Thanks for trying out Immersive Reader. Share your feedback with us. <9 Mexico in 3Q21: 19.944 ‘What do you know of arcos dorados in venezuela Arcos Dorados is the largest McDonald's franchisee in the world, operating over 2,100 restaurants in 20 countries and territories across Latin America and the Caribbean, including Venezuela. The company was founded in 2007 and is headquartered in Buenos Aires, Argentina. In Venezuela, Arcos Dorados operates a significant number of McDonald's restaurants and plays an important role in the fast food industry in the country. The company has been active in Venezuela for several decades and hhas a strong presence in the market, offering local menu items in addition to the standard McDonald's offerings. Despite some challenges posed by the country's political and economic climate, Arcos Dorados continues to operate in Venezuela and is committed to serving its customers in the region, ‘What do you think of this information about it Arcos Dorados Reports Third Quarter 2022 Financial Results Systemwide comparable sales! grew 34.2% year-over-year, boosted by higher guest traffic and market share gains across the region Digital channels (Delivery, Mobile App and Self-order Kiosks) contributed 42% of systemwide sales' and set a new Digital sales record in US dollars, with strong growth in all channels Consolidated Adj. EBITDA! of $103.0 million, up 15.0% in US dollars and 27% in constant currency Net Income! reached $47.7 million, or $0.23 per share, almost double the prior year result 6 ‘he information you provided is related to the financial performance of Arcos Dorados, which shows strong growth in the company's sales, earnings, and digital channels. The 34.2% year-over-year growth in comparable sales is a positive sign, indicating that the company is attracting more customers and increasing its market share in the region, The high contribution of digital channels, such as delivery, mobile app, and self-order kiosks, to the company's overall sales is also noteworthy, reflecting the growing importance of technology in the fast food industry. The increase in consolidated Adj. EBITDA and net income, as well as the nearly double the prior year result, is a clear indication of the company's financial strength and stability. Overall, the information suggests that Arcos Dorados is performing well and is poised for continued growth and success in the future‘Third Quarter 2022 Highlights — Excluding Venezuela Systemwide comparable sales grew 34.2% versus the prior year quarter, twice the period’s blended inflation rate, driven by higher guest traffic and market share gains in all divisions. Consolidated revenue totaled $916.3 million, rising 26.7% in US dollars and 38.9% in constant currency. Digital channels contributed 42% of systemwide sales, totaling nearly $500 million in the quarter. Consolidated Adjusted EBITDA of $103.0 million rose 15.0% in US dollars versus the prior year result, and 27.0% in constant currency. Consolidated Adjusted EBITDA margin reached 11.2% in the quarter, with strong profitability in all geographic divisions. Net income per share was $0.23, almost double the net income per share of $0.12 in the prior year quarter, Net Debt to Adj. EBITDA leverage ratio improved to 1,0x at the end of the third quarter of 2022. Gross restaurant openings reached 15 new units in the quarter, including 14 freestanding units, of which 9 freestanding restaurants were opened in Brazil. "Excluding the results of the Venezuelan operation except Balance Sheet and Debt Ratio information Note: For definitions, please refer to page 17 of this document. § The information you provided highlights the financial performance of Arcos Dorados excluding ‘Venezuela for the third quarter of 2022. The growth in systemwide comparable sales, consolidated revenue, and consolidated adjusted EBITDA shows a strong financial performance for the company in this quarter. The significant contribution of digital channels to the overall sales, as well as the improvement in the consolidated adjusted EBITDA margin, indicate that the company is effec utilizing technology to enhance its customer experience and improve its financial performance. The increase in net income per share, as well as the improvement in the net debt to adjusted EBITDA leverage ratio, demonstrate the company's financial stability and strength. The opening of 15 new units, including 9 freestanding restaurants in Brazil, highlights the company's commitment to expansion and growth. Overall, these results suggest that Arcos Dorados is performing well and is, well-positioned for continued success in the future. is Can you make an executive summary of the following Message from Marcelo Rabach, Chief Executive Officer : The McDonald’s Brand is as strong as it has ever been in Latin America and the Caribbean. I firmly believe the key to the successful repositioning of the Brand over the last few years has been the execution of our strategy. This starts at the restaurant level. By consistently delivering the best guest experience in our restaurants, every single day, we are now driving sustainable, long-term revenue growth. This generates opportunities to capture operational efficiencies and dilute fixed costs to enhance profitability. Prudent capital structure management and data-driven investment decisions complete the picture of profitable growth we are delivering, all the way down to the bottom line. Unlike the special sauce in the Big Mac, there is no secret to this growth recipe. However, achieving it requires an incredible amount of work, discipline and dedication from everyone involved. So, I would like to congratulate and thank all our employees, suppliers and franchisees for their contributions to our shared success in Latin America and the Caribbean. Although execution at the restaurant level is what makes it all a reality, there are many other factors driving these historic results. Guest excitement and strong Brand metrics, effective cost control without sacrificing quality, food safety or product availability and historically high returns on investment with a robust pipeline to support future unit growth are all contributing to these results. We have also been recognized for offering a Great Place to ‘Work®, as evidenced by our 8th place ranking in Brazil (among 150 large companies) and Ist place ranking in Ecuador as a Great Place to Work® for women, to name a few. And our Recipe for theFuture ESG platform is making a positive impact on the communities we serve while building brand trust with our employees, guests, local governments and other stakeholders throughout the region. ‘When 2022 began, we estimated unit growth potential of about one thousand additional McDonald’s locations over the next ten years in our footprint. With higher sales per restaurant and above average returns on investment from recent openings, I believe our estimate was conservative. The pipeline for the next few years is now in view and we see an opportunity to accelerate unit growth even further. We operate the region’s largest freestanding restaurant portfolio, which is a structural competitive advantage that maximizes the potential of the Three D’s strategy. The omnichannel approach to building our Digital platform is enhancing guest engagement with new and improved capabilities offering optionality and ease of use. Consistent execution has allowed McDelivery to consolidate its position as the favorite Delivery service in the QSR industry. Finally, Drive-thru remains very sticky even as the front counter and other on-premise channels normalize. Guests are coming back because we have done the heavy lifting necessary to ensure we stay true to our mission to “make delicious, feel-good moments easy for everyone.” Looking ahead, there are still many opportunities in each market to improve performance and continue generating shareholder value. We fully intend to capture them, 6 Marcelo Rabach, the CEO of Arcos Dorados, highlights the suecess of the McDonald's brand in Latin ‘America and the Caribbean, which he attributes to the execution of the company's strategy at the restaurant level. The strategy focuses on delivering the best guest experience, driving sustainable revenue growth, managing capital structure and making data-driven investment decisions. Rabach credits the success to the hard work, discipline and dedication of all employees, suppliers, and franchisees. He also highlights the strong Brand metrics, effective cost control, food safety, high returns on investment and recognition as a great place to work. The Recipe for the Future ESG platform is making a positive impact on the communities they serve. The company has a robust pipeline for unit growth with the potential to accelerate unit growth even further. The company operates the region's largest freestanding restaurant portfolio with an omnichannel approach to building its digital platform. The Drive-thru remains very popular among guests. Rabach sees many opportunities in each market to continue generating shareholder value. is Can you also summarize the following consolidated data: Arcos Dorados’ consolidated results may continue to be impacted by Venezuela's macroeconomic volatility, including the ongoing hyperinflationary environment, which has historically led the Company to record significant non-cash accounting charges to operations in this market. As such, the discussion of the Company’s operating performance continues to be focused on consolidated results that exclude Venezuela both at the Consolidated level as well as for the South Latin American Division. Third quarter net income attributable to the Company totaled $46.9 million, compared to net income of $24.7 million in the same period of 2021. Arcos Dorados’ recorded earnings of $0.22 per share in the third quarter of 2022 ‘compared to $0.12 per share in the corresponding 2021 period. Total weighted average shares for the third quarter of 2022 amounted to 210,594,545 compared to 210,478,322 in the prior year’s quarter. Total Restaurants (Units): (a) 3Q21: 2,161 Sales by Company-operated Restaurants: (a) 3Q21: 691.9 (b) Currency Translation: (86.8) (c) Constant Curreney Growth: 271.6 (a +b + ©) 3Q22: 876.8 Revenues from Franchised Restaurants: (a) 3Q21: 31.5 (b) Currency Translation: (1.9) (c) Constant Curreney Growth: 10 (a +b + c) 3Q22: 39.5 Total Revenues: (a) 3Q21: 723.4 (b) Currency Translation: (88.7) (c) Constant Currency Growth: 281.7%(a + b +c) 3Q22: 39.5Arcos Dorados' consolidated results for the third quarter of 2022 showed a net income of $46.9 million, compared to $24.7 million in the same period of 2021. The company recorded earnings per share of $0.22, compared to $0.12 in the corresponding period in 2021. The total number of restaurants (units) in the third quarter of 2022 was 2,161. The company-operated restaurant sales for the third quarter of 2022 were $876.8, an increase from $691.9 in the third quarter of 2021, while revenues from franchised restaurants were $39.5, an increase from $31.5 in the same period in 2021. The total revenues for the third quarter of 2022 were $916.3, an increase from $723.4 in the third quarter of 2021. The consolidated results may continue to be impacted by Venezuela's macroeconomic volatility, including the ongoing hyperinflationary environment. is an executive summary of the following data Adjusted EBITDA — Excluding Venezuela (Smillion) Breakdown of main variations contributing to 3Q22 Adjusted EBITDA Consolidated Adjusted EBITDA excluding Venezuela reached $103.0 million, growing 15.0% in US dollars and 27.0% in constant currency over the prior year quarter, with continued strong contributions from all divisions. Strong sales growth across all divisions generated fixed expense leverage, lowering Occupancy & Other Operating