Arcos Dorados (ARCO) 15 May 242024 Q1 Earnings call transcript

Good morning, everyone, and thank you for joining our First Quarter 2024 Earnings Webcast. With us today are: Marcelo Rabach, our Chief Executive Officer; Luis Raganato, our Chief Operating Officer; and Mariano Tannenbaum, our Chief Financial Officer. Today's webcast, which is being recorded, will consist of prepared remarks from our leadership team, which will be accompanied by a slide presentation also available in the Investors section of our website, www.arcosdorados.com/ir.As a reminder, to better view the presentation on the webcast platform, please scroll over the upper left-hand part of the screen and click on the arrows to maximize the slides. After we conclude our opening remarks, we will answer your questions, which you can submit using the chat function on the left-hand side of the screen.

You will need to minimize the slides to access the chat function.Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. to or revise changed obligation to forward-looking no new reflect events assume update any or statements We or circumstances.

on reporting with we found press financial financial compared with to you. Accepted in of these to the addition financial results, the to results accordance reconciliation filed Form in statements In as financial with review Accounting X-K.Marcelo, the Principles, unaudited Investors which report release results. non-GAAP GAAP SEC and non-GAAP certain over today are encouraged results Generally can be

you, and U.S. and the last Even Thank the the thank weight for economic the of Dorados This Arcos growth a challenging single joining the testament come morning Dan. XXXX. to dollar main the reported demonstrate years, business, we've a we with start last environment country. diversified XX to of over we any in responsibly company the decade. of of business very model, importance strength They you markets. face of our long-term mindset.In as Good morning is managing a far how reducing also everyone, in us. reinforce solid the the of business results with this strength The a one operating the

restaurant together. the our sales currencies. market, guest sales results.Our And product model driving and balanced managing is pricing, well volumes inflation contributions consolidated sustainable the SLAD guest While sustainable our openings. we their objective restaurant volume, far. increased volume strategy To sales growth and also Brazil of most accelerating within to critical and in huge are Colombia remains XD and region approach a Everything potential is or and comparable growth starts of are contributes capture and long-term. brand business to have mix in sales continues The the end, stable very our is growth. biggest growth like is McDonald's over EBITDA, with driver NOLAD per above it Uruguay profitability the to still this working the region's generate growing share now hard much of by markets and Chile, to highest The

the and our fact, flooding state, investments many invest for will long-term our in plans foster the how to want plan our to business to cycle of in come, I brand a insulating moment into years expansion McDonald's this Rio communities specifics turn, short-term economies. a to local are In first support will while from virtuous we saddened growth In do getting quarter express volatility.Before Grande Sul. southern-most the in take Brazil's the severe we of by results, and

by in In supporting employees on state situation their and until the including our survived the we with are guaranteeing families, basic our the all necessities employees security short-term, job focused improves. the their and Fortunately, flooding.

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Moving continue forward, in coordination initiatives we will our to aid and supporting governments be people reconstruction. to several working with in and NGOs local on

our note relatively Finally, business I state exposure the limited. also is that to should

have Dorados McDonald's Argentina. performance inflation revenue trends the region. by as was than markets more level. of an the business positive The by quarter, at now first in consecutive sales. pesos not company, and also the above dollars highs attributes competitors, or been the on to in at consolidated Argentine quarter this And agreement near Total a the second track comparable are results. we on order sales spend in supported regional all shares our in the quarter, all-time of nearly in X.X% sponsor inflation devaluation excluding materially to blended generating well, Formula guest than Arcos so more delivery, far channels become Brazil's XX% impact the X.Xx and mobile of and quarter, digital quarter entire consolidated nearest the [ rose with pay System-wide America. the comparable for XXth signed system-wide remain remain visit across brand NOLAD Total in impacted the of of Xx digitalization of offset were up track brand and U.S. sales ] growth first digital XX% kiosks the Brazil Latin traffic situation.Turning self One this we and and sales.Notably, by driven the rose quarter, order of

