ARCOS DORADOS HOLDINGS INC. Investor Day 2026

All right, we're all set. Good morning, everyone. Good morning.

Welcome to Arcos Dorados 2026 Investor Day. It's really nice to see so many familiar faces in the room. I'd also like to welcome those of you joining us via webcast. Thanks for taking the time to be with us today. Before we get started, I need to read the following safe harbor statement. Today's presentation will contain forward-looking statements, and I refer you to the forward-looking statements section of this morning's press release and the recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. In addition to reporting financial results in accordance with generally accepted accounting principles, we report certain non-GAAP financial results.

Investors are encouraged to review the reconciliation of these non-GAAP financial results as compared with GAAP results, which can be found in the appendix section of today's presentation, as well as recent filings with the SEC. Woods Staton, our Executive Chairman, will get us started today. He'll talk about reminding us of the keys to success in the QSR industry. Luis and the rest of the team will take you through the pillars of focus that he laid out on his first call as CEO last year. We'll close by quantifying how we expect all of this to translate into long-term growth for Arcos Dorados. After that, we'll take your questions. So get ready, get set, and let's grow. Woods. Thank you, Ben. Welcome, everybody.

It is nice to see all of you here and some of the familiar faces and familiar names. Thank you all for joining us today. Today, we will take you through various aspects of the business to show you why we believe Arcos Dorados is entering a new phase of growth. Before we do that, I think it is important to remember our journey. This is a year of milestones for us. In April, we completed 15 years as a public company on the New York Stock Exchange. In August, we began the 20th year of operations of the current version of Arcos Dorados. In November, we will celebrate the 40th anniversary of the original Arcos Dorados that I opened, which was in Argentina 40 years ago, and it seems like just yesterday.

In each period, we became an integral part of the communities we serve while facing every economic, political, and social change, and there have been many. I am happy to say that we have weathered all of these changes very well. Market share for McDonald's in our markets, the brand we represent, has never been as strong as it is today in all of the 21 countries we operate in. This is thanks to great brand metrics, strong operating performance, and high customer satisfaction scores. The bottom line is we run great restaurants in our markets, be it through the front counter, drive-thru, delivery, or over the 3,000 dessert kiosks that we have. I would like to take a pause here to tell you what I think I am most proud of, our people.

We have roughly 120,000 employees in our system, and we have been selected by the Great Place To Work as the number 1 best place to work in both Argentina and Uruguay. We are number 4 in Brazil, and of all the countries in Latin America, we are number 4. In other words, these are not dead-end jobs that we create. One of the main tenets I have always espoused since we opened the first restaurant almost 40 years ago, is that we build this company based on meritocracy. Each of the people you will hear from today is here based on merit. Whether they began their career somewhere else or as crew members in one of our restaurants, they are here because they have proven themselves. Each one of them has a level of operating experience and local understanding no other management team in our industry can match.

In fact, Luis here started off as a crew member in Córdoba many, many years ago, and he rose to the level where he is right now as CEO, just like his prior successor, Marcelo. We understand what good, friendly service is, what cooking up good hamburgers is all about. For us, value is a combination of great food, good prices, and especially great service on which the whole business is built. We understand the importance of running great restaurants. For restaurant guests, we are only as good as their last experience with us. This is why we place so much emphasis on being great operators every day of the week and every hour of the day, on consistently offering the best experience in the industry, bar none. When we began, the experience was almost entirely inside the four walls of our restaurants and mainly at the front counter.

Drive-thru was a novel concept with low adoption rates. Delivery was a figment of our imagination. Digital was way beyond anyone's imagination. Fast-forward a few decades, and a great experience extends far beyond the walls of our restaurants. The winning formula in today's QSR industry comes from allowing guests to choose when, where, and how to enjoy their favorite McDonald's, their menu items, and this is an omnichannel business. Today, we want to show you how we have been strategic in our approach. We have a business framework that cannot be replicated easily through our portfolio of modern restaurants, the platform of digital capabilities that we have, the high level of brand engagement, and data-driven decision-making ability. We've worked extremely hard to capture the brand opportunity while also positioning Arcos Dorados for its next phase of growth.

We've invested a lot of cash flow into expanding our footprint while also modernizing the existing restaurant portfolio. We've taken the best the McDonald's system has to offer in terms of tools and know-how, while also developing in-house solutions to meet our specific needs. I don't need to go through a list to convince you that we are living through some challenging times in the world. Fortunately, Latin America is far away from the conflicts and geopolitical events that have impacted other parts of the world. We clearly have our own issues to deal with. We are also a major agricultural producer with robust consumer economies in all of our main markets.

When I think about the three aspects of the business I just described, the best management team in the industry, a deep understanding of what it takes to run great restaurants, and a region with so much potential, I am convinced we are embarking on a new phase of profitable growth for Arcos Dorados and its shareholders. Thank you. Luis, over to you.

Thank you, Woods. Good morning, everyone. When Woods and the board trusted me to become the company's next CEO, I accepted the opportunity and told them I had one main goal in mind: creating value for our shareholders. Today, we will show you some of the key initiatives we're implementing to reach that goal. But before that, we should look at where we are today. More importantly, we need to understand that we're here by design. Each step we took over the last 20 years had a strategic purpose to consolidate our position as the best QSR operator in Latin America. Today, we're operating from a position of strength with more than 2,500 restaurants across 21 markets. We are by far the most digitalized, the most accessible, and the most engaged restaurant brand in the region.

This scale of market penetration is the door to the new chapter of growth we will share with you today. Let me provide you some perspective on what we mean when we say growth. We are part of a global system that generates ideas and tools that we can benefit from. Let me be clear about something. When we implement those ideas or put those tools to work, it will be because they make sense for our business and our region. Because at the end of the day, it is our job, it is our responsibility to increase sales, earnings, and free cash flow as sustainably and as consistently as possible. That brings me back to our goal, creating value for our shareholders and the three pillars of focus that are guiding us into the future.

As you just heard, today's business is about exceeding customer expectations in restaurants, at home, and in the digital space. It means no matter where guests choose to have McDonald's, we need to maximize the experience through menu, quality, service, and cleanliness. These are foundational elements of Arcos Dorados' next phase of growth. Tomorrow's business is about preparing to meet future guest expectations and ensuring we maintain the leadership position long into the future. You'll hear from both Santiago and Male about how we're deploying artificial intelligence and technology throughout the business to drive sales and support strategic decision-making. This is the opportunity ahead. Growing the business is about getting from today to tomorrow. Sebastian will tell you about how we are modernizing and improving all aspects of the development process to increase returns on investment and maximize future cash flow generation.

Philippe will dive into how supply chain can add value through initiatives designed to capture efficiencies and support free cash flow growth. Each of today's speakers will touch on all three pillars, but I want to emphasize that we're all focused on how we will drive the growth pillar to ensure that we increase the value of the company. This will happen through more resilient financial performance, better returns on investment, and a more sustainable level of free cash flow generation. At the end of the day, the core of the business hasn't changed that much. We sell hamburgers. We create moments. We deliver experiences. That is why we're obsessed with running great restaurants. The winning formula in our business starts inside the restaurants. If you operate well, then guest traffic will grow, sales will follow, and profitability will improve. Operational excellence is our most important strength.