Melissa's questions to Arcos Dorados Holdings Inc (ARCO) leadership • Q4 2024
Question
Melissa from an unknown firm inquired about the primary sources of food and paper cost pressures and the company's strategies to mitigate them for 2025.
Answer
CFO Mariano Tannenbaum identified rising beef costs in Brazil as the main pressure. He explained that Arcos Dorados is offsetting this through menu pricing management, supplier negotiations, and the benefit of diversification, as costs in the NOLAD and SLAD divisions have improved. He expressed confidence in maintaining the adjusted 2024 margin level in 2025.