Arcos Dorados Furthers Transition to Serving Cage Free Eggs in Brazil

The eggs are Certified Humane® complying with the world’s most demanding animal welfare standards based on the International Certified Humane® Raised and Handled Certification Program

Arcos Dorados (NYSE: ARCO), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, announces that has begun purchasing eggs from cage-free hens in Brazil. This is further affirmation of the brand’s global commitment to animal welfare while positioning the Brazilian market as Latin America’s bellwether in achieving the Company’s goal to fully transition to cage-free eggs by 2025, aligned with the McDonald’s system’s 2030 global goals of minimizing the environmental impact of restaurant operations and building a more sustainable supply chain.

“Our position as a leading brand in Latin America and throughout the world challenges us to continuously advance environmentally and socially conscious practices for the animals within our supply chain- this step is therefore extremely important for us as a Company. We remain focused on minimizing our operations’ environmental impact while reinforcing the sustainability within our supply chain,” said Gabriel Serber, Arcos Dorados’ Director of Sustainable Development and Social Impact.

The initial phase of this transition focuses on the Company’s Parana distribution center which supplies the Chain’s southern Brazil restaurants. The plan is a subsequent phased extension of supply throughout Brazil and the rest of the countries served by Arcos Dorados.

Cage-free systems play an important role in keeping hens healthy while meeting the growing consumer demand for responsibly-sourced food, enabling hens to move freely, spread their wings and lay their eggs in nests; vital natural behaviors denied to hens confined in cages. Cage free hens are kept in dry areas protected from predators or adverse weather conditions which may compromise the animals’ health and welfare. Arcos also avoids unnecessary use of antibiotics in healthy animals.

The eggs are supplied by Granja Mantiqueira (Mantiqueira Farm), the largest egg producer in South America and the twelfth largest egg producer in the world, which also is Certified Humane® and therefore complies with the world’s most demanding animal welfare standards based on the International Certified Humane® Raised and Handled Certification Program. These eggs are labeled Certified Humane® Brazil.

“This achievement was driven by Arcos Dorados’ unwavering focus on sustainability and on meeting consumers’ changing expectations and preferences, which has always been our priority. This is further evidenced by the many industry-related certifications we have earned, including the Marine Stewardship Council’s MSC certification for the fish used in our McFish sandwich, the Forest Stewardship Council’s FSC certification for our packaging and Rainforest Alliance certification for our coffee. We are proud to be the region’s pioneer of yet another sustainable breakthrough, and we remain closely aligned with our partners,” said José Valledor, Arcos Dorados’ Vice President of Supply Chain.

Maria Fernanda Martin, Corporate Program and Policy Manager at the Humane Society International (HSI) in Brazil, added: “We welcome Arcos Dorados’ commitment to embracing new technologies and strategies to ensure its hens are well cared for, and the steps the Company has taken to remove thousands of hens from their cages, improving animal welfare in egg production. We believe that in the future there will only be free-range eggs. We look forward to working together to extend this policy throughout other regions of the country.”