McDonald’s Latin America Sales Slow on Less Spending

March 25, 2009

Source

McDonald’s sales growth in Latin America will slow this year as the recession curbs diners’ appetites for Big Macs and Happy Meals, the region’s largest franchise owner said.

Woods Staton, chief executive officer of Arcos Dorados SA, was optimistic for a sales increase of 5 percent this year amid mounting job losses and the financial crisis. Closely held, Buenos Aires-based Arcos is the owner and operator of all McDonald’s 1,750 restaurants in 19 countries in Latin America from Mexico to Argentina.

The chain’s sales in the region increased 26 percent last year to a record of more than $3.5 billion, Staton said today at a press conference in Buenos Aires. The company, the largest franchisee of McDonald’s restaurants in the world, will open about 150 new restaurants this year in Argentina, Brazil, Colombia and Venezuela, Staton said.

“If we grow by 5 percent, that will be good,” Staton said in an interview after the company released its results. “It’s a recessive year.”