Froylan Mendez's questions to Arcos Dorados Holdings Inc (ARCO) leadership • Q2 2025
Question
Froylan Mendez from JPMorgan Chase & Co. asked for a regional view on ticket versus traffic trends and for more detail on NOLAD's performance, specifically how much of Mexico's growth was due to a favorable calendar effect.
Answer
CEO Luis Raganato detailed the regional sales mix, noting NOLAD's growth was two-thirds from average check, while SLAD's was more balanced. CFO Mariano Tannenbaum added that NOLAD's margin improved by 450 bps despite Mexican peso depreciation, driven by leverage on fixed costs, lower royalty rates, and a gain from a restaurant transaction.