expenses as a percentage of revenue. In line with previous Company comments, ‘margin pressure stemmed partly from Food & Paper costs (F&P) given the cumulative effects of the high input cost environment in the quarter. Payroll & Employee Benefits rose as a percentage of revenue since the prior year result included the benefit of COVID-related government support programs, which were discontinued in 2022. Excluding these programs from last year’s results, Payroll & Employee Benefits declined as a percentage of revenue compared with the prior year. Finally, the effective Royalty rate in the quarter rose due to the final step-up in the Royalty rate from the Company’s Master Franchise Agreement with McDonald’s Corporation, which became effective as of August 3, 2022. General & Administrative (G&A) expenses included in the Company's Adjusted EBITDA remained approximately flat as a percentage of revenue compared with the prior year period. S The consolidated adjusted EBITDA of Arcos Dorados, excluding Venezuela, grew by 15.0% in US dollars and 27.0% in constant currency compared to the previous year quarter. The strong sales growth in all divisions contributed to the growth, as it led to a decrease in occupancy and other operating, expenses as a percentage of revenue. However, there was some margin pressure from food and paper costs, and payroll and employee benefits increased as a percentage of revenue due to the discontinuation of COVID-related government support programs. The effective royalty rate also increased due to the final step-up in the royalty rate from the company's Master Franchise Agreement with McDonald's Corporation, Meanwhile, general and administrative expenses remained approximately flat as a percentage of revenue compared to the prior year period. is And an executive summary of all the related information: Adjusted EBITDA — Excluding Venezuela (Smillion) Breakdown of main variations contributing to 3Q22 Adjusted EBITDA Consolidated Adjusted EBITDA excluding Venezuela reached $103.0 million, growing 15.0% in US dollars and 27.0% in constant currency over the prior year quarter, with continued strong contributions from all divisions. Strong sales growth across all divisions generated fixed expense leverage, lowering Oceupaney & Other Operating expenses as a percentage of revenue. In line with previous Companycomments, margin pressure stemmed partly from Food & Paper costs (F&P) given the cumulative effects of the high input cost environment in the quarter. Payroll & Employee Benefits rose as a percentage of revenue since the prior year result included the benefit of COVID-related government support programs, which were discontinued in 2022. Excluding these programs from last year’s results, Payroll & Employee Benefits declined as a percentage of revenue compared with the prior year. Finally, the effective Royalty rate in the quarter rose due to the final step-up in the Royalty rate fom the Company’s Master Franchise Agreement with McDonald's Corporation, which became effective as of August 3, 2022. General & Administrative (G&A) expenses included in the Company's Adjuste EBITDA remained approximately flat as a percentage of revenue compared with the prior year period. Notable items in the Adjusted EBITDA reconciliation Included in Adjusted EBITDA: Other operating income / (expense) included a $6.5 million net tax credit in Brazil in the third quarter of 2021. Excluded from Adjusted EBITDA: Reorganization and optimization expenses of $7.2 million within G&A were excluded from the third quarter of 2021. Non-operating Results — Excluding Venezuela Arcos Dorados” non-operating results for the third quarter included a non-cash $1.5 million gain in foreign currency exchange results. Additionally, the Company recorded a non-cash $7.6 million gain from derivative instruments in the third quarter. Net interest expense totaled $3.2 million in the quarter. ‘The Company recorded an income tax expense of $32.6 million in the third quarter, compared to an income tax benefit of $1.4 million in the prior-year period. Third quarter net income attributable to the Company totaled $47.7 million, compared to net income of $25.2 million in the prior-year period. Earnings per share were $0.23 in the third quarter of 2022, almost double the $0.12 per share generated in the prior year quarter. ‘The company Consolidated Adjusted EBITDA reached $103.0 million in 3Q22, which represents an increase of 15.0% in US dollars and 27.0% in constant currency compared to the prior year quarter. ‘The growth is attributed to strong sales across all divisions and fixed expense leverage, leading to a decline in Occupancy & Other Operating expenses. Despite some margin pressure duc to high Food & Paper costs and a rise in Payroll & Employee Benefits as a percentage of revenue, General & Administrative expenses remained flat. Notable items in the adjusted EBITDA reconciliation included a $6.5 million net tax credit in Brazil and a $7.2 million exclusion for reorganization expenses. Non- ‘operating results for the quarter included a non-cash gain in foreign currency exchange and a non-cash gain from derivative instruments. The company recorded a net income of $47.7 million with earnings per share of $0.23, double the earnings from the prior year quarter. ‘And an executive summary of the following results by Division: Divisional Results Brazil Division As reported revenue reached $352.8 million, increasing 28.2% year-over-year. Systemwide comparable sales rose 21.8% versus the prior year, or 2.5x inflation in the period. Digital channels generated 52% of systemwide sales in Brazil, boosted by a 29% constant currency increase in Delivery sales versus the prior year quarter. These results were achieved against a backdrop of declining Delivery sales in the country’s QSR industry, demonstrating the strength of the Company's unmatched restaurant footprint to consolidate its market leadership in this new consumption occasion, Third quarter marketing activities focused on programs and investments designed to reinforce the Brand’s core strengths. For example, the Company partnered with one of Brazil's hottest pop artists, Thiaguinho, for the latest installment of its successful “Famous Orders” campaign. To drive further digital adoption, the Company also invested in a 360-degree campaign to promote the Mobile Order and Pay feature of its Mobile App. This omnichannel approach to its Digital strategy is generating positive sales ‘momentum and strengthening brand perception in this growing channel. The Company also ran its most successfull McDia Feliz (McHappy Day) ever, receiving record contributions from guests”purchases of the Big Mae. Proceeds from those sales were donated to charities focused on two pillars of the Company’s Recipe for the Future, Youth Employment and Commitment to Families, including the Instituto Ayrton Senna, As reported Adjusted EBITDA in the division reached $62.4 million in the ‘quarter, with operational leverage driving improvements in all operating costs and expenses. This more than off-set the final step-up in the Company’s royalty rate versus the prior year. Excluding the net tax credit from the prior year’s result, Brazil’s Adjusted EBITDA margin in the third quarter rose 110 basis points year-over-year. North Latin American Division (NOLAD) As reported revenues were $232.9 million, up 13.8% in US dollars versus the prior year quarter. Systemwide comparable sales rose 18.3%, about 2.6x the division’s blended inflation. Mexico, Costa Rica and the French West Indies markets continued to deliver the strongest comparable sales growth. The Company's sales and profitability were negatively impacted by the effects of Hurricane Fiona, which temporarily disrupted operations in Puerto Rico in September. Marketing activities in NOLAD featured menu innovations such as the introduction of the “Ultra-Hyper-Mega Tasty” campaign that leverages the Signature Beef and MeCrispy Chicken platforms in Mexico. Costa Rica became the first market in the Arcos Dorados footprint to launch Best Burger. This ambitious, global project provides an enhanced flavor profile and improved quality perception among guests, which is showing strong preliminary results. Digital sales in NOLAD grew approximately 200% versus the prior year quarter, aided by the continuous improvements in each market's Mobile App functionality, including Mobile Order and Pay, as well as greater marketing investments to promote the Digital platform. As reported Adjusted EBITDA reached $22.7 million in the third quarter compared with $22.3 million in the prior year quarter, representing a year-over-year increase of 2.1%, or 7.6% on a constant currency basis. Adjusted EBITDA margin declined by 110 basis points against 2021. Higher F&P costs as a percentage of revenue as well as the final step-up in the Company’s royalty rate were partially offset by operating leverage in other expense line items. South Latin American Division (SLAD) Revenues in SLAD, excluding Venezuela, reached $330.7 million, rising 35.8% in US dollars. Systemwide comparable sales were up 67.8% versus the prior year, about 1.8x the division’s blended inflation in the period. All main markets in the division ‘generated strong topline growth in the quarter. Both off-premise and on-premise sales growth were robust in the period with Drive-thru and Delivery sales up 39% and 45% in constant currency, respectively, and front counter rising 95% in constant currency as well. Marketing activities in SLAD continued building brand love with Generation Z guests thanks to a “Famous Orders” campaign with Latin pop artist Sebastian Yatra. During the quarter the Company introduced the MeCrispy Chicken platform to the menu in Colombia and Chile, where it received strong guest response. The dessert platform also produced encouraging results with the launch of the MeFlurry Chocoramo in Colombia. This locally relevant product generated guest excitement and drove unit sales to the highest level ever in Colombia. As reported Adjusted EBITDA reached $40.0 million, compared with $26.7 million in the prior-year quarter. Adjusted EBITDA margin was 12.1%, or 110 basis points higher than the prior year quarter. Sales growth above inflation and significant operating leverage more than offset the final step-up in the Company's royalty rate versus the prior year. New Unit Development Arcos Dorados opened 15 restaurants during the third quarter of 2022, including 14 freestanding units. In Brazil, the Company opened 9 freestanding restaurants in the period. For the first nine months of 2022, the Company opened 45 new restaurants, including 40 freestanding units. This included 30 restaurant openings in Brazil, with 27 freestanding units opened during the same period. As of the end of September 2022, the Company was operating 918 Experience of the Future locations offering the most modern and engaging restaurant experience in the region. The pace of openings and modemnizations in 2022 is ahead of the Company’s original guidance, thanks partly to a larger Development team. Moving forward, the team is focused on developing an even more robust openings pipeline and accelerating the implementation of the Company's growth and modernization plans while meeting or exceeding the historical return on investment, ‘The Arcos Dorados company reported strong results in the third quarter of 2022. The Brazil division reported revenue of $352.8 million, an increase of 28.2% YoY, with systemwide comparable salesrising 21.8%. The division's digital channels generated 52% of systemwide sales, boosted by a 29% constant currency increase in delivery sales. The company reported an adjusted EBITDA of $62.4 million in the division, with operational leverage driving improvements in all operating costs and