Good morning, and welcome to the Arcos Dorados’ Fourth Quarter 2015 Earnings Conference Call. A slide presentation will accompany today’s webcast, which will also be available in the Investors section of the company’s website, www.arcosdorados.com/ir. As a reminder, all participants will be in a listen-only mode. There will be an opportunity for you to ask questions at the end of today’s presentation. As a reminder, today’s conference call is being recorded. At this time, I would like to turn the call over to Daniel Schleiniger, Senior Director of Corporate Communications and Investor Relations. Please go ahead, sir.

Thank you. Good morning, everyone, and thank you for joining us today. With me on today’s call are Sergio Alonso, our Chief Executive Officer; Marcelo Rabach, our Chief Operating Officer; and José Carlos Alcantara, our Chief Financial Officer. Before we proceed, I would to like to make the following Safe Harbor statement. 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 Acceptable 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 audited financial statements filed with the SEC on Form 6-K today. I would now like to turn the call over to our CEO, Sergio Alonso.

Thank you, Dan. Hello, everyone, and thank you for joining us today. A year ago, we announced a three-year strategic plan to strengthen our financial structure to better position our company to capture the long-term potential for the McDonald’s as well in Latin America. The key elements of this plan are improving our operating efficiency, reducing our cost structure, monetizing the value of certain assets are reducing net debt levels. These steps reflect our commitment to managing the business for the long-term. And I’m confident this strategic plan will position Arcos Dorados for sustained profitable growth. I’m pleased with the progress we have made so far. We’re on track to meet our three-year target and I will now provide you with an update of our remaining initiatives. We ended the year with positive momentum achieving double-digit consolidated comparable sales growth and margin expansion across all divisions in the fourth quarter. The improvement in our consolidated EBITDA margin is in part a testament to the early success of our efforts to drive operational efficiencies under three-year strategic plan. Our monitoring actions are driving improved operating performance in our local markets, despite the challenging economic environment, softer consumer spending, and continued currency depreciation in our largest markets. On a full-year basis, comparable sales grew in the high-single digits, and we also delivered double-digit organic revenue growth as well as margin expansion in each of our divisions last year. We begin 2016 with a lower cost base, having implemented a reorganization plan at the end of last year that would allow us to exceed the minimum target of a 10% reduction of G&A well ahead of the schedule. These savings will be captured in 2016 trend to streamline, corporate, divisional, and country level cost structures. And moving forward, we will continue working to…

Thank you, Sergio. Please turn to Slide 3. We saw a pickup in seasonally check activity at the end of the year. Organic revenue growth reached 13.6% in the fourth quarter, supported by a 12% increase in comparable sales, due to average check growth of outpacing inflation. Reported revenues were once again impacted by currency depreciation in key countries, especially Brazil and Argentina. Traffic levels on a consolidated basis were lower year-over-year, due to a difficult economic environment in the Brazil division and a couple of key markets in the Caribbean. However, NOLAD and SLAD achieved flat to higher traffic in the period, as consumers responded positively to our promotional strategies. Please turn to Slide 4, for a closer look at our divisional results. In Brazil, organic revenue growth was backed by a mid single-digit increase in comparable sales and the contribution of new restaurant openings. Average check growth get pace with inflation in the quarter are more than offset a mid single-digit decline in traffic. We continue to face significant headwinds in terms of the broader retail sales environment in the county. For the first time in more than a decade, Brazilian retail sales declined in 2015, in the phase of economic uncertainty, high inflation, and interest rates. Our strategy in these challenging environment is to implement appealing promotional activities that support restaurant traffic levels and provide more value to customers. In keeping with this approach, fourth quarter marketing activities included the Big Cheddar campaign, which is an extension of one of the most popular menu items in Brazil. In addition, our marketing activities included the Angry Birds campaign, the Quarter Pounder in the affordability platform, and new flavors in the McFlurry. Turning to Slide 5, much like the third quarter, NOLAD’s fourth quarter organic revenue and systemwide comparable…

Thank you, José Carlos, and please turn to Slide 14. We begin 2016 in a stronger financial position versus 12 months ago. We have made important progress towards delivering of the targets set in our three-year plan and executing against that, this strategy remains our main focus. We’re fully committed to delivering sustainable profitability and our marketing efforts are aimed at stimulating traffic and key component of sales and delivering value to our customers. This combined with our recently streamlined cost structure will enhance our financial results going forward. Although, we expect many of our markets to continue facing headwinds in 2016, we remain confident in the long-term potential of the McDonald’s brand in Latin America. Through achieving operating efficiencies, monetizing certain assets, and reducing our debt levels, we will overcome the short-term challenges we are facing and position Arcos Dorados for continued growth and value creation in the years to come. So thank you for your attention. And I’ll now open the call to questions.

Thank you. We will now begin the question-and-answer session. [Operator Instructions]. And our first question today comes from Jeronimo De Guzman of Morgan Stanley. Please go ahead.