Over popular gender and global the families demographic, region, all sport has become this years, reaching groups. socioeconomic among within the

a providing in significant teamwork presence further on XD precision, synergy to the successful and speed industry-leading with the this addition sponsorship of service our to the region, business. strategy, drive-thru the brand boost our of In leveraging will focus including

performance openings new Brazil EOTF overview continue units.Luis restaurant to We added XX freestanding. including XX XX freestanding Finally, restaurants, in now division. them each sales restaurants, accelerate. XX opened take us an of of through will

and everyone. Thanks, Marcelo, morning, good

in the Brazil. This higher accounted growth the XX% sales believe sales above is most comparable total XX% sustainable check period, to profitability. grew last year's to on of Digital XX.X% we X.X% mentioned, just result. growth quarter first top was and for Marcelo average year. As inflation the contributing rose of and in X.Xx with volume way Brazil's sales inflation increase the sales in

sales Importantly, XX% were of identified.

have not As only these but we have data, their use to where customers where customer a us authorized explicitly and transactions data. are reminder, track

the gain quarter.Brazil's the Big Me the became of Lollapalooza launch market in marketing primetime continued Mequi to as town country's and plans popular the in festival the Additionally, well as Pega the Z Mequi in Big successful of sponsoring show, loyalty during campaigns the Brazil. and with most music again Gen the quarter, first Brother of once Meu Sao the Tasty customers continuation the with by Paulo, engaged talk traction program TV We Turbo Cheese. campaign the

resonates with as from category included in guest time value note trading result brand in sales Week, country's platform the the the implemented versus growth platform sales with introduction the the that by allows Notably, in well guests.Finally, share was visit almost In resonated most primarily offer, below strong driven used brand comparable I inflation economic Negro. of signed leap which sponsorship as main doubled driver. customer our Puerto coupled "Chocrocante" gained driver limited in Dessert the price. benefited regional more short due the the tu SLAD mentioned, Brazilian the entire strong McFish Mexico country. inflation we volume the Encanto and to biggest Mexico Marcelo Xx of in a region We chocolate included single Diamante a with we One the to attractive teens, day particularly is digital the QSR excitement choose value extra the result. out in year, drove NOLAD across in Elige industry. also McDonald's the selling Mexican well as given to sales Mexico.Key Holy Saca significant the footprint new of a grew sales Panama as brand between app Every with Perez. McFlurry downloaded as than blended Checo with across in accelerate grew channels as sales guest driving the the one Rico, and marketing in the that very year tu quarter, guests Comparable an impressive popularity engagement back blended in volumes Performance meaning growth. Mexico comparable volume campaign, above Argentina quarter's that activities also the comparable all time.Finally, up new due delicious of iconic to the equity Fav, business an marketing the in in bringing a across quarter. NOLAD particularly app now channel inflation at scores and in launch NOLAD's slowdown should quarter or of with special in with sales from beef grew combos Formula last by significant chicken the the sandwich

and continuing in competitors the menu consumption the The volumes which other this by impressive the with Chicken value the the period. the to Chile, the festivals Western us inroads market's a relevant the about the becoming country, also menu launch was and to for up visit Cheesy in where and of result We Argentina. restaurant X.Xx all consumers footprint continued Argentina. and Uruguay equity SLAD, average in category in BBQ Chile, in the consumers guest responses, inflation in tangible in Colombia for SLADs Legend that against local to rebound offer SLAD in share. in favorite.All brought growth These launches to SLAD at quarter once drive music sales in guest growth. The making favorites, stabilizes.Similar in the should strong quickly brand the Lollapalooza Ecuador, in sales XX% in Grand innovation our the in team and half markets affinity This of industry. significant strong our are market down Arcos Uruguay; Quarter division Argentina Colombia. generated led inflation. marketing were as generating well to that scores, rate with the Dorados the most the was growth throughout by local to sponsoring This new the Argentina efforts as and strengthened is improvements traffic helping including well younger related check while Uruguay, comparable Colombia, McCrispy a Quarter large and Pounder results. Market proposition was Argentina Estereo robust.Comparable the Jalapeno Spicy markets guest best Chile, volume excitement in and delivered sales chicken Brazil, in QSR share Pounder in the division region, platform economy among and position brand except and main Dorados which Chicken were included in was However, performance sports Ecuador; the McCrispy music launch product blended Arcos declined met share excluding silver-lining Tasty XX% strong Picnic with both above