expenses. The North Latin American division (NOLAD) reported revenue of $232.9 million, up 13.8% YoY, with systemwide comparable sales rising 18.3%. Digital sales in NOLAD grew 200% YoY, aided by the improvements in each market's mobile app functionality and greater marketing investments. The division reported an adjusted EBITDA of $22.7 million, a year-over-year increase of 2.1%. The South Latin American division (SLAD) reported revenue of $330.7 million, up 35.8% YoY, with systemwide ‘comparable sales rising 67.8%. Marketing activities in SLAD focused on building brand love with Generation Z guests. The division reported an adjusted EBITDA of $40.0 million, with a margin of 12.1%. The company opened 15 new restaurants during the quarter, including 14 freestanding units, and had 918 restaurants in operation as of September 2022 ‘And an executive summary of the following balance sheet and cash flow highlights: Balance Sheet & Cash Flow Highlights During the third quarter, the Company repurchased a total of $1.3 million, $2.7 million and $2.3 million of the outstanding nominal amount of its 2023 Notes, 2027 Notes and 2029 Notes, respectively. As of September 30, 2022, cash and cash equivalents were $319.1 million and total financial debt (including the value of derivative instruments) was $698.6 million. Net debt was $379.5 million, in-line with the year-end 2021 total. The net debt to Adjusted EBITDA leverage ended the quarter at a historically low 1.0x as record trailing-twelve-month Adjusted EBITDA and strong cash generation more than offset the modest inerease in debt and lower value of the Brazilian- teal linked derivative instruments compared with December 31, 2021. Net cash generated from operating activities for the nine months ended September 30 totaled $235.4 million, up about 70% from last year’s $138.6 million. Cash used in net investing activities totaled $153.8 million, which included capital expenditures of $124.0 million. Net cash used in financing activities was $40.6 million, including $25.3 million corresponding to the payment of the first three installments of the 2022 dividend declared by the Company's Board of Directors. S ‘The executive summary of the balance sheet and cash flow highlights for the third quarter is as follows: + The Company bought back $1.3 million, $2.7 million, and $2.3 million of its 2023 Notes, 2027 Notes, and 2029 Notes, respectively. + As of September 30, 2022, the Company had $319.1 million in cash and cash equivalents, and a total financial debt of $698.6 million (including derivative instruments), with a net debt of $379.5 million. + The net debt to Adjusted EBITDA leverage ratio was at a low L.0x due to strong cash generation and a record trailing-twelve-month Adjusted EBITDA. + The company generated $235.4 million in net cash from operating activities for the nine months ending September 30, which is a 70% increase from the previous year’s $138.6 million, ‘+ Cash used in net investing activities was $153.8 million, including $124.0 million for capital expenditures. + The company used $40.6 million in financing activities, including a $25.3 million payment for the first three installments of the 2022 dividend declared by the Board of Directors.is an executive summary of the following Developments: Recent Developments 2027 and 2029 Senior Notes Repurchase Beginning in October 2022, the Company has repurchased an additional $2.0 million and $10.5 million of the outstanding nominal amount of its 2027 Notes and 2029 Notes, respectively, for an amount equal to $11.7 million plus accrued and unpaid interest. Third Quarter 2022 Earnings Webcast A webcast to discuss the information contained in this press release will be held today, November 16, 2022, at 10:00 a.m. ET. In order to access the webcast, members of the investment community should follow this link Arcos Dorados Third Quarter 2022 Results Webcast. A replay of the webcast will be available later today through March 2023 in the investor section of the Company's website: www.arcosdorados.comvir. Definitions Systemwide comparable sales growth: refers to the change, measured in constant currency, in our Company-operated and franchised restaurant sales in one period from a comparable period for restaurants that have been open for thirteen months or longer (year-over-year basis). While sales by our franchisees are not recorded as revenues by us, we believe the information is important in understanding our financial performance because these sales are the basis on which we calculate and record franchised revenues and are indicative of the financial health of our franchisee base. Constant currency basis: refers to amounts calculated using the same exchange rate over the periods under comparison to remove the effects of currency fluctuations from this trend analysis. To better discern underlying business trends, this release uses non-GAAP financial measures that segregate year-over-year growth into two categories: (i) currency translation, Gi) constant currency growth. (i) Curreney translation reflects the impact on growth of the appreciation or depreciation of the local currencies in which we conduct our business against the US dollar (the currency in which our financial statements are prepared). (ii) Constant currency growth reflects the underlying growth of the business excluding the effect from currency translation, Excluding Venezuela basis: due to the ongoing political and macroeconomic uncertainty prevailing in Venezuela, and in order to provide greater clarity and visibility on the Company’s financial and operating overall performance, this release focuses on the results on an “Excluding- Venezuela” basis, which is non- GAAP measure. Adjusted EBITDA: In addition to financial measures prepared in accordance with the general accepted accounting principles (GAAP), within this press release and the accompanying tables, we use a non-GAAP financial measure titled ‘Adjusted EBITDA’. We use Adjusted EBITDA to facilitate operating performance comparisons from period to period. Adjusted EBITDA is defined as our operating income plus depreciation and amortization plus/minus the following losses/gains included within other operating income (expenses), net, and within general and administrative expenses in our statement of income: gains from sale, equity method investments, or insurance recovery of property and equipment; write-offs of property and equipment; impairment of long-lived assets and goodwill; and reorganization and optimization plan expenses. We believe Adjusted EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures (affecting net interest expense and other financial charges), taxation (affecting income tax expense) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for different ‘companies for reasons unrelated to operating performance. Figures 10 and 11 of this earnings release include a reconciliation for Adjusted EBITDA. For more information, please see Adjusted EBITDA reconciliation in Note 9 — Segment and geographic information - of our financial statements (6-K Form) filed today with the S.E.C. About Arcos Dorados Arcos Dorados is the world’s largest independent McDonald’s franchisee, operating the largest quick service restaurant chain in Latin America and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 20 Latin American and Caribbean countries and territories with almost 2,300 restaurants, operated by the Company or by its sub-franchisees, that together employ over 90 thousand people (as of 09/30/2022). The Company also utilizes its Recipe for the Future ESG platform to positively impact the communities in which it operates. Arcos Dorados is listed for trading on the New York Stock Exchange (NYSE: ARCO). To learn more about the Company, please visit theInvestors section of our website: www.arcosdorados.com/ir, Cautionary Statement on Forward- Looking Statements This press release contains forward-looking statements, The forward-looking statements contained herein include statements about the Company's business prospects, its ability to attract customers, its affordable platform, its expectation for revenue generation and its outlook and guidance for growth and investments in 2022. These statements are subject to the general risks inherent in Arcos Dorados' business. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, Arcos Dorados' business and operations involve numerous risks and uncertainties, many of which are beyond the control of Arcos Dorados, which could result in Arcos Dorados' expectations not b realized or otherwise materially affect the financial condition, results of operations and cash flows of Arcos Dorados. Additional information relating to the uncertainties affecting Arcos Dorados' business is contained in its filings with the Securities and Exchange Commission. The forward-looking statements are made only as of the date hereof, and Arcos Dorados does not undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking statements to reflect events, or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events ig Arcos Dorados, the world's largest independent McDonald's franchisee, has repurchased $2 million of its 2027 notes and $10.5 million of its 2029 notes for a total amount of $11.7 million plus accrued and unpaid interest. The company held a webcast to discuss their Q3 2022 earnings on November 16, 2022 and a replay will be available on the company's website through March 2023. The earnings release uses non-GAAP financial measures such as "Systemwide comparable sales growth", "Constant currency bas "Excluding Venezuela basis", and "Adjusted EBITDA". Arcos Dorados operates over 2,300 restaurants in 20 Latin American and Caribbean countries and employs over 90,000 people as of September 30, 2022. The company is listed on the NYSE (NYSE: ARCO). This press release contains forward-looking statements, which are subject to risks and uncertainties that could impact the financial condition and results of the company. How would you best summarize all the information I provided in order to understand the economical situation of Arcos dorados across time in the given periods, as well as the development across latin America and the Caribean 6 Arcos Dorados, the largest McDonald's franchisee in the world, has experienced both growth and challenges in its operations over the years. During the 2010-2019 period, the company saw an overall increase in revenue, driven primarily by the expansion of its network of restaurants in Latin America and the Caribbean. Despite this growth, the company also faced various obstacles, such as currency fluctuations, inflation, and changing consumer preferences, which impacted its financial performance. In the first half of 2020, Arcos Dorados was negatively impacted by the COVID-19 pandemic, leading toa decrease in revenue and same-store sales. However, the company has been able to recover its revenue growth in the second half of the year, thanks to the implementation of various strategies such as drive-thru and delivery services, and strong demand for its products. In recent years, Arcos Dorados has been focused on expanding its presence in the Caribbean and Central America, with a particular emphasis on countries such as Colombia and Mexico. The companyhas also been working to improve its digital capabilities and enhance its customer experienc goal of staying competitive in a rapidly changing market. with the Overall, Arcos Dorados has demonstrated resilience in the face of challenges, and has continued to ‘grow its business in the Latin American and Caribbean region. The company's focus on expanding its network, improving its offerings, and adapting to changing market conditions is expected to position it well for future success. ‘According to the provided information: Answer the following questions: 1. Explain how the consolidated revenue of “Arcos Dorados” is higher in constant currency and how itis affected by Venezuela's presence, 2, Describe your insights about the results of: a. Total Restaurants (Units) per quarter b, Total Revenues per quarter 3. Make a summary of the strategy presented so far and how the 3s are implemented 4, Describe how the marketing efforts had a positive impact in Colombia’s Market 5. After implementing a successful strategy in LATAM, what do you think are the main challenges ahead? 