="padding: 5pt">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has operations in Brazil representing
43% of the revenues of the group for the year ended December 31, 2020 and maintains a provision for tax and labor contingencies
in that country that represents a 74% of the provision for contingencies balance of the group as of December 31, 2020. As described
in note 18, the Company assesses the likelihood of any adverse judgments in labor claims or outcomes on its tax positions, including
income tax and other taxes, based on the technical merits of a tax position derived from legislation and statutes, legislative
intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position or labor claim.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Auditing the measurement of tax and labor
contingencies related to certain claims and transactions was challenging because their measurement is complex, highly judgmental,
and is based on interpretations of tax laws, case-law jurisprudence and requires estimating the future outcome of individual claims.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="padding: 5pt"><FONT STYLE="font-size: 10pt"><I>How We Addressed the Matter in Our Audit</I></FONT></TD>
<TD STYLE="padding: 5pt; text-align: justify"> </TD>
<TD STYLE="padding: 5pt">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We obtained an understanding, evaluated
the design and tested the operating effectiveness of the Company’s controls around identification of matters, evaluation
of tax and labor opinions, and tested management’s review controls over the assumptions made in the estimation of provisions
and related disclosures.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To test the labor and tax contingencies
provision, our audit procedures included, among others, involving personnel with specialized knowledge to assess the technical
merits of the Company’s tax positions; assessing the Company’s correspondence with the relevant tax authorities; evaluating
third-party tax opinions obtained by the Company; separately corresponding with certain key external tax and legal advisors of
the Company, inspecting the minutes of the meetings of the Audit Committee and Board of Directors; obtaining confirmation letters
from the group’s vice president of human resources and the group’s tax director, and evaluating the application of
relevant tax law in the Company’s determination of its provision. As part of our evaluation, we have considered historical
information to assess the assumptions made by management in relation to the potential outcomes.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We also evaluated the completeness of Company’s
disclosures included in note 18 to the consolidated financial statements in relation to these matters.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: Black 0.5pt solid">/s/ Pistrelli, Henry Martin
y Asociados S.R.L. </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Member of Ernst & Young Global</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Company’s auditor since 2007.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Buenos Aires, Argentina</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">March 17, 2021</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Arcos Dorados Holdings Inc.</B></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Statements of (Loss) Income</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">For the fiscal years ended December 31,
2020, 2019 and 2018</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Amounts in thousands of US dollars, except
for share data and as otherwise indicated</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt">REVENUES</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 67%"><FONT STYLE="font-size: 10pt">Sales by Company-operated restaurants</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">1,894,618 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">2,812,287 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">2,932,609 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Revenues from franchised restaurants</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">89,601 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">146,790 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">148,962 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total revenues</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>1,984,219 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>2,959,077 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>3,081,571 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">OPERATING COSTS AND EXPENSES</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Company-operated restaurant expenses:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 24.75pt"><FONT STYLE="font-size: 10pt">Food and paper</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(677,087)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,007,584)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,030,499)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 24.75pt"><FONT STYLE="font-size: 10pt">Payroll and employee benefits</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(413,074)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(567,653)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(607,793)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 24.75pt"><FONT STYLE="font-size: 10pt">Occupancy and other operating expenses </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(624,154)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(799,633)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(803,539)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 24.75pt"><FONT STYLE="font-size: 10pt">Royalty fees</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(110,957)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(155,388)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(157,886)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Franchised restaurants – occupancy expenses </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(43,512)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(61,278)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(67,927)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">General and administrative expenses</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(171,382)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(212,515)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(229,324)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other operating (expenses) income, net</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(10,807)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">4,910 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(61,145)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total operating costs and expenses</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(2,050,973)</B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(2,799,141)</B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(2,958,113)</B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Operating (loss) income</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(66,754)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>159,936 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>123,458 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Net interest expense</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(59,068)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(52,079)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(52,868)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">(Loss) gain from derivative instruments</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2,297)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">439 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(565)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Gain from securities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25,676 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Foreign currency exchange results</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(31,707)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">12,754 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,874 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other non-operating income (expenses), net </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,296 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(2,097)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">270 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>(Loss) income before income taxes </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(131,854)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>118,953 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>85,169 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Income tax expense</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(17,532)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(38,837)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(48,136)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Net (loss) income</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(149,386)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>80,116 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>37,033 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Less: Net income attributable to non-controlling interests</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(65)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(220)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(186)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Net (loss) income attributable to Arcos Dorados Holdings Inc.</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(149,451)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>79,896 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>36,847 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>(Loss) earnings per share information:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Basic net (loss) income per common share attributable to Arcos Dorados Holdings Inc.</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(0.73)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.39 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.18 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Diluted net (loss) income per common share attributable to Arcos Dorados Holdings Inc.</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(0.73)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.39 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.18 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">See Notes to the Consolidated Financial
Statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Arcos Dorados Holdings Inc.</B></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Statements of Comprehensive
(Loss) Income</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">For the fiscal years ended December 31,
2020, 2019 and 2018</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Amounts in thousands of US dollars</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 67%"><FONT STYLE="font-size: 10pt"><B>Net (loss) income</B></FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt"><B>(149,386)</B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt"><B>80,116 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt"><B>37,033 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B><U>Other comprehensive (loss) income, net of tax:</U></B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Foreign currency translation</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(76,382)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(12,246)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(63,130)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Post-employment benefits (expenses):</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Loss recognized in accumulated other comprehensive loss</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(195)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(55)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(418)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Reclassification of net loss to consolidated statement of income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">236 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">864 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">494 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Post-employment benefits (net of deferred income taxes of $70, $42 and $122).</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">41 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">809 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">76 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Cash flow hedges:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Net gain (loss) recognized in accumulated other comprehensive loss</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">54,287 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,185)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,888 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Reclassification of net (gain) loss to consolidated statement of income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(43,324)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">85 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(23,887)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Cash flow hedges (net of deferred income taxes of $(2,582), $1,290 and $4,062)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">10,963 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(5,100)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(9,999)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total other comprehensive (loss) income</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(65,378)</B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(16,537)</B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(73,053)</B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Comprehensive (loss) income</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(214,764)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>63,579 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(36,020)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Less: Comprehensive income attributable to non-controlling interests</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(42)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(142)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(52)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Comprehensive (loss) income attributable to Arcos Dorados Holdings Inc.</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(214,806)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>63,437 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(36,072)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Notes to the Consolidated Financial Statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Arcos Dorados Holdings Inc.</B></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Balance Sheet</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">As of December 31, 2020 and 2019</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Amounts in thousands of US dollars, except
for share data and as otherwise indicated</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>ASSETS</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Current assets</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 74%"><FONT STYLE="font-size: 10pt">Cash and cash equivalents</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right; width: 10%"><FONT STYLE="font-size: 10pt">165,989 </FONT></TD>
<TD STYLE="text-align: right; width: 1%"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right; width: 10%"><FONT STYLE="font-size: 10pt">121,880 </FONT></TD>
<TD STYLE="text-align: right; width: 1%"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Short-term investment</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Accounts and notes receivable, net </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">94,249 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">99,862 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other receivables</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19,946 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">28,174 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Inventories</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">33,601 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">37,815 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Prepaid expenses and other current assets</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">100,469 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">117,612 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">702 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">McDonald’s Corporation’s indemnification for contingencies</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">575 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total current assets </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>415,531 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>405,368 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Non-current assets</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Miscellaneous </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">72,649 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">95,814 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Collateral deposits </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,500 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,500 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Property and equipment, net </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">796,532 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">960,986 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Net intangible assets and goodwill </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">37,046 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">43,044 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Deferred income taxes </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">55,567 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">68,368 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">121,901 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">57,828 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">McDonald’s Corporation’s indemnification for contingencies</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,259 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,612 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Lease right of use asset, net</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">790,969 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">922,165 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total non-current assets </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,878,423 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,152,317 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total assets </B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,293,954 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,557,685 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>LIABILITIES AND EQUITY</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Current liabilities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Accounts payable </FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">209,535 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">259,577 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Royalties payable to McDonald’s Corporation </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">44,779 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">17,132 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Income taxes payable </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">34,447 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">61,982 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other taxes payable </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">56,837 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">61,823 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Accrued payroll and other liabilities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">79,218 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">86,379 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Provision for contingencies</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,024 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,035 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Interest payable </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">11,947 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9,936 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Short-term debt </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,296 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Current portion of long-term debt </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,129 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,233 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Derivative instruments </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,727 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9,907 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Operating lease liabilities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">56,828 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">70,147 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total current liabilities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>503,471 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>595,447 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Non-current liabilities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Accrued payroll and other liabilities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21,884 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">23,497 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Provision for contingencies </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">24,924 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">24,123 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Long-term debt, excluding current portion </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">773,445 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">623,575 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Derivative instruments </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,534 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,598 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Deferred income taxes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,067 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,297 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Operating lease liabilities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">752,613 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">861,582 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total non-current liabilities </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,592,467 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,540,672 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total liabilities </B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,095,938 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,136,119 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Equity</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Class A shares of common stock</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">386,603 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">383,204 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Class B shares of common stock</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">132,915 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">132,915 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Additional paid-in capital </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">11,540 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,375 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Retained earnings</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">290,895 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">471,149 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Accumulated other comprehensive loss</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(584,860)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(519,505)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Common stock in treasury</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(39,547)</FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(60,000)</FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total Arcos Dorados Holdings Inc. shareholders’ equity </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>197,546 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>421,138 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Non-controlling interests in subsidiaries </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">470 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">428 </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total equity </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>198,016 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>421,566 </B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total liabilities and equity </B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,293,954 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,557,685 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Notes to the Consolidated Financial Statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Arcos Dorados Holdings Inc.</B></P>
<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Statements of Cash Flows</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">For the fiscal years ended December 31,
2020, 2019 and 2018</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Amounts in thousands of US dollars</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Operating activities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 67%"><FONT STYLE="font-size: 10pt">Net (loss) income attributable to Arcos Dorados Holdings Inc.</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right; width: 8%"><FONT STYLE="font-size: 10pt">(149,451)</FONT></TD>
<TD STYLE="text-align: right; width: 1%"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right; width: 8%"><FONT STYLE="font-size: 10pt">79,896 </FONT></TD>
<TD STYLE="text-align: right; width: 1%"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right; width: 8%"><FONT STYLE="font-size: 10pt">36,847 </FONT></TD>
<TD STYLE="text-align: right; width: 1%"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Adjustments to reconcile net income attributable to Arcos Dorados Holdings Inc. to cash provided by operating activities:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 24.75pt"><FONT STYLE="font-size: 10pt">Non-cash charges and credits:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Depreciation and amortization </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">126,853 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">123,218 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">105,800 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Loss (gain) from derivative instruments</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,297 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(439)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">565 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Amortization and accrual of letter of credit fees and deferred financing costs</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,505 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,190 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,189 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Gain of property and equipment sales </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(201)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(664)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2,030)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Deferred income taxes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">471 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(7,974)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">648 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Foreign currency exchange results</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">35,928 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(11,656)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(15,388)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Accrued net share-based compensation expense</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,360 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,060 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,638 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Impairment of long-lived assets and goodwill</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7,721 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9,063 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19,117 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Write-offs of property and equipment</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,501 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,733 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,167 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Gain on Sales of restaurants businesses</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,078)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(6,154)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Others, net </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(10,234)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(955)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8,896 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 24.75pt"><FONT STYLE="font-size: 10pt">Changes in assets and liabilities:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Accounts payable </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(23,993)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">39,434 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16,563 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Accounts and notes receivable and other receivables</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(13,210)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(27,988)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(35,770)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Inventories, prepaid and other assets</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(25,032)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(21,802)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(12,074)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Income taxes payable</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,825)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10,931 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">12,529 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Other taxes payable</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,014 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,891 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8,675 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Interest payable</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Accrued payroll and other liabilities and provision for contingencies</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16,755 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,320 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">27,134 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Royalties payable to McDonald’s Corporation</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">28,981 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,979 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,302 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 42.75pt"><FONT STYLE="font-size: 10pt">Others</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,526 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">322 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">77 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Net cash provided by operating activities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>15,966 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>223,481 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>179,731 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Investing activities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Property and equipment expenditures</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(86,311)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(265,235)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(197,041)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Purchases of restaurant businesses paid at acquisition date</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3,833)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2,658)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Proceeds from sales of property and equipment and related advances</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">800 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,340 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,891 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Proceeds from sales of restaurant businesses and related advances</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,818 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10,158 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Recovery of short-term investments</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19,588 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other investing activity</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">638 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,256)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">620 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Net cash used in investing activities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(88,706)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(260,991)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(163,784)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Financing activities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Issuance of 2027 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">153,375 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Dividend payments to Arcos Dorados Holdings Inc.’ shareholders</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(10,220)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(22,425)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(20,937)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Net short-term borrowings</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(10,578)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,159 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Treasury stock purchases</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(13,965)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(46,035)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other financing activities </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(6,568)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(6,401)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(6,470)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Net cash provided by used in financing activities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>126,009 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(29,632)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(73,442)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Effect of exchange rate changes on cash and cash equivalents</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(9,160)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(8,260)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(53,714)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Increase (decrease) in cash and cash equivalents</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>44,109 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(75,402)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(111,209)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Cash and cash equivalents at the beginning of the year</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">121,880 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">197,282 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">308,491 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Cash and cash equivalents at the end of the year</B></FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>165,989 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>121,880 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>197,282 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Supplemental cash flow information:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-top: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-top: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-top: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Cash paid during the year for:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"> Interest</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">57,066 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">52,458 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">55,400 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"> Income tax </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">22,502 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">34,092 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">32,188 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Non-cash investing and financing activities:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"> Stock dividend payments to Arcos Dorados Holdings Inc.’s Shareholders, at cost</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,453 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">—</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">—</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-size: 10pt"> Seller financing pending of payment and settlement of franchise receivables related to purchases of restaurant businesses</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,606 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">905 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">469 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Notes to the Consolidated Financial Statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Arcos Dorados Holdings Inc.</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Statements of Changes in
Equity</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">For the fiscal years ended December 31,
2020, 2019 and 2018</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Amounts in thousands of US dollars, except
for share data and as otherwise indicated</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center"></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="47" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Arcos Dorados Holdings Inc.’ Shareholders</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center"></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="7" STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">Class A shares of common stock</FONT><FONT STYLE="font-size: 8pt"></FONT> </TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="7" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: center">Class B shares of common stock </TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">Additional
paid-in <FONT STYLE="font-size: 8pt"></FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">Retained
earnings</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">Accumulated
other comprehensive</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="7" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: center">Common Stock in treasury</TD><TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>Total</B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B> </B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>Non-controlling </B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center"></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center"></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">Number<FONT STYLE="font-size: 8pt"></FONT></TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: center">Amount</TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">Number</FONT><FONT STYLE="font-size: 8pt"></FONT></TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: center">Amount</TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: center">capital</TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>loss</B></FONT></TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B> </B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Number</B></FONT></TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B> </B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Amount</B></FONT></TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B> </B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B> </B></FONT></TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B> </B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>interests</B></FONT></TD><TD STYLE="text-align: center; border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"><B> </B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; width: 4%"><FONT STYLE="font-size: 8pt">Balances at December 31, 2017</FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">131,072,508</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">376,732</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">80,000,000</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">132,915</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">14,216</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">401,134</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(429,347</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">495,650</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">492</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 1%; font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="width: 5%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">496,142</FONT></TD><TD STYLE="width: 1%; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Net income for the year</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">36,847</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">36,847</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">186</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">37,033</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Other comprehensive loss</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(72,919</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(72,919</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(134</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(73,053</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.10
per share)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(20,937</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(20,937</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(20,937</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Dividends on restricted share units under the 2011 Equity Incentive
Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(174</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(174</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(174</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Issuance of shares in connection with the partial vesting of outstanding
restricted share units under the 2011 Equity Incentive Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">520,565</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,113</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(3,113</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Stock-based compensation related to the 2011 Equity Incentive Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,747</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,747</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,747</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Treasury stock purchases</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(6,360,826</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(46,035</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(46,035</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(46,035</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-size: 8pt">Dividends to non-controlling
interests</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"> </TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"> </TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right">(168</TD><TD STYLE="text-align: left">)<FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right">(168</TD><TD STYLE="text-align: left">)<FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Adoption of accounting standard ASC 606 - net
of $1,555 of deferred income tax</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(3,796</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(3,796</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(3,796</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">Balances at December 31, 2018</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">131,593,073</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">379,845</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">80,000,000</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">132,915</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">14,850</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">413,074</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(502,266</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(6,360,826</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(46,035</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">392,383</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">376</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">392,759</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Net income for the year</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">79,896</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">79,896</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">220</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">80,116</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Other comprehensive (loss)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(16,459</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(16,459</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(78</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(16,537</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.11
per share)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(22,425</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(22,425</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(22,425</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Dividends on restricted share units under the 2011 Equity Incentive
Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(176</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(176</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(176</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Issuance of shares in connection with the partial vesting of outstanding
restricted share units under the 2011 Equity Incentive Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">470,558</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,359</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(3,359</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Stock-based compensation related to the 2011 Equity Incentive Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"></FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"></FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"></FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,884</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,884</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right">1,884</TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Treasury stock purchases</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(1,632,776</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(13,965</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(13,965</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(13,965</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Dividends to non-controlling interests</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(90</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(90</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Adoption of ASU 2017-12</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">780</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">(780</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">Balances at December 31, 2019</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">132,063,631</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">383,204</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">80,000,000</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">132,915</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">13,375</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">471,149</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(519,505</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(7,993,602</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(60,000</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">421,138</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">428</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">421,566</FONT></TD><TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Net loss for the year</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(149,451</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(149,451</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">65</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(149,386</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Other comprehensive loss</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(65,355</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(65,355</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(23</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(65,378</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Cash Dividends to Arcos Dorados Holdings Inc.’s shareholders
($0.05 per share)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(10,220</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(10,220</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(10,220</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Cash Dividends on restricted share units under the 2011 Equity Incentive
Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(130</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(130</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(130</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Stock Dividends to Arcos Dorados Holdings Inc.’s shareholders
(75 shares per share)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(20,453</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,723,614</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">20,453</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Issuance of shares in connection with the partial vesting of outstanding
restricted share units under the 2011 Equity Incentive Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">472,130</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3,399</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">(3,399</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Stock-based compensation related to the 2011 Equity Incentive Plan</FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,564</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,564</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">— </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">1,564</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt">Balances at December 31, 2020</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">132,535,761</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">386,603</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">80,000,000</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">132,915</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">11,540</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">290,895</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(584,860</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(5,269,988</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">(39,547</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt">)</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">197,546</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">470</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"> </FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-size: 8pt">198,016</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><FONT STYLE="font-size: 8pt"> </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Notes to the Consolidated Financial Statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>1.</B></TD><TD><B>Organization and nature of business</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Arcos Dorados Holdings
Inc. (the “Company”) is a limited liability company organized and existing under the laws of the British Virgin Islands.