Hi, good morning. I had a question, I mean, first, operationally, wanted to see if you could give us an update on whether you have hedged any of the FX exposure in Brazil for your raw material purchases?

Okay, good morning. Jeronimo, I’ll pass the question to José Carlos. José Carlos Alcantara: Yes, good morning, Jeronimo. Yes, we have similarly to 2015, we have hedged a 100% of our exposure in Brazil food and paper items, which are the potatoes and the toys.

And is there – do you have any details on the average rate you were able to hedge it for the year? José Carlos: The average rate for the year is approximately 4.1.

Okay, thanks. And then just on the guidance you gave on the CapEx $90 million to $120 million, what we saw last year was kind of – you gave the same guidance and it was on the lower end. This year, you’ll probably have similar to lower number of opening. So is there anything that we should think of that would cause you to be on the higher-end of that guidance, because it seems like, I mean, I guess, my expectation would be that you would continue to be on the lower-end?

Yes, Jeronimo, one of those – the most relevant target that is part of the CapEx that is number of restaurants that we’re going to open. So you will say, we expect to have, at least, 32 openings for this year. The reality is that their range is a bit wide, because we could either potentially increase our investment during the year, its conditions in cash and cash flow are appropriate. And also keep in mind that the target is set in U.S. dollars. So we may have an impact in terms of a total dollar from CapEx, as a consequence of currency fluctuation.

And our next question comes from Roy Yackulic of Bank of America. Please go ahead.

Yes. I’m sorry, just had a question, I was confused about the number of new openings in 2016. From the press release you say there’s a three-year plan that you will first almost to open a 150 in-between 2014 and 2016, and I calculate that 79 were opened. So that would leave like about 71 left to be opened in 2016 to meet the MFA requirements. And you just stated that they were – you are going to open 32, can you clarify that?

Sure, sure. Good morning, Roy. The – as I said before, we have the commitment to open 150 restaurants between 2014 and 2016, that’s our commitment with McDonald’s. In 2014, we opened 82 restaurants. Last year, that is in 2015, we opened 36 restaurants. So the number of openings for this year 2016 would be, at least, 32 restaurants.

Okay. So it’s not net openings, it’s just openings?

It’s gross openings, yes.

Yes, okay. Thank you.

You’re welcome.

[Operator Instructions] And our next question is a follow-up from Jeronimo De Guzman of Morgan Stanley. Please go ahead.

Hi, good morning, again. Thanks for the follow-up. Wanted to see, if you could give us a little bit more details on the asset monetization, I mean, it’s helpful and it’s – I think it’s great that you were able to already achieve more than half of it. But wanted to see kind of how – any details on kind of the further asset monetization if it’s goingto be more of the same, or if there’s a change in kind of where you have to go for the incremental proceeds?

So, Jeronimo, really we are exactly within the same target, the $200 million. We have established our pipeline of properties that we believe are the best candidates. And keep in mind that there are a few number of properties, in particular, in the Mexican market that are really high value real estate. And those properties are typically much more resilient to ups and downs in the market and even in currency fluctuations. So we know that said, we’re happy with the progress we have made so far and we are on track with our 2 million target by the end of 2017.

So, I guess, no change in the nature of the kind of assets you’re looking at versus what you’ve already been able to monetize?

No, not at all, Jeronimo. No.

And our next question comes from Ed Santevecchi of Nomura. Please go ahead.

Hi, guys. Just a quick follow-up. On the loan structure that you mentioned, is that a 170 million reais, or is that in dollar? José Carlos Alcantara: No, it’s approximately, I’m sorry [Multiple Speakers]. Ed, it’s approximately $170 million. if you take our…

Dollars, okay. José Carlos Alcantara: Yes, dollars. If you take our BRL bond 675, we already reduced $47 million – R$47 million of that. So if you took exchange rate, I know where you want to take it 370, 380, that it comes to about $170 million.

Okay, perfect. Just wanted to clarify. Thanks.

[Operator Instructions] Our next question comes from Andrew De Luca of Credit Suisse. Please go ahead.

Hi, guys, thanks for taking my question. I’m not sure, if you’ve answered this already. But on the asset monetization, you mentioned that you reached agreements for more than half of the $250 million targeted amount, and I think you said you also received $25 million in proceeds. So can you give us a timeline in terms of when we should expect the remaining, say, at least, 100 million to come in?

Yes, José Carlos José Carlos Alcantara: Yes. Andrew, yes, our timeline right now takes us towards the second-half of this year 2016, so between Q3 and Q4. Again, a lot of these deals require approval or regulatory approval, but again, we expect to have the proceeds Q3 – Q4 of 2016.

Great. Okay. Thank you.

[Operator Instructions] I’m showing no further questions. I’d like to turn it back to management for any closing remarks.

Okay. So thank you very much for your attention today. And we certainly look forward to speaking with your again for the next quarter. So in the meantime, our team remain available to meet you and your answer any questions that you may have. So, again, thank you very much and enjoy the rest of the day.

And ladies and gentlemen, the conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.