Arcos Dorados Holdings Inc. (NYSE:ARCO) Q3 2022 Earnings Conference Call November 16, 2022 10:00 AM ET
Company Participants
Dan Schleiniger - VP, Investor Relations
Marcelo Rabach - CEO & Director
Luis Raganato - Chief Operating Officer
Mariano Tannenbaum - Chief Financial Officer
Conference Call Participants
Dan Schleiniger
Good morning, everyone, and thank you for joining our Third Quarter 2022 Earnings Webcast. With us today are Marcelo Rabach, our Chief Executive Officer; Luis Raganato, our Chief Operating Officer; and Mariano Tannenbaum, our Chief Financial Officer.
Today’s webcast, which is being recorded, will consist of prepared remarks from our leadership team, which will be accompanied by a slide presentation, also available in the Investors section of our website, www.arcosdorados.com/ir. [Operator Instructions]
Today’s call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. In addition to reporting financial results in accordance with generally accepted accounting principles, we report certain non-GAAP financial results.
Investors are encouraged to review the reconciliation of these non-GAAP financial results as compared with GAAP results, which can be found in the press release and unaudited financial statements filed today with the SEC on Form 6-K. Our discussion today excludes the results of the Venezuelan operation, both at the consolidated level as well as for the SLAD division. For your reference, we included a full income statement, excluding Venezuela with today’s earnings release. Marcelo, over to you.
Marcelo Rabach
Thank you, Dan. Good morning, everyone, and thank you for joining us this morning. Today, Luis, Mariano and I will take you through the highlights of our consolidated and divisional results for the third quarter of 2022. Mariano will also cover our balance sheet and growth metrics, and Luis will provide an update on the 3D strategy of digital, Delivery and Drive-thru that has been driving the strongest operating and financial results in our history.
I’ll wrap up with the Recipe for the Future and some final thoughts on 2022 and beyond. In our discussion of a third quarter results, you will see that we were able to maintain the strong trends of the last several quarters and build on what we told you was a better-than-expected month of July. This means business momentum was very strong as we headed into the year’s most important quarter and that's why we finalized our plans for next year as well. Total revenue in the third quarter reached $916 million, comparable sales grew more than 34% versus the prior year boosted by higher guest volumes and market share gains throughout the Arcos’ footprint. We leveraged our structural competitive advantages, with a continued focus on our winning Three D’s strategy. Digital Sales contributed 42% of the quarter systemwide sales reaching almost $500 million.