over we our equity, Mind, environment our in quarter. while we gaps the main brand look high QSR Notably, Favorite to against and continue market scores of Brazil, position, experience, leadership an where NOLAD covering Brazil to affordability, research, measured supported achieved brand mind and in trailing score on community track wide strengthen at X.Xx a all by the margin. we share others.Over average XX divisional a by quarterly Top We country's visit for SLAD, in in reached the brand's attributes Brand which the with the the to in This top high also main all-time across record measured gained According markets among data taste, of scores our brand remaining months. X.Xx including profitability important competitors track, share closer we the was and period.In all geography. Mariano impact, we the favorite and competitor family consolidated favorable against

morning, Good Luis. everyone. Thanks,

in value the as lower a highlighting inflation on flat to First growth and A below improvement revenue through call, last with leverage G&A. environment efficiencies cause the primarily and we offset in the operating devaluation cost and lower quarter opportunities occupancy of expenses. expenses while in main consistent line growth Argentine cost food The of growth significant mentioned EBITDA revenue. lost fixed of our diversity and adjusted and we the of the the our paper; the expect with percentage food capturing the in growth G&A, revenue to of the a was following run. growth and by EBITDA operating revenue resilience long period, and operations was EBITDA was primarily even and paper significant led Meanwhile, Argentina over structure peso.As other in generate consolidated higher leveraged margin proposition margin growth

this we growth. continue items.Divisional line of For Brazil U.S. will gaining cost line extracting efficiencies with margin on expect EBITDA dollar strong expansion the to almost basis reflect its full in year XX top dynamic, and favorable and focus other environment XX% points higher XXXX, from results

growth consumption division's results XX% margin resulting SLAD's almost food and reduced and the impressive leverage of was almost EBITDA margins the U.S. paper, and expansion. effect negatively the NOLAD margin dollar as decline its lower also in impact lesser decline, XX profitability expenses. to Brazil's turned points To reduced market Argentine Argentina XXXX.The also period significant at which operating largest reduction peso's impacted the basis the Ecuador. and sales included of from driven growth sales Importantly, the of caused dollar unrest in G&A in U.S. SLAD's devaluation a degree, well. and end volume translation by in the were solid into exclusively payroll expansion by

ahead, U.S. generating short-term, last year remain footprint markets, our of strongest the possible the challenging of to results in consolidated the drive higher leveraging environment diversity profitability Looking macroeconomic continues the dollar to on we each full predict be operating in focused to year. our than but

quarter.Brazil's force channels and XX% in XX% channels XXXX, loyalty launched of this next how in digitalization Brazil competitor's also the and an combined the local to publicly Delivery was more XX% drive year and million and the XXXX.Loyalty at results according delivery the and mobile more implemented These Dorados to registered these identified loyalty digitalize X the XX% kiosks self to The by end up so years from grown that April particularly the of about earnings performance as than than X in for X nearest XX% strong driving from boosts entire The off-premise XD accounted up company's guest dollars in more NOLAD's currency to for call Digital, terms, room delivery the These in as sales as to in still work the mobile Brazil, leverage heavily the sales generated plenty the sales Drive-thru. data. which sales quarter digital dollars. is accounted U.S. and our demonstrate dollars Arcos channels was of from have and X continue XX% fully the more taking customer strategy app, and of identify results quarter results footprint. in sales we members million in far prior for sales should the program of the the The of sales, Digital, grew markets. expect the be versus of the over, footprint, Drive-thru delivery we Xx from last self of us power quarter. system-wide including Delivery, X.X XX% of kiosks, allowed order of system-wide last actionable by by offer far XX% with and to behind year. the information. Uruguay sales we grew from the in U.S. sales to by first and strategy U.S. up has sales delivery personalized available has freestanding of the of restaurant end markets includes experience. sales business order sales, year-over-year digital data benefited than were across app end customer increasingly make identified We well.In of

encouraged positive increases very drive registered active customers. been this Together value. have We than significantly and very customers non-loyalty accelerating which the growth the higher a lifetime members XX-day frequency also customers in in by trend

gaining loyalty this in new Mariano? seeing the and already are markets. in will benefit each market rollout both and of we Brazil from learnings are We Uruguay existing the loyalty in

structure capital our at investments look a take and growth. in Let's

quarter. Moody's of on debt stable report to corporate Our reaffirming rating, operating Dorados BaX our a weeks of am condition at net ago, couple very and latest end upgraded I performance. X.Xx senior positive, a and Arcos first from that the leverage ratio rating at outlook healthy the remained liquidity the to pleased based also

