Hello, and thank you for joining Arcos Dorados Second Quarter 2025 Earnings Webcast. With us today are Luis Raganato, our Chief Executive 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, ir.arcosdorados.com. To better follow the presentation, please note that you can set your view to full screen on the webcast platform. Additionally, you can submit your questions at any time during the presentation using the Q&A function on the bottom of the screen. After we conclude our opening remarks, we will answer your questions. 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 today's earnings press release and conference call presentation as well as the unaudited financial statements filed today with the SEC on Form 6-K. With that, I'll now turn the call over to our CEO, Luis Raganato.

Thank you, Dan. Good morning, everyone, and thank you for joining us. Before getting into the quarter's results, let me take a moment to thank our Executive Chairman, Woods Staton, and the entire Board of Directors for their confidence in appointing me CEO of Arcos Dorados. I am honored to continue the work of my predecessors, each of whom took the company to new operational and customer experience heights by working collaboratively with all stakeholders of the Arcos Dorados and McDonald's Systems. I would also like to congratulate all members of the team who are taking on new roles as part of this management change. We always said that Arcos Dorados has a deep bench of talented executives. This includes Carlos Gonzalez, who is taking on the role of Chief Operating Officer, bringing very significant management experience and a demonstrated ability to bridge cultural and generational gaps to drive strong performance. I look forward to working with him and the entire team to exceed our expectations and generate value for all stakeholders. Moving now to the key highlights of the quarter. We generated solid results in very dynamic macroeconomic and operating environments. Total revenue reached $1.1 billion. Constant currency revenue remained solid, built on 12.1% higher system-wide comparable sales, which was above blended inflation for the period. Comp sales growth was particularly strong in NOLAD and SLAD, growing well above blended inflation in each division. The same calendar effect that impacted NOLAD's results in the first quarter helped boost the division's results in the second quarter. Marketing and digital initiatives focused on value and brand strength across sales channels and product categories. Additionally, the loyalty program continued to drive an increasing percentage of sales by bringing members back to our restaurants more often. These efforts helped support robust market share gains in many markets. More on that later. We generated $110.1 million in adjusted EBITDA in the second quarter. Excluding last year's labor contingency reduction in Brazil, adjusted EBITDA grew by more than 7% and margin expanded by about 40 basis points. The growth plan for 2025 remains on target, and we opened 20 new Experience of the Future restaurants in the second quarter. This brings total openings for the first half of the year to 32 sites, and the plan remains to deliver 90 to 100 this year. In addition to adding new restaurants through openings, we are excited to announce that last month we added a 21st market to the Arcos Dorados family. We acquired 3 existing restaurants and the exclusive franchise rights to Saint Martin in the Caribbean. The choice of Arcos Dorados as the new operator in Saint Martin is a testament to our operational excellence and commitment to growth in the region. Marketing and digital campaigns drove strong comparable sales growth in NOLAD and SLAD during the quarter, while also helping to protect market share within a challenging consumer environment in Brazil. The digital ecosystem that accounted for about 60% of sales in the quarter supported campaigns designed to stay close to guests and adapt to changing consumer preferences. This included the Big Fest, which celebrated car favorites at a compelling value. The results were clear. Brand preference rose to almost twice that of the nearest competitor across the region. Brand attributes related to value, taste, and trust saw significantly higher favorable gaps versus the near competitor as well. And app downloads and loyalty program membership increased strongly during the campaign. The digital loyalty program is now available in 6 countries with a seventh market currently in its prelaunch phase. The program already covers 2/3 of the restaurant portfolio, and we expect it to be available in 90% of all restaurants by the end of this year. Loyalty program members visit us at a much higher rate than non-loyalty guests, and they represented almost 23% of total sales in the 6 available markets during the second quarter. In Brazil, where the consumer environment has been challenging this year, we took steps to remain close to guests. For example, the Mequi do Dia campaign offered one menu favorite per day at a compelling value. Across the operating footprint, the Minecraft Happy Meal also strengthened ties with our guests. The game has significant crossover appeal to both kids and adults, which we optimized by offering a unique adult Happy Meal with chicken McNuggets. We also used the regional Formula 1 sponsorship to strengthen ties with families and guests of all ages. Capitalizing on the appeal of Formula 1, the movie, we introduced a limited-edition sandwich and a collectible race car exclusive to McDonald's restaurants. The campaign was extremely successful, selling out in just a matter of days or weeks, depending on the market. Finally, the dessert category has become increasingly competitive, so we kept the entry-level comp price at an attractive price point. We also innovated by leveraging a favorite McDonald's character with the Grimace Shake and by adding more local flavors to the McFlurry platform.

