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    Eric Huang • Santander

    Eric Huang's questions to Arcos Dorados Holdings Inc (ARCO) leadership

    Eric Huang's questions to Arcos Dorados Holdings Inc (ARCO) leadership • Q2 2025

    Question

    Eric Huang from Santander inquired about Arcos Dorados's perception of the consumer environment in Brazil for the second half of 2025 and how revenue management initiatives are expected to boost sales momentum.

    Answer

    CEO Luis Raganato stated that while the challenging macroeconomic environment in Brazil is expected to persist through Q3, the company is confident in its solid marketing plan. He explained the strategy is to balance short-term transactional initiatives with long-term brand building, using affordability platforms to drive traffic while launching 'cool' products to build brand love.

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    Eric Huang's questions to Arcos Dorados Holdings Inc (ARCO) leadership • Q1 2025

    Question

    Eric Huang inquired about sales trends in early Q2 2025 for Brazil and NOLAD, the attribution of Q1's weak comparable sales to either calendar effects or the consumption environment, and the margin impact from higher beef prices in Brazil.

    Answer

    CEO Marcelo Rabach explained that NOLAD's Q1 weakness was largely due to calendar effects in Mexico, with a strong rebound in April. COO Luis Raganato noted Brazil faced a soft QSR environment but gained market share. CFO Mariano Tannenbaum added that while beef prices impacted Brazil's Q1 margin, they expect stabilization through pricing and cost management for the rest of the year.

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    Eric Huang's questions to Arcos Dorados Holdings Inc (ARCO) leadership • Q3 2024

    Question

    Eric Huang from Santander inquired about the drivers of food and paper cost pressures in Brazil, the growth and profitability of digital and delivery channels, and the potential impact of proposed labor regime changes in Brazil.

    Answer

    CFO Mariano Tannenbaum clarified that Q3 food cost increases were general, not protein-specific, but noted beef cost pressures are expected for the industry next year. COO Luis Raganato reported that digital sales grew 16% to 58% of total sales, with delivery up 14%, and confirmed that own-delivery has a positive marginal contribution. Mariano Tannenbaum also stated the company is analyzing the potential impacts of the 6x1 labor reform but believes any changes would be gradual and manageable.

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