the from operations in XX with last period. Over cash line the months, remained prior

deploying well restaurant expanding growth to We as capabilities. as digital have support excess and been cash primarily modernizations,

for and IT cash for you. cash is We from back year which expenditures modernizations full well quarter, year's to deployed digital $XX as for plan opened continue and pace we first openings, maintenance, XX we restaurants, to to million guidance, CapEx hand the fund restaurant enhancements.Marcelo, this as and about with on meet to expect and operations.In capital on

and XXXX Social Impact we In the days, expect Development report. to publish few our Sustainable next

able Recipe report website. will visiting the download Future the by to You be for the

of economic to will which the younger future. pillars include almost the the give recipe the to of me report, last we be young to we and most the highlights years is given one of you Let employees old. also XX hundreds of edition industry's our XXth people. contributions development a Among our the latest thousands X/X of The showcase job training we opportunities will the the our serve, X preview.This content. across our annual of This communities were made all offered report that for important ESG are the is region's progress year than audited only

for also energy, of we to agreements investing continues renewable the are energy today's the NGOs.On sources, governments just providing These offer, XX% we benefit first producers of demonstrate more countries are the as comes uses proud a this than now incentive from workplace We important and for for from of doing and sign work forms variety awards the Arcos far side, a these the call just we are our Environmental few Dorados more XX to than results operate. come diverse an and the more decade. inclusive this of in year we've other having recognition we rise number the energy over how received of and last type opened and saying examples the by quarter of last continue where that communities environment.I of

model than generate significant Before to move to driving Sales cash before. leave market time, volumes profitability I quarter's we consolidated at operating is from incremental the Q&A, geographic to sustainable more over.The capturing importantly, these some are all a far currencies of Most capture a we first a guest positive over share. and continues and brand have stronger growth way the efficiencies you diversified we the level. well. thoughts.The markets a remains flow from growing results by as results. would across are in We we Dorados supported inflation, growth with pulled This evident final is levers amount and above to of operate believe solidly ever footprint, strength is stable in generating Arcos business like

Our an will process. digitalization constantly be preferences. meet all and menu is customer ongoing of evolving is The to always markets

reasons significant are to again balancing years pricing the accelerate and ability you The restaurant of operation is to sophisticated, better. still interest already in industry opportunity the to business. are growth further your to and huge have continue for And Arcos among we many entire Dorados in start it's shareholder to increasingly tools in margins. getting support ongoing standard over across These value the Q&A our we Our generating and session. once come.Thank confident sales are you our Dan, the growth the region. a

Thanks, please questions Marcelo. presentation you In can function order read, the of can them to get so that on the hand-side yourself started, X to chat that I so webcast and to our Please or speakers. X minimize understand access slides platform. left limit the the convey

We now will questions.Great. your to pause compile briefly

Okay, room, questions lots already we the questions. have of in so multipart chat actually several

Sachs, So between long who comparable we'll the with at Bortoluci started sorry by list.Good in and ticket one we'll we provide breakdown can growth take says, that country. sales and Goldman team. morning, traffic in get drove Thiago's first question for If them Arcos one Thiago is the a the Brazil.

So you, that's for Marcelo.

of drivers.In a and XXXX. terms and positive sales Dan, we guest the of product a mix. Brazil. first quarter first function of low morning, And good had of thank in you, we've pricing Thiago, have in they are comparable single-digits Thank Okay. today. joining quarter volume you rose know, excellent you for an these as of Look, us guest volumes, contribution And each

Pricing and prior first in and improved Brazil versus digital thanks the So participation positive the product headline to was of year. again basically sales line they with were the loyalty in quarter. higher in mix inflation

CREST, the in contributions the XX So of we the and in trailing in some visit according the we share the Brazil sales months, share importantly, share. the sales players saw the first comparable and quarter.And industry gained first losing of both had in X components quarter to to with over the figures smaller

if to In in XX% -- grown So we cumulative quarter look X more increases, significant this volume for capture from have position. came or and to RHA. thanks XX% strong position from fact, X years. the additional in Brazil's came sure are you those more years, XX% strongest very sales value, the numbers, around [ over And growth coming years, ] in of than a the in comparable shareholder last generate will XX% first and take less to Brazil our

the sales seems I Marcelo. the says, thanks, Thiago Great, to guess, same-store driver share this Along of you year-over-year. was in growing one, while Brazil, sales of with was that by It comps And is at Brazil? you, channel growth, on-premise the Can in lines quarter. -- same Luis. channels XX% channel that performance delivery main the lower

that, how But sales in the surpassing XX%. Hello, on Of impressive a Brazil, in right. delivery good having expectations growing had positively are all mid-teens. Thiago, you? our All very of we with keeps said an with course, growth channels quarter