Thanks, Luis, and good morning, everyone. Brazil's total revenue in constant currency grew 2% in the second quarter, including positive comp sales despite operating within a context of negative industry volumes. We were able to offset volume pressure with a combination of targeted pricing and product mix. Importantly, market share remained steady versus the prior year and the brand attributes we track are as strong as we have ever seen. This undoubtedly positions us well for when consumer trends improve in the country. More than 70% of system-wide sales were generated by digital channels, and the Meu Mequi loyalty program surpassed 18 million members who accounted for 26% of the division's total sales. NOLAD's total revenue rose 6.9% in constant currency. U.S. dollar revenue growth was impacted mainly by the year-over-year depreciation of the Mexican peso. Comparable sales rose 1.8x blended inflation in the period. This included 12.4% comp sales growth in Mexico, much higher than all main competitor brands. Digital sales penetration remained steady in NOLAD, where we offer the loyalty program in Costa Rica, and we are in the test phase in Puerto Rico. We believe digital sales performance will ramp up in the division as we expand the loyalty program to additional markets by the end of this year. SLAD's revenue rose 37.8% in constant currency with comparable sales up 1.4x net inflation in the period. Market share expanded strongly in several markets, including Argentina and Chile. Argentina built on last year's market share gains to boost its continued rebound from 2024. Digital sales penetration in SLAD surpassed 60%, and loyalty generated 17% of total sales from the 4 SLAD markets currently offering the program. Let's shift now to profitability and capital allocation during the second quarter. Adjusted for last year's labor contingency reduction in Brazil, second quarter consolidated EBITDA grew very solidly in U.S. dollars despite currency headwinds. While food and paper remained pressured due to higher beef prices in Brazil, improvements in all other restaurant expense lines supported a solid EBITDA performance. Similar to the first quarter, Brazil's margin contraction was mainly due to higher food and paper costs from rising beef prices in the market. As you already know, the royalty fee this year is higher in Brazil due to the normalization of the royalty rate across the 3 divisions. Excluding last year's labor contingency reduction, the net result of the remaining expense lines had a positive margin impact in Brazil. NOLAD's margin included improved performance in all restaurants' expense lines, except food and paper, which rose modestly versus last year as a percentage of revenue. Royalties were lower due to the normalization of rates across the 3 divisions and the result also included a gain from a sub-franchisee restaurant transaction in Mexico during the quarter. Margin performance was strong in nearly all the divisions market in the period. SLAD delivered another strong quarter of margin expansion with lower costs and expenses in nearly all line items. Notably, last year's EBITDA included a positive impact from a sub-franchised restaurant transaction. Adjusting for that impact, SLAD's margin expanded by about 260 basis points versus the second quarter of 2024. With these results, the company's balance sheet remains strong, and we continue making investments in future cash flow growth. As of the end of the second quarter, our debt was concentrated in 2 long-term bonds, the 2029 and 2032 notes with an average U.S. dollar cost of 6.28% and an average duration of almost 6 years. After receiving an upgrade to investment grade from Fitch in January, last month, S&P assigned an initial rating of BBB- to our debt. As a result, Arcos Dorados' debt is now considered to be full investment grade, which should help support future capital market transactions. At the end of the second quarter, the net debt to adjusted EBITDA ratio was a comfortable 1.4x, and we expect it to remain near this level for the remainder of the year. Our growth strategy remains intact. And during the second quarter, we added 20 EOTF restaurants to the portfolio. As has been the case for the last 5 years, most openings were freestanding units and the majority were opened in Brazil. We invested $55.3 million in capital expenditures, including more than $26.8 million in growth CapEx associated with new restaurant builds. We expect to continue making prudent investments in growth as we remain convinced this is the best way to increase free cash flow generation in the long term. As Luis already mentioned, after the quarter ended, we acquired the 3 existing restaurants in Saint Martin and the exclusive franchise rights for that market, which will be subject to the same terms as our existing master franchise agreement with McDonald's. Saint Martin will be managed by NOLAD and will be included in the division's results beginning in the third quarter of 2025. We do not expect a material change in consolidated results from this acquisition.