The Company’s fiscal year ends on the last day of December. The Company has through its wholly-owned Company Arcos Dorados
Group B.V., a 100% equity interest in Arcos Dorados B.V. (“ADBV”).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 3, 2007 the
Company, indirectly through its wholly-owned subsidiary ADBV, entered into a Stock Purchase Agreement and Master Franchise Agreements
(“MFAs”) with McDonald’s Corporation pursuant to which the Company completed the acquisition of the McDonald’s
business in Latin America and the Caribbean (“LatAm business”). See Note 4 for details. Prior to this acquisition,
the Company did not carry out operations. The Company’s rights to operate and franchise McDonald’s-branded restaurants
in the Territories, and therefore the ability to conduct the business, derive exclusively from the rights granted by McDonald’s
Corporation in the MFAs through 2027. The initial term of the MFA for French Guyana, Guadeloupe and Martinique was ten years through
August 2, 2017 with an option to extend the agreement for these territories for an additional period of ten years, through August
2, 2027. On July 20, 2016, the Company has exercised its option to extend the MFA for these three territories.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company, through
ADBV’s wholly-owned and majority owned subsidiaries, operates and franchises McDonald’s restaurants in the food service
industry. The Company has operations in twenty territories as follows: Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao,
Ecuador, French Guyana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin
Islands of St. Croix and St. Thomas (USVI) and Venezuela. All restaurants are operated either by the Company’s subsidiaries
or by independent entrepreneurs under the terms of sub-franchisee agreements (franchisees).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>COVID - 19</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 11, 2020,
a novel virus known as COVID-19 was declared by the World Health Organization’s (WHO) as a pandemic, resulting in federal,
state and local governments mandating various restrictions, including travel restrictions, restrictions on public gatherings, stay
at home orders and advisories, curfews and quarantining of people who may have been exposed to the virus. In order to comply with
these government measures, some of our markets closed all restaurants for a period of time, especially from the end of March through
the middle of April 2020. During that period, approximately 50% of our entire restaurant footprint was fully closed. These limitations
have significantly disrupted the Company’s business operations with a negative impact on the Company’s financial results,
including a decline in revenues as well as cash from operations. However, starting in the middle of April 2020, we began steadily
re-opening restaurants and were able to resume operating at least one sales channel, such as drive-thru, delivery and/or take away,
in nearly all restaurants, as well as, the vast majority of our dessert centers by December 31, 2020.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to mitigate
the impact on Company’s business, results of operations, financial conditions and outlook, the Company has implemented several
cash preservation measures including, but not limited to, reducing costs and expenses, limiting capital expenditures and renegotiating
terms and conditions with lessors and other suppliers of goods and services. The Company expects to continue with cash preservation
measures while the environment remains dynamic. In addition, on July 6, 2020, the Company announced the cancellation of the two
remaining cash dividend installments to be paid in August and December, 2020 and approved a stock dividend distributed on August,
2020. See note 23 for details. Moreover, McDonald’s granted the Company a deferral of all the royalty payments due related
to sales in March, April, May, June and July 2020 until the first half of 2021; a reduction in the adverting and promotion spending
requirements from 5% to 4% for the annual period 2020 and the withdrawal of the previously-agreed restaurant opening and reinvestment
plan, agreeing in place of this obligation a plan for 2021 only. In addition, McDonald’s provided the Company with a growth
support which is expected to result in a consolidated royalty effective rate of about 5.3% in 2021.See note 18 for details.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, the Company
had drawn short-term debt in most of its Territories, from March to September 2020, in order to maintain liquidity. Short-term
debt was $136 million, $158.2 million, $11 million and $nil at the end of each quarter</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>COVID - 19 (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">during 2020. On September 11, 2020 the
Company announced the issuance of $150 million aggregate principal amount of 2027 Notes. See Note 12 for further information. The
proceeds from the aggregate 2027 Notes were used mainly to repay short-term indebtedness. As the cash flow from operations has
been stabilized during the second quarter of the year and sequential sales recovery continue quarter by quarter, the Company does
not expect significant increases in short-term debt. However, all short-term lines are available if needed. Additionally, in order
to extend the maturity profile of the long-term debt, on September 15, 2020 the Company launched an offer to exchange any and all
of the 2023 Notes for newly issued 2027 Notes. As a result of this exchange, the Company issued 2027 Notes for an aggregate principal
amount of $138,354. See Note 12 for further information.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, the Company
benefited from some government measures enacted in Latin America and the Caribbean to help companies deal with the economic fallout
of the COVID-19 pandemic. Government measures include: modification of existing regulations to reduce workdays or tax costs, tax
payment deferral and subsidies related to labor costs, among others. All subsidies granted were recognized on a systematic basis
over the periods in which the related expenses were recorded, within “payroll and employee benefits” or “General
and administrative expenses” in the consolidated statement of income. The Company fulfils all the terms and conditions required
by the governments to maintain the benefits granted. Although as of December 31, 2020, some of the government measures continued
in force, the Company cannot predict the extent or duration of current or forthcoming programs.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company believes
in its ability to obtain the sources of liquidity and capital resources that are necessary in this challenging economic environment
and also believes that its liquidity and capital resources, including working capital, are adequate for its present requirements
and business operations and will be adequate to satisfy its currently anticipated requirements during at least the next twelve
months for working capital, capital expenditures and other corporate needs.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>2.</B></TD><TD><B>Basis of presentation and principles of consolidation</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America
(“US GAAP”) and include the accounts of the Company and its subsidiaries. All significant intercompany balances and
transactions have been eliminated in consolidation. The Company has elected to report its consolidated financial statements in
United States dollars (“$” or “US dollars”).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3.</B></TD><TD><B>Summary of significant accounting policies</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a summary of significant accounting policies followed by the Company in the preparation of the
consolidated financial statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Use of estimates </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preparation of
the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual
results could differ from those estimates.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Foreign currency matters</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The financial statements
of the Company’s foreign operating subsidiaries are translated in accordance with guidance in ASC 830 Foreign Currency Matters.
Except for the Company’s Venezuelan and Argentinian operations, the functional currencies of the Company’s foreign
operating subsidiaries are the local currencies of the countries in which they conduct their operations. Therefore, assets and
liabilities are translated into US dollars at the balance sheet date exchange rates, and revenues, expenses and cash flow are translated
at average rates prevailing during the periods. Translation adjustments are included in the “Accumulated other comprehensive
loss” component of shareholders’ equity. The Company includes foreign</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Foreign currency matters (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">currency exchange results related to monetary
assets and liabilities transactions, including intercompany transactions, denominated in currencies other than its functional currencies
in its statements of (loss) income.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since January 1, 2010
and July 1, 2018, Venezuela and Argentina, respectively, were considered to be highly inflationary, and as such, the financial
statements of these subsidiaries are remeasured as if its functional currency was the reporting currency of the immediate parent
company (US dollars for Venezuelan operation, Brazilian reais (“BRL”) for Argentinian operation from July 2018 to June
2020 and US dollars since July 2020). As a result, remeasurement gains and losses are recognized in earnings rather than in the
cumulative translation adjustment, component of “Accumulated other comprehensive loss” within shareholders’ equity.
In addition, in these territories, there are foreign currency restrictions. Since 2019, in Argentina several measures have been
adopted including, among others: (i) limitation to hoarding and consumption in foreign currency for natural persons, (ii) taxes
to increase the official exchange rate, (iii) approvals issued by the Central Bank of Argentina to access foreign currency to settle
imports of goods or services, principal and interest from financial payables to foreign parties, profits and dividends. See Note
22 for information about foreign currency restrictions in Venezuela.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Cash and cash equivalents
</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company considers
all highly liquid investments with an original maturity of three months or less, from the date of purchase, to be cash equivalents.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Revenue recognition </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company’s
revenues consist of sales by Company-operated restaurants and revenues from restaurants operated by franchisees. Sales by Company-operated
restaurants are recognized at the point of sale. The Company presents sales net of sales tax and other sales-related taxes. Revenues
from restaurants operated by franchisees include rental income, initial franchise fees and royalty income. Rental income is measured
on a monthly basis based on the greater of a fixed rent, computed on a straight-line basis, or a certain percentage of gross sales
reported by franchisees. Initial franchise fees represent the difference between the amount the Company collects from the franchisee
and the amount the Company pays to McDonald’s Corporation upon the opening of a new restaurant. Royalty income represents
the difference, if any, between the amount the Company collects from the franchisee and the amount the Company is required to pay
to McDonald’s Corporation. Royalty income is recognized in the period earned.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In May 2014, the FASB
issued Accounting Standards Update No. 2014-09 (ASC 606), “Revenue Recognition - Revenue from Contracts with Customers”,
which amends the guidance in former ASC 605, “Revenue Recognition”, and requires entities to recognize revenue when
it transfers promised goods or services to customers, in an amount that reflects the consideration to which the company expects
to be entitled in exchange for those goods or services.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 1, 2018,
the Company adopted this new accounting standard using modified retrospective method and concluded that the sole source of revenue
affected is the initial franchise fee. The Company's previous accounting policy was to recognize it when a new restaurant opens
or at the start of a new franchise term, however, in accordance with the new guidance, the initial franchise services are not distinct
from the continuing rights or services offered during the term of the franchise agreement and should be treated as a single performance
obligation. As such, initial franchise fees received are deferred over the term of the franchise agreement.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with
the modified retrospective method, the Company recognized the cumulative effect of applying the new standard at the date of initial
application with no restatement to the comparative information. Furthermore, the changes made to the consolidated balance sheet
as of January 1, 2018 for the adoption of ASC 606 were as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Revenue recognition (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance Sheet</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance at December 31, 2017</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Adjustments Due to ASC 606</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance at January 1, 2018</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold">ASSETS</TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold">Non-current Assets</TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%; text-align: left">Deferred income taxes</TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">74,299</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">1,555</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">75,854</TD><TD STYLE="width: 1%; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND EQUITY</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; text-align: left">Current liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Accrued payroll and other liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">119,088</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">339</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">119,427</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; text-align: left">Non-current liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Accrued payroll and other liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">29,366</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">5,012</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">34,378</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold">EQUITY</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-weight: bold; text-align: left">Retained earnings</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">401,134</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">(3,796</TD><TD STYLE="text-align: left">)</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">397,338</TD><TD STYLE="text-align: left"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The disclosure of the
impact of adoption on the consolidated balance sheet and income statements, as of December 31, 2018 and for the fiscal year ended
December 31, 2018, were as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: Black 1pt solid"> </TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="11" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of December 31, 2018</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance Sheet</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As Reported</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balances Without Adoption of ASC 606</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Effect of Change</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold">ASSETS</TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold">Non-current Assets</TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%; text-align: left">Deferred income taxes</TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">58,334</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">56,522</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">1,812</TD><TD STYLE="width: 1%; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND EQUITY</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; text-align: left">Current liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Accrued payroll and other liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">94,166</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">93,770</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">396</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; text-align: left">Non-current liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Accrued payroll and other liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">35,322</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">29,495</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">5,827</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold">EQUITY</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-weight: bold; text-align: left">Retained earnings</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">413,074</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">417,485</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">(4,411</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: Black 1pt solid"> </TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="11" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the fiscal year ended December 31, 2018</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Income Statement</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As Reported</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balances Without Adoption of ASC 606</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Effect of Change</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%; text-align: left">Revenues from franchised restaurants</TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">148,962</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">149,834</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">(872</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Income tax expense</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">(48,136</TD><TD STYLE="text-align: left">)</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">(48,393</TD><TD STYLE="text-align: left">)</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">257</TD><TD STYLE="text-align: left"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Accounts and notes receivable and allowance
for doubtful accounts </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Accounts receivable
primarily consist of royalty and rent receivables due from franchisees, debit, credit and delivery vendor receivables. Accounts
receivable are initially recorded at fair value and do not bear interest. Notes receivable relates to interest-bearing financing
granted to certain franchisees in connection with the acquisition of equipment and third-party suppliers. The Company maintains
an allowance for doubtful accounts in an amount that it considers sufficient to cover the expected credit losses. In judging the
adequacy of the allowance for doubtful accounts, the Company follows ASC 326 "Financial Instruments - Credit Losses"
considering, multiple factors including historical bad debt experience, the aging of the receivables, the current economic environment,
remote risks of loss and future economic conditions.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Other receivables </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2020, other receivables primarily consist of related party receivables, value-added tax and other tax receivables, insurance claim
receivables, amounting to $10,110. As of December 31, 2019, other receivables primarily consist of insurance claim receivables,
value-added tax, other tax receivables and related party receivables, amounting to $17,046.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Other receivables are
reported at the amount expected to be collected.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Inventories </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Inventories are stated at the lower of cost
or market, with cost being determined on a first-in, first-out basis.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Property and equipment, net </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Property and equipment
are stated at cost, net of accumulated depreciation. Property costs include costs of land and building for both company-operated
and franchise restaurants while equipment costs primarily relate to company-operated restaurants. Cost of property and equipment
acquired from McDonald’s Corporation (as part of the acquisition of LatAm business) was determined based on its estimated
fair market value at the acquisition date, then partially reduced by the allocation of the negative goodwill that resulted from
the purchase price allocation. Cost of property and equipment acquired or constructed after the acquisition of LatAm business in
connection with the Company’s restaurant reimaging and extension program is comprised of acquisition and construction costs
and capitalized internal costs. Capitalized internal costs include payroll expenses related to employees fully dedicated to restaurant
construction projects and related travel expenses. Capitalized payroll costs are allocated to each new restaurant location based
on the actual time spent on each project. The Company commences capitalizing costs related to construction projects when it becomes
probable that the project will be developed – when the site has been identified and the related profitability assessment
has been approved. Maintenance and repairs are expensed as incurred<FONT STYLE="background-color: white">. Accumulated depreciation
is calculated using the straight-line method over the following estimated useful lives: buildings – up to 40 years; leasehold
improvements – the lesser of useful lives of assets or lease terms which generally include renewal options; and equipment
3 to 10 years. </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Intangible assets,
net </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Intangible assets include
computer software costs, initial franchise fees, reacquired rights under franchise agreements, letter of credit fees and others.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company follows
the provisions of ASC 350-40-30 within ASC 350 Intangibles, Subtopic 40 Internal Use Software which requires the capitalization
of costs incurred in connection with developing or obtaining software for internal use. These costs are amortized over a period
of three years on a straight-line basis.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company is required
to pay to McDonald’s Corporation an initial franchisee fee upon opening of a new restaurant. The initial franchise fee related
to Company-operated restaurants is capitalized as an intangible asset and amortized on a straight-line basis over the term of the
franchise.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Intangible assets,
net (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A reacquired franchise
right is recognized as an intangible asset as part of the business combination in the acquisition of franchised restaurants apart
from goodwill with an assigned amortizable life limited to the remaining contractual term (i.e., not including any renewal periods).