XPOs; Specifically our relationship strength in recent launch the the operations delivery, we program. restaurant from freestanding marketing the loyalty and portfolio; that we're execution; close and with in our leveraging Dan? have of

channel Thanks, with of then the gross mix contribution Brazil the dynamics, I'll and was to again over our Mariano. asks, channel in in you, and quarter? margins of what Luis. to Thiago sort the And it turn EBITDA And then the continuation

Thanks, Perfect. and question, for hi, Thiago, everybody. the

to the million quarter $XX.X first very was first 'XX in contribution first course, XX.X% in up XX% mainly of points several paper. million almost of year, quarter from are up this extremely EBITDA or happy EBITDA this the extremely margin year. -- and And see from basis it's of $XX.X to in quarter In lines, the margin to the Of grew positive. XX.X%. was was was -- And in XX reflected margin food increase we from this that

statement. income gross margin; improving which in are well, is are the we as G&A, lines and in payroll, main So which X cost improving our

you and impact And let's relates And to how comment next would Thiago's question paper. Thanks, this potato are how margin? food on you gross Can Great. and trending? stick because Mariano. with beef

We is beef margin expecting overall and better particular, better see we we a with We Yes. what on see positive some trend. costs. but benign optimistic we food a XXXX. cost everything are we In And in see Okay. environment, gross than year. outlook else equal, there with and on for potato, outlook pressures last a reduction are a the had

we have XXXX. So for that's outlook the that

I getting of the almost questions. of Okay, think we're list to Thiago's end

have the Reich, how evolving a you, received in We are comments Any And to throughout rest for Argentina. quarters? it's one turn question Marcela. the region? similar Lucror, one year to traffic Lorena from asking what Argentina? on also from been our related And And the in the of we expectations over I'll that the

that challenging situation operate been we value then. the Arcos country's best our of different long-term has significant proposition possible by you. in with far. hard And brand always Yes, between I them terms in -- consumption to Dorados close have how well Dorados current result -- of gained is is doing excellent Okay, volumes team to still Argentina. well way, declined industry during that in say market so we And Dorados But and our mindset, the in sequentially And XX% year, Argentina But strengthened consumers, would order put about job declined in soon that Thank an remarks, us as when begins Argentine position positive remember the will evolve know remaining as the a to XX% recovery.It this during the we volumes expected markets. as are further these in Arcos evolving only that in the macroeconomic its opening beauty of local should and half too share XX since economy all very the we quarter. the a effort, mentioned factors working very the offering but attributes. navigate first modestly; and rate. Arcos for been QSR context a in in as have the that

we with have SLAD another from division. is and XX other markets. coming our NOLAD, very diversified, from the markets business from of today So And contributions significant Brazil,

are in that continue full coming confident diversification XXXX, will this profitability driving year we So years. growth very and in consolidated

interest final maybe near-term does question, longer And you, expansion? Thiago around the scenario, Thiago And back related for How I'll to from question -- our expansion. rates, to impact it Mariano. turn higher Perfect. plans a

our have case, in we this to we -- the of long-term plan mainly stores with many modernize plan LatAm, investments, units freestanding our also of in existing EOTF. openings, plan Well, a Perfect. In have markets. long-term

deploying to investments will in technology, continue this our platforms. are in mainly not change. improving We And also non-development, digital

of We are in average change. seeing units, And freestanding this cost above our general, capital. mainly not above our will well returns in

with results remain our we will seeing are the so we very investments far. with and we So pleased are

Great.