I would like to touch on a topic that remains at the core of everything we do at Arcos Dorados. We recently published the 2024 social impact and sustainable development report for Arcos Dorados. In it, you can learn more about the initiatives we advanced within the Recipe for the Future framework. This ESG platform is built on 6 pillars: Climate change, which saw us reach 50% renewable energy, allowing us to reduce energy costs while also meeting our targeted Scope 1 and 2 emissions reduction. Circular economy, which includes recycling of both packaging and used cooking oil. Sustainable sourcing, which supports local economies through local sourcing. Youth opportunity, which includes over 60,000 employees younger than 24 years. Family and well-being, which supports young people in partnership with local NGOs. And diversity and inclusion, which ensures a welcoming work environment and restaurant experience for collaborators and guests of all backgrounds. You can access the full report at recipeforthefuture.com. Before we open the call up for questions, let me tell you about my priorities as CEO. To begin with, I have designed and implemented current strategy, so I do not expect to change the big picture. With that in mind, I would say that I have 3 main strategic priorities or pillars of focus. First, today's business, the organic business. In other words, everything that goes into exceeding customer expectations today. That means the experience we offer through menu, quality, service, and cleanliness inside our restaurants, in customers' homes, and in the digital ecosystem. Second, growing the business, our development strategy. I am challenging the entire team to revisit every element of our development process to further modernize and improve the way we grow. To increase our cash flow generation and create more value for our shareholders, we need to ensure that every dollar invested brings the best possible return. And third, tomorrow's business. We will work to answer the question of where Arcos Dorados will be in 10 years. We need to begin preparing now to meet future customer expectations, and we'll do whatever it takes to maintain our leadership position beyond 2035. Needless to say, this will be a collaborative effort within Arcos Dorados, with McDonald's, with our suppliers, and with our sub-franchisees. As we often say, there is nothing we can't accomplish if we work together. I look forward to speaking with all of you over the coming months and years as I am certain the best is yet to come for Arcos Dorados. Thank you for joining today's call. Dan, back to you.

Thanks, Luis. We will now begin the Q&A session. You can submit your questions using the Q&A function at the bottom of the screen. Please limit your questions to 1 or 2 so I can read and relay them to our speakers. We'll pause briefly to compile your questions. We have quite a few questions already in the queue, many of which relate to similar topics. So please bear with me as I go through these, and we'll start with you, Luis, on this first set of questions. First, Thiago Bortoluci from Goldman Sachs. Good morning, everyone. It's always a pleasure to engage with the team. Before we begin, we would like to express our gratitude to Marcelo for his openness and constructive dialogue during his tenure, and we wish Luis, Francisco, and Carlos continued success in their extended responsibilities. Regarding the results, they have 3 questions. The first 2 I’ll combine here. How do you assess the balance between foot traffic, pricing, product mix, and profitability in Brazil? Additionally, what internal initiatives should we anticipate from you to potentially reignite same-store sales growth in the back end of the year? Continuing with that concept, do you have any preliminary insights on demand trends in July for Brazil and Mexico? Related to Thiago's question, we have a question from Eric Huang from Santander. How is the company perceiving the consumer environment in Brazil as we move into the second half of 2025? How are the revenue management initiatives expected to help in improving sales momentum ahead? Finally, Melissa and Bob Ford from Bank of America have asked about consumption dynamics in Brazil during the second quarter and in July/August. Was weather a factor in the second quarter's deceleration? With all that as background, Luis, I'll turn it over to you.