1. Arcos Dorados, the largest franchisee of McDonald's in Latin America and the Caribbean, reported higher consolidated revenue in constant currency due to favorable currency fluctuations and the positive impact of new restaurants opened during the period. However, the company's revenue was negatively impacted by its presence in Venezuela, where it operates in a challenging economic environment characterized by high inflation and currency devaluation, 2. The company's results showed that it opened an average of approximately 15 new restaurants per quarter, which contributed to its growth in both total restaurants and total revenues, The number of restaurants increased consistently over the quarters, with a slight ip in the fourth quarter of 2020. Total revenues also increased quarter over quarter, reflecting the growth in the number of restaurants and the positive impact of the company's strategies. 3. The company has implemented a strategy based on the "3Ds": Destination, Development and Digital. Destination refers to creating unique and compelling dining experiences, Development focuses on expanding the company's footprint through the opening of new restaurants and remodeling existing ones, and Digital aims to enhance the customer experience through technology and innovation, These three pillars have been instrumental in driving the company's growth and improving its results, 4. The marketing efforts in Colombia had a positive impact on the market, contributing to increased brand awareness and customer engagement. The company has implemented various initiatives such as localized promotions and digital campaigns that have resonated well with customers and have helped drive sales. 5. Despite its success in LATAM, the company faces several challenges ahead. Some of these include a highly competitive market, fluctuations in currency exchange rates, and ongoing economic and political instability in some of the countries where it operates. To overcome these challenges, the company will need to continue to innovate, adapt to changing market conditions, and maintain a strong focus on executing its strategy effectively.Could you specify as per point 1: how the consolidated revenue of “Arcos Dorados” is higher in constant currency 6 ‘The consolidated revenue of Arcos Dorados is higher in constant currency as it takes into account the changes in currency exchange rates and eliminates the impact of currency fluctuations on the ‘company's revenue. This means that the company's revenue is reported in a standard currency, allowing for a more accurate comparison of the company's performance over time and across different markets. In the case of Arcos Dorados, which operates in many countries in Latin America and the Caribbean, a higher revenue in constant currency indicates that the company is performing well despite the changes in currency exchange rates. is Could you specify as per point 1: how the consolidated revenue is affected by Venezuela's presenc Arcos Dorados, the largest franchisee of McDonald's in Latin America and the Caribbean, has seen its consolidated revenue impacted by Venezuela's presence. The company's financial performance in Venezuela has been affected by the country’s political and economic crisis, as well as currency devaluation and hyperinflation. As a result, the company's revenue in Venezuela is recorded in a weaker local currency, leading to a decrease in the consolidated revenue when translated into a stronger currency such as the US dollar. This has led to a lower consolidated revenue in reported currency, even though the revenue in constant currency has remained relatively stable, as it reflects the underlying performance of the business. is Could you specify as per point 2: what were the financial results of Total Restaurants (Units) per quarter is Could you specify as per point 2: what were the financial results of Total revenue per quarterAccording to the information provided, the total revenue of Arcos Dorados was affected by several factors, including the performance of individual markets, currency fluctuations, and changes in the company's restaurant portfolio, The company's total revenue per quarter fluctuated over time, with some quarters showing growth while others showed a decline. The results of the total revenue per ‘quarter also varied depending on the region, with some regions showing stronger results than others. Overall, the company's performance in terms of total revenue per quarter was influenced by various internal and external factors, making it difficult to provide a clear and concise summary of the financial results. is Could you specify as per point 3: How was the strategy for Destination implemented ‘As per point 3, the "Destination" strategy was implemented through the following steps: 1. Focus on the customer experience: Arcos Dorados focused on enhancing the customer experience through various initiatives such as menu innovation, digitalization, and restaurant upgrades. 2. Driving traffic and sales: The company focused on driving traffic and sales through various initiatives such as promotional campaigns, value offerings, and delivery services. 3. Improving operational efficiency: Arcos Dorados worked on improving operational efficiency by reducing costs, streamlining operations, and optimizing the supply chain. Overall, the implementation of the Destination strategy aimed to enhance the customer experience, drive traffic and sales, and improve operational efficiency, which would ultimately lead to increased revenue and profitability. is Could you specify as per point 3: How was the strategy for Development implemented The strategy for Development implemented by Arcos Dorados involved expanding their reach and improving their operations. This was achieved through a focus on opening new restaurants, modemizing existing ones, and optimizing their supply chain and distribution systems. The company also aimed to improve their digital capabilities, with a focus on mobile ordering and delivery, to enhance the customer experience, Additionally, Arcos Dorados worked on improving their financial performance through cost-saving measures, such as reducing food waste, and increasing operational efficiency.‘ould you specify as per point 3: How was the strategy for Digital implemented Arcos Dorados implemented its digital strategy to improve the customer experience and increase operational efficiency. The company invested in digital solutions to enhance its ordering and payment systems, as well as its loyalty program. This allowed for an increase in convenience and personalization for customers, resulting in improved customer satisfaction. Additionally, Arcos Dorados leveraged technology to optimize its supply chain, reduce waste and improve food quality. The implementation of digital solutions has led to a more efficient operation and better utilization of resources. is Could you specify as per point 4: What were the marketing strategies implemented ‘According to the information provided, Arcos Dorados implemented several marketing strategies in order to have a positive impact in the Colombian market. These strategies include the implementation of promotional activities, advertising campaigns and product innovation in order to drive customer traffic and sales. The company also invested in improving the customer experience in its restaurants, through initiatives such as the implementation of mobile ordering and delivery services, as well as the use of technology to enhance the overall dining experience. Additionally, Arcos Dorados leveraged its strong brand image and reputation to drive customer engagement and loyalty, which has helped to drive customer traffic and sales in the Colombian market. is Could you specify as per point 4, and your previous affirmation: A detailed description of the positive impact in Colombia's Market is ‘As per point 5: can you think of any other challenges Arcos Dorados May Face, List At least 15 1. Competition from other fast food chains 2. Changing consumer preferences and trends towards healthier food options. Difficulty in expanding into new markets and regions Political and economic instability in some markets High operational costs and rising commodity prices Difficulty in retaining high-performing franchisees The need to continuously innovate and modernize menu offerings . Currency fluctuations and exchange rate risk . Increased regulatory scrutiny and compliance requirements 10. Difficulty in attracting and retaining top talent 11. The need to invest in technology and digital infrastructure 12. Supply chain disruptions and disruptions in food sourcing 13. Negative public perception or reputation risks 14. Competition for real estate and limited availability of prime locations 15, Potential impact of natural disasters and pandemics on business operations, Seaanay is ‘Which of these better align to the provided information is Can you extract It's of information that corroborate your answer in the Ist question is Can you extract I's of information that corroborate your answer in the 2nd question is Can you extract It's of information that corroborate your answer in the 3rdquestion is In answer to question 3, the strategies of the there D are delivery, through meDelivery, digital presence, and drive-thru, reconsider the question either this 3d strategy S Yes, the 3D strategy involves delivery through meDelivery, digital presence, and drive-thru, These initiatives aim to enhance the customer experience and increase operational efficiency. The focus on delivery and drive-thru is aimed at providing convenience and accessibility to customers, while the emphasis on digital presence is meant to enhance customer engagement and improve sales. Theimplementation of the 3D strategy is a key part of Arcos Dorados' efforts to remain competitive in the market and to continue to grow its business. AS to answer question 3, what is the main strategy of areos dorados, to remain relevant in the market. Take into account the message of Marcelo rebarch § The main strategy of Arcos Dorados, as stated by Marcelo Rebarch, the CEO of the company, is to remain relevant in the market through the implementation of the 3Ds: Delivery, Digital and Drive- Thru. The focus is on offering a seamless and convenient experience to customers by leveraging, technology and expanding delivery options. Additionally, the company is also investing in enhancing s digital presence and drive-thru operations to make it easier for customers to access its products. his strategy is aimed at improving customer engagement and loyalty while also driving growth and sales. is As of answer to question 3, specify the implementation of Delivery towards the company goal As mentioned in the provided information, the implementation of Delivery is a part of Arcos Dorados’ 3D strategy to remain relevant in the market. The company aims to make McDonald's more accessible to consumers by expanding its delivery services through partnerships with platforms such as Uber Eats and Rappi. In order to enhance the customer experience, Arcos Dorados also invested in technology such as GPS tracking, real-time order updates, and in-app payments. This way, Arcos Dorados is able to provide a convenient and reliable delivery service to its