The value assigned to the reacquired franchise right excludes any amounts recognized as a settlement gain or loss and is limited
to the value associated with the remaining contractual term and operating conditions for the acquired restaurants. The reacquired
franchise right is measured using a valuation technique that considers restaurant's cash flows after payment of an at-market royalty
rate to the Company. The cash flows are projected for the remaining contractual term, regardless of whether market participants
would consider potential contractual renewals in determining its fair value.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Letter of credit fees
are amortized on a straight-line basis over the term of the Letter of Credit.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Impairment and disposal
of long-lived assets</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with
the guidance within ASC 360-10-35, the Company reviews long-lived assets <FONT STYLE="background-color: white">(including property
and equipment, intangible assets with definite useful lives and lease right of use asset, net) for impairment whenever events or
changes in circumstances indicate the carrying value of the asset may not be recoverable. For p</FONT>urposes of reviewing assets
for potential impairment, assets are grouped at a country level for each of the operating markets. The Company manages its restaurants
as a group or portfolio with significant common costs and promotional activities; as such, each restaurant’s cash flows are
not largely independent of the cash flows of others in a market. If an indicator of impairment exists for any grouping of assets,
an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its
carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount
of the restaurant over its fair value considering its highest and best use, as determined by an estimate of discounted future cash
flows or its market value.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
Company assessed all markets for impairment indicators during the fourth quarter of 2020, 2019 and 2018. However, as a consequence
of the impact that the spread of COVID-19 caused in Company’s operations, during 2020 the Company performed impairment testing
of its long-lived assets in some territories in previous quarters; as well as it did during 2018 in Venezuela as a consequence
of currency exchange rate changes. As a result of those assessments, the Company concluded that the second step was required to
be performed as a component of the impairment testing of its long-lived assets on a per store basis, in: Ecuador, Puerto Rico,
Mexico, Peru, Aruba, USVI, Venezuela, Colombia, Trinidad and Tobago, Curacao, Panama and Argentina for the fiscal years ended December
31, 2020; Curacao, Puerto Rico, Mexico, Peru, Aruba, USVI, Venezuela, Colombia and Trinidad and Tobago for the fiscal year ended
December 31, 2019 and in Ecuador, Aruba, Puerto Rico, Mexico, Peru, USVI, Venezuela, Colombia and Trinidad and Tobago for the fiscal
years ended December 31, 2018.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a result of the
impairment testing the Company recorded the following impairment charges, for the markets indicated below, within Other operating
income (expenses), net on the consolidated statements of income:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Fiscal year</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Markets</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">2020</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="width: 77%"><FONT STYLE="font-size: 10pt">Mexico, Puerto Rico, USVI, Peru, Aruba, Colombia, Venezuela, Ecuador, Panama and Argentina</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">6,636 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2019</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Mexico, Puerto Rico, USVI, Peru, Aruba, Curacao, Colombia and Venezuela</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8,790 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2018</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Mexico, Puerto Rico, USVI, Peru, Colombia, Venezuela and Trinidad and Tobago.</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,950 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the extent and
duration of the economic fallout from the COVID-19 pandemic remains unclear, the Company will be monitoring the situation closely.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Goodwill </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Goodwill represents
the excess of cost over the estimated fair market value of net tangible assets and identifiable intangible assets acquired. In
accordance with the guidance within ASC 350 Intangibles-Goodwill and Other, goodwill is stated at cost and reviewed for impairment
on an annual basis during the fourth quarter, or when an impairment indicator exists. The impairment test compares the fair value
of each reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. If the carrying
amount of the reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair
value of the reporting unit’s goodwill and the carrying amount of goodwill.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In assessing the recoverability
of the goodwill, the Company considers changes in economic conditions and makes assumptions regarding estimated future cash flows
and other factors. Estimates of future cash flows are highly subjective judgments based on the Company’s experience and knowledge
of its operations. These estimates can be significantly impacted by many factors including changes in global and local business
and economic conditions, operating costs, inflation, competition, and consumer and demographic trends.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a result of the
analyses performed during the fiscal years 2020, 2019 and 2018, the Company recorded the following impairment charges, related
to goodwill generated in the acquisition of franchised restaurants, for the markets indicated below within Other operating (expenses)
income, net on the consolidated statements of income:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Fiscal year</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Markets</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 34%; text-align: right"><FONT STYLE="font-size: 10pt">2020</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 32%"><FONT STYLE="font-size: 10pt">Mexico</FONT></TD>
<TD STYLE="width: 2%"> </TD>
<TD STYLE="width: 3%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 26%; text-align: right"><FONT STYLE="font-size: 10pt">1,085 </FONT></TD>
<TD STYLE="width: 2%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2019</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Ecuador</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">273 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2018</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Peru</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">167 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Advertising costs </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Advertising costs are
expensed as incurred. Advertising expenses related to Company-operated restaurants were $60,855, $115,568 and $120,839 in 2020,
2019 and 2018, respectively. Advertising expenses related to franchised operations do not affect the Company’s expenses since
these are recovered from franchisees. Advertising expenses related to franchised operations were $26,486, $43,039 and $43,940 in
2020, 2019 and 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Accounting for income taxes </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company records
deferred income taxes using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases. The guidance requires companies to set up a valuation allowance for that component of net deferred tax assets which
does not meet the more likely than not criterion for realization.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates
is recognized in income in the period that includes the enactment date.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company is regularly
audited by tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities
are recorded when, in management’s judgment, an uncertain tax position does not meet the more likely than not threshold for
recognition. For tax positions that meet the more likely than not threshold, a tax liability may be recorded depending on management’s
assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits
in the provision for income taxes.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Accounts payable
outsourcing </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company offers
its suppliers access to an accounts payable services arrangement provided by third party financial institutions. This service allows
the Company’s suppliers to view its scheduled payments online, enabling them to</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Accounts payable
outsourcing (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">better manage their cash flow and reduce
payment processing costs. Independent of the Company, the financial institutions also allow suppliers to sell their receivables
to the financial institutions in an arrangement separately negotiated by the supplier and the financial institution. The Company
has no economic interest in the sale of these receivables and no direct relationship with the financial institutions concerning
the sale of receivables. All of the Company’s obligations, including amounts due, remain to the Company’s suppliers
as stated in the supplier agreements. As of December 31, 2020 and 2019, $13,354 and $8,896, respectively, of the Company’s
total accounts payable are available for this purpose and have been sold by suppliers to participating financial institutions.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Share-based compensation </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company recognizes
compensation expense as services required to earn the benefits are rendered. See Note 17 for details of the outstanding plans and
the related accounting policies.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Derivative financial
instruments </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company utilizes
certain hedge instruments to manage its interest rate and foreign currency rate exposures. The counterparties to these instruments
generally are major financial institutions. The Company does not hold or issue derivative instruments for trading purposes. In
entering into these contracts, the Company assumes the risk that might arise from the possible inability of counterparties to meet
the terms of their contracts. The Company does not expect any losses as a result of counterparty defaults. All derivatives are
recognized as either assets or liabilities in the balance sheets and are measured at fair value. Additionally, the fair value adjustments
will affect either shareholders’ equity as accumulated other comprehensive loss or net income depending on whether the derivative
instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Severance payments </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under certain laws
and labor agreements of the countries in which the Company operates, the Company is required to make minimum severance payments
to employees who are dismissed without cause and employees leaving its employment in certain other circumstances. The Company accrues
severance costs if they relate to services already rendered, are related to rights that accumulate or vest, are probable of payment
and can be reasonably estimated. Otherwise, severance payments are expensed as incurred.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Provision for contingencies </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company accrues
liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are
based on developments to date, the Company’s estimates of the outcomes of these matters and the Company’s lawyers’
experience in contesting, litigating and settling other matters. As the scope of the liabilities becomes better defined, there
may be changes in the estimates of future costs. See Note 18 for details.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Comprehensive (loss) income </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Comprehensive (loss)
income includes net income as currently reported under generally accepted accounting principles and also includes the impact of
other events and circumstances from non-owner sources which are recorded as a separate component of shareholders’ equity.
The Company reports foreign currency translation losses and gains, unrealized results on cash flow hedges as well as unrecognized
post-retirement benefits as components of comprehensive (loss) income.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Sales of property
and equipment and restaurant businesses</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company recognizes
the sale of property and equipment when: (a) the profit is determinable, that is, the collectibility of the sales price is reasonably
assured or the amount that will not be collectible can be estimated, and (b) the</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Sales of property
and equipment and restaurant businesses (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">earnings process is virtually complete,
that is, the Company is not obliged to perform significant activities after the sale to earn the profit. The sale of restaurant
businesses, related to the refranchising of company-operated restaurants, is recognized when the Company transfers substantially
all of the risks and rewards of ownership.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to determine
the gain or loss on the disposal, the goodwill associated with the sold of property and equipment and restaurant business, if any,
is considered within the carrying value. The amount of goodwill to be included in that carrying amount is based on the relative
fair value of the item to be disposed and the portion of the reporting unit that will be retained.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During fiscal years
2020, 2019 and 2018, the Company recorded results from sales of property and equipment and restaurant businesses, amounting to
$201, $6,415 and $8,184, respectively, included within “Other operating (expenses) income, net”.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Recent accounting
pronouncements </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In February 2016, the
FASB issued ASU No. 2016-02, Leases (ASC 842), which modifies lease accounting for lessees to increase transparency and comparability
by recording a right-of-use asset and lease liability on their balance sheet for operating leases. Entities need to disclose qualitative
and quantitative information about their leases, including characteristics and amounts recognized in the financial statements.
This standard was effective for annual periods beginning after December 15, 2018, including interim periods.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company adopted
ASU 2016-02 in its first quarter of 2019 utilizing the modified retrospective method, without restatement of comparative financial
information periods, and applied the package of practical expedients permitted under the transition guidance within the standard
which, among other things, allowed the Company to carry forward the historical lease classification. The adoption, and the ultimate
effect on the consolidated financial statements, was based on an evaluation of the contract-specific facts and circumstances. The
Company adoption of the standard resulted in the recognition of lease right-of-use assets and lease liabilities of $913 million,
as of January 1, 2019. The right-of-use assets and lease liabilities were recognized at the commencement date based on the present
value of the remaining future minimum lease payments, which include options that are reasonably assured of being exercised. As
the interest rate implicit in the Company’s leases was not readily determinable, the Company utilizes its incremental borrowing
rate to discount the lease payments.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Furthermore, the changes made to the consolidated
balance sheet as of January 1, 2019 for the adoption of ASC 842 were as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Consolidated Balance Sheet</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance at December 31, 2018</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Adjustments Due to ASC 842</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance at January 1, 2019</TD><TD STYLE="border-bottom: Black 1pt solid"> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold">ASSETS</TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold">Non-current assets</TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 48%; text-align: left">Lease right of use asset, net</TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">— </TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">896,682</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">896,682</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 12%; text-align: center">(i)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND EQUITY</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: center"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; text-align: left">Current liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: center"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Operating lease liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">— </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">72,272</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">72,272</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: center">(ii)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; text-align: left">Non-current liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: center"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Accrued payroll and other liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">35,322</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">(16,404</TD><TD STYLE="text-align: left">)</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">18,918</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: center">(iii)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left">Operating lease liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">— </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">840,814</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">840,814</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: center">(iv)</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><U>Recent accounting pronouncements (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">(i) Represents capitalization of operating lease right
of use assets of $913,086 net of the reclassification of straight-line rent accrual of $16,404.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">(ii) Represents recognition of current portion of
operating lease liabilities.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">(iii) Represents reclassification of straight-line
rent accrual to lease right of use asset, net.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">(iv) Represents recognition of non-current portion
of operating lease liabilities.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The standard did not
have a significant impact on the Company’s consolidated <FONT STYLE="color: #252525">statements of income and cash flows,
except for the exchange results related to lease liabilities denominated in other currencies than its functional one. </FONT>The
disclosure of the impact of adoption on the consolidated balance sheet and income statement, as of December 31, 2019 and for the
fiscal year ended in December 31, 2019, were as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: Black 1pt solid"> </TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="11" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of December 31, 2019</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Consolidated Balance Sheet</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As Reported</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balances Without Adoption of ASC 842</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Effect of Change</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold">ASSETS</TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold">Non-current assets</TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%; text-align: left">Lease right of use asset, net</TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">922,165</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">— </TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">922,165</TD><TD STYLE="width: 1%; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND EQUITY</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; text-align: left">Current liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Operating lease liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">70,147</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">— </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">70,147</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="font-weight: bold; text-align: left">Non-current liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Accrued payroll and other liabilities</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">23,497</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">41,084</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">(17,587</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left">Operating lease liabilities <BR></TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">861,582</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">— </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">861,582</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-weight: bold">EQUITY</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left">Retained earnings</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">471,149</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">467,560</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">3,589</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Accumulated other comprehensive loss</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">(519,505</TD><TD STYLE="text-align: left">)</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">(523,939</TD><TD STYLE="text-align: left">)</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">4,434</TD><TD STYLE="text-align: left"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: Black 1pt solid"> </TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="11" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the fiscal year ended December 31, 2019</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Consolidated Statement of Income</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As Reported</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balances Without Adoption of ASC 842</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Effect of Change</TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD><TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%; text-align: left">Foreign currency exchange results</TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">12,754</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">9,165</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 10%; text-align: right">3,589</TD><TD STYLE="width: 1%; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right"> </TD><TD STYLE="text-align: left"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In August 2017, the
FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.”
ASU 2017-12 expanded components of fair value hedging, specifies the recognition and presentation of the effects of hedging instruments,
and eliminates the separate measurement and presentation of hedge ineffectiveness. The Company adopted the new standard during
this year and applied the presentation and disclosure guidance on a prospective basis. The adoption of the standard did not have
a material impact on the Company's consolidated financial statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">In
June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments–Credit Losses (Topic 326): Measurement of Credit
Losses on Financial Instruments", which modifies the measurement and recognition of expected credit losses on financial assets.
The Company adopted this guidance effective January 1, 2020, prospectively. The adoption of the new standard did not have a material
impact on the Company's consolidated financial statements. The Company will continue to actively monitor the impact of the COVID-19
pandemic on expected losses.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3</B>.</TD><TD><B>Summary of significant accounting policies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Recent accounting pronouncements
(continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No other new accounting
pronouncement issued or effective during the periods had or is expected to have a material impact on the Company’s consolidated
financial statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>4.</B></TD><TD><B>Acquisition of businesses</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>LatAm Business</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 3, 2007,
the Company, indirectly through its wholly-owned subsidiary ADBV, entered into a Stock Purchase Agreement with McDonald’s
Corporation pursuant to which the Company completed the acquisition of the McDonald’s business in Latin America and the Caribbean
for a final purchase price of $698,080.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The acquisition of
the LatAm business was accounted for by the purchase method of accounting and, accordingly, the purchase price was allocated to
the assets acquired and liabilities assumed based on the estimated fair values at the date of acquisition. When the fair value
of the net assets acquired exceeded the purchase price, the resulting negative goodwill was allocated to partially reduce the fair
value of the non-current assets acquired on a pro-rata basis.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with
this transaction, ADBV and certain subsidiaries (the “MF subsidiaries”) also entered into 20-year Master Franchise
Agreements (“MFAs”) with McDonald’s Corporation which grants to the Company and its MF subsidiaries the following:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 22.5pt">i.</TD><TD STYLE="text-align: justify">The right to own and operate, directly or indirectly, franchised restaurants in each territory;</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 22.5pt">ii.</TD><TD STYLE="text-align: justify">The right and license to grant sub franchises in each territory;</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 22.5pt">iii.</TD><TD>The right to adopt and use, and to grant the right and license to sub franchisees to adopt and use, the system in each territory;</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 22.5pt">iv.</TD><TD STYLE="text-align: justify">The right to advertise to the public that it is a franchisee of McDonald’s;</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 22.5pt">v.</TD><TD STYLE="text-align: justify">The right and license to grant sub franchises and sublicenses of each of the foregoing rights and
licenses to each MF subsidiary.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company is required
to pay to McDonald’s Corporation continuing franchise fees (Royalty fees) on a monthly basis. The amount to be paid during
the first 10 years of the MFAs was equal to 5% of the US dollar equivalent of the gross product sales of each of the franchised
restaurants. This percentage increased to 6% for the subsequent 5-year period and will increase to 7% during the last 5-year period
of the agreement. Payment of monthly royalties is due on the seventh business day of the next calendar month. As a consequence
of the negative impacts of the spread of COVID-19 on the Company’s operations, McDonald’s granted the Company a deferral
of all the royalty payments due related to sales in March, April, May and July 2020 until the first half of 2021.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the MFAs
provisions, McDonald’s Corporation has the right to (a) terminate the MFAs, or (b) exercise a call option over the Company’s
shares or any MF subsidiary, if the Company or any MF subsidiary (i) fails to comply with the McDonald’s System (as defined
in the MFAs), (ii) files for bankruptcy, (iii) defaults on its financial debt payments, (iv) substantially fails to achieve targeted
openings and reinvestments requirements, or (v) upon the occurrence of any other event of default as defined in the MFAs.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>4</B>.</TD><TD><B>Acquisition of businesses (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Other acquisitions</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During fiscal years
2020, 2019 and 2018, the Company acquired certain franchised restaurants in certain territories. Presented below is supplemental
information about these acquisitions:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Purchases of restaurant businesses:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 45%"><FONT STYLE="font-size: 10pt">Property and equipment</FONT></TD>
<TD STYLE="width: 5%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">16,756 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">1,471 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">413 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Identifiable intangible assets</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,922 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,347 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">56 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Goodwill</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,224 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,589 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Assumed debt</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(77)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Gain on purchase of franchised restaurants</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,708)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(767)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Purchase price</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>21,194 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>3,563 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>469 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Seller financing</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,000)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Settlement of franchise receivables</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(16,361)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(905)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(469)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Net cash paid at acquisition date</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>3,833 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,658 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since the acquisition
of the McDonald’s business in Latin America and the Caribbean, Puerto Rican franchisees had filed some lawsuits against McDonald’s
Corporation and certain subsidiaries purchased by the Company. On December 28, 2019 and March 31, 2020, the Company reached confidential
settlement agreements with these franchisees, finalizing all controversies and disputes among the parties. As a consequence of
the agreements, during January and May 2020, the Company acquired all the restaurants pertaining to the Puerto Rican franchisees,
increasing its property and equipment in $14,290.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>5</B>.</TD><TD><B>Accounts and notes receivable, net</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Accounts and notes
receivable, net consist of the following at year-end:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%"><FONT STYLE="font-size: 10pt">Receivables from franchisees</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">45,427 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">63,618 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Debit and credit card receivables</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">38,388 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">43,741 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Meal voucher receivables</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,857 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,017 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Notes receivable</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,163 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,928 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Allowance for doubtful accounts</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(586)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(22,442)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>94,249 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>99,862 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>6.</B></TD><TD><B>Prepaid expenses and other current assets</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prepaid expenses and
other current assets consist of the following at year-end:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%"><FONT STYLE="font-size: 10pt">Prepaid taxes</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">48,781 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">73,932 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Prepaid expenses </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">30,175 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">24,266 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Promotion items and related advances</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,701 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19,092 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Others</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">812 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">322 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>100,469 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>117,612 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<!-- Field: Page; Sequence: 25; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>7.</B></TD><TD><B>Miscellaneous</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Miscellaneous consist