Thank you, Dan, and thank you, David, Eric, and Melissa. I'll try to cover everything. First, regarding the context, the market continues to face a challenging macroeconomic environment, uncertainty, and weakening consumer confidence. Despite various sources indicating a decline in visit flows within the QSR market, we successfully achieved positive comparable sales. We compensated for a decrease in traffic through targeted price increases and a favorable product mix, meaning that our sales growth came more from the average transaction value rather than volume. We aim to balance sales growth and profitability, focusing on increasing our margins. Concerning channels, Melissa, the weather primarily impacted our dessert offerings. We are facing stronger competition, especially in Brazil, but we have a strategic plan to address that. The good news is that our front counter outperformed, demonstrating that our brand and on-premise experience is appealing, and that experience will continue to be crucial. Among our key marketing actions, the Mequi do Dia value campaign and the Mequi Fest digital campaign were particularly successful, boosting visit frequency and leading to a 15% increase in identified sales. Identified sales are very important for us, and we achieved 26% in the region, with 32% specifically in Brazil in June. While we are cautious with pricing to protect our market share, we also have a comprehensive plan that includes short-term initiatives, complemented by a long-term focus on enhancing our brand's aspirational qualities. For example, collaborations like the Minecraft Happy Meal license, the launch of the Grimace Shake, and our Formula 1 initiative appeal to all socioeconomic groups and enhance the brand's cool factor. Consequently, our market share remains strong, leading our nearest competitor by a ratio of 2.2, and attributes such as brand preference and awareness are at their highest levels according to our internal research. We are currently in a position of strength. Although we anticipate the challenging macroeconomic conditions will persist into the third quarter and possibly throughout the second half of the year, we remain confident due to our robust marketing strategy. We will continue to implement our affordability platform to drive traffic and protect our market share, while staying connected with our customers and fostering their love for our brand through exciting new launches. Regarding Mexico, it had an outstanding quarter with a 12% increase in sales, the highest in the market, across both QSR and the broader industry. Notably, this growth was driven by dessert offerings, delivery, and front counter sales. We are observing a similar positive trend at the start of the third quarter. Daniel?

Thanks, Luis. Now, Mariano, I have a combination of questions for you. We've received inquiries from Joaquin and others about the Brazil division and consumer demand, as well as a question from Julia Rizzo at Morgan Stanley regarding same-store sales trends in Brazil, which you just addressed, Luis. I want to acknowledge both Joaquin and Julia. Now, moving on to Mariano, I'll start with a question from Thiago at Goldman Sachs, along with questions from Melissa and Bob at Bank of America and Froylan at JPMorgan. Mariano, can you provide details on which regions and actions had the most significant impact on top line and margin performance in NOLAD? Related to this, Froylan asked how much of the 12% same-store sales growth in Mexico was due to positive calendar effects and how sustainable this growth is heading into the second half. Additionally, Melissa and Bob from Bank of America want you to comment on Mexico's underlying sales and margin performance, excluding the Holy Week impact. This is a general NOLAD and Mexico question for you, Mariano.

Good morning, everyone, and thank you, Thiago, Melissa, and Froy for your questions. We're very satisfied with NOLAD's performance in the second quarter and the first half of this year. We've observed that sales in NOLAD are rising at 1.8 times the rate of inflation, with Mexico being a standout in this regard. As we noted in the first quarter, Holy Week significantly affects Mexico, and we anticipated strong results for the second quarter. Looking at the first half of the year, Mexico's performance has exceeded inflation compared to the same period in 2024. In terms of margins, NOLAD has shown an improvement of 450 basis points this quarter compared to the same quarter last year. Notably, this improvement occurs despite a weakening currency, as the average exchange rate for the Mexican peso this quarter was 19.5 versus 17.3 last year. Even with the peso's devaluation, we are experiencing much better margins in Mexico and within the division. This is attributed to improved payroll, enhanced service fees, as we explained earlier, the new MFA, better occupancy rates, and other expenses that are yielding higher margins in deliveries. Additionally, we're seeing increased operating income this quarter from the transactions involving the new restaurants acquired in Mexico. All these factors collectively contribute to an improved margin in NOLAD by 450 basis points. Furthermore, as we witness sales in the division growing at nearly twice the inflation rate, we’re also leveraging all fixed cost lines, which is reflected in our results.

Great. Thanks, Mariano. The next question comes from Fernandez from JPMorgan. And although we've talked about ticket and traffic trends with Brazil specifically, he asks for a view on a regional basis. And this question will be for you, Luis.