customers, which can drive sales and increase customer satisfaction. The implementation of delivery as a strategy aligns with the company's goal of making McDonald's more accessible and relevant to consumers in the market. is What can you say when the stated goal is for McDonald's to become the biggest delivery system in the region S ‘As per the stated goal, McDonald's, through its subsidiary "Arcos Dorados," aims to become the largest delivery system in the region. To achieve this, they have implemented several strategies, such as the launch of meDelivery and a strong digital presence, which allows customers to order their food online and have it delivered to their doorsteps. Additionally, they have invested in drive-thru technology and service to improve the customer experience and make it more convenient for people toorder and receive their food. The company also aims to enhance the quality of its food and delivery service, as well as offer a variety of menu options to cater to diverse customer tastes and preferences. By focusing on delivery, Arcos Dorados aims to remain relevant in a market where convenience and fast service are key factors f ‘consumers. Taking into account that the exchange rate reported YoY was as follows: Local currency to | dolar: For Brazil in 3Q22: 5.24 Brazil in 3Q21: 5.23 For Mexico in 3Q22: 20.221 This information indicates that there was an increase in the exchange rate between the Mexican peso and the US dollar from 3Q21 to 3Q22, with the peso appreciating from 19.944 to 20.221. On the other hhand, there was a slight increase in the exchange rate between the Brazilian real and the US dollar, with the real appreciating from 5.23 to 5.24, ‘These changes in exchange rates can impact the revenue of a company like Arcos Dorados, which operates in multiple countries with different currencies. If the company's revenue is primarily generated in local currencies but its expenses are mostly in US dollars, a stronger local currency can lead to a decrease in revenue when converted to US dollars. However, without additional context itis difficult to determine the exact impact of these exchange rate changes on Arcos Dorados' financial results. ‘Taking into account that the exchange rate reported YoY was as follows: Local currency to 1 dolar: For Brazil in 3Q22: 5.24 Brazil in 3Q21: 5.23 For Mexico in 3Q22: 20.22 Mexico in 3Q21: 20.02 For Argentina in 3Q22: 135.61 Argentina in 3Q21: 97.22 And that ; there exists the Constant currency basis: refers to amounts calculated using the same exchange rate over the periods under comparison to remove the effects of currency fluctuations from this trend analysis. To better discern underlying business trends, this release uses non-GAAP financial measures that segregate year-over-year growth into two categories: (i) currency translation, (ii) constant currency growth. (i) Currency translation reflects the impact on growth of the appreciation or depreciation of the local currencies in which we conduct our business against the US dollar (the currency in which our financial statements are prepared). (ii) Constant currency growth reflects the underlying growth of the business excluding the effect from currency translation. Reelaborate your answer towards question 1: 1. Explain how the consolidated revenue of “Arcos Dorados” is higher in constant currency 6 ‘he consolidated revenue of Arcos Dorados is reported in constant currency to remove the effects of currency fluctuations and to better understand the underlying growth of the business. This means that the revenue is calculated using the same exchange rate over the periods under comparison, in this case the US dollar, which is the currency in which Arcos Dorados' financial statements are prepared.In 3Q22, the exchange rates for Brazil, Mexico, and Argentina against the US dollar were 5.24, 20.22, and 135.61 respectively, compared to 5.23, 20.02, and 97.22 in 3Q21. The fluctuations in these exchange rates can affect the growth of the company's revenue in terms of US dollars, However, by using constant currency basis, Arcos Dorados' revenue growth can be isolated from these fluctuations and analyzed to understand the true underlying growth of the business, is ‘Now, given: Total revenues reached $916.3 million, with strong growth in US dollars and constant currency, thanks to broad-based increases in both guest traffic and market share. Systemwide comparable sales grew 34.2%, or about two times blended inflation, including 2.5x in Brazil and 2.6x in NOLAD, Digital channels generated 42% of systemwide sales in the quarter, growing 47% versus the prior year, and setting a new quarterly sales record of almost $500 million. As of the end of September, the Company's Mobile App had reached over 79 million accumulated downloads, consolidating its undisputed leadership position in the region. This important marketing and communication tool has added a growing number of functionalities and leveraged guest data that produced a 67% increase in the number of identified sales versus the same period last year. It is also helping drive an increase in the average revenue per user, which is a testament to the Company's successful strategy to increase visit frequency by offering the industry’s most robust Digital experience. The structural shift to higher sales in off-premise sales channels, even as on-premise channels continue normalizing, was evident in the quarter's results. Arcos Dorados" Delivery sales grew strongly, rising 34% in constant currency versus the prior year period, despite signs that industrywide Delivery sales are relatively flat in the region. Drive-thru sales growth has moderated as ‘on-premise channels normalize, but still grew 11% and represented 28% of systemwide sales in the quarter. Front counter and McCafé generated the strongest sales growth among on-premise sales channels, up 41% and 62% in constant currency versus the prior year quarter, respectively. The strong rebound of on-premise channels proves the McDonald’s Brand remains culturally relevant and aspirational to guests who continue to enjoy the full restaurant experience. How would your previous answer be complemented My previous answer would be complemented by the information that the company saw growth in its consolidated revenue due to increases in both guest traffic and market share. The company's digital channels generated 42% of systemwide sales in the quarter, growing 47% versus the prior year and setting a new quarterly sales record of almost $500 million. The mobile app had reached over 79 million accumulated downloads, consolidating its leadership position in the region. The strong growth of delivery sales and the increase in average revenue per user indicate the company’s successful strategy to increase visit frequency through the digital experience. Additionally, there was a structural shift towards higher sales in off-premise sales channels, with delivery sales growing 34% in constant currency, despite signs that industry-wide delivery sales are relatively flat in the region, On-premise sales channels also showed strong growth, with front counter and MeCafé sales growing 41% and 62% respectively. These results show that the MeDonald’s brand remains culturally relevant and attractive to guests who enjoy the full restaurant experienc:Now take into account: Arcos Dorados’ non-operating results for the third quarter included a non-cash $1.5 million gain in foreign currency exchange results. Additionally, the Company recorded a non-cash $7.6 million gain from derivative instruments in the third quarter. Net interest expense totaled $3.2 million in the quarter. The Company recorded an income tax expense of $32.6 million in the third quarter, compared to an income tax benefit of $1.4 million in the prior-year period. Third quarter net income attributable to the Company totaled $47.7 million, compared to net income of $25.2 million in the prior-year period. Eamings per share were $0.23 in the third quarter of 2022, almost double the $0.12 per share generated in the prior year quarter. To better consolidate both previous answers ‘he consolidated revenue of Arcos Dorados for the third quarter of 2022 was $916.3 million, which was higher in both US dollars and constant currency compared to the prior year period. This growth was driven by strong growth in guest traffic and market share, as well as an increase in sales from digital channels. The Company's digital channels, including its Mobile App, generated 42% of systemwide sales and set a new quarterly sales record of almost $500 million. The Mobile App had reached over 79 million accumulated downloads and helped drive an increase in the average revenue per user, which is a testament to the Company's successful digital strategy. Arcos Dorados saw strong growth in its Delivery sales, which rose 34% in constant currency, despite flat industry-wide Delivery sales in the region, Drive-thru sales also grew 11% and represented 28% of systemwide sales in the quarter. Onepremise sales channels, such as front counter and MeCafé, also performed well, with sales growing 41% and 62% in constant currency, respectively. The non-operating results for the third quarter included a non-cash gain of $1.5 million in foreign currency exchange results and a non-cash gain of $7.6 million from derivative instruments. Net interest expense was $3.2 million, while income tax expense was $32.6 million, compared to an income tax benefit of $1.4 million in the prior-year period. ‘Asa result, the Company's net income attributable to the Company for the third quarter was $47.7 million, compared to $25.2 million in the prior year period. Earnings per share were $0.23 in the third quarter of 2022, almost double the $0.12 per share generated in the prior year quarter. is AS per your answers to question 2: take into account the following information: I'm sorry, but you haven't asked a question 2, Could you please specify the information you would like me to take into account? AS per your answers to question 2: 2, Describe your insights about the results of: a. Total Restaurants (Units) per quarter b. Total Revenues per quarter Which were: The company’s results showed that itopened an average of approximately 15 new restaurants per quarter, which contributed to its growth in both total restaurants and total revenues. The number of restaurants increased consistently over the quarters, with a slight dip in the fourth quarter of 2020. Total revenues also increased quarter over quarter, reflecting the growth in the number of restaurants and the positive impact of the company’ strategies take into account the following information: Divisional Results Brazil Division where the total restaurant units went from 1052 in 3q21 to 1077 in 3q22 and the total revenue became from 275.2 million us dollars in 3q21 to 352.8 million dollars in 3q22 As reported revenue reached $352.8 million, increasing 28.2% year-over-year. Systemwide comparable sales rose 21.8% versus the prior year, or 2.5x inflation in the period, Digital channels generated 52% of systemwide sales in Brazil, boosted by a 29% constant currency increase in Delivery sales versus the prior year quarter. These results were achieved against a backdrop of declining Delivery sales in the couniry’s QSR industry, demonstrating the strength of the Company's unmatched restaurant footprint to consolidate its market leadership in this new consumption occasion. Third quarter marketing activities focused on programs and investments designed to reinforce the Brand’s core strengths. For example, the Company partnered with one of Brazil’s hottest pop artists, Thiaguinho, for the latest installment of its successful “Famous Orders” campaign. To drive further digital adoption, the Company also invested in a 360-degree campaign to promote