Melissa Byun's questions to Arcos Dorados Holdings Inc (ARCO) leadership • Q3 2024
Question
Melissa Byun of Bank of America asked for an update on consumption trends and the Experience of the Future (EOTF) rollout in Mexico, how the company is offsetting labor cost pressures, and for details on its food and paper cost hedging policy.
Answer
CEO Marcelo Rabach described Mexico's performance as 'extremely well,' with strong volume-led comp sales growth. He noted that with under 40% of restaurants modernized, the EOTF rollout and digitalization represent a significant future growth driver, and strong sales are helping leverage costs. CFO Mariano Tannenbaum explained the company's policy is to hedge 50% of projected food and paper costs 2-3 quarters in advance across five key markets to reduce volatility.