of the following at year-end:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD> </TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"> </TD>
<TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%; text-align: left">Judicial deposits</TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">36,943</TD><TD STYLE="width: 1%; text-align: left"> </TD><TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">46,148</TD><TD STYLE="width: 1%; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Tax credits</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">10,365</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">21,067</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left">Prepaid property and equipment</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">5,967</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">7,770</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: left">Notes receivable</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">4,484</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">5,876</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: left">Rent deposits</TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">2,991</TD><TD STYLE="text-align: left"> </TD><TD> </TD>
<TD STYLE="text-align: left"> </TD><TD STYLE="text-align: right">3,196</TD><TD STYLE="text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-bottom: 1pt">Others</TD><TD STYLE="border-bottom: Black 1pt solid"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">11,899</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">11,757</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-bottom: 2.5pt"> </TD><TD STYLE="font-size: 11pt; font-weight: bold; border-bottom: Black 2.5pt double"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-size: 11pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11pt; font-weight: bold; text-align: right">72,649</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11pt; font-weight: bold; text-align: left"> </TD><TD STYLE="font-weight: bold; border-bottom: Black 2.5pt double"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">95,814</TD><TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>8.</B></TD><TD><B>Property and equipment, net</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Property and equipment,
net consist of the following at year-end: </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%"><FONT STYLE="font-size: 10pt">Land</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">134,148 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">146,517 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Buildings and leasehold improvements</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">657,652 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">710,046 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Equipment</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">734,995 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">784,181 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total cost</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>1,526,795 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>1,640,744 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Total accumulated depreciation</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(730,263)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(679,758)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>796,532 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>960,986 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Total depreciation
expense for fiscal years 2020, 2019 and 2018 amounted to $115,031, $111,638 and $94,490, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>9.</B></TD><TD><B>Net intangible assets and goodwill</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Net intangible assets
and goodwill consist of the following at year-end:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Net intangible assets (i)</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%"><FONT STYLE="font-size: 10pt">Computer software cost</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">69,999 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">75,224 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Initial franchise fees</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,223 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16,146 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Reacquired franchised rights</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16,884 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,296 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Letter of credit fees</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">940 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">940 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Others</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,000 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,000 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total cost</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>103,046 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>106,606 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Total accumulated amortization</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(71,601)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(70,345)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>31,445 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>36,261 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<!-- Field: Page; Sequence: 26; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>9.</B></TD><TD><B>Net intangible assets and goodwill (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Goodwill (ii)</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Brazil</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">3,196 </FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">4,124 </FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Argentina</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,276 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,585 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Chile</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,047 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">988 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Colombia</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">82 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">86 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>5,601 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>6,783 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="width: 66%"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; width: 14%; text-align: right"><FONT STYLE="font-size: 10pt"><B>37,046 </B></FONT></TD>
<TD STYLE="width: 1%; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; width: 14%; text-align: right"><FONT STYLE="font-size: 10pt"><B>43,044 </B></FONT></TD>
<TD STYLE="width: 1%; border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">Total amortization expense for fiscal years 2020, 2019 and 2018 amounted to $11,822, $11,580 and
$11,310, respectively. The estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter
is as follows: $12,581 for 2021, $8,017 for 2022; $2,714 for 2023; $1,768 for 2024; $1,739 for 2025; and thereafter $4,626.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">Related to the acquisition of franchised restaurants (Brazil, Argentina, Chile and Colombia) and
non-controlling interests in Chile.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>10.</B></TD><TD><B>Accrued payroll and other liabilities</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Accrued payroll and
other liabilities consist of the following at year end:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Current:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%"><FONT STYLE="font-size: 10pt">Accrued payroll</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">59,772 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">77,087 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Accrued expenses</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,993 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,586 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other liabilities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">4,453 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,706 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>79,218 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>86,379 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Non-current:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Phantom RSU award liability</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,730 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,102 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Deferred revenues - Initial franchise fee</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,612 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,802 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Deferred income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,075 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,392 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Security deposits</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,976 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,836 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other liabilities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,491 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,365 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>21,884 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>23,497 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>11.</B></TD><TD><B>Short-term debt</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Short-term debt consists of the following:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Short-term bank loans (i)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10,794 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Revolving Credit Facility (ii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,500 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Bank overdrafts </FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="width: 66%"></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double; width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; width: 14%; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="width: 1%; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double; width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; width: 14%; text-align: right"><FONT STYLE="font-size: 10pt"><B>13,296 </B></FONT></TD>
<TD STYLE="width: 1%; border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>11.</B></TD><TD><B>Short-term debt (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD><U>Short-term bank loans</U></TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">As
of December 31, 2019, comprised two loans. In Brazil, granted by Banco Bradesco S.A, amounting to $7,454, which matured in February
2020 and the interest rate was the Interbank Market reference interest rate (known in Brazil as “CDI” Certificados
de Depósitos Interbancários) plus 0.67% per year. In Argentina, granted by Banco de la Ciudad de Buenos Aires, amounting
to $3,340 which matured in January 2020 and the interest rate was 54% per year. Brazilian and Argentinian loans were renewed during
2020 and cancelled in September 2020 and October 2020, respectivel</FONT>y.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD><U>Revolving credit facility</U></TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On December 11, 2020,
the Company renewed its committed revolving credit facility with JPMorgan Chase Bank, N.A (JPMorgan), for up to $25 million maturing
on December 11, 2021. This revolving credit facility will permit the Company to borrow money from time to time to cover its working
capital needs and for other general corporate purposes. Principal is due upon maturity. However, prepayments are permitted without
premium or penalty. Each loan made under this agreement will bear interest annually at LIBOR plus 3% that will be payable on the
date of any prepayment or at maturity.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The obligations of
the Company under the revolving credit facility are jointly and severally guaranteed by certain of the Company’s subsidiaries
on an unconditional basis. The revolving credit facility includes customary covenants including, among others, restrictions on
the ability of the Company, the guarantors and certain material subsidiaries to: (i) incur liens, (ii) enter into any merger, consolidation
or amalgamation; (iii) sell, assign, lease or transfer all or substantially all of the borrower’s or guarantor’s business
or property; (iv) enter into transactions with affiliates; (v) engage in substantially different lines of business; (vi) engage
in transactions that violate certain anti-terrorism laws. In addition, the Company is required, among others, to: <FONT STYLE="background-color: white">maintain
unrestricted cash, cash equivalents and/or marketable securities in a minimum aggregate amount equal to $50 million.</FONT>; and
(ii) comply, as of the last day of each quarter during the agreement, with a consolidated net indebtedness (including interest
payable) to EBITDA ratio lower than:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 40%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 78%; border-top: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">As of December 31, 2020</FONT></TD>
<TD STYLE="width: 22%; border: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">9.5</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">As of March 31, 2021</FONT></TD>
<TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">15.25</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">As of June 30, 2021</FONT></TD>
<TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">5.25</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">As of September 30, 2021</FONT></TD>
<TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">4.25</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2020, the Company’s net indebtedness (including interest payable) to EBITDA ratio was <FONT STYLE="background-color: white">7.62</FONT>
and thus it is currently in compliance with the ratio requirement<FONT STYLE="background-color: white">.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The revolving credit
facility provides for customary events of default, which, if any of them occurs, would permit or require the lender to terminate
its obligation to provide loans under the revolving credit facility and/or to declare all sums outstanding under the loan documents
immediately due and payable.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No amounts are due
at the date of issuance of these consolidated financial statements in connection with this revolving credit facility. As of December
31, 2019, there was $2.5 million related to a previous committed revolving credit facility between ADBV and Bank of America that
was not renewed after its maturity.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>12.</B></TD><TD><B>Long-term debt</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: left">Long-term
debt consists of the following at year-end:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: -76.5pt"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%"><FONT STYLE="font-size: 10pt">2027 Notes</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">553,354 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">265,000 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2023 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">216,593 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">348,069 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Finance lease obligations</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,941 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,419 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other long-term borrowings</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">10,199 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">13,284 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>786,087 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>631,772 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Discount on 2023 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,147)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2,504)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Discount on 2027 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(7,358)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Premium on 2023 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">427 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">937 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Premium on 2027 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,206 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Deferred financing costs</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(4,641)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(3,397)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>776,574 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>626,808 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Current portion of long-term debt</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">3,129 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">3,233 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Long-term debt, excluding current portion</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>773,445 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>623,575 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>2027 and 2023 Notes</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The following table presents additional information
related to the 2027 and 2023 Notes (the "Notes"):</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD COLSPAN="2"> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B> Principal as of December 31,</B></FONT></TD>
<TD> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Annual interest rate </B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Maturity</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 35%"><FONT STYLE="font-size: 10pt">2027 Notes</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">5.875 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-size: 10pt">USD</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">553,354 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">265,000 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 19%; text-align: center"><FONT STYLE="font-size: 10pt">April 4, 2027</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2023 Notes</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6.625 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">USD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">216,593 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">348,069 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">September 27, 2023</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest Expense (i)</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>DFC Amortization (i)</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="11" STYLE="border-bottom: Black 1pt solid">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amortization of Premium/Discount, net
(i)</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 28%"><FONT STYLE="font-size: 10pt">2027 Notes</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">20,269 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">15,569 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">15,569 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">402 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">299 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">299 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">133 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2023 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,882 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">23,060 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">23,060 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">294 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">323 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">323 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">371 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">402 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">397 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">These charges are included within "Net interest expense" in the consolidated statements
of income.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On September 27, 2013,
the Company issued senior notes for an aggregate principal amount of $473.8 million, which are due in 2023 (the "2023 Notes").
Periodic payments of principal are not required and interest is paid semi-annually commencing on March 27, 2014. The Company incurred
$3,313 of financing costs related to the cash issuance of 2023 Notes, which were capitalized as deferred financing costs ("DFC")
and are being amortized over the life of the notes.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>12.</B></TD><TD><B>Long-term debt (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>2027 and 2023 Notes
(continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 1, 2016, the
Company launched a cash tender offer to purchase $80,000 of its outstanding 2023 Notes, at a redemption price equal to 98%, which
expired on June 28, 2016. The holders who tendered their 2023 Notes prior to June 14, received a redemption price equal to 101%.
As a consequence of this transaction, the Company redeemed 16.90% of the outstanding principal. The total payment was $80,800 (including
$800 of early tender payment) plus accrued and unpaid interest.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The results related
to the cash tender offer and the accelerated amortization of the related DFC were recognized as interest expense within the consolidated
statement of income.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, on March
16, 2017, the Company launched a second cash tender offer to purchase $80,000 of its outstanding 2023 Notes, at a redemption price
equal to 104%, which expired on April 12, 2017. The holders who tendered their 2023 Notes prior to March 29, 2017, received a redemption
price equal to 107%. As a consequence of this transaction, the Company redeemed 11.6% of the outstanding principal. The total payment
was $48,885 (including $3,187 of early tender payment) plus accrued and unpaid interest. The results related to the second cash
tender offer and the accelerated amortization of the related DFC were recognized as interest expense within the consolidated statement
of income.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On September 15, 2020
the Company launched an offer to exchange any and all of 2023 Notes for an additional issuance of 2027 Notes that expired on October
13, 2020 (the “expiration date”). The purpose of the exchange offer was to extend the maturity profile of the Company’s
long-term debt. The settlement date was on October 15, 2020. Eligible holders who validly tendered their 2023 Notes for exchange
prior to September 28, 2020 (the “early participation date”), received $1,055 (expressed as whole number) of 2027 Notes
per $1,000 (expressed as whole number) of 2023 Notes at the settlement date. Eligible holders who validly tendered their 2023 Notes
for exchange after the early participation date, but on or prior to the expiration date received $1,005 (expressed as whole number)
of 2027 Notes per $1,000 (expressed as whole number) of 2023 Notes at the settlement date. In addition, any fractional portion
of the 2027 Notes less than $1,000 (expressed as whole number) and accrued and unpaid interest were paid in cash.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of September 28,
2020, the early participation date, the Company accepted to exchange $126,801 of 2023 Notes, representing 36.43% of the outstanding
principal amount of the 2023 Notes. In addition, on October 13, 2020, the Company accepted to exchange $4,675, representing 1.34%
of the outstanding principal amount of 2023 Notes. On October 15, 2020, the Company issued $133,668 of 2027 Notes, paid $107.1
for fractional portion and $180.1 for accrued and unpaid interest related to the early participation and $4,686 of 2027 Notes,
paid $12.4 for fractional portion and $7.1 for unpaid interest related to the exchange after the early participation date<FONT STYLE="background-color: white">.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 2017, the
Company issued senior notes for an aggregate principal amount of $265 million, which are due in 2027 (the “2027 Notes”).
The proceeds from this issuance of the 2027 Notes were used to repay the Secured Loan Agreement, unwind the related derivative
instruments, pay the principal and premium on the 2023 Notes (in connection with the aforementioned second tender offer) and for
general purposes. In addition, on September 11, 2020, the Company issued additional 2027 Notes for an aggregate principal amount
of $150 million at a price of 102.250%. The proceeds from the second issuance were used mainly to repay short-term indebtedness.
Periodic payments of principal are not required, and interest is paid semi-annually commencing on October 4, 2017. The Company
incurred $3,001 of financing costs related to the first issuance of 2027 Notes and $2,000 related to the second issuance, which
were capitalized as DFC and are being amortized over the life of the notes.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Notes are redeemable,
in whole or in part, at the option of the Company at any time at the applicable redemption price set forth in the indenture governing
them. The Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of the Company’s subsidiaries.
The Notes and guarantees (i) are senior unsecured obligations and rank equal in right of payment with all of the Company’s
and guarantors’ existing and future senior unsecured indebtedness;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>12.</B></TD><TD><B>Long-term debt (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>2027 and 2023 Notes
(continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(ii) will be effectively
junior to all of the Company’s and guarantors’ existing and future secured indebtedness to the extent of the value
of the Company’s assets securing that indebtedness; and (iii) are structurally subordinated to all obligations of the Company’s
subsidiaries that are not guarantors.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The indenture governing
the Notes limits the Company’s and its subsidiaries’ ability to, among other things, (i) create certain liens; (ii)
enter into sale and lease-back transactions; and (iii) consolidate, merge or transfer assets. In addition, the indenture governing
the 2027 Notes, limits the Company’s and its subsidiaries’ ability to: incur in additional indebtedness and make certain
restricted payments, including dividends. These covenants are subject to important qualifications and exceptions. The indenture
governing the Notes also provides for events of default, which, if any of them occurs, would permit or require the principal, premium,
if any, and interest on all of the then-outstanding Notes to be due and payable immediately.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2023 Notes are listed on the Luxembourg
Stock Exchange and trade on the Euro MTF Market.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Other required disclosure</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At December 31, 2020, future payments
related to the Company’s long-term debt are as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Principal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 55%"><FONT STYLE="font-size: 10pt">2021</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">3,129 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">47,999 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">51,128 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2022</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,126 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">47,796 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">51,922 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">2023</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">219,204 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">47,527 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">266,731 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2024</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,204 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">32,949 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">35,153 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">2025</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">553 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">32,832 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">33,385 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Thereafter</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">556,871 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">50,632 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">607,503 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total payments</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>786,087 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>259,735 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>1,045,822 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Interest</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(259,735)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(259,735)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Discount on 2023 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,147)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,147)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Discount on 2027 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(7,358)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(7,358)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Premium on 2023 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">427 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">427 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Premium on 2027 Notes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,206 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,206 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Deferred financing cost</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(4,641)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(4,641)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Long-term debt</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>776,574 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>776,574 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>13.</B></TD><TD><B>Derivative instruments</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
presents the fair values of derivative instruments included in the consolidated balance sheets as of December 31, 2020 and
2019:<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 31; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>13.</B></TD><TD><B>Derivative instruments (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD STYLE="text-align: center"> </TD>
<TD STYLE="text-align: center"> </TD>
<TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Assets</B></FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"> </TD>
<TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Liabilities</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Type of Derivative</B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Balance Sheets Location</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Balance Sheets Location</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD COLSPAN="8"><FONT STYLE="font-size: 10pt"><B><I>Derivatives designated as hedging instruments</I></B></FONT></TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B><I><U>Cash Flow hedge</U></I></B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 21%"><FONT STYLE="font-size: 10pt">Forward contracts</FONT></TD>
<TD STYLE="width: 21%"><FONT STYLE="font-size: 10pt">Other receivables</FONT></TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">259 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 26%"><FONT STYLE="font-size: 10pt">Accrued payroll and other liabilities</FONT></TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">(1,264)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">(532)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Cross-currency interest rate swap </FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">86,534 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">37,219 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(6,194)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(8,179)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Call spread </FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21,858 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,609 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Coupon-only swap </FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,591 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,326)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>111,983 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>58,087 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(7,458)</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>(14,037)</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD COLSPAN="2"><FONT STYLE="font-size: 10pt"><B><I>Derivatives not designated as hedging instruments</I></B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD COLSPAN="2"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Forward contracts</FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Other receivables</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Accrued payroll and other liabilities</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Call spread</FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,798 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Coupon-only swap</FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">202 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,017)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Call Spread + Cupon-only swap</FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">6,620 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Derivative instruments</FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(8,050)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>10,620 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>20 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(13,067)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD COLSPAN="2"><FONT STYLE="font-size: 10pt"><B>Total derivative instruments</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>122,603 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>58,107 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(20,525)</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(14,037)</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Derivatives designated as hedging
