Jack Gater's questions to Arcos Dorados Holdings Inc (ARCO) leadership • Q2 2025
Question
Jack Gater from J.O. Hambro Capital Management requested an expansion on the changing competitive landscape in desserts, the margin profile of dessert centers, and their contribution to total sales.
Answer
CEO Luis Raganato stated that dessert centers accounted for almost 10% of total sales as of 2024 and carry significantly higher margins. He acknowledged increasing competition, particularly in Brazil, and said the company has implemented a solid plan involving aggressive pricing and product innovations like the Grimace Shake to counter it.