Latin America: Big Mac index in Argentina 2020

Argentina is one of the Latin American countries with the lowest Big Mac prices. In January 2020, it was estimated that a Big Mac burger would cost an average of 2.85 U.S. dollars in Argentina, up from only two dollars a year earlier.

The Big Mac Index in Argentina

The Big Mac Index is an indicator that measures an economy's purchasing power. As it is mainly a standardized product, elaborated similarly across many markets, the evolution of its cost can provide insights into variations of real consumption prices in a given country. For instance, the price for a Big Mac in Argentina decreased by almost half from 2018 to 2019. This reflects Argentina's peso devaluation in comparison to the U.S. dollar and other foreign currencies in that period, caused by high inflation rates, among other macroeconomic reasons.

McDonald's in Latin America

Arcos Dorados Holdings Inc. is McDonald's franchisee in Latin America. The company's name was inspired by McDonald's famous logo, as 'Arcos Dorados' means 'Golden Arches' in Spanish. It manages the brand's operations in Mexico, Central America, the Caribbean and South America. Generating over three billion U.S. dollars in revenue per year, Arcos Dorados is McDonald's largest franchisee in the world. The company is also publicly listed in the New York Stock Exchange. Based on its market capitalization value, Arcos Dorados' net worth was estimated at around 1.7 billion U.S. dollars in 2020.