Arcos Dorados Holdings Inc.

Good morning, everyone, and thank you for joining our first quarter 2023 earnings webcast. With us today are Marcela Rabach, our Chief Executive Officer, Luis Raganato, our Chief Operating Officer, and Mariana Tannenbaum, our Chief Financial Officer. Today's webcast, which is being recorded, will consist of prepared remarks from our leadership team, which will be accompanied by a slide presentation, also available in the investor section of our website, www.arcozerados.com.ir. As a reminder, to better view the presentation on the webcast platform, please scroll over the upper left-hand part of the screen and click on the arrows to maximize the slides. After we conclude our opening remarks, we will answer your questions, which you can submit using the chat function on the left-hand side of the screen. You will need to minimize the slides to access the chat function. Today's poll will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and 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 on the press release and unaudited financial statements filed today with the SEC on Form 6-K. Marcelo, over to you.

Thank you, Dan. Good morning, everyone, and thank you for joining us today. The McDonald's system has been generating consistently strong results around the world for the last couple of years. Arcos Dorados is no exception. This is a direct result of our long-term strategic approach to generating value for our shareholders. And we expect the structural competitive advantages of our restaurant portfolio and digital platform to continue to drive value creation for the foreseeable future. Our guests have spoken. There is no doubt we are operating the most beloved brand in the QSR industry in Latin America and the Caribbean. They recognize the value we offer in our restaurants on a daily basis. and the positive impact we make in our communities every year. This is why restaurant volumes continue to grow and brand trust metrics are at all-time highs. Each time we open a restaurant, we bring McDonald's favorite menu items closer to our guests while also creating new job opportunities for young people. and investing in the economic development of local communities. We are operating in a vastly under-penetrated region for the QSR industry, which represents a significant growth opportunity. Against that backdrop, we are working to support a sustainable future for our business and the communities we serve as we capture the substantial potential that lies ahead of us. This is the first year with no material COVID impact since the pandemic began, and we are off to a strong start. Let's take a look at the consolidated results for the first quarter of 2023. Total revenue in the first quarter rose 25.3% in US dollars versus the prior year, supported by double-digit guest traffic growth. Strong top-line growth drove operating leverage and improved profitability. Adjusted EBITDA was up 28% in the quarter, including modest margin expansion. Net income in the quarter also improved significantly, growing 52.7% versus last year. System-wide comparable sales grew a robust 1.7 times blended inflation across the company and at least 1.5 times in each division. Market share trends remain positive as well. McDonald's brand visit share in the quarter was about 2 and 3.5 times as big as that of our two closest competitors, respectively. The 3D strategy drove sales higher in the quarter. Total digital sales accounted for 47% of system-wide sales, with 18% identifiable sales across the business. This included strong performance in both the delivery and drive-through sales channels, despite an acceleration of sales growth at the front counter. And our development plan is on track. We opened eight freestanding restaurants in the quarter and expect the pace of openings to pick up as we move through the year with a higher number of openings in the second half of 2023. Mariano will talk more about that in a few minutes. I turn it over to Luis now for an overview of sales performance in each division.

Thanks, Marcelo, and good morning, everyone. System-wide comparable sales growth was strong in all divisions in the first quarter. Brazil's comparable sales rose 2.6 times inflation in the period. About two-thirds of the growth came from higher guest volumes as we maintained a competitive pricing strategy to support volume growth given the softer consumer environment in the country. Digital sales accounted for 57% of total sales in Brazil, including 23% identifiable sales, which are users that provide their contact information and explicitly allow us to use it. Brazil's sponsorships of Big Brother Brazil, among the most highly rated television programs in the country, and Lollapalooza, one of its most popular music festivals, connected the brand with younger consumers. New product launches included premium offerings in both the beef and chicken platforms, and digital sales benefited from channel-specific campaigns in DriveThru, early access to new products for app users, and a Mac delivery activation during Lollapalooza. NOLA's comparable sales grew 2.8 times blended inflation in the quarter. Similar to Brazil, about two-thirds of NOLA's comparable sales growth came from increased guest volumes. Mexico and the French West Indies were the strongest performers. Costa Rica, Panama, and Puerto Rico also delivered solid top-line growth in the quarter. Marketing activities in NOLA included the Big Mac chicken launch in Mexico and Costa Rica, leveraging an iconic product to expand the chicken platform. We continued the rollout of the best burger platform to Panama, capitalizing on best practices from the implementation in Costa Rica. Panama's comparable sales growth topped 14% in the quarter. As a reminder, Best Burger is a new quality standard for McDonald's classic burgers. It makes our burgers even better, with small changes that add up to a big difference. Guests experience hotter, juicier, and tastier hamburgers. Results in these first two markets demonstrate that this new standard helps drive even more robust sales growth. Comparable sales grew 1.5 times inflation in SLAT in the first quarter, including mid-teens guest volume growth and strong inflation-aided average check growth. Performance was consistent across the division, with all markets delivering strong volume and total revenue growth. SLAT maintained strong sales growth momentum, while reinforcing its leadership position in the QSR industry by reaching its highest value share on record. SLAD also reached its highest penetration of digital-identified sales, growing 91% compared to the prior year quarter. The division brought out the Muck Crispy Chicken platform in Argentina and Chile, with strong consumer response in both markets. The launch of the signature TurboTasty platform strengthened the line of premium beef products in Chile, which helped fuel sales while reinforcing value for money perception. SLAD also connected with younger consumers with sponsorships of some of the most relevant music festivals in the region, Lollapalooza in Argentina and Chile, and Estero Picnic in Colombia. We have always enjoyed a significant competitive advantage from our freestanding restaurant portfolio. This is especially pronounced in challenging economic times when mall-based restaurants tend to suffer most. Lessons from the past also have us well positioned in terms of pricing, that should support continued volume growth, even in a softer economic environment. Over to Mariano for a closer look at consolidated and divisional profitability in the quarter.