In This Article:
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Net Debt/EBITDA Leverage: 2.1 times.
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Recurring EBITDA: BRL66 million, a 10% increase year-on-year.
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Digital Sales Growth: 60% year-on-year.
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Same-Store Sales: Flat for the quarter, with a recovery from a negative 10% in April.
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Pizza Hut System Sales: BRL153 million, with a 3% growth in same-store sales and 6% in total system sales.
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KFC System Sales Growth: 9% for the quarter.
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Total Stores: 565, an increase of 41 stores from the previous year.
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Total Revenue: BRL571 million, a 2% increase in Brazil and a 2.5% decrease in the USA.
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Operating Cash Generation: BRL70.6 million, a 97.5% increase year-on-year.
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CapEx: BRL21.5 million, with BRL18.5 million for reforms, maintenance, and strategic projects.
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Net Debt: BRL344 million, a 2% increase.
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Cash Position: BRL189 million.
Release Date: August 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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International Meal Co Alimentacao SA (BSP:MEAL3) achieved a 10% growth in recurring EBITDA, reaching BRL66 million in the quarter.
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Digital sales grew significantly by 60% year-on-year, with Pizza Hut's new app accounting for 16% of all delivery sales.
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The company maintained a net debt EBITDA leverage of 2.1 times, indicating controlled financial discipline.
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KFC reached the milestone of 200 stores, with system sales growing 9% in the quarter.
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Operating cash generation increased by 97.5% compared to the same period last year, driven by efficient management of working capital and monetization of tax credits.
Negative Points
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The quarter was challenging in terms of sales, with flat sales compared to the previous year.
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A significant disruption in the supply chain in April led to temporary store closures and limited service capacity.
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The company faced a 10% negative same-store sales in April due to external factors, impacting overall quarterly performance.
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There was a significant loss in delivery sales due to changes in the delivery strategy, particularly at KFC.
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In the USA, the company experienced an 18% drop in total restaurant revenue, partly due to the sale of Pigeon Forge Tennessee and closure of the Las Vegas store.
Q & A Highlights
Q: Can you explain the logistics disruption and the closure of the Las Vegas restaurant? Also, what are your expectations for the new stores in New York, Miami, and Boston? A: The logistics disruption was due to a problem with a logistics operator's distribution center, which affected product delivery to stores. This issue was resolved by May. Regarding the Las Vegas restaurant, it was closed due to a change in strategy by the new owners of the hotel where it was located. New stores in New York have been open for over two years, while Miami and Boston opened recently. Despite a challenging quarter, we are confident in the potential of these locations.