Thank you, Fernand, for the question. Overall, we experienced volatility and challenging market conditions in the region. However, we believe we are well-positioned to navigate the current circumstances and any future challenges. Sales performance was strong in local currency, and consolidated comparable sales were consistent with the company's blended inflation across each division. I mentioned Brazil earlier, where our comparable sales exceeded blended inflation by 1.8 times, with a low single-digit contribution from traffic. This means that approximately two-thirds of the sales contribution came from the average check. Mexico has also performed well and maintains its success in the third quarter. In the NOLAD region, sales growth was robust due to front counter, dessert centers, and delivery in local currency, with positive volume growth in all three segments. In SLAD, comparable sales were up 1.4 times inflation, with a mid-single-digit contribution from traffic, and the average check aligned with inflation. Overall, all markets had an excellent quarter, and we are witnessing similar trends at the start of this third quarter. Sales growth was strong across all channels in the quarter. Looking ahead, we will continue to focus on the aspects we can control, such as the brand, our 4G strategy, and leveraging our footprint and geographic diversification.

Thanks, Luis. Okay. The next one for Mariano again. This will be a series of questions, all of them related to the beef cost trends in Brazil. So Froy from JPMorgan. Can you please give us color as to the beef trend in Brazil? Eric from Santander, could you please elaborate on your expectations for margins, especially in Brazil? And how are you seeing beef prices impacting margins in the upcoming quarters? Alvaro Garcia from BTG Pactual asks, how does management see beef prices evolving in the second half of the year in Brazil? And Jeronimo de Guzman from INCA Investments asks about, can you comment more on the beef cost pressures you're seeing in Brazil? Are you seeing any changes? And do you still think you can maintain margins stable ex one-offs on a consolidated basis for full year 2025? So multipart question that I'll turn over to you, Mariano.

Thank you for the question about beef prices in Brazil. As I mentioned, beef prices in Brazil affected our results in the first half of the year, with increases of around 30% over the past 12 months. The good news is that we do not anticipate any major cost pressures in the second half of this year. Additionally, regarding other food and paper items in Brazil, we have observed a devaluation of the Brazilian real, which affected the costs of imported goods. However, in July, we saw the Brazilian real appreciate to below BRL 5.4 to the dollar, and the last figure I checked was BRL 5.39. If this trend continues, it could positively impact our gross margin for the remainder of the year. Overall, we do not expect significant cost pressures from beef at the current levels.

Thanks, Mariano. Actually, I think you addressed it, but Eric also had asked if the tariffs on Brazil exports have prompted an improvement in commercial terms in prices of beef on the company side. We've already sort of addressed the beef trends. So I just wanted to mention that. So the next question will be for Luis. So I'll let you catch your breath, Mariano, because the next one will be for you. And the next one is from Jack Gater with JO Hambro. And he asked if we can expand on the changing competitive landscape in desserts? What's the margin of dessert centers and what percentage of sales does this contribute to the total? And we'll give that one to you, Luis.

All right. Thank you for the question. Dessert centers as of the end of 2024 represented almost 10% of total sales. The segment has significantly higher margins in percentage, in relative numbers. And what we are seeing in the landscape is that we're seeing an increasing competition in general in the region, mainly in Brazil. But we have already implemented a solid plan regarding aggressive pricing and with innovations, like, for example, as I said, the Grimace Shake. Dan, back to you.

Okay. Thanks, Luis. And now another multipart for you, Mariano. Starting with Melissa from Bank of America. How are you thinking about pricing and your ability to offset higher costs in the context of softer demand? I presume that's mostly a Brazil question, but in general. And then Jeronimo de Guzman from INCA asks a similar question. Given your focus on affordability and prudent pricing to drive traffic and protect market share, what does this mean for margins? And do you still think you can maintain margins stable ex one-offs on a consolidated basis? So that second part I had already said, but the piece about pricing versus margins, I think, is the crux here, and I'll give that to you, Mariano.