the Mobile Order and Pay feature of its Mobile App. This omnichannel approach to its Digital strategy is generating positive sales momentum and strengthening brand perception in this ‘growing channel. The Company also ran its most successful MeDia Feliz (McHappy Day) ever, receiving record contributions from guests’ purchases of the Big Mae. Proceeds from those sales were donated to charities focused on two pillars of the Company’s Recipe for the Future, Youth Employment and Commitment to Families, including the Instituto Ayrton Senna. As reported Adjusted EBITDA in the division reached $62.4 million in the quarter, with operational leverage driving improvements in all operating costs and expenses. This more than off-set the final step-up in the Company's royalty rate versus the prior year. Excluding the net tax credit from the prior year’s result, Brazil's Adjusted EBITDA margin in the third quarter rose 110 basis points year-over-year. North Latin American Division (NOLAD) As reported revenues were $232.9 million, up 13.8% in US dollars versus the prior year quarter. Systemwide comparable sales rose 18.3%, about 2.6x the divisions blended inflation. Mexico, Costa Rica and the French West Indies markets continued to deliver the strongest comparable sales growth. The Company’s sales and profitability were negatively impacted by the effects of Hurricane Fiona, which temporarily disrupted operations in Puerto Rico in September. Marketing activities in NOLAD featured menu innovations such as the introduction of the “Ultra-Hyper-Mega Tasty” campaign that leverages the Signature Beef and MeCrispy Chicken platforms in Mexico. Costa Rica became the first market in the Arcos Dorados footprint to launch Best Burger. This ambitious, global project provides an enhanced flavor profile and improved quality perception among guests, which is showing strong preliminary results. Digital sales in NOLAD grew approximately 200% versus the prior year quarter, aided by the continuous improvements in each market's Mobile App functionality, including Mobile Order and Pay, as well as greater marketing investments to promote the Digital platform. As reported Adjusted EBITDA reached $22.7 million in the third quarter compared with $22.3 million in the prior year quarter, representing a year-over-year increase of 2.1%, or 7.6% on a constant currency basis. Adjusted EBITDA margin declined by 110 basis points against 2021. Higher F&P costs as a percentage of revenue as well as the final step-up in the Company's royalty rate were partially offset by operating leverage in other expense line items. South Latin American Division (SLAD) Revenues in SLAD, excluding Venezuela, reached $330.7 million, rising 35.8% in US dollars. Systemwide comparable sales were up 67.8% versus the prior year, about 1.8x the division’s blended inflation in the period. All main markets in the division generated strong topline growth in the quarter. Both off-premise and on-premise sales growth were robust in the period with Drive-thru and Delivery sales up 39% and 45% in constant currency, respectively, and front counter rising 95% in constant currency as well. Marketing activities in SLAD continued building brand love with Generation Z, ‘guests thanks to a “Famous Orders” campaign with Latin pop artist Sebastién Yatra. During the quarter the Company introduced the MeCrispy Chicken platform to the menu in Colombia and Chile, where it received strong guest response. The dessert platform also produced encouraging results with the launch of the McFlurry Chocoramo in Colombia. This locally relevant product generated guest excitement and drove unit sales to the highest level ever in Colombia, As reported Adjusted EBITDA reached $40.0million, compared with $26.7 million in the prior-year quarter. Adjusted EBITDA margin was 12.1%, or 110 basis points higher than the prior year quarter. Sales growth above inflation and significant operating leverage more than offset the final step-up in the Company's royalty rate versus the prior year. and the new unit development was, § The divisional results of the company show a positive trend in the growth of both total restaurants and total revenues. The results of the Brazil Division indicate that the company’s growth strategies have been effective in the region with a 28.2% increase in year-over-year revenue, reaching $352.8 million. The strong growth was attributed to the increase in digital channels, particularly in Delivery sales, and marketing activities such as partnerships and investments in promoting the company's digital offerings. ‘The results also show that the company's operating cost and expenses have been effectively managed, with improvements in Adjusted EBITDA margins. In the North Latin American Division (NOLAD), the results show a 13.8% increase in revenue, driven by strong comparable sales growth and significant growth in digital sales. The division's marketing activities focused on menu innovations and promotions to drive sales and improve customer perception of the brand. The results also show that despite higher costs, the company was able to maintain its Adjusted EBITDA margins with the help of operating leverage. ‘he South Latin American Division (SLAD) reported strong growth with revenues, excluding Venezuela, reaching $330.7 million, up 35.8% year-over-year. The division recorded robust growth in both off AS per your answers to question 2: 2. Describe your insights about the results of: a. Total Restaurants, (Units) per quarter b. Total Revenues per quarter Which were: The company’s results showed that it opened an average of approximately 15 new restaurants per quarter, which contributed to its growth in both total restaurants and total revenues. The number of restaurants increased consistently over the quarters, with a slight dip in the fourth quarter of 2020. Total revenues also increased quarter over ‘quarter, reflecting the growth in the number of restaurants and the positive impact of the company's strategies take into account the following information: Divisional Results Brazil Division where the total restaurant units went from 1052 in 3q21 to 1077 in 3q22 and the total revenue became from 275.2 million us dollars in 3q21 to 352.8 million dollars in 3q22 As reported revenue reached $352.8 million, increasing 28.2% year-over-year. Systemwide comparable sales rose 21.8% versus the prior year, or 2.5x inflation in the period. Digital channels generated 52% of systemwide sales in Brazil, boosted by 29% constant currency increase in Delivery sales versus the prior year quarter. These results were achieved against a backdrop of declining Delivery sales in the couniry’s QSR industry, demonstrating the strength of the Company's unmatched restaurant footprint to consolidate its market leadership in this new consumption occasion. Third quarter marketing activities focused on programs and investments designed to reinforce the Brand’s core strengths. For example, the Company partnered with one of Brazil’s hottest pop artists, Thiaguinho, for the latest installment of its successful “Famous Orders” campaign. To drive further digital adoption, the Company also invested in a 360-degree ‘campaign to promote the Mobile Order and Pay feature of its Mobile App. This omnichannel approach to its Digital strategy is generating positive sales momentum and strengthening brand perception in this ‘growing channel. The Company also ran its most successful McDia Feliz (McHappy Day) ever, receiving record contributions from guests’ purchases of the Big Mac. Proceeds from those sales were donated to charities focused on two pillars of the Company’s Recipe for the Future, Youth Employment and Commitment to Families, including the Instituto Ayrton Senna. As reported Adjusted EBITDA inthe division reached $62.4 million in the quarter, with operational leverage driving improvements in all operating costs and expenses. This more than off-set the final step-up in the Company’ royalty rate versus the prior year. Excluding the net tax credit from the prior year’s result, Brazil's Adjusted EBITDA margin in the third quarter rose 110 basis points year-over-year. North Latin American Division (NOLAD) As reported revenues were $232.9 million, up 13.8% in US dollars versus the prior year quarter. Systemwide comparable sales rose 18.3%, about 2.6x the division’s blended inflation. Mexico, Costa Rica and the French West Indies markets continued to deliver the strongest comparable sales growth. The Company's sales and profitability were negatively impacted by the effects of Hurricane Fiona, which temporarily disrupted operations in Puerto Rico in September. Marketing activities in NOLAD featured menu innovations such as the introduction of the “Ultra-Hyper-Mega Tasty” campaign that leverages the Signature Beef and MeCrispy Chicken platforms in Mexico. Costa Rica became the first market in the Arcos Dorados footprint to launch Best Burger. This ambitious, global project provides an enhanced flavor profile and improved quality perception among guest which is showing strong preliminary results. Digital sales in NOLAD grew approximately 200% versus the prior year quarter, aided by the continuous improvements in each market's Mobile App functionality, including Mobile Order and Pay, as well as greater marketing investments to promote the Digital platform. As reported Adjusted EBITDA reached $22.7 million in the third quarter compared with $22.3 million in the prior year quarter, representing a year-over-year increase of 2.1%, or 7.6% on a constant currency basis. Adjusted EBITDA margin declined by 110 basis points against 2021. Higher FA&P costs as a percentage of revenue as well as the final step-up in the Company's royalty rate were partially offset by operating leverage in other expense line items. South Latin American Division (SLAD) Revenues in SLAD, excluding Venezuela, reached $330.7 million, rising 35.8% in US dollars. Systemwide comparable sales were up 67.8% versus the prior year, about 1.8x the division’s blended inflation in the period, All main markets in the division generated strong topline growth in the quarter. Both off-premise and on-premise sales growth were robust in the period with Drive-thru and Delivery sales up 39% and 45% in constant currency, respectively, and front counter rising 95% in constant currency as well. Marketing activities in SLAD continued building brand love with Generation Z, guests thanks to a “Famous Orders” campaign with Latin pop artist Sebastién Yatra. During the quarter the Company introduced the MeCrispy Chicken platform to the menu in Colombia and Chile, where it received strong guest response, The dessert platform also produced encouraging results with the launch of the McFlurry Chocoramo in Colombia. This locally relevant product generated guest excitement and drove unit sales to the highest level ever in Colombia. As reported Adjusted EBITDA reached $40.0 million, compared with $26.7 million in the prior-year quarter. Adjusted EBITDA margin was 12.1%, or 110 basis points higher than the prior year quarter. Sales growth above inflation and significant operating leverage more than offset the final step-up in the Company’s royalty rate versus the prior year. and the new unit development was, Arcos Dorados opened 15 restaurants during the third quarter of 2022, including 14 freestanding units. In Brazil, the Company opened 9 freestanding restaurants in the period. For the first nine months of 2022, the Company opened 45 new restaurants, including 40 freestanding units. This included 30 restaurant openings in Brazil, with 27 freestanding units opened during the same period. As of the end of September 2022, the Company was operating 918 Experience of the Future locations offering the most modern and engaging restaurant experience in the region, The