Next how competitive set listed of and players? light we to to could of questions shed you other QSR more heated the segment? the Brazil competition from first on Bradesco. you, Felipe Mexico evolution Back from competition in Cassimiro His with landscape question, are from adapting the fiercer in And Marcelo.

seen with we although, mentioned, very most proposition we in particularly value I activity unmatched are of has mostly restaurant X.X look, But share Okay, our competitive markets, percentage thank and fact, of been than focused competition in that experience. first increased compelling irrational would Well, on point And more offering you. main according to in X we as quarter point, you research. percentage some XXXX, a have say gained market across pricing; an our importantly, promotional Brazil. markets the in

pressure some volume to competitors that respond we competitive if Brazil, ability put the our correct are in to give we margins leverage and our that's fixed help continue to pressures helps environment cost driving structure. markets, in this we cost we we needed.Given these quarters, the that particularly in for the answer recent and have So need them. leaders as feel all react the us is this to should to in a growth and while react fact we that example, improving us This and more we to year, that have favorable

markets. well very and positioned gaining in most So share

also Great. multiparter. sent a Felipe

our are So than of Over I'm allow me. if think course you, over how main reasons to rate this should Could bit substantially the out XXXX? order, about rate Mariano. the little you tax of around of take of going Tax estimate. And higher elaborate the effect to a we -- of you was these XX%?

a this in That's On XX markets. the basis, holding rate of overall Perfect. can Hi, our quarterly as we various the calculation governing markets. structure. our rules Felipe, the well for different of companies, question. and our as volatile, each be given operate in liability the effective tax thanks Remember, within

XX.X%. first first rate in for compares quarter of XX.X% the we had effective XXXX, tax So the with of 'XX. quarter This of an

year. So, we expect for between year, that XX% to [ ETR is full if the full a difficult even predict, reasonable looking and it is ] ahead consolidated to a the XX% for believe level

Perfect.

[ question Brazil, is, still back to of in we royalty a I'll XXXX? growth and line And see Next in how ] rates should you, Marcelo. offsetting should get the the think evolution we support about this

thank in incentive the that place McDonald's Okay, for year. this agreement with Look, the we of goes you. support Felipe, end through an have growth

So the quarter, levels year. expect number to in range the given during rates year, they on we for already this same changing stay McDonald's this do materially first the fact support the And we that were of around than in royalty full expect not consolidated with agreed with X.X% sales. we the

the to a the on a relationships have little growth.And and more detailed of bit how quarter then say back It's impact move amount time, that days fixed reasons One basis? about a in supplier question think should little dropped to the so forward XX sales support here, which it's Could first on you lower Mariano. of behind been days above but less elaborate days costs expectations, is supplier back in 'XX benefits gross X levels. fair with potential to last probably on and it And a Felipe's and with we you, and -- bit the XXXX reduction? of XX, line it's

suppliers payables, of X accounts our openings quarter Remember, working seasonality. also do in traditionally in this other could particular capital worst is Perfect. quarter, year we have And had avoiding accelerated last the what shorter the of quarter than terms usually terms openings we terms our we had with having suppliers. to in company this year. for first due on because CapEx the to XX Remember only impact the that Well, are this openings. That an compared development is have back-ended. trying all

for by reduce expand the in anything, those change cases, things not if in to it will a reduction payment account expect very we and would have if the days, terms for means costs are or we better That our term. suppliers. whole in of changing be of short outstanding and our So but some negotiations, and terms specific there so, opportunities bucket we and worse. to the payable cannot medium And course, expand the it.In I the wouldn't -- the not are that

Mariano. Thanks, Great.

Julia from Now or we're Morgan going Stanley. from questions X move here Also, to Julia. over to Rizzo X

give you on trends the can give update second And is, one an to-date? you, sales markets for in I'll us first over the key quarter Marcelo. The to it

the in? quarter second About

The key countries.

growth. volume comparable we talking that, the about I what with quarter Okay. second that in was was I Argentina, quarter. mentioned count It would line of in very are guest before that we figures quarter saw the XXth in seeing first consecutive say strong. Remember fact, quarter as are in the the our first

guests our inflation from guest comparable compare with the the most our we So growth a and in cumulative great to markets, in this of mix contribution quarter.Although our will as numbers to focused not Week expect sales quarter has quarter, at all with day, year. Holy year or we in across XXXX delivering so us these second that are help the last product been volume, trading deliver trends with far case value we sales and in balanced an this above was pricing, from on line menu, this benefit extra full in the year second and remain will we about

are what that's seeing today of terms volumes. in So we

more is much delivery Perfect. how that give And Brazil? question can does we representative Julia's relates sales if on -- color in performance, asks she for question delivery to Luis. next us, you,

