Q