pace of openings and modemizations in 2022 is ahead of the Company’s original guidance, thanks partly to a larger Development team. Moving forward, the team is focused on developing an even more robust openings pipeline and accelerating the implementation of the Company's growth and ‘modernization plans while meeting or exceeding the historical return on investment. Answear the question and better take into account the new information S Based on the divisional results, it seems that the company's strategy to open new restaurants and invest in digital channels and marketing initiatives has paid off. The results show significant growth in both total restaurants and total revenues, with an average of 15 new restaurants opened per quarter, Thegrowth in the number of restaurants and the company's strategies have had a positive impact on total revenues, which have consistently increased quarter over quarter. In the Brazil division, the company’s revenue increased 28.2% year-over-year to reach $352.8 million in 3Q22, with comparable sales rising 21.8%. Digital channels generated 52% of systemwide sales in Brazil, boosted by a 29% increase in delivery sales. The company's marketing initiatives, such as the with Thiaguinho for the "Famous Orders” campaign and investments in the Mobile Order and Pay feature, have helped drive sales and strengthen brand perception in the digital channel. In the North Latin American Division (NOLAD), the company's revenue was $232.9 million, up 13.8% in US dollars. Systemwide comparable sales rose 18.3%, with digital sales growing approximately 200% compared to the prior year quarter. Marketing activities included menu innovations like the "Ultra-Hypet-Mega Tasty” campaign and the introduction of the "Best Burger” project In the South Latin American Division (SLAD), the company's revenue, excluding Venezuela, reached $330.7 million, rising 35.8% in US dollars. Systemwide comparable sales were up 67.8% with strong ‘growth in all main markets, Marketing initiatives included campaigns with Latin pop artists Sebastién Yatra and the introduction of locally relevant products like the McCrispy Chicken platform and the ‘McFlurry Chocoramo. Overall, the company's growth in revenue, comparable sales, and digital channels in the different divisions shows that the company's strategies to open new restaurants and invest in marketing, initiatives and digital channels have been successful, Given all the information already given compliment this text: the 3D strategy involves delivery through mcDelivery, digital presence, and drive-thru. These initiatives aim to enhance the customer experience and increase operational efficiency. The focus on delivery and drive-thru is aimed at providing convenience and accessibility to customers, while the emphasis on digital presence is meant to enhance customer engagement and improve sales. The implementation of the 3D strategy is a key part of Arcos Dorados' efforts to remain competitive in the market and to continue to grow its business, To better exemplify the efforts in all: Brazil, NLAD and SLAD, to better financially grow, and remain ietent in the market § , Arcos Dorados has truly demonstrated its commitment to delivering the best possible experience to its customers. The integration of cutting-edge technology with its well-established delivery and drive-thru services ensures that the company stays ahead of the curve and meets the ever-evolving needs of its customers. The focus on improving digital presence is particularly impressive and showcases the company's forward-thinking approach. With these initiatives, Arcos Dorados is poised to make a significant impact on the market and continue its growth trajectory for many years to come. The implementation of the 3D strategy is truly a testament to the company's dedication to excellence and its unwavering commitment to meeting the needs of its customers.Given all the information already given compliment this text: the 3D strategy involves delivery through mcDelivery, digital presence, and drive-thru. These initiatives aim to enhance the customer experience and increase operational efficiency. The focus on delivery and drive-thru is aimed at providing convenience and accessibility to customers, while the emphasis on digital presence is meant to enhance customer engagement and improve sales. The implementation of the 3D strategy is a key part of Arcos Dorados' efforts to remain competitive in the market and to continue to grow its business. To better exemplify the efforts in all: Brazil, NLAD and SLAD, to better financially grow, and remain cometent in the market Taking into account: Divisional Results Brazil Division where the total restaurant units went from 1052 in 3q21 to 1077 in 3q22 and the total revenue became from 275.2 million us dollars in 3q21 to 352.8 million dollars in 3q22 As reported revenue reached $352.8 million, increasing 28.2% year-over-year, Systemwide comparable sales rose 21.8% versus the prior year, or 2.5x inflation in the period. Digital channels generated 52% of systemwide sales in Brazil, boosted by a 29% constant currency increase in Delivery sales versus the prior year quarter. These results were achieved against a backdrop of declining Delivery sales in the couniry’s QSR industry, demonstrating the strength of the Company's unmatched restaurant footprint to consolidate its market leadership in this new consumption occasion. Third quarter marketing activities focused on programs and investments designed to reinforce the Brand’s core strengths. For example, the Company partnered with one of Brazil's hottest pop artists, Thiaguinho, for the latest installment of its successful “Famous Orders” campaign. To drive further digital adoption, the Company also invested in a 360-degree campaign to promote the Mobile Order and Pay feature of its Mobile App. This omnichannel approach to its Digital strategy is generating positive sales momentum and strengthening brand perception in this ‘growing channel. The Company also ran its most successful MeDia Feliz (McHappy Day) ever, receiving record contributions from guests’ purchases of the Big Mac. Proceeds from those sales were donated to charities focused on two pillars of the Company’s Recipe for the Future, Youth Employment and Commitment to Families, including the Instituto Ayrton Senna. As reported Adjusted EBITDA in the division reached $62.4 million in the quarter, with operational leverage driving improvements in all operating costs and expenses. This more than off-set the final step-up in the Company's royalty rate versus the prior year. Excluding the net tax eredit from the prior year’s result, Brazil’s Adjusted EBITDA margin in the third quarter rose 110 basis points year-over-year. North Latin American Division (NOLAD) As reported revenues were $232.9 million, up 13.8% in US dollars versus the prior year quarter. Systemwide comparable sales rose 18.3%, about 2.6x the division’s blended inflation. Mexico, Costa Rica and the French West Indies markets continued to deliver the strongest comparable sales growth. The Company’s sales and profitability were negatively impacted by the effects of Hurricane Fiona, which temporarily disrupted operations in Puerto Rico in September. Marketing activities in NOLAD featured menu innovations such as the introduction of the “Ultra-Hyper-Mega ‘asty” campaign that leverages the Signature Beef and McCrispy Chicken platforms in Mexico. Costa Rica became the first market in the Arcos Dorados footprint to launch Best Burger. This ambitious, global project provides an enhanced flavor profile and improved quality perception among guests, which is showing strong preliminary results. Digital sales in NOLAD grew approximately 200% versus the prior year quarter, aided by the continuous improvements in each markets Mobile App functionality, including Mobile Order and Pay, as well as greater marketing investments to promote the Digital platform. As reported Adjusted EBITDA reached $22.7 million in the third quarter compared with $22.3 million in the prior year quarter, representing a year-over-year increase of 2.1%, or 7.6% on a constant currency basis. Adjusted EBITDA margin declined by 110 basis points against 2021. Higher F&P costs as a percentage of revenue as well as the final step-up in the Company's royalty rate were partially offset by operating leverage in other expense line items. South Latin American Division (SLAD) Revenues in SLAD, excluding Venezuela, reached $330.7 million, rising 35.8% in US dollars. Systemwide comparable sales were up 67.8% versus the prior year, about I.8x the division’s blended inflation in the period, All main markets in the division generated strong topline growth in the quarter. Both off-premise and on-premise sales growth were robust in the period with Drive-thru and Delivery sales up 39% and 45% in constant currency, respectively, and front counter rising 95% in constant currency as well. Marketing activities in SLAD continued building brand love with Generation Z ‘guests thanks to a “Famous Orders” campaign with Latin pop artist Sebastién Yatra. During the quarter the Company introduced the MeCrispy Chicken platform to the menu in Colombia and Chile, where itreceived strong guest response. The dessert platform also produced encouraging results with the launch of the McFlurry Chocoramo in Colombia. This locally relevant product generated guest excitement and drove unit sales to the highest level ever in Colombia, As reported Adjusted EBITDA reached $40.0 million, compared with $26.7 million in the prior-year quarter. Adjusted EBITDA margin was 12.1%, or 110 basis points higher than the prior year quarter. Sales growth above inflation and significant operating leverage more than offset the final step-up in the Company’s royalty rate versus the prior year. and the new unit development was, Arcos Dorados opened 15 restaurants during the third quarter of 2022, including 14 freestanding units. In Brazil, the Company opened 9 freestanding restaurants in the period, For the first nine months of 2022, the Company opened 45 new restaurants, including 40 freestanding units. This included 30 restaurant openings in Brazil, with 27 freestanding units opened during the same period. As of the end of September 2022, the Company was operating 918 Experience of the Future locations offering the most modern and engaging restaurant experience in the region. The pace of openings and modernizations in 2022 is ahead of the Company’s original guidance, thanks partly to a larger Development team. Moving forward, the team is focused on developing an even more robust openings pipeline and accelerating the implementation of the Company’s growth and modernization plans while meeting or exceeding the historical return on investment. S ‘The 3D strategy implemented by Arcos Dorados has proven to be a huge success, as evidenced by the impressive results in the Brazil, North Latin American (NOLAD), and South Latin American (SLAD) divisions. The combination of delivery, digital presence, and drive-thru initiatives has enabled Arcos Dorados to enhance the customer experience, increase operational efficiency, and remain competitive in the market, The Brazil division recorded a total revenue of $352.8 million in 3Q22, an increase of 28.2% YoY, with digital channels accounting for 52% of system-wide sales. This was achieved through various marketing initiatives such as the partnership with Thiaguinho, the 360-degree campaign to promote the Mobile Order and Pay feature, and the successful MeDia Feliz. event. NOLAD's revenues were up 13.8% YoY to $232.9 million, with digital sales growing by approximately 200%. Meanwhile, SLAD saw revenues of $330.7 million, a 35.8% increase YoY, driven by strong topline growth in all main markets and robust sales growth