Thank you, Melissa and Jeronimo, for your question. Regarding pricing to offset costs, we have observed a decline in margins in Brazil during the first half of the year. We will maintain our strategy of increasing prices in line with inflation. We are not aiming for rapid margin gains by significantly raising prices beyond inflation, as this may yield short-term benefits but will not be sustainable in the mid to long term. For instance, we implemented this approach in Argentina last year, which faced a significant currency devaluation and economic impact in 2024. We have been cautious with pricing in Argentina, and as a result, we are seeing positive outcomes this year in sales, traffic, and margin recovery. Argentina is expected to contribute significantly to EBITDA growth in 2025. In Brazil, we plan to follow the same strategy of raising prices in line with inflation. We are confident that as the consumer environment improves, our margins will also recover, leading to better margins than those seen in the first half of the year. Regarding EBITDA margin for this year, excluding one-offs, we are pleased with the EBITDA margin this quarter. Excluding last year's labor contingencies, we achieved a 40 basis points increase in EBITDA margin compared to the same quarter last year. We anticipate the EBITDA margin for the full year 2025 to be close to that of 2024, excluding the one-offs related to labor contingencies in Brazil. We do not expect further deterioration in the gross margin. In this quarter, we observed gains in the payroll area, with improvements of 50 basis points compared to last year, and a 70 basis point increase in occupancy and other expenses. By concentrating on cost efficiencies and managing the cost structure to minimize increases, we are confident that we can maintain or remain close to the record EBITDA margin achieved in 2024.

Thanks, Mariano. We have one more from Alvaro Garcia from BTG Pactual. And this one is going to be for you, Luis. And he asks about Argentina traffic trends in the quarter relative to the 2023 baseline?

Thank you, Alvaro, for the question. This year in Argentina, since the second half of last year, we are seeing a more stabilized macroeconomic environment. Inflation is decreasing, and the economy is recovering, although the recovery varies across different sectors. Overall, our performance aligns with that of 2023. It's important to emphasize that during this economic recovery, our business remains strong, exhibiting good growth. Our local team is effectively leveraging the investments made last year, maintaining close relationships with customers, and increasing our market share. The gains we've achieved in 2024 are contributing to strong results this year. Therefore, it is crucial for us to sustain and focus on strategies in similar challenging markets. In Argentina, we are exercising caution with our pricing and exploring all possible opportunities to enhance our margins. For instance, marketing initiatives like the Tasty Feat Cuarto and Formula 1 have been significant for our presence in the market. According to our internal research, these efforts have helped us increase our market share, outperforming all competitors by a factor of three. Additionally, we are significantly improving our brand attributes, and we are observing a similar trend in the third quarter of the year. Dan, back to you.

Okay. Thanks, Luis. The next one will be for you, Mariano, and this question comes from Julia Rizzo from Morgan Stanley. She says that CapEx was well below expectations. And could the company end the year with CapEx below initial expectations? What are the gains and improvements we're noticing, if any?

Thank you, Julia, for the question. We have maintained our 2025 openings guidance of between 90 to 100 EOTF restaurants and a CapEx guidance of between $300 million to $350 million. The CapEx this year, as is typical, is somewhat back-ended. Therefore, we expect to uphold our guidance for the full year. Regarding improvements, we are continuously exploring ways to reduce the cost of each opening. We are focused on enhancing efficiencies, lowering costs, and localizing core packages to mitigate the effects of currency fluctuations. My team and the development team are dedicated to these improvements and cost reductions to enhance the profitability of our investments.

Great. Thanks, Mariano. The next question comes from Max Joseph. This one will be for you, Luis. He goes, congratulations on the promotions and the strong results. Luis, could you share more about how you're challenging the team to ensure that every dollar in growth generates the best possible return? Where do you see the biggest opportunities to further maximize those results? And I think maybe you can get started. And of course, Mariano, if you have anything to add there, please feel free.

Yes. Thank you. Thank you very much for the message, Max, and for the question. Yes. Well, as I said, I'm going to have those 3 priorities, today's business, tomorrow's business, and the development strategy. As I said in the opening remarks, what we are doing is revisiting the whole process, starting with people, the teams, and how we look in the field for the sites and how we build the sites and working as a team with Mariano, how we measure those returns. I would say that we would like to focus on the modernization of the process and implementing innovative and more sophisticated tools like artificial intelligence. So we better estimate our sales. We better manage the whole construction and measuring the process afterwards with finance when we already have the outcome of the performance. I don't know, Mariano, if you want to add.

