Arcos Dorados Holdings Inc. (NYSE:ARCO) Q2 2024 Earnings Conference Call August 14, 2024 10:00 AM ET
Company Participants
Dan Schleiniger - Investor Relations
Marcelo Rabach - Chief Executive Officer
Luis Raganato - Chief Operating Officer
Mariano Tannenbaum - Chief Financial Officer
Dan Schleiniger
Good morning, everyone, and thank you for joining our Second Quarter 2024 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. As a reminder, to better view the presentation on the webcast platform, please scroll over the upper left-hand part of the screen and click on the arrows to maximize the slides. After we conclude our opening remarks, we will answer your questions, which you can submit using the chat function on the left-hand side of the screen. You will need to minimize the slides to access the chat function.
Today's 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 and unaudited financial statements filed today with the SEC on Form 6-K.
Marcelo, over to you.
Marcelo Rabach
Thank you, Dan. Good morning, everyone, and thank you for joining us.
Today, we will take you through our results for the second quarter, which we believe demonstrate how our business model has evolved to perform strongly in any operating context.
Sales and profitability growth through June have been consistent with our strategy, especially when you consider the tougher-than-expected macroeconomic and consumer environments we are facing this year. We are focused on the factors we can control to minimize short-term volatility and maximize long-term growth. Top-line growth in the second quarter was strong, with comparable sales growing well above inflation in just about every market, leading to continued market share gains for the McDonald's brand in our footprint.
Total revenue rose 6.8% in the second quarter, reaching the highest level ever for the second quarter in US dollars. Guest traffic grew for the 13th consecutive quarter, continuing to support comparable sales growth, even as consumers have become more discerning with their discretionary spending. This is where our omnichannel approach, strong value proposition, and operational excellence have established McDonald's as the region's favorite QSR plan. Systemwide comparable sales growth was 2.4 times the company's blended inflation, excluding Argentina. According to market sources, as well as our own research, market share expanded in our biggest markets, outpacing the main competitors in nearly every market.