instruments </I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Cash flow hedge</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Forward contracts</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has entered
into various forward contracts in a few territories to hedge a portion of the foreign exchange risk associated with forecasted
imports of goods. The effect of the hedges results in fixing the cost of goods acquired (i.e. the net settlement or collection
adjusts the cost of inventory paid to the suppliers). As of December 31, 2020, the Company had forward contracts outstanding with
a notional amount of $20,276 that mature during 2021.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company made net
collections totaling $1,757, $711 and $75 during fiscal years 2020, 2019 and 2018, respectively, as a result of the net settlements
of these derivatives.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Cross-currency interest
rate swap</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company entered
into four cross-currency interest rate swap agreements to hedge all the variability of the principal and interest collections of
its BRL intercompany loan receivables with ADBV. The agreements were signed during November 2013 (amended in February 2017), June
and July 2017 and October 2020. The following table presents information related to the terms of the agreements:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 32; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>13.</B></TD><TD><B>Derivative instruments (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Derivatives designated as hedging
instruments (continued)</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Cash flow hedge
(continued)</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Cross-currency interest
rate swap (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Bank</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Payable</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Receivable</B></FONT></TD>
<TD> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest payment dates</B></FONT></TD>
<TD ROWSPAN="2"> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Maturity</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 17%"><FONT STYLE="font-size: 10pt">JP Morgan Chase Bank, N.A.</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">108,000 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">13 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">35,400 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">4.38 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 12%"><FONT STYLE="font-size: 10pt">March 31/<BR>
September 30</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 13%"><FONT STYLE="font-size: 10pt">September 2023</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">JP Morgan Chase Bank, N.A.</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">98,670 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">30,000 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6.02 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">March 31/ <BR>
September 30</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">September 2023</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Citibank N.A.</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">94,200 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">30,000 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6.29 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">March 31/ <BR>
September 30</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">September 2023</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Citibank N.A.</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">112,738 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,049 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8.08 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">March 31/ <BR>
September 30</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">September 2023</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During April 2017,
the Company’s Brazilian subsidiary entered into similar agreements in order to hedge all the variability in a portion (50%)
of the principal and interest payable of certain intercompany loan payables nominated in US dollar.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
presents information related to the terms of the agreements:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Bank</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Payable</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Receivable</B></FONT></TD>
<TD> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest payment dates</B></FONT></TD>
<TD ROWSPAN="2"> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Maturity</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 20%"><FONT STYLE="font-size: 10pt">BAML (i)</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">156,250 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">13.64 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">50,000 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">6.91 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 13%"><FONT STYLE="font-size: 10pt">March 31/ <BR>
September 30</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 10%"><FONT STYLE="font-size: 10pt">April 2027</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Banco Santander S.A.</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">155,500 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13.77 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">50,000 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6.91 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">June 30/ <BR>
December 31</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">September 2023</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">Bank of America Merrill Lynch Banco Múltiplo S.A.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company paid $4,031,
$8,692 and $10,671 of net interest during the fiscal years ended December 31, 2020, 2019 and 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Call spread</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During April 2017,
the Company’s Brazilian subsidiary entered into two call spread agreements in order to hedge all variability in a portion
(50%) of the principal of certain intercompany loan payables nominated in US dollar. Call spread agreements consist of a combination
of two call options: the Company bought an option to buy US dollar at a strike price equal to the BRL exchange rate at the date
of the agreements, and wrote an option to buy US dollar at a higher strike price than the previous one. Both pair of options have
the same notional amount and are based on the same underlying with the same maturity date.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>13.</B></TD><TD><B>Derivative instruments (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Derivatives designated as hedging
instruments (continued)</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Cash flow hedge
(continued)</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Call spread (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
presents information related to the terms of the agreements:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Bank</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Nominal Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Strike price</B></FONT></TD>
<TD> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Maturity</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Call option written</B></FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Call option bought</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 15%"><FONT STYLE="font-size: 10pt">Citibank S.A.</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">50,000 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 20%; border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">4.49 </FONT></TD>
<TD STYLE="width: 1%; border-top: black 1pt solid; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 18%; text-align: right"><FONT STYLE="font-size: 10pt">3.11 </FONT></TD>
<TD STYLE="width: 1%; border-top: black 1pt solid; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 16%"><FONT STYLE="font-size: 10pt">September 2023</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">JP Morgan S.A.</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">50,000 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5.20 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3.13 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">April 2027</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Coupon-only swap</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During April 2017,
the Company’s Brazilian subsidiary entered into two coupon-only swap agreements in order to hedge all the variability in
a portion (50%) in the interest payable related to the intercompany loan aforementioned.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
presents information related to the terms of the agreements:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Bank</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Payable</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Receivable</B></FONT></TD>
<TD> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest payment dates</B></FONT></TD>
<TD ROWSPAN="2"> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Maturity</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 13%"><FONT STYLE="font-size: 10pt">Citibank S.A.</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">155,500 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">11.08 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">50,000 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">6.91 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 18%"><FONT STYLE="font-size: 10pt">June 30/ December 31</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 10%"><FONT STYLE="font-size: 10pt">September 2023</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">JP Morgan S.A.</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">156,250 </FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">11.18 </FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">50,000 </FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">6.91 </FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">March 31/ September 30</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">April 2027</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company paid $197,
$2,036 and $2,900 of net interest during the fiscal years ended December 31, 2020, 2019 and 2018, respectively, related to
these agreements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Additional disclosures</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
present the pretax amounts affecting income and other comprehensive income for the fiscal years ended December 31, 2020, 2019
and 2018 for each type of derivative relationship: </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>13.</B></TD><TD><B>Derivative instruments (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Derivatives designated
as hedging instruments (continued)</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Cash flow hedge
(continued)</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Additional disclosures
(continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Derivatives in Cash Flow</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Hedging Relationships</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="9" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Gain (Loss) Recognized in Accumulated OCI on Derivative</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="9" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B> (Gain) Loss Reclassified from Accumulated OCI into (loss) income (i)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">Forward contracts</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">904 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">(10)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">731 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">(1,895)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">(711)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">(75)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Cross-currency interest rate swaps</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">55,124 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(8,506)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">11,279 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(37,376)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,056 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(18,888)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Call Spread</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,758 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,377 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,034 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(18,153)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3,561)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(15,421)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Coupon-only swap</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">8,604 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,889)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,864 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(421)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,860 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,415 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>71,390 </B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(6,028)</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>17,908 </B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(57,845)</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(356)</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(31,969)</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">The results recognized in income related to forward contracts were recorded as an adjustment to
food and paper. The net gain (loss) recognized in income, related to cross-currency interest rate swaps is presented as follows:</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Adjustment to:</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 47%"><FONT STYLE="font-size: 10pt">Foreign currency exchange results</FONT></TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">40,353 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">6,346 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">28,588 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Net interest expense</FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(2,977)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(8,402)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(9,700)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>37,376 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(2,056)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>18,888 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The results recognized in income
related to call spread agreements and coupon-only swap agreements were recorded as an adjustment to foreign currency exchange and
interest expense, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Derivatives not designated as hedging
instruments</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In October 2020, the
Company’s Brazilian subsidiary enters into certain derivatives that are not designated as hedge accounting, therefore the
changes in the fair value of these derivatives are recognized immediately in earnings, within "Gain (loss) from derivative
instruments". These agreements are:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">–</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">A call spread with JPMorgan. It consists of a combination of two
call options likewise the ones previously mention. This agreement matures in April 2027.</FONT></TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 12pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
presents information related to the terms of the agreements:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 35; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>13.</B></TD><TD><B>Derivative instruments (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Derivatives not designated as hedging
instruments (continued)</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 65%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Nominal Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Strike price</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Call option written</B></FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Call option bought</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 18%; text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">30,000 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 32%; border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">8.20 </FONT></TD>
<TD STYLE="width: 1%; border-top: black 1pt solid; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 26%; text-align: right"><FONT STYLE="font-size: 10pt">5.62 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD></TR>
<TR STYLE="background-color: White">
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">–</TD><TD STYLE="text-align: justify">A coupon-only swap with JP Morgan that matures in April 2027.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
presents information related to the terms of the agreements:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD COLSPAN="6" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Payable</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Receivable</B></FONT></TD>
<TD> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest payment dates</B></FONT></TD>
<TD ROWSPAN="2"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate (i)</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">168,690 </FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 11%; text-align: center"><FONT STYLE="font-size: 10pt">CDI plus 2.42%</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">30,000 </FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">5.46 </FONT></TD>
<TD STYLE="vertical-align: bottom; width: 2%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 26%"><FONT STYLE="font-size: 10pt">April 30/ October 31</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD></TR>
<TR STYLE="background-color: White">
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(i) “CDI” Certificados de Depósitos
Interbancários</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>–</I></B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">A combination of call spread + coupon only swap into one agreement
with Itau Unibanco S.A, that matures in April 2027.</FONT></TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 12pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following tables
present information related to the terms of the agreements:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 65%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Nominal Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Strike price</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Call option written</B></FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Call option bought</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 18%; text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">50,000 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 32%; border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">8.20 </FONT></TD>
<TD STYLE="width: 1%; border-top: black 1pt solid; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 26%; text-align: right"><FONT STYLE="font-size: 10pt">5.62 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD></TR>
<TR STYLE="background-color: White">
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD>
<TD> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Payable</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Receivable</B></FONT></TD>
<TD> </TD>
<TD ROWSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest payment dates</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate (i)</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Currency</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Interest rate</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: bottom; width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">BRL</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 11%; text-align: center"><FONT STYLE="font-size: 10pt">281,150</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">CDI plus 2.47%</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 10%; text-align: center"><FONT STYLE="font-size: 10pt">50,000</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 10%; text-align: center"><FONT STYLE="font-size: 10pt">5.46%</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 27%; text-align: center"><FONT STYLE="font-size: 10pt">April 30/ October 31</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i) “CDI”
Certificados de Depósitos Interbancários</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, during the fiscal years ended
December 31, 2020, 2019 and 2018, the Company entered into certain forward contracts that generated net (payments) and collections
for $(39), $787 and ($81).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 36; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>14.</B></TD><TD><B>Leases</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company leases
locations through ground leases (the Company leases the land and owns the building) and through improved leases (the Company leases
land and buildings). The operating leases are mainly related to restaurant and dessert center locations. The average of lease’s
terms is about 15 years and, in many cases, include renewal options provided by the agreement or government’s regulations,
as there are reasonably certain to be exercised. Typically, renewal options are considered reasonably assured of being exercised
if the associated asset lives of the building or leasehold improvements exceed the initial lease term, and the sales performance
of the restaurant remains strong. Therefore, its associated payments are included in the measurement of the right-of-use asset
and lease liability. Although, certain leases contain purchase options, is not reasonably certain that the Company will exercise
them. In addition, many agreements include escalations amounts that vary by reporting unit, for example, including fixed-rent escalations,
escalations based on an inflation index, and fair value adjustments. According to rental terms, the Company pays monthly rent based
on the greater of a fixed rent or a certain percentage of the Company’s gross sales. The lease agreements do not contain
any material residual value guarantees or material restrictive covenants. Furthermore, the Company is the lessee under non-cancelable
leases covering certain offices and warehouses.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The right-of-use assets
and lease liabilities are recognized using the present value of the remaining future minimum lease payments discounted by the Company's
incremental borrowing rate. The Company has elected not to separate non-lease components from lease components in its lessee portfolio.
For most locations, the Company is obliged for the related occupancy costs, such as maintenance.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In
addition, in March 2010, the Company entered into an aircraft operating lease agreement for a term of 8 years, which provides for
quarterly payments of $690. The agreement includes a purchase option at the end of the lease term at fair market value and also
an early purchase option at a fixed amount of $26,685 at maturity of the 24</FONT><FONT STYLE="font-size: 11pt"><SUP>th</SUP></FONT>
<FONT STYLE="font-size: 10pt">quarterly payment. On December 22, 2017, the Company signed an amendment, extending the term of the
aircraft operating lease for an additional 10 years, with quarterly payments (retroactively effective as of December 5, 2017) of
$442. The Company was required to make a cash collateral deposit of $2,500 under this agreement.</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to mitigate
the negative impact of COVID-19 on its financial results, the Company has been renegotiating terms and conditions with several
lessors. The Company decided not to evaluate whether the potential concessions provided by the lessors are lease modifications
under ASU No. 2016-02, Leases (Topic 842) according to the interpretive guidance issued by the FASB staff in April 2020.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At December 31,
2020, maturities of lease liabilities under existing operating leases are:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Restaurant</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Other</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Total (i)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 34%"><FONT STYLE="font-size: 10pt">2021</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 18%; text-align: right"><FONT STYLE="font-size: 10pt">122,497 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 4%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 18%; text-align: right"><FONT STYLE="font-size: 10pt">5,705 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 18%; text-align: right"><FONT STYLE="font-size: 10pt">128,202 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2022</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">117,025 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,221 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">121,246 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">2023</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">112,715 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,199 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">115,914 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2024</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">109,398 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,747 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">112,145 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">2025</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">104,984 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,601 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">107,585 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Thereafter</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">822,563 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">7,667 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">830,230 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total lease payments</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,389,182 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>26,140 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,415,322 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Lease discount</FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(605,881)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Operating lease liability</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>809,441 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>14.</B></TD><TD><B>Leases (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">The Company has certain leases subject to index adjustments. As part of the adoption of ASC 842,
the Company used the effective index rate at transition date in its disclosure and calculation of the lease liability. However,
for leases entered into after January 1, 2019, the inflation index rate will be used to calculate the lease liability only when
a lease modification occurs.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company maintains
a few finance leases agreements, previously classified as capital leases. As of December 31, 2020 and 2019 the obligation amounts
to $5,941 and $5,419 respectively, included within "Long-term debt" in the Consolidated Balance Sheet.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
is a summary of the Company´s components of lease cost for fiscal years 2020, 2019 and 2018:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Lease Expense</B></FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Statements of Income Location</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD COLSPAN="3"><FONT STYLE="font-size: 10pt"><B>Operating lease expense - Minimum rentals:</B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 27%"><FONT STYLE="font-size: 10pt">Company-operated restaurants</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 42%"><FONT STYLE="font-size: 10pt">Occupancy and other operating expenses</FONT></TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">(69,151)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">(104,236)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">(105,358)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Franchised restaurants</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Franchised restaurants - occupancy expenses</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(23,510)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(34,727)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(30,970)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">General and administrative</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">General and administrative expenses</FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(7,062)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(7,614)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(7,610)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(99,723)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(146,577)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(143,938)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD COLSPAN="3"><FONT STYLE="font-size: 10pt"><B>Variable lease expense - Contingent rentals based on sales:</B></FONT></TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Company-operated restaurants</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Occupancy and other operating expenses</FONT></TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(26,153)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(29,562)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(33,921)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Franchised restaurants</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">Franchised restaurants - occupancy expenses</FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(13,248)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(12,878)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(14,595)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(39,401)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(42,440)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(48,516)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD COLSPAN="2"><FONT STYLE="font-size: 10pt"><B>Total lease expense</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(139,124)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(189,017)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(192,454)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 70%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD COLSPAN="2"><FONT STYLE="font-size: 10pt"><B>Other information</B></FONT></TD>
<TD> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD COLSPAN="3" STYLE="border-top: black 1pt solid"><FONT STYLE="font-size: 10pt">Weighted-average remaining lease term (years)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2"> </TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: bottom; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">Operating leases</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD COLSPAN="3"><FONT STYLE="font-size: 10pt">Weighted-average discount rate</FONT></TD>
<TD> </TD>
<TD COLSPAN="2"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="width: 39%; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">Operating leases</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 27%"> </TD>
<TD STYLE="width: 5%"> </TD>
<TD STYLE="width: 27%; text-align: right"><FONT STYLE="font-size: 10pt">6.6 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>15.</B></TD><TD><B>Franchise arrangements</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Individual franchise
arrangements generally include a lease, a license and provide for payment of initial franchise fees, as well as continuing rent
and service fees (royalties) to the Company based upon a percentage of sales with minimum rent payments. The company’s franchisees
are granted the right to operate a restaurant using the McDonald’s system and, in most cases, the use of a restaurant facility,
generally for a period of 20 years. At the end of the 20-year franchise arrangement, the Company maintains control of the underlying
real estate and building and can either enter into a new franchise arrangement with the existing franchisee or a different franchisee,
or close the restaurant. Franchisees pay related occupancy costs including property taxes, insurance and maintenance. Pursuant
to the MFAs, the Company pays initial fees and continuing service fees for franchised restaurants to McDonald’s Corporation.