No, what Luis just mentioned, and I also mentioned in the previous question from Julia. Return on investments is one of our top priorities, and we are, as a team, looking ways always to reduce costs and make our investments more profitable, driving a better and a higher shareholder return in terms of investments. So we are focused. This is one of our top priorities. And yes, that would be my add to this answer.

Great. Thanks, Mariano. We have a question from Lorena Reich from Lucror Analytics. And actually, it's let's call it a 4-parter. I'll take the first one, which is why did we stop releasing detail by region. Actually, Lorena, I think if you take a look at our earnings release, what you'll find is that what we eliminated was redundancies from the previous version. The information by region or by division is still in the release, toward the end, you'll find all of the sales, EBITDA, operating income, same-store sales information that has always been in the release. What we did is just eliminate that redundancy that was in the document previously. And our discussion of both sales growth as well as EBITDA performance at the consolidated level includes commentary on the divisional performance. And as I'm sure you saw in today's presentation, we further explained some of those details. So I think that the information is still there. It's just a little bit different format. The second question from Lorena has also, I think, already been answered, which is related to Julia's question around CapEx and store openings, which is, do you expect to reach the annual guidance for store openings? Mariano, you just answered that. So we're good. And then we have 2 more from her. These are a little bit sort of quick fire and they'll be for you, Mariano. The first one is what's the amount paid for the Saint Martin acquisition?

Yes. Thanks, Lorena, for the question. The cash payment for the rights to Saint Martin was not a material sum within the context of our consolidated cash flow. And this payment will be reflected within the investing activities in our statement of cash flows by the end of September 2025.

Great. And then another question that relates, I guess, to our cash flow statement. Can you provide more detail on the acquisition of short-term investments of $106 million in the investment cash flow? That's again for you, Mariano.

Yes. This is simply time deposits executed with relationship top-tier banks and was done in order to minimize the current cost of the new money funds raised on our latest bond issuance in January of this year.

Thank you, Mariano. Luis, we have a question for you from Jeronimo de Guzman at INCA Investments. Could you provide an update on the competitive landscape in Brazil? Are you noticing any significant changes due to the softer consumer environment?

Thank you, Jeronimo, for the question. In Brazil, we are noticing a decline in guest traffic within the sector, which we observed in the second quarter. Therefore, it is crucial for us to stay focused on providing a compelling value proposition with competitive pricing while ensuring a great experience across all channels. Generally, within the industry, competitors are intensifying their promotional activities. We have developed a comprehensive strategy to enhance traffic and either gain or protect our market share, such as our Combo del Dia featuring appealing elements like Minecraft and the Formula 1 menu. As a result of these efforts, we are managing to maintain our market share, keeping a 2.2x advantage over our closest competitor. Our aim is to combine healthy comparable sales and new restaurant openings with improved margins. We are confident that we are positioned strongly in Brazil to navigate the current and any future challenges.

Thanks, Luis. We had a follow-up question from Max Joseph, which I believe we've already addressed. I want to acknowledge you, Max. You inquired about our pricing strategy and the balance between raising prices in line with inflation and keeping them below inflation to attract more customers. I think we have covered that. Now, we have one more question from Alvaro Garcia at BTG Pactual, directed at you, Luis. He asks about Francisco Staton's new position as Chief Strategy Officer and seeks clarification on the nature of his new role.

All right. Thank you, Alvaro, for the question. Francis has been with us for more than 10 years now in increasingly senior leadership positions. We believe he's uniquely qualified to help develop a long-term strategy for every aspect of the business. He has supported brand building and sales generation in Brazil and Mexico, and he gained experience leading operations in Colombia as Managing Director, not only in Colombia, but Colombia, Curacao, Aruba, and Trinidad at the time. And he gained experience as Divisional President for SLAD also. So I can tell you that I am already working with Francis very close in the pillar of especially tomorrow's business. Dan?

Thanks, Luis, and thanks, everyone, for participating today, a longer than usual Q&A session, but very happy to see all the engagement. This is the end of the Q&A session. And I'd like to thank you for your interest for joining the call today. We look forward to speaking with you again in the middle of November on our third quarter 2025 earnings webcast. Until then, stay safe, and have a great day.