James Crichton And Adam Weiss’ Scout Capital Management reported on November 10th for its 10.78% passive stake in Arcos Dorados Holdings Inc. (ARCO). The filing shows the firm now has 13.96 million shares in ARCO, which is a 48% expansion from its 9.45 million shares position in the second quarter. Scout Capital Management initiated its ARCO position in April, and reported 6.73 million shares or 5.2% stake in its 13G filing on May 2nd. Arcos Dorados is McDonald’s largest franchisee. The company initial public offered 73.4 million shares on April 14th. Now the stock is trading at $21.35, representing a nearly 50% return from its expected IPO price.
Scout Capital was founded by Adam Weiss and James Crichton in 1999. Weiss worked at Dan Loeb’s Third Point as a research analyst before that. He holds an AB in Fine Arts from Harvard College and a joint law degree and MBA from Columbia University. James Warby Crichton III is a graduate of United States Military Academy and Harvard Business School.
Arcos Dorados Holdings Inc. is McDonald’s largest franchisee. The company operated or franchised 1,755 McDonald’s-branded restaurants as of December 31, 2010. It operates its 1,755 McDonald’s-branded restaurants under 1,292 company-operated restaurants and 463 franchised restaurants. It generates revenues from sales from these two formats of restaurant. Now the company is also the biggest fast-food chain in Latin America and the Caribbean.