Therefore, the margin for franchised restaurants is primarily comprised of rental income net of occupancy expenses (depreciation
for owned property and equipment and/or rental expense for leased properties).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>15.</B></TD><TD><B>Franchise arrangements (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At December 31, 2020 and 2019, net property
and equipment under franchise arrangements totaled $92,354 and $123,832, respectively (including land for $24,661 and $32,373,
respectively).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Revenues from franchised
restaurants for fiscal years 2020, 2019 and 2018 consisted of:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 37%"><FONT STYLE="font-size: 10pt">Rent (i)</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 18%; text-align: right"><FONT STYLE="font-size: 10pt">89,123 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 18%; text-align: right"><FONT STYLE="font-size: 10pt">145,860 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 18%; text-align: right"><FONT STYLE="font-size: 10pt">148,094 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Initial fees (ii) (iii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">203 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">287 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">195 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Royalty fees (iv)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">275 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">643 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">673 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>89,601 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>146,790 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>148,962 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(i)</TD><TD STYLE="text-align: justify">Includes rental income of own buildings and subleases. As of December 31, 2020 and 2019 the subleases
rental income amounted to $74,723 and $114,459, respectively.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(ii)</TD><TD STYLE="text-align: justify">Presented net of initial fees owed to McDonald’s Corporation for $493, $1,456 and $1,323
in 2020, 2019 and 2018, respectively.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(iii)</TD><TD STYLE="text-align: justify">On January 1, 2018, the Company adopted ASC 606 “Revenue Recognition - Revenue from Contracts
with Customers”. As such, initial franchise fees received are deferred over the term of the franchise agreement. See Note
3 Revenue Recognition, for details.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(iv)</TD><TD STYLE="text-align: justify">Presented net of royalties fees owed to McDonald’s Corporation for $36,554, $57,709 and $57,733
in 2020, 2019 and 2018, respectively. As a consequence of the negative impacts of the spread of COVID-19 in the operations, McDonald’s
granted a deferral of all the royalties payments due to sales in March, April, May, June and July 2020 until the first half of
2021.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At December 31, 2020, future minimum rent
payments due to the Company under existing franchised agreements are:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">Owned sites</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">Leased sites</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 40%"><FONT STYLE="font-size: 10pt">2021</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 17%; text-align: right"><FONT STYLE="font-size: 10pt">3,312 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 17%; text-align: right"><FONT STYLE="font-size: 10pt">47,661 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 17%; text-align: right"><FONT STYLE="font-size: 10pt">50,973 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2022</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,648 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">42,458 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">45,106 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">2023</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,413 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">36,985 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">39,398 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2024</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,321 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">31,915 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">34,236 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">2025</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,315 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">28,547 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">30,862 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Thereafter</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">9,754 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">135,349 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">145,103 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Total</FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">22,763 </FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">322,915 </FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">345,678 </FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>16.</B></TD><TD><B>Income taxes</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company’s
operations are conducted by its foreign subsidiaries in Latin America and the Caribbean. The foreign subsidiaries are incorporated
under the laws of their respective countries and as such the Company is taxed in such foreign countries.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Statutory tax rates
in the countries in which the Company operates for fiscal years 2020, 2019 and 2018 were as follows:<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 39; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>16.</B></TD><TD><B>Income taxes (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
<TD STYLE="vertical-align: top; width: 58%"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 13%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 13%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 13%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Puerto Rico</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">18.5%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">18.5%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">20.0%</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Curacao</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">22.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">22.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">22.0%</FONT></TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">USVI</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">22.5%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">22.5%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">22.5%</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Aruba, Panama, Uruguay and Netherlands</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">25.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">25.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">25.0%</FONT></TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Ecuador</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">25.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">25.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">28.0%</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Chile</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">27.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">27.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">27.0%</FONT></TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Martinique, French Guyana and Guadeloupe</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">28.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">31.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">33.3%</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Peru</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">29.5%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">29.5%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">29.5%</FONT></TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Trinidad and Tobago</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">30.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">25.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">25.0%</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Argentina Costa Rica and México</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">30.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">30.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">30.0%</FONT></TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Colombia</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">32.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">33.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">37.0%</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Brazil and Venezuela</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">34.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">34.0%</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">34.0%</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Income tax expense
for fiscal years 2020, 2019 and 2018 consisted of the following:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt">Current income tax expense</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">17,061 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">46,811 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">47,488 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Deferred income tax expense</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">471 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(7,974)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">648 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Income tax expense</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>17,532 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>38,837 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>48,136 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Income tax expense for fiscal years 2020,
2019 and 2018, differed from the amounts computed by applying the Company’s weighted-average statutory income tax rate to
pre-tax income (loss) as a result of the following:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt">Pre-tax (loss) income</FONT></TD>
<TD STYLE="width: 2%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">(131,854)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">118,953 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">85,169 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Weighted-average statutory income tax rate (i)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">22.9 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">36.6 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">42.7 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Income tax (benefit) expense at weighted-average statutory tax rate on pre-tax income (loss)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(30,226)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">43,488 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">36,354 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 33.75pt"><FONT STYLE="font-size: 10pt"><U>Permanent differences</U>:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Change in valuation allowance (ii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,958 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(24,864)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(24,307)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Expiration and changes in tax loss carryforwards (iii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,820 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">17,799 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,599 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Venezuelan remeasurement and inflationary impacts (iv)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,682 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,743 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16,857 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Non-taxable income and non-deductible expenses</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">12,092 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7,545 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10,085 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Tax benefits</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,701)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(9,667)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(11,403)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Income taxes withholdings on intercompany transactions (v)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,515 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,005 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7,723 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Differences including exchange rate, inflation adjustment and filing differences</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,684 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,291)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2,574)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Alternative Taxes</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,054 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">658 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,283)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Others (vi)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">3,654 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,421 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,915)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Income tax expense</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>17,532 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>38,837 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>48,136 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>16.</B></TD><TD><B>Income taxes (continued)</B></TD>
</TR></TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(i)</TD><TD STYLE="text-align: justify">Weighted-average statutory income tax rate is calculated based on the aggregated amount of the
income before taxes by country multiplied by the prevailing statutory income tax rate, divided by the consolidated income before
taxes.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(ii)</TD><TD STYLE="text-align: justify">Comprises net changes in valuation allowances for the year, mainly related to net operating losses.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(iii)</TD><TD STYLE="text-align: justify">Expiration of loss tax carryforwards are mainly generated by Caribbean division.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(iv)</TD><TD STYLE="text-align: justify">Comprises changes in valuation allowance during 2020, 2019 and 2018 for $43,249, $983 and $(304),
respectively.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(v)</TD><TD STYLE="text-align: justify">Comprises income tax withheld on the payment of interest on intercompany loans.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(vi)</TD><TD STYLE="text-align: justify">Mainly comprises income tax effects over intercompany transactions which are eliminated for consolidation
purposes.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The tax effects of
temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities as of December 31,
2020 and 2019 are presented below:<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 70%"><FONT STYLE="font-size: 10pt">Tax loss carryforwards (i)</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">186,781 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">144,759 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Purchase price allocation adjustment</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">12,247 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">15,158 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Property and equipment, tax inflation</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">31,080 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">36,690 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other accrued payroll and other liabilities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">29,622 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">33,065 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Share-based compensation</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,719 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,062 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Provision for contingencies, bad debts and obsolescence</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,621 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,534 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other deferred tax assets (ii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">75,121 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">56,927 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other deferred tax liabilities (iii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(47,593)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(32,280)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Property and equipment - difference in depreciation rates</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(7,902)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(418)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Valuation allowance (iv)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(235,196)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(194,426)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Net deferred tax asset</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>50,500 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>64,071 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(i)</TD><TD STYLE="text-align: justify">As of December 31, 2020, the Company and its subsidiaries has accumulated net operating losses
amounting to $656,119. The Company has net operating losses amounting to $145,127, expiring between 2021 and 2025. In addition,
the Company has net operating losses amounting to $317,650 expiring after 2025 and net operating losses amounting to $193,342 that
do not expire. Changes in tax loss carryforwards for the year relate to the creation of NOLs, mainly in Venezuela.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(ii)</TD><TD STYLE="text-align: justify">Other deferred tax assets reflect the net tax effects of temporary differences between the carrying
amounts of assets for financial reporting purposes (accounting base) and the amounts used for income tax purposes (tax base). For
the fiscal year ended December 31, 2020, this item includes: difference in depreciation of leases (related to differences
between ASC842 and local tax regulation) for $51,772 in Brazil and provision for regular expenses for $10,098 in Brazil, Colombia
and Argentina. For the Fiscal year ended December 31, 2019 this item includes difference in depreciation of leases in Brazil for
$30,524, provision for regular expenses for $10,376, in Brazil, Mexico and Colombia and bad debt reserve in Puerto Rico for $4,218.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(iii)</TD><TD STYLE="text-align: justify">Primarily related to leases contracts (related to differences between ASC842 and local tax regulation).</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 49.5pt"></TD><TD STYLE="width: 22.5pt">(iv)</TD><TD STYLE="text-align: justify">In assessing the realization of deferred income tax assets, the Company considers whether it is
more likely than not that some portion or all of the deferred income tax assets will not be realized.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The total amount of
$50,500 for the year ended December 31, 2020, is presented in the consolidated balance sheet as non-current asset and non-current
liability amounting to $55,567 and $5,067, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The total amount of
$64,071 for the year ended December 31, 2019, is presented in the consolidated balance sheet as non-current asset and non-current
liability amounting to $68,368 and $4,297, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>16.</B></TD><TD><B>Income taxes (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred income taxes
have not been recorded for temporary differences related to investments in certain foreign subsidiaries. These temporary differences,
comprise undistributed earnings considered permanently invested in subsidiaries amounted to <FONT STYLE="background-color: white">$187,215
a</FONT>t December 31, 2020. Determination of the deferred income tax liability on these unremitted earnings is not practicable
because such liability, if any, is dependent on circumstances existing if and when remittance occurs.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">As
of December 31, 2020, and 2019, the Company has not identified unrecognized tax benefits that would favorably affect the effective
tax rate if resolved in the Company’s favor.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
Company account for uncertain tax positions by determining the minimum recognition threshold that a tax position</FONT> is required
to meet before being recognized in the financial statements. This determination requires the use of significant judgment in evaluating
the tax positions and assessing the timing and amounts of deductible and taxable items. The Company is regularly under audit in
multiple tax jurisdictions and is currently under examination in several jurisdictions. The Company is generally no longer subject
to income tax examinations by tax authorities for years prior to 2014.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2020, there are certain matters related to the interpretation of income tax laws which could be challenged by tax authorities in
an amount of $169 million, related to assessments for the fiscal years 2009 to 2015. No formal claim has been made for fiscal years
within the statute of limitation by Tax authorities in any of the mentioned matters, however those years are still subject to audit
and claims may be asserted in the future.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is reasonably possible
that, as a result of audit progression within the next 12 months, there may be new information that causes the Company to reassess
the tax positions because the outcome of tax audits cannot be predicted with certainty. While the Company cannot estimate the impact
that new information may have on their unrecognized tax benefit balance, it believes that the liabilities recorded are appropriate
and adequate as determined under ASC 740.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>17.</B></TD><TD><B>Share-based compensation</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>2011 Equity Incentive
Plan</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In March 2011, the
Company adopted its Equity Incentive Plan, or 2011 Plan, to attract and retain the most highly qualified and capable professionals
and to promote the success of its business. This Plan is being used to reward certain employees for the success of the Company’s
business through an annual award program. The 2011 Plan permits grants of awards relating to class A shares, including awards in
the form of shares (also referred to as stock), options, restricted shares, restricted share units, share appreciation rights,
performance awards and other share-based awards as will be determined by the Company’s Board of Directors. The maximum number
of shares that may be issued under the 2011 Plan is 2.5% of the Company’s total outstanding class A and class B shares immediately
following its initial public offering 2011.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company made a
special grant of stock options and restricted share units in 2011 in connection with its initial public offering, which are totally
vested. The Company also made recurring grants of stock options and restricted share units in each of the fiscal years from 2011
to 2019 (from 2015 to 2019 only restricted share units). From 2011 to 2018, both types of these recurring annual awards vest as
follows: 40% on the second anniversary of the date of grant and 20% on each of the following three anniversaries. The 2019 award
vested on May 10, 2020. However, in the event of death, disability or retirement of the employee, any unvested portion of the annual
award will be fully vested. For all grants, each stock option granted represents the right to acquire a Class A share at its grant-date
fair market value, while each restricted share unit represents the right to receive a Class A share when vested. The exercise right
for the stock options is cumulative and, once such right becomes exercisable, it may be exercised in whole or in part during quarterly
window periods until the date of termination, which occurs at the seventh anniversary of the grant date. The Company utilizes a
Black-Scholes option-pricing model to estimate the value of stock options at the grant date. The value of restricted shares units
is based on the quoted market price of the Company’s class A shares at the grant date.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 42; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>17.</B></TD><TD><B>Share-based compensation (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>2011 Equity Incentive
Plan (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 28, 2016, 1,117,380
stock options were converted to a liability award maintaining the original conditions of the 2011 Plan. There were not incremental
compensation costs resulting from the modification. The employees affected by this modification were 104. The accrued liability
was remeasured on a monthly basis until settlement. This liability award plan expired on May 2020.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company recognizes
stock-based compensation expense on a straight-line basis over the requisite service period for each separately vesting portion
of the award as if the award was, in substance, multiple awards. The Company recognized stock-based compensation expense related
to this award in the amount of $1,564, $1,884 and $3,661 during fiscal years 2020, 2019 and 2018, respectively. Stock-based compensation
expense is included within “General and administrative expenses” in the consolidated statements of income.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company recognized
$(244), $(422) and $(175) of related income tax expense during fiscal years 2020, 2019 and 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Stock Options</I></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
summarizes the activity of stock options during fiscal years 2020, 2019 and 2018:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Units</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Weighted-average strike price</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Weighted-average grant-date fair value</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2017</B></FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-size: 10pt"><B>634,489 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-size: 10pt"><B>14.28 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-size: 10pt"><B>4.28 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Expired (i)</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(143,416)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21.20 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5.89 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2018</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>491,073 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>12.26 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>3.81 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Expired (i)</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(216,633)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14.35 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5.13 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2019</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>274,440 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>10.62 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>2.77 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Expired (i)</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(97,672)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14.31 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4.19 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2020</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>176,768 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>8.58 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>1.98 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Exercisable at December 31, 2020</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>176,768 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>8.58 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>1.98 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">As of December 31, 2020, 2019 and 2018, additional paid-in capital included $409, $1,111 and
$844, respectively, related to expired stock options.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
provides a summary of outstanding stock options at December 31, 2020: <FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Vested (i)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 86%"><FONT STYLE="font-size: 10pt">Number of units outstanding</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">176,768 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Weighted-average grant-date fair market value per unit</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.98 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Total grant-date fair value</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">350 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Weighted-average accumulated percentage of service</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">100 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Stock-based compensation recognized in Additional paid-in capital</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">350 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Related to exercisable awards.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>17.</B></TD><TD><B>Share-based compensation (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Restricted Share Units</I></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
summarizes the activity of restricted share units during fiscal years 2020, 2019 and 2018:<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Units</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Weighted-average grant-date fair value</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%"><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2017</B></FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,736,845 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt"><B>6.65 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2018 annual grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">520,393 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8.50 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Partial vesting</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(534,589)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6.01 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Forfeitures</FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(117,600)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">7.24 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2018</B></FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>1,605,049 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>7.41 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2019 annual grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">35,000 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8.00 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2014 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(38,222)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8.58 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2015 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(115,634)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6.33 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2016 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(134,501)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4.70 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2017 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(174,232)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9.20 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Forfeitures</FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(239,621)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">7.74 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2019</B></FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>937,839 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>7.50 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2015 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(101,928)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6.33 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2016 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(114,045)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4.70 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2017 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(67,606)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9.20 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2018 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(163,695)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8.50 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Vesting of 2019 grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(35,000)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8.00 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Forfeitures</FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(4,367)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">7.75 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2020</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>451,198 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>7.80 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Exercisable at December 31, 2020</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The total fair value
of restricted share units vested during 2020, 2019 and 2018 was $3,475, $3,295 and $3,214, respectively. As of December 31, 2020
the Company issued $472,130 Class A shares. Therefore, accumulated recorded compensation expense totaling <FONT STYLE="background-color: white">$3,399
w</FONT>as reclassified from “Additional paid-in capital” to “Common Stock” upon issuance. As of December
31, 2020, there were 10,392, 3,032 and $2,775 Class A shares, amounting to $76, $19 and $17, pending of issuance in connection
with the partial vestings 2020, 2019 and 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
provides a summary of outstanding restricted share units at December 31, 2020: </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 44; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>17.</B></TD><TD><B>Share-based compensation (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Restricted Share Units (continued)</I></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 83%"><FONT STYLE="font-size: 10pt">Number of units outstanding (i) </FONT></TD>
<TD STYLE="width: 16%; text-align: right"><FONT STYLE="font-size: 10pt">451,198 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Weighted-average grant-date fair market value per unit</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7.80 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Total grant-date fair value </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,519 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Weighted-average accumulated percentage of service</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">80.44 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Stock-based compensation recognized in Additional paid-in capital</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,831 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Compensation expense not yet recognized (ii)</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">688 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Related to awards that will vest between fiscal years 2021 and 2023.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD STYLE="text-align: justify">Expected to be recognized in a weighted-average period of 0.7 years.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Phantom RSU Award</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In May 2019, the Company
implemented a new long-term incentive plan (called Phantom RSU Award) to reward employees giving them the opportunity to share
the success of the Company in the creation of value for its shareholders. In accordance with this plan, the Company granted units
(called “Phantom RSU”) to certain employees, pursuant to which they are entitled to receive, when vested, a cash payment
equal to the closing price of one Class A share on the respective day in which this benefit is due and the corresponding dividends
per-share (if any) formally declared and paid during the service period.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The award has two types
of grant. Phantom RSU type one has 465,202 units which vest over a requisite service period of five years as follows: 40% at the
second anniversary of the date of grant and 20% at each of the following three years. Phantom RSU type two has 1,207,455 units
which vest 100% at the fifth anniversary from the date of grant. However, in the event of death, disability or retirement of the
employee, any unvested portion of the annual award will be fully vested. The Company recognizes compensation expense related to
these benefits on a straight-line basis over the requisite service period for each separately vesting portion of the award as if
the award was, in substance, multiple awards. The grant-date stock price of both types of grants was $6.78. On December 2020, the
Company implemented a new Phantom RSU type two with 65,440 units at a price of $4.89 that vest 100% at May 2021.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The total compensation
cost as of December 31, 2020 and 2019, amounts to $1,232 and $2,102 respectively, which has been recorded under “General
and administrative expenses” within the consolidated statement of income. The accrued liability is remeasured at the end
of each reporting period until settlement.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
summarizes the activity under the plan as of December 31, 2020:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Units</B></FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 84%"><FONT STYLE="font-size: 10pt">Outstanding at December 31, 2019</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-size: 10pt">1,661,820 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 2%"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Grant 2020</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">65,440 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Partial vesting of 2019 Grant</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,162)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Forfeitures</FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(31,614)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Outstanding at December 31, 2020</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,690,484 </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Exercisable at December 31, 2020</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<!-- Field: Page; Sequence: 45; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>17.</B></TD><TD><B>Share-based compensation (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Phantom RSU Award (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Total Non-vested (i)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 86%"><FONT STYLE="font-size: 10pt">Number of units outstanding</FONT></TD>
<TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">1,690,484 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Current share price</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5.03 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Total fair value of the plan</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8,503 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Weighted-average accumulated percentage of service</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">39.00 </FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">%</FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Accrued liability (ii)</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,316 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Compensation expense not yet recognized (iii)</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,187 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Related to awards that will vest between May 2021 and May 2024.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD STYLE="text-align: justify">Presented within “Accrued payroll and other liabilities” in the Company’s current
and non current liabilities balance sheet.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(iii)</TD><TD STYLE="text-align: justify">Expected to be recognized in a weighted-average period of 2.93 years.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>18.</B></TD><TD><B>Commitments and contingencies</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Commitments</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The MFAs require the Company and its MF
subsidiaries, among other obligations:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">to agree with McDonald’s on a restaurant opening plan and a reinvestment plan for each three-year
period and pay an initial franchise fee for each new restaurant opened;</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD STYLE="text-align: justify">to pay monthly royalties commencing at a rate of approximately 5% of gross sales of the restaurants,
during the first 10 years, substantially consistent with market. This percentage increases to 6% and 7% for the subsequent two
5-year periods of the agreement. Nevertheless, on occasions McDonald’s provides support in royalties in order to encourage
the Company´s growth plan;</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(iii)</TD><TD>to commit to funding a specified Strategic Marketing Plan; that includes the expenditure of 5% of the Company gross sales on
Advertising and Promotion activities.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(iv)</TD><TD STYLE="text-align: justify">to own (or lease) directly or indirectly, the fee simple interest in all real property on which
any franchised restaurant is located; and</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(v)</TD><TD STYLE="text-align: justify">to maintain a minimum fixed charge coverage ratio (as defined therein) at least equal to 1.50 as
well as a maximum leverage ratio (as defined therein) of 4.25.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a consequence of
the negative impacts of the spread of COVID-19 on the Company’s operations, during 2020, McDonald’s granted the Company
a deferral of all the royalty payments due related to sales in March, April, May, June and July 2020 until the first half of 2021;
a reduction in the adverting and promotion spending requirements from 5% to 4% for the annual period 2020 and the withdrawal of
the previously-agreed restaurant opening and reinvestment plan, agreeing in place of this obligation a plan for 2021 only. In addition,
McDonald’s provided the Company with a growth support which is expected to result in a consolidated royalty effective rate
of about 5.3% in 2021.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the three-month
periods ended from March 31, 2020 to December 31, 2020, the Company was not in compliance with the ratio requirements
mentioned in point (v) above. The ratios for the period mentioned, were as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 46; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>18.</B></TD><TD><B>Commitments and contingencies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Commitments (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%; border-collapse: collapse">
<TR>
<TD STYLE="vertical-align: bottom; width: 30%"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="width: 35%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Fixed Charge Coverage Ratio</B></FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="width: 32%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Leverage Ratio</B></FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">March 31, 2020</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">1.74</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.15</FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">June 30, 2020</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">1.35</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">5.37</FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">September 30, 2020</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">1.15</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">6.31</FONT></TD>
<TD> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">December 31, 2020</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">0.96</FONT></TD>
<TD> </TD>
<TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">7.71</FONT></TD>
<TD> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">However, McDonald’s
Corporation granted the Company limited waivers from June 30, 2020 through and including December 31, 2021, during which time the
Company is not required to comply with the financial ratios set forth in the MFA. After December 31, 2021, if the Company remains
non-compliant with the financial requirements and is unable to obtain an extension of the waiver or to comply with the original
commitments under the MFA, it could be in material breach. A breach of the MFA would give McDonald’s Corporation certain
rights, including the ability to acquire all or portions of the business. Notwithstanding the foregoing, the Company does not expect
any material adverse effect to its business, results of operations, financial condition or cash flows as a result of this situation.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, ADBV maintains
standby letters of credit with an aggregate drawing amount of $80 million in favor of McDonald’s Corporation as collateral
for the obligations assumed under the MFAs. The letters of credit were issued by Credit Suisse amounting to $45 million, Itaú
Unibanco S.A. (Itaú) amounting to $15 million and JPMorgan amounting to $20 million. They can be drawn if certain events
occur, including the failure to pay royalties. No amounts have been drawn at the date of issuance of these financial statements.