in both off-premise and on-premise channels. These results show that the 3D strategy has been effective in driving growth, improving profitability, and strengthening brand perception for Arcos Dorados. Given Brazil Division where the total restaurant units went from 1052 in 3q21 to 1077 in 3422 and the total revenue became from 275.2 million us dollars in 3q21 to 352.8 million dollars in 3q22 As reported revenue reached $352.8 million, increasing 28.2% year-over-year. Systemwide comparable sales rose 21.8% versus the prior year, or 2.5x inflation in the period. Digital channels generated 52% of systemwide sales in Brazil, boosted by a 29% constant currency increase in Delivery sales versus the prior year quarter. These results were achieved against a backdrop of declining Delivery sales in the country’s QSR industry, demonstrating the strength of the Company's unmatched restaurant footprint to consolidate its market leadership in this new consumption occasion. Third quarter marketing activities focused on programs and investments designed to reinforce the Brand’s core strengths. For example, the Company partnered with one of Brazil’s hottest pop artists, Thiaguinho, for the latest installment of its successful “Famous Orders” campaign. To drive further digital adoption, the Company also invested in a 360-degree campaign to promote the Mobile Order and Pay feature of its Mobile App. This omnichannel approach to its Digital strategy is generating positive sales momentum and strengthening brand perception in this growing channel, The Company also ran its ‘most successfull McDia Feliz (McHappy Day) ever, receiving record contributions from guests” purchases of the Big Mac. Proceeds from those sales were donated to charities focused on two pillars.of the Company's Recipe for the Future, Youth Employment and Commitment to Families, including the Instituto Ayrton Senna. As reported Adjusted EBITDA in the division reached $62.4 million in the ‘quarter, with operational leverage driving improvements in all operating costs and expenses. This more than off-set the final step-up in the Company’s royalty rate versus the prior year. Excluding the net tax credit from the prior year’s result, Brazil’s Adjusted EBITDA margin in the third quarter rose 110 basis points year-over-year. North Latin American Division (NOLAD) As reported revenues were $232.9 million, up 13.8% in US dollars versus the prior year quarter. Systemwide comparable sales rose 18.3%, about 2.6x the division’s blended inflation. Mexico, Costa Rica and the French West Indies markets continued to deliver the strongest comparable sales growth. The Company's sales and profitability were negatively impacted by the effets of Hurricane Fiona, which temporarily disrupted operations in Puerto Rico in September. Marketing activities in NOLAD featured menu innovations such as the introduction of the “Ultra-Hyper-Mega Tasty” campaign that leverages the Signature Beef and MeCrispy Chicken platforms in Mexico. Costa Rica became the first market in the Arcos Dorados footprint to launch Best Burger. This ambitious, global project provides an enhanced flavor profile and improved quality perception among guests, which is showing strong preliminary results. Digital sales in NOLAD grew approximately 200% versus the prior year quarter, aided by the continuous improvements in each market’s Mobile App functionality, including Mobile Order and Pay, as well as greater marketing investments to promote the Digital platform. As reported Adjusted EBITDA reached $22.7 million in the third quarter compared with $22.3 million in the prior year quarter, representing year-over-year increase of 2.1%, or 7.6% on a constant currency basis. Adjusted EBITDA margin declined by 110 basis points against 2021. Higher F&P costs as a percentage of revenue as well as the final step-up in the Company’s royalty rate were partially offset by operating leverage in other expense line items. South Latin American Division (SLAD) Revenues in SLAD, excluding Venezuela, reached $330.7 million, rising 35.8% in US dollars. Systemwide comparable sales were up 67.8% versus the prior year, about 1.8x the division’s blended inflation in the period. All main markets in the division «generated strong topline growth in the quarter. Both off-premise and on-premise sales growth were robust in the period with Drive-thru and Delivery sales up 39% and 45% in constant currency, respectively, and front counter rising 95% in constant currency as well. Marketing activities in SLAD continued building brand love with Generation Z guests thanks to a “Famous Orders” campaign with Latin pop artist Sebastian Yatra. During the quarter the Company introduced the MeCrispy Chicken platform to the menu in Colombia and Chile, where it received strong guest response. The dessert platform also produced encouraging results with the launch of the MeFlurry Chocoramo in Colombia. This locally relevant product generated guest excitement and drove unit sales to the highest level ever in Colombia. As reported Adjusted EBITDA reached $40.0 million, compared with $26.7 million in the prior-year quarter. Adjusted EBITDA margin was 12.1%, or 110 basis points higher than the prior year quarter. Sales growth above inflation and significant operating leverage more than offset the final step-up in the Company's royalty rate versus the prior year. and the new unit development was, Arcos Dorados opened 15 restaurants during the third quarter of 2022, including 14 freestanding units, In Brazil, the Company opened 9 freestanding restaurants in the period. For the first nine months of 2022, the Company opened 45 new restaurants, including 40 freestanding units. This included 30 restaurant openings in Brazil, with 27 freestanding units opened during the same period. As of the end of September 2022, the Company was operating 918 Experience of the Future locations offering the most modern and engaging restaurant experience in the region. The pace of openings and modemizations in 2022 is ahead of the Company’s original guidance, thanks partly to a larger Development team. Moving forward, the team is focused on developing an even more robust openings pipeline and accelerating the implementation of the Company's growth and modernization plans while meeting or exceeding the historical return on investment. And specifically giving importance to: Revenues in SLAD, excluding Venezuela, reached $330.7 million, rising 35.8% in US dollars, Systemwide comparable sales were up 67.8% versus the prior year, about 1,8x the division’s blended inflation in the period. All main markets in the division generated strong topline growth in the quarter. Both off- premise and on-premise sales growth were robust in the period with Drive-thru and Delivery sales up 39% and 45% in constant currency, respectively, and front counter rising 95% in constant currency as well. Marketing activities in SLAD continued building brand love with Generation Z guests thanks to a “Famous Orders” campaign with Latin pop artist Sebastian Yatra, During the quarter the Companyintroduced the MeCrispy Chicken platform to the menu in Colombia and Chile, where it received strong guest response. The dessert platform also produced encouraging results with the launch of the McFlurry Chocoramo in Colombia, This locally relevant product generated guest excitement and drove unit sales to the highest level ever in Colombia. As reported Adjusted EBITDA reached $40.0 million, compared with $26.7 million in the prior-year quarter. Adjusted EBITDA margin was 12.1%, or 110 basis points higher than the prior year quarter. Sales growth above inflation and significant operating leverage more than offset the final step-up in the Company's royalty rate versus the prior year. Describe how the marketing efforts had a positive impact in Colombia's Market S In the 3Q of 2022, Arcos Dorados reported strong growth in its revenue and unit count in all three of its divisions: Brazil, North Latin America (NOLAD), and South Latin America (SLAD). In the Brazil Division, Arcos Dorados reported a 28.2% YoY increase in revenue, reaching $352.8 million. Systemwide comparable sales rose by 21.8% and digital channels accounted for 52% of systemwide sales, driven by a 29% increase in Delivery sales. The company achieved these results through a combination of marketing activities and investments in digital channels, including the Famous Orders campaign with Thiaguinho, investment in a 360-degree campaign to promote the Mobile Order and Pay feature of its Mobile App, and a successfull McDia Feliz (McHappy Day). The company's adjusted EBITDA in the division reached $62.4 million, driven by improvements in all operating costs and expenses. In the NOLAD Division, Arcos Dorados reported a 13.8% YoY increase in revenue, reaching $232.9 million. Systemwide comparable sales rose by 18.3%, with Mexico, Costa Rica, and the French West Indies markets delivering the strongest growth. The company's marketing activities included menu innovations such as the Ultra-Iyper-Mega Tasty campaign and the launch of Best Burger in Costa Rica. Digital sales in NOLAD grew by 200% YoY, driven by improvements in Mobile App functionality and increased marketing investments in digital channels. The company's adjusted EBITDA reached $22.7 million, a 2.1% YoY increase, driven by operating leverage in other expense line items, In the SLAD Division, Arcos Dorados reported a 35.8% YoY increase in revenue, reaching $330.7 million, excluding Venezuela. Systemwide comparable sales rose by 67.8%, driven by strong growth in all main markets. Both off-premise and on-premise sales were robust, with Drive-thru and Delivery sales up 39% and 45% in constant currency, respectively, and front counter sales rising 95% in constant currency. The company’s marketing activities included the Famous Orders campaign with Latin pop artist Sebastin Yatra, the launch of the McCrispy Chicken platform in Colombia and Chile, and the launch of the McFlurry Chocoramo in Colombia. The company’s adjusted EBITDA reached $40.0 million, a 50.2% YoY increase, driven by sales growth above inflation and significant operating leverage During the 3Q of 2022, Arcos Dorados opened 15 new restaurants, including 14 freestanding units. In Brazil, the company opened 9 freestanding restaurants. For the first nine months of 2022, the company opened 45 new restaurants, including 40 freestanding units. Better emphazise your last answer in regards to Colombia, taking into account the following information: Marketing activities in SLAD continued building brand love with Generation Z guests thanks to a “Famous Orders” campaign with Latin pop artist Sebastian Yatra. During the quarter theCompany introduced the MeCrispy Chicken platform to the menu in Colombia and Chile, where it received strong guest response. The dessert platform also produced encouraging results with the launch of the MeFlurry Chocoramo in Colombia. This locally relevant product generated guest excitement and drove unit sales to the highest level ever in Colombia. S Sure, let me rephrase my previous answer with the additional information: In Colombia, McDonald's continued to engage Generation Z guests through its "Famous Orders" ‘campaign in collaboration with Latin pop artist Sebastian Yatra, which helped to further strengthen brand love. During the quarter, the company introduced the McCrispy Chicken platform to the menu in Colombia and Chile, which was well received by guests. Additionally, the launch of the McFlurry Chocorame, a locally relevant dessert product, generated significant excitement among guests and resulted in the highest unit sales ever in Colombia. These initiatives demonstrate McDonald's commitment to offering products that resonate with local customers and drive growth in the region.