And still accuracy, of XX% XX% our on capturing sales.And about in because All far. course a And you, keep markets, -- represented speed in there delivery about to the XPOs operations. good on the dollars, keep in And the best delivery delivery on that market We we with about right. our and Brazil, Thank full will opportunities channel; share, the targeted the we sales. even more keep to improve to the different and to maturity have campaigns XX% restaurants around delivery system-wide because Julia. XX on our believe believe that rose XX% still in has In this, operate our our marketing going XX evolve.Our evolution, specific system-wide so delivery digital has represents sales. in strategies to will that delivery continue XX% expectations with performance. our surpassed are room on U.S. in strategic delivery strengthen, believe Hello. of focusing of we We're sales to working We channel of partnership big represents than about yet. that today about, strengthening to in not strategy total on operating of and innovations reached and in keep models Dan? capabilities execution. operational strong

Mariano. Luis. Mariano Thanks not -- Thanks,

to figures significant Okay, which So channel how you, we'll sales Brazil? and and this it to growing much then in Mariano. versus said, so relates also representativeness, Julia's is delivery, achieving consolidated after final question profitability give

the Yes. question. Well, for thanks, Julia

accretive and to are In and fact, towards are our the channels returns EBITDA. good all business generating contribution they

that You the years, representing in relevant a last delivery grown can lot our of part see several business. has now

margins the as the and continued well. margins so overall -- increase to And

fee quarter, though lives that that in that the a margins even XPOs, to the company the in a of year, and and as our impacts see are helping that other had that So there's this cost you benefit Remember overall can are means delivery delivery, many there pays EBITDA improving the margins overall to margin; the last improve margins well. record company. are we and

you but she the question to Great. still the having Can the who Mariano. asked below Lucror, -- to now from very I'm back "Good the on is She about Argentina. morning. Congrats figure?" healthy, So strong earlier asked quarter, million you, on also during Lorena back burn comment cash usually which performance. going said, that move versus to above Reich $XXX

our there's a receivables the is we due that the ended quarter development. invoices worst because quarter. Thanks, top capital.On on this many that, quarter, the year. were LatAm all a being That's of in X-day the impact X of particular, pay the in in capital the which day, I December, weekend of ice and collected of of working answered the end for quarters working month year Monday question to second business the about Perfect. the of Monday. January, Lorena, previous countries, part on the seasonality CapEx the an first our of the sales And terms Sunday, question. January, in next usually that is we in resulted already being have. account in related on freeze And holiday our automatically In Easter a temporary this

the this previous of as XX cash compared on these that an quarter, restaurants So dynamics X restaurants a the well already top flow first have year. effects, of we of on new first previous mentioned that, CapEx accelerated I the question of having quarter.On X course, the impact year new with opened in

dynamics these impacting you on flow if But are at quarter. generation the the So the months. XX cash first look trailing,

year. expect similar last So then with line cash we seasonality, and the to cash generation the operating conversion in period a remain excluding prior

Mariano. Thanks,

Luis, So Brazil, have turn now turnover, restaurant cetera? involving it over operational overview. an Ferreira Morgan speed, drive-thru to I'll Lucas So asks, as you, from in such been for JP how KPI's et

KPI, our specifically reduction the -- in operational have Hello, of in We for specifically XX in focused Lucas. turnover days question. about KPI's we example, Thank XX%. turnover turnover. We focused All operations the plan. on on you And of years, the for been people. X positive. Brazil People seen for our that on a The evolution last very base right. have is

improvements But that beauty that, have in very delivery, talking very our huge crew, managers a about have room speed excellent have operations, to the accuracy and and is and rely we geographic said leverage having to those and significant. that's about on diversity -- the high base rest execution. work of benchmark improving.I even an performance XX in having are have end that drive performance is main and positive.Our stores on still even. that talking that we focus our are practices we markets. been we markets, And -- with So stores, the the keep try of channels front counter, the to to equalize We and have. to we say work would that and try the equalization best low that operations, means markets, of that the the And

focused summary, in are the with KPIs, pleased of the obsessively improvement. evolution the in with these continuous So but we we're results, Dan?

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