The letters of credit contain a limited number of customary affirmative and negative covenants, including a maximum indebtedness
to EBITDA ratio of 4.0 for Credit Suisse and Itaú letters and 4.5 for JPMorgan letter. As of December 31, 2020, ADBV was
not in compliance with these ratios. However, ADBV received waivers from each of its lenders under these letters of credit if any
event of default occurs for compliance with the applicable ratios. If ADBV is unable to comply with the conditions of the waivers
or to obtain further waivers for future non-compliance with any terms of the letters of credit and its lenders terminate the letters
of credit, we would be in breach of our obligations under the MFAs, if ADBV cannot replace the instrument or use cash as collateral.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Provision for contingencies</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has certain
contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings, including those involving
labor, tax and other matters. At December 31, 2020 and 2019, the Company maintains a provision for contingencies, net of judicial
deposits, amounting to $26,948 and $26,158, respectively, presented as follow: $2,024 and $2,035 as a current liability and $24,924
and $24,123 as a non-current liability, respectively. The breakdown of the provision for contingencies is as follows: </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>18.</B></TD><TD><B>Commitments and contingencies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Provision for contingencies
(continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: black 1pt solid; padding-left: 0.5in"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Balance at beginning of period</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Accruals, net</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Settlements</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Reclassifications and increase of judicial deposits</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Translation</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Balance at end of period</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Year ended December 31, 2020: </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 33%"><FONT STYLE="font-size: 10pt">Tax contingencies in Brazil (i)</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">10,595 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">2,040 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 13%; text-align: right"><FONT STYLE="font-size: 10pt">435 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">(2,408)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">10,662 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Labor contingencies in Brazil (ii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16,839 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">12,087 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(10,499)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3,913)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,514 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other (iii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">11,404 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,203 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,421)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,279)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">9,907 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">38,838 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">15,330 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(11,920)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">435 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(7,600)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">35,083 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Judicial deposits (iv)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(12,680)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,626 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,919 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(8,135)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Provision for contingencies</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>26,158 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>15,330 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(11,920)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,061 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(4,681)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>26,948 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Year ended December 31, 2019: </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Tax contingencies in Brazil (i)</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9,497 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,455 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(357)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10,595 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Labor contingencies in Brazil (ii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21,108 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">12,916 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(16,068)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,117)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16,839 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other (iii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">11,462 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">3,070 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,700)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,428)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">11,404 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">42,067 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">17,441 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(17,768)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2,902)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">38,838 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Judicial deposits (iv)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(13,558)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">354 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">524 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(12,680)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Provision for contingencies</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>28,509 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>17,441 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(17,768)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>354 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(2,378)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>26,158 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Year ended December 31, 2018:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Tax contingencies in Brazil (i)</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9,324 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,805 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,632)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9,497 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Labor contingencies in Brazil (ii)</FONT></TD>
<TD STYLE="padding-left: 0.25in"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21,061 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,785 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(17,718)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3,020)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21,108 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other (iii)</FONT></TD>
<TD STYLE="padding-left: 0.25in"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">15,646 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,405 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,984)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(3,605)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">11,462 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Subtotal</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">46,031 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">23,995 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(19,702)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(8,257)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">42,067 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Judicial deposits (iv)</FONT></TD>
<TD STYLE="padding-left: 0.25in"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(18,075)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,843 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">2,674 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(13,558)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Provision for contingencies</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>27,956 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>23,995 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(19,702)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,843 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(5,583)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>28,509 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">In 2020, 2019 and 2018, it includes mainly CIDE.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD STYLE="text-align: justify">It primarily relates to dismissals in the normal course of business.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(iii)</TD><TD STYLE="text-align: justify">It relates to tax and labor contingencies in other countries and civil contingencies in all the
countries.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(iv)</TD><TD STYLE="text-align: justify">It primarily relates to judicial deposits the Company was required to make in connection with the
proceedings in Brazil.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2020, there are certain matters related to the interpretation of tax, labor and civil laws for which there is a possibility that
a loss may have been incurred in accordance with ASC 450-20-50-4 within a range of $226 million and $249 million.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During previous years,
there was a lawsuit filed by several Puerto Rican franchisees against McDonald’s Corporation and certain subsidiaries purchased
by the Company during the acquisition of the LatAm business (“the Puerto Rican franchisees lawsuit”). The claim sought
declaratory judgment and damages in the aggregate amount of $66.7 million plus plaintiffs’ attorney fees. During the years
the lawsuit was in force, the Company believed that the probability of loss was remote. On December 28, 2019 and March 31, 2020,
the Company reached confidential settlement agreements with Puerto Rican franchisees finalizing all controversies and disputes
among the parties. All corresponding judicial documentation was</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>18.</B></TD><TD><B>Commitments and contingencies (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Provision for contingencies
(continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">filed to end the proceedings and the case
was successfully dismissed by the Court, finalizing all controversies and disputes among the parties.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, during
2014, another franchisee filed a complaint (“the related Puerto Rican franchisee lawsuit”) against the Company and
McDonald’s USA, LLC (a wholly owned subsidiary of McDonald’s Corporation), asserting a very similar claim to the one
filed in the Puerto Rican franchisees lawsuit. The claim sought declaratory judgment and damages in the amount of $30 million plus
plaintiffs’ attorney fees. During December 2019, the franchisee reached a Confidential Settlement Agreement with the Company
finalizing all controversies and disputes among them.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, the Puerto Rico Owner Operator’s
Association (“PROA”), an association integrated by the Company’s franchisees that met periodically to coordinate
the development of promotional and marketing campaigns (an association that at the time of the claim was formed solely by franchisees
that are plaintiffs in the Puerto Rican franchisees lawsuit), filed a third party complaint and counterclaim (“the PROA claim”)
against the Company and other third party defendants, in the amount of $31 million. During the years the lawsuit was in force,
the Company believed that the probability of loss was remote. On December 28, 2019 and March 31, 2020 the Company reached confidential
settlement agreements with Puerto Rican franchisees, sole members of PROA, finalizing all controversies and disputes among the
parties. All corresponding judicial documentation was filed to end this proceeding and the case was successfully dismissed by the
Court.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to Section
9.3 of the Stock Purchase Agreement, McDonald’s Corporation indemnifies the Company for certain Brazilian claim. At December 31,
2020, the provision for contingencies includes $1,259 ($1,612 at December 31, 2019), related to this claim. As a result, the
Company has recorded a non-current asset in respect of McDonald’s Corporation’s indemnity in the consolidated balance
sheet.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>19. Disclosures
about fair value of financial instruments</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As defined in ASC 820
Fair Value Measurement and Disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date (exit price). The transaction is based on a hypothetical
transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the
asset or owes the liability. The valuation techniques that can be used under this guidance are the market approach, income approach
or cost approach. The market approach uses prices and other information for market transactions involving identical or comparable
assets or liabilities, such as matrix pricing. The income approach uses valuation techniques to convert future amounts to a single
discounted present amount based on current market conditions about those future amounts, such as present value techniques, option
pricing models (e.g. Black-Scholes model) and binomial models (e.g. Monte-Carlo model). The cost approach is based on current replacement
cost to replace an asset.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company utilizes
market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use
in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique.
These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation
techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify
fair value balances based on the observance of those inputs. The guidance establishes a formal fair value hierarchy based on the
inputs used to measure fair value. The hierarchy gives the highest priority to level 1 measurements and the lowest priority to
level 3 measurements, and accordingly, level 1 measurement should be used whenever possible.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The three levels of
the fair value hierarchy as defined by the guidance are as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Level 1</U>: Valuations
utilizing quoted, unadjusted prices for identical assets or liabilities in active markets that the Company has the ability to access.
This is the most reliable evidence of fair value and does not require a significant degree of judgment. Examples include exchange-traded
derivatives and listed equities that are actively traded.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>19.</B></TD><TD><B>Disclosures about fair value of financial instruments
(continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Level 2</U>: Valuations
utilizing quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs
are observable, either directly or indirectly for substantially the full term of the asset or liability.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Financial instruments
that are valued using models or other valuation methodologies are included. Models used should primarily be industry-standard models
that consider various assumptions and economic measures, such as interest rates, yield curves, time value, volatilities, contract
terms, current market prices, credit risk or other market-corroborated inputs. Examples include most over-the-counter derivatives
(non-exchange traded), physical commodities, most structured notes and municipal and corporate bonds.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Level 3</U>: Valuations
utilizing significant unobservable inputs provides the least objective evidence of fair value and requires a significant degree
of judgment. Inputs may be used with internally developed methodologies and should reflect an entity’s assumptions using
the best information available about the assumptions that market participants would use in pricing an asset or liability. Examples
include certain corporate loans, real-estate and private equity investments and long-dated or complex over-the-counter derivatives.<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Depending on the particular
asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market
and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different
levels of the fair value hierarchy. For disclosure purposes under this guidance, the lowest level that contains significant inputs
used in valuation should be chosen. Pursuant to ASC 820-10-50, the Company has classified its assets and liabilities into these
levels depending upon the data relied on to determine the fair values. The fair values of the Company’s derivatives are valued
based upon quotes obtained from counterparties to the agreements and are designated as Level 2.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following fair
value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring
basis as of December 31, 2020 and 2019:<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="7" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Quoted Prices in</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Active Markets</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>For Identical Assets</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>(Level 1)</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="7" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Significant Other</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Observable Inputs</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>(Level 2)</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="7" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>Significant</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Unobservable Inputs</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>(Level 3)</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Balance as of</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>December <BR>
31,</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Balance as of</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>December<BR>
31,</B></FONT></TD></TR>
<TR>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Assets</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 31%"><FONT STYLE="font-size: 10pt">Cash equivalents</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">106,856 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">49,038 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 4%; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">106,856 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">49,038 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Short-term Investments</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Derivatives</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">122,603 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">58,107 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">122,603 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">58,107 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total Assets</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>106,856 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>49,063 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>122,603 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>58,107 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>229,459 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>107,170 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Liabilities</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Derivatives</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,525 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,037 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,525 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,037 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total Liabilities</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>20,525 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>14,037 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>— </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>20,525 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>14,037 </B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The derivative contracts
were valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as
interest rate yield curves, option volatilities and currency rates that were observable for substantially the full term of the
derivative contracts.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Certain financial
assets and liabilities not measured at fair value</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At December 31,
2020, the fair value of the Company’s long-term debt was estimated at $832,753, compared to a carrying amount of $788,521.
This fair value was estimated using various pricing models or discounted cash flow analysis</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<!-- Field: Page; Sequence: 50; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>19.</B></TD><TD><B>Disclosures about fair value of financial instruments
(continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">that incorporated quoted
market prices, and is similar to Level 2 within the valuation hierarchy. The carrying amount for notes receivable approximates
fair value.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Non-financial assets
and liabilities measured at fair value on a nonrecurring basis</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain assets and
liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value
on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment).
At December 31, 2020, no material fair value adjustments or fair value measurements were required for non-financial assets
or liabilities, except for those required in connection with the impairment of long-lived assets and goodwill. Refer to Note 3
for more details, including inputs and valuation techniques used to measure fair value of these non-financial assets.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>20.</B></TD><TD><B>Certain risks and concentrations</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company’s
financial instruments that are exposed to concentration of credit risk primarily consist of cash and cash equivalents and accounts
and notes receivable. Cash and cash equivalents are deposited with various creditworthy financial institutions, and therefore the
Company believes it is not exposed to any significant credit risk related to cash and cash equivalents. Concentrations of credit
risk with respect to accounts and notes receivable are generally limited due to the large number of franchisees comprising the
Company’s franchise base.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All the Company’s
operations are concentrated in Latin America and the Caribbean. As a result, the Company’s financial condition and results
of operations depend, to a significant extent, on macroeconomic and political conditions prevailing in the region. See Note 22
for additional information pertaining to the Company’s Venezuelan operations. In addition, during 2020 the Company was affected
by the spread of COVID-19 along the region. See Note 1 for additional information.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>21.</B></TD><TD><B>Segment and geographic information</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> The Company is
required to report information about operating segments in annual financial statements and interim financial reports issued to
shareholders in accordance with ASC 280. Operating segments are components of a company about which separate financial information
is available that is regularly evaluated by the chief operating decision maker(s) in deciding how to allocate resources and assess
performance. ASC 280 also requires disclosures about the Company’s products and services, geographical areas and major customers.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As discussed in Note
1, the Company through its wholly-owned and majority-owned subsidiaries operates and franchises McDonald’s restaurants in
the food service industry. The Company has determined that its reportable segments are those that are based on the Company’s
method of internal reporting. The Company manages its business as distinct geographic segments and its operations are divided into
four geographical divisions, which are as follows: Brazil; the Caribbean division, consisting of Aruba, Curacao, Colombia, French
Guyana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the U.S. Virgin Islands of St. Croix and St. Thomas and Venezuela;
the North Latin America division (“NOLAD”), consisting of Costa Rica, Mexico and Panama; and the South Latin America
division (“SLAD”), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. The accounting policies of the segments
are the same as those described in Note 3.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
presents information about profit or loss and assets for each reportable segment:<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>
<!-- Field: Page; Sequence: 51; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>21.</B></TD><TD><B>Segment and geographic information (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>For the fiscal years ended December 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B><U>Revenues:</U></B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt">Brazil</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">862,748 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">1,385,566 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">1,345,453 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Caribbean division</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">381,090 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">399,251 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">483,743 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">NOLAD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">311,887 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">431,266 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">406,848 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">SLAD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">428,494 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">742,994 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">845,527 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total revenues</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,984,219 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,959,077 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>3,081,571 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B><U>Adjusted EBITDA:</U></B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Brazil</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">76,155 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">227,844 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">218,391 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Caribbean division</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">28,847 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">24,955 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(8,281)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">NOLAD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10,207 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">39,027 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">32,313 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">SLAD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">3,272 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">63,120 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">73,670 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total reportable segments</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>118,481 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>354,946 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>316,093 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Corporate and others (i)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(50,370)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(63,171)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(58,096)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total adjusted EBITDA</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>68,111 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>291,775 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>257,997 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>21.</B></TD><TD><B>Segment and geographic information (continued)</B></TD>
</TR></TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>For the fiscal years ended December 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B><U>Adjusted EBITDA reconciliation:</U></B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt"><B>Total Adjusted EBITDA</B></FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt"><B>68,111 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt"><B>291,775 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt"><B>257,997 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>(Less) Plus items excluded from computation that affect operating (loss) income:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Depreciation and amortization</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(126,853)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(123,218)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(105,800)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Gains from sale or insurance recovery of property and equipment</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,210 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,175 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,973 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Write-offs of property and equipment</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(4,501)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(4,733)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(4,167)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Impairment of long-lived assets</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(6,636)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(8,790)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(18,950)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Impairment of goodwill</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,085)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(273)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(167)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Reorganization and optimization plan expenses</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(11,003)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">2008 Long-Term Incentive Plan incremental compensation from modification</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">575 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Operating (loss) income</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(66,754)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>159,936 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>123,458 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>(Less) Plus:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Net interest expense</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(59,068)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(52,079)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(52,868)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">(Loss) gain from derivative instruments</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2,297)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">439 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(565)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Gain from securities</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25,676 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Foreign currency exchange results</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(31,707)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">12,754 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,874 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other non-operating income (expenses), net</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,296 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2,097)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">270 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Income tax expense</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(17,532)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(38,837)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(48,136)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Net income attributable to non-controlling interests</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(65)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(220)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(186)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Net (loss) income attributable to Arcos Dorados Holdings Inc.</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(149,451)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>79,896 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>36,847 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>
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<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>21.</B></TD><TD><B>Segment and geographic information (continued)</B></TD>
</TR></TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>For the fiscal years ended December 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B><U>Depreciation and amortization:</U></B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt">Brazil</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">59,466 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">63,467 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">52,632 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Caribbean division</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,742 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,481 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">22,835 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">NOLAD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">22,200 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21,422 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">20,829 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">SLAD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">20,329 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">20,713 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">19,293 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total reportable segments</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>122,737 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>124,083 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>115,589 </B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Corporate and others (i)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,288 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,894 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,696 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Purchase price allocation (ii)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(1,172)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(5,759)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(15,485)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total depreciation and amortization</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>126,853 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>123,218 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>105,800 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B><U>Property and equipment expenditures:</U></B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Brazil</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">39,127 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">146,322 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">100,926 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Caribbean division</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9,582 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">15,934 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,640 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">NOLAD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9,627 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">32,662 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">24,145 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">SLAD</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">27,975 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">70,280 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">53,300 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Others</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">37 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">30 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total property and equipment expenditures</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>86,311 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>265,235 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-top: black 1pt solid; border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>197,041 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>As of December 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR>
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B><U>Total assets:</U></B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="vertical-align: top"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="vertical-align: bottom"> </TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: bottom; width: 66%"><FONT STYLE="font-size: 10pt">Brazil</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: top; width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="vertical-align: top; width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">1,102,009 </FONT></TD>
<TD STYLE="vertical-align: top; width: 1%; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">1,328,984 </FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%; text-align: right"> </TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Caribbean division</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt">420,481 </FONT></TD>
<TD STYLE="vertical-align: top; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt">429,170 </FONT></TD>
<TD STYLE="vertical-align: top; text-align: right"> </TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">NOLAD</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt">412,045 </FONT></TD>
<TD STYLE="vertical-align: top; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt">458,235 </FONT></TD>
<TD STYLE="vertical-align: top; text-align: right"> </TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">SLAD</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">372,974 </FONT></TD>
<TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">389,976 </FONT></TD>
<TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B>Total reportable segments</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,307,509 </B></FONT></TD>
<TD STYLE="vertical-align: top; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,606,365 </B></FONT></TD>
<TD STYLE="vertical-align: top; text-align: right"> </TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Corporate and others (i)</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt">95,802 </FONT></TD>
<TD STYLE="vertical-align: top; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt">67,195 </FONT></TD>
<TD STYLE="vertical-align: top; text-align: right"> </TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Purchase price allocation (ii)</FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(109,357)</FONT></TD>
<TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(115,875)</FONT></TD>
<TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B>Total assets</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double; vertical-align: top"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,293,954 </B></FONT></TD>
<TD STYLE="vertical-align: top; border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="border-bottom: Black 2.5pt double; vertical-align: top"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; vertical-align: top; text-align: right"><FONT STYLE="font-size: 10pt"><B>2,557,685 </B></FONT></TD>
<TD STYLE="vertical-align: top; border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Primarily relates to corporate general and administrative expenses, corporate supply chain operations
in Uruguay, and related assets. Corporate general and administrative expenses consist of corporate office support costs in areas
such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and
training. As of December 31,2020 and 2019, corporate assets primarily include corporate derivatives, cash and cash equivalents
and lease right of use.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD STYLE="text-align: justify">Relates to the purchase price allocation adjustment made at corporate level, which reduces the
accounting value of our long-lived assets (excluding Lease right of use) and goodwill and the corresponding depreciation and amortization.
As of December 31,2020 and 2019 primarily related with the reduction of goodwill.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>21.</B></TD><TD><B>Segment and geographic information (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company’s
revenues are derived from two sources: sales by Company-operated restaurants and revenues from restaurants operated by franchisees.
All of the Company’s revenues are derived from foreign operations.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Long-lived assets consisting
of property and equipment totaled $796,532 and $960,986 at December 31, 2020 and 2019, respectively. All of the Company’s
long-lived assets are related to foreign operations.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>22.</B></TD><TD><B>Venezuelan operations</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company conducts
business in Venezuela where currency restrictions exist, limiting the Company’s ability to immediately access cash through
repatriations at the government’s official exchange rate. The Company’s access to Venezuelan Bolívares (VEF
or VES) held by its Venezuelan subsidiaries remains available for use within this jurisdiction and is not restricted. The official
exchange rate is established by the Central Bank of Venezuela.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since February 2013,
the Venezuelan government has announced several changes in the currency exchange regulations, including different mechanisms to
access foreign currency. During 2018, the applicable system was DICOM that operated through an auction mechanism. The Company had
access to DICOM at an exchange rate greater than the one published by the governmental authorities. Considering that under ASC
830, foreign currency transactions are required to be remeasured at the applicable rate at which a particular transaction could
be settled, each time the Company accessed to DICOM at an exchange rate greater than the one published, this rate was considered
for remeasurements purposes. Moreover, during 2019, the Central Bank of Venezuela permitted financial institution to participate
as intermediaries in foreign currency operations.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 20, 2018,
the Government announced the removal of five zeros from the Venezuelan currency and renamed it as “Sovereign Bolivar”
(VES). In addition, the new currency devaluated from 2.48 to 59.93 VES per US dollar. Since that moment, the Sovereign Bolivar
has been depreciating its value against US dollar.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The consequence of
several reassessment of the exchange rate used for remeasurement purposes, the Company recognized negative impacts within the Consolidated
Statement of Income, mainly related to the write down of certain inventories due to the impact on their net recoverable value,
impairment of long-lived assets and foreign currency exchange results. The following table summarizes the impacts during fiscal
years 2020, 2019 and 2018:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse; margin-left: 45pt">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="11"> </TD></TR>
<TR>
<TD STYLE="vertical-align: bottom"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; border-top: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; border-top: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; border-top: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD STYLE="width: 64%"><FONT STYLE="font-size: 10pt"><B>Write down of inventories (i)</B></FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">(1,625)</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">(4,468)</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">(61,007)</FONT></TD>
<TD STYLE="vertical-align: bottom; width: 1%; text-align: right"> </TD></TR>
<TR STYLE="background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Impairment of long-lived assets (i)</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">(904)</FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">(2,123)</FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">(12,089)</FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD></TR>
<TR STYLE="background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Foreign currency exchange income (loss) (ii)</B></FONT></TD>
<TD STYLE="vertical-align: bottom"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">27 </FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">(583)</FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD>
<TD COLSPAN="2" STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">5,061 </FONT></TD>
<TD STYLE="vertical-align: bottom; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Presented within Other operating income (expenses), net.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD STYLE="text-align: justify">Presented within Foreign currency exchange results.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Revenues and operating
(loss) income of the Venezuelan operations were $4,494 and $(7,712), respectively, for fiscal year 2020; $10,184 and $(8,240),
respectively, for fiscal year 2019; and $78,859 and $(52,054), respectively, for fiscal year 2018.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2020, the Company did not have a material monetary position, which would be subject to remeasurement in the event of further changes
in the exchange rate. In addition, Venezuela’s non-monetary assets were $10.1 million (mainly fixed assets).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to exchange
controls, the Venezuelan market is subject to price controls. The Venezuelan government issued a regulation establishing a maximum
profit margin for companies and maximum prices for certain goods and services. However, the Company was able to increase prices
during the fiscal year ended December 31, 2020.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>22.</B></TD><TD><B>Venezuelan operations (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company’s
Venezuelan operations, continue to be impacted by the country’s macroeconomic volatility, including the ongoing hyperinflationary
environment. Additionally, the operations would be further affected by more stringent controls on foreign currency exchange, pricing,
payments, profits or imports; the continued migration or the high levels of unemployment. The Company continues to closely monitor
developments in this dynamic environment, to assess evolving business risks and actively manage its operations in Venezuela.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>23.</B></TD><TD><B>Shareholders’ equity</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Authorized capital</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company is authorized
to issue a maximum of 500,000,000 shares, consisting of 420,000,000 Class A shares and 80,000,000 Class B shares of no par value
each.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Issued and outstanding
capital</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At December 31,
2017, the Company had 211,072,508 shares issued and outstanding with no par value, consisting of 131,072,508 class A shares and
80,000,000 class B shares.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During fiscal years
2020, 2019 and 2018, the Company issued 472,130, 470,558 and 520,565 Class A shares, respectively, in connection with the partial
vesting of restricted share units under the 2011 Equity Incentive Plan.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 22, 2018, the
Board of Directors approved the adoption of a share repurchase program, pursuant to which the Company may repurchase from time
to time, along one year, up to $60,000 of issued and outstanding Class A shares of no par value of the Company.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of February 15,
2019, the Company purchased 7,993,602 shares amounting to $60,000 and the program concluded. The shares reacquired were recorded
at cost within “Common stock in treasury” in the Consolidated Statement of Changes in Equity.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 12, 2020,
the Company used 2,723,614 of treasury shares to satisfy a stock dividend distribution.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2020, 2019 and 2018 the Company had 207,265,773; 204,070,029 and 205,232,247 outstanding shares, consisting of 127,265,773; 124,070,029
and 125,232,247 Class A shares, respectively, and 80,000,000 for Class B shares for each year.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Rights, privileges
and obligations</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Holders of Class A
shares are entitled to one vote per share and holders of Class B shares are entitled to five votes per share. Except with respect
to voting, the rights, privileges and obligations of the Class A shares and Class B shares are <I>pari passu</I> in all respects,
including with respect to dividends and rights upon liquidation of the Company.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Distribution of dividends</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company can only
make distributions to the extent that immediately following the distribution, its assets exceed its liabilities and the Company
is able to pay its debts as they become due.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 3, 2020, the
Company approved a cash dividend distribution to all Class A and Class B shareholders of $0.11 per share, to be paid in three installments,
as follows: $0.05 per share on April 10, 2020, $0.03 per share on August 13, 2020 and $0.03 per share on December 10, 2020. On
July 6, 2020, the Company cancelled the two remaining cash dividend payments of $0.03 cents per share each, scheduled for August
13 and December 10, 2020. As of December 31, 2020 the cash dividend paid was $10,204.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U STYLE="text-decoration: none"> </U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U STYLE="text-decoration: none"></U></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>24.</B></TD><TD><B>Earnings per share</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <FONT STYLE="text-decoration: none"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Distribution of dividends (continued)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 6, 2020, the
Company approved a stock dividend to all Class A and Class B shareholders to be distributed on August 12, 2020. The Company distributed
a dividend of one share for every seventy-five shares held by its shareholders and paid cash in lieu of fractional shares. Therefore,
the Company distributed 2,723,614 repurchased shares, and paid cash $16 for fractional shares.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Accumulated other
comprehensive income (loss)</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth information with respect to the components of “Accumulated other comprehensive income (loss)” as of December 31,
2020 and their related activity during the three-years in the period then ended:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Foreign currency translation</B></P></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Cash flow hedges</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Post-employment benefits (i)</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Total Accumulated other comprehensive loss</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt"><B>Balances at December 31, 2017</B></FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt"><B>(436,281)</B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt"><B>8,359 </B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt"><B>(1,425)</B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="width: 13%; text-align: right"><FONT STYLE="font-size: 10pt"><B>(429,347)</B></FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other comprehensive (loss) income before reclassifications</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(62,996)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,888 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(418)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(49,526)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Net (income) loss reclassified from accumulated other comprehensive loss to consolidated statement of income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(23,887)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">494 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(23,393)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Net current-period other comprehensive (loss) income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(62,996)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(9,999)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">76 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(72,919)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Balances at December 31, 2018</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(499,277)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(1,640)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(1,349)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(502,266)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other comprehensive (loss) income before reclassifications</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(12,168)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,185)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(55)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(17,408)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Net (income) loss reclassified from accumulated other comprehensive income to consolidated statement of income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">85 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">864 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">949 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Adoption of ASU 2017-12</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(780)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(780)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Net current-period other comprehensive (loss) income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(12,168)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,880)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">809 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(17,239)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Balances at December 31, 2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(511,445)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(7,520)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(540)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>(519,505)</B></FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Other comprehensive loss before reclassifications</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(76,359)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">54,287 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(195)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(22,267)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Net loss reclassified from accumulated other comprehensive loss to consolidated statement income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(43,324)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">236 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(43,088)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Net current-period other comprehensive (loss) income</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(76,359)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10,963 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">41 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(65,355)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Balances at December 31, 2020</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(587,804)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>3,443 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(499)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD STYLE="text-align: right"> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(584,860)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Mainly related to a post-employment benefit in Venezuela established by the Organic Law of Labor
and Workers (known as “LOTTT”, its Spanish acronym) in 2012. This benefit provides a payment of 30 days of salary per
year of employment tenure based on the last wage earned to all workers who leave the job for any reason. The term of service to
calculate the post-employment payment of active workers run retroactively since June 19, 1997. The Company obtains an actuarial
valuation to measure the post-employment benefit obligation, using the projected unit credit actuarial method and measures this
benefit in accordance with ASC 715-30, similar to pension benefit.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<!-- Field: Page; Sequence: 57; Value: 9 -->
<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>23.</B></TD><TD><B>Shareholders’ equity</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company is required
to present basic earnings per share and diluted earnings per share in accordance with ASC 260. Earnings per share are based on
the weighted average number of shares outstanding during the period after consideration of the dilutive effect, if any, for common
stock equivalents, including stock options and restricted share units. Basic earnings per common share are computed by dividing
net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period.
Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock
outstanding and dilutive securities outstanding during the period under the treasury method. </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth the computation of basic and diluted net income per common share attributable to Arcos Dorados Holdings Inc. for all
years presented:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>For the fiscal years ended December 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 64%"><FONT STYLE="font-size: 10pt">Net (loss) income attributable to Arcos Dorados Holdings Inc. available to common shareholders</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">(149,451)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">79,896 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">36,847 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Weighted-average number of common shares outstanding - Basic</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">205,417,516 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">204,003,977 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">209,136,832 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Incremental shares from assumed exercise of stock options (i)</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">— </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Incremental shares from vesting of restricted share units</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">287,965 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">664,375 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">983,634 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Weighted-average number of common shares outstanding - Diluted</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">205,705,481 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">204,668,352 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">210,120,466 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 2.25pt double"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 2.25pt double"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 2.25pt double"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Basic net (loss) income per common share attributable to Arcos Dorados Holdings Inc.</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(0.73)</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>0.39 </B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>0.18 </B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Diluted net (loss) income per common share attributable to Arcos Dorados Holdings Inc.</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(0.73)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>0.39 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>0.18 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Options to purchase shares of common stock were outstanding during fiscal years 2020, 2019 and
2018. See Note 17 for details. These options were not included in the computation of diluted earnings per share because their inclusion
would have been anti-dilutive.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>25.</B></TD><TD><B>Related party transactions</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has entered
into a master commercial agreement on arm’s length terms with Axionlog, a company under common control that operates the
distribution centers in Argentina, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela (the “Axionlog Business”).
Pursuant to this agreement Axionlog provides the Company distribution inventory, storage and transportation services in the countries
in which it operates.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
summarizes the outstanding balances between the Company and the Axionlog Business as of December 31, 2020 and 2019:<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>As of December 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 66%"><FONT STYLE="font-size: 10pt">Accounts and notes receivable, net</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">272 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 14%; text-align: right"><FONT STYLE="font-size: 10pt">177 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Other receivables</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,392 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,201 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Miscellaneous</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,665 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,719 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Accounts payable</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(6,378)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(8,747)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></P></DIV>
<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
<!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>25.</B></TD><TD><B>Related party transactions (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
summarizes the transactions between the Company and the Axionlog Business for the fiscal years ended December 31, 2020, 2019
and 2018:<FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Fiscal years ended December 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2020</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt">Food and paper (i)</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">(124,416)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">(188,276)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">(177,356)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Occupancy and other operating expenses</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3,667)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(7,252)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,322)</FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Includes $24,303 of distribution fees and $100,114 of suppliers purchases managed through the Axionlog
Business for the fiscal year ended December 31, 2020; $38,658 and $149,618, respectively, for the fiscal year ended December 31,
2019; and $41,633 and $135,723, respectively, for the fiscal year ended December 31, 2018.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2020 and 2019, the Company had other receivables totaling $1,761 and $2,325, respectively, and accounts payable with Lacoop, A.C.
and Lacoop II, S.C. totaling $(508) and nil, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>26.</B></TD><TD><B>Valuation and qualifying accounts</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
presents the information required by Rule 12-09 of Regulation S-X in regards to valuation and qualifying accounts for each of the
periods presented:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
<TD STYLE="border-bottom: black 1pt solid; padding-left: 0.5in"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Balance at beginning of period</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Additions (i)</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Deductions (ii)</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Translation</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Balance at end of period</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"><B>Year ended December 31, 2020: </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt">Deducted from assets accounts:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD>
<TD> </TD>
<TD COLSPAN="3"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="width: 45%; padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Allowance for doubtful accounts (iii)</FONT></TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">23,076 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">937 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">(22,929)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">(141)</FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD>
<TD STYLE="width: 1%"> </TD>
<TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">943 </FONT></TD>
<TD STYLE="width: 1%; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Valuation allowance on deferred tax assets</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">194,426 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">65,077 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(18,870)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(5,437)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">235,196 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Reported as liabilities:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"> Provision for contingencies</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">26,158 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">17,391 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(11,920)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(4,681)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">26,948 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>243,660 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>83,405 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(53,719)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(10,259)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>263,087 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Year ended December 31, 2019: </B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Deducted from assets accounts:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Allowance for doubtful accounts (iii)</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25,539 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8,524 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(10,892)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(95)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">23,076 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Valuation allowance on deferred tax assets</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">219,920 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,375 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(26,252)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,617)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">194,426 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Reported as liabilities:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Provision for contingencies</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">28,509 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">17,795 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(17,768)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(2,378)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">26,158 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>273,968 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>28,694 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(54,912)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(4,090)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>243,660 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Year ended December 31, 2018:</B></FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD><FONT STYLE="font-size: 10pt">Deducted from assets accounts:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Allowance for doubtful accounts (iii)</FONT></TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21,467 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,064 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,860)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(132)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
<TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25,539 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Valuation allowance on deferred tax assets</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">271,651 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,107 </FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(37,718)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(27,120)</FONT></TD>
<TD STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-size: 10pt">219,920 </FONT></TD>
<TD STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt">Reported as liabilities:</FONT></TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="3" STYLE="text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Provision for contingencies</FONT></TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">27,956 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">25,838 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(19,702)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(5,583)</FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD>
<TD> </TD>
<TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">28,509 </FONT></TD>
<TD STYLE="border-bottom: black 1pt solid; text-align: right"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(213,234,234)">
<TD><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>321,074 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>45,009 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(59,280)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(32,835)</B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD>
<TD> </TD>
<TD STYLE="border-bottom: Black 2.5pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
<TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>273,968 </B></FONT></TD>
<TD STYLE="border-bottom: black 2.5pt double; text-align: right"> </TD></TR>
</TABLE>
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<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Arcos Dorados Holdings Inc.</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"><B>Notes to the Consolidated Financial Statements</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">As of December 31, 2020 and 2019 and for each of the three years in the period ended December 31, 2020</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt">Amounts in thousands of US dollars, except for share data and as otherwise indicated</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 31.5pt"></P></DIV>
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<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>26.</B></TD><TD><B>Valuation and qualifying accounts (continued)</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD STYLE="text-align: justify">Additions in valuation allowance on deferred tax assets are charged to income tax expense.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Additions in provision for contingencies
are explained as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Fiscal years 2020, 2019 and 2018
– Relate to the accrual of $15,330, $17,441 and $23,995, respectively, and a reclassification of $2,061 and $354, during
fiscal years 2020 and 2019, respectively. See Note 18 for details.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD STYLE="text-align: justify">Deductions in valuation allowance on deferred tax assets are charged to income tax expense.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Deductions in provision for contingencies
are explained as follows:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Corresponds to the settlements
amounting to $11,920; $17,768 and $19,702 during fiscal years 2020, 2019 and 2018, respectively. as discussed in Note 18.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Deductions in allowance for doubtful
accounts during fiscal years 2020 and 2019 mainly relate to reductions in the accrual and the write-off of some receivables from
franchisees in Puerto Rico as a consequence of the confidential settlement agreements reached in December 2020 and March 2021 with
Puerto Rican franchisees. For details see note 18.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45pt"></TD><TD STYLE="width: 27pt">(iii)</TD><TD STYLE="text-align: justify">Presented in the consolidated balance sheet as follow: $585 and $22,442 at December 31, 2020 and
2019, respectively, within Accounts and notes receivable, net and $358 and $634 at December 31, 2020 and 2019, respectively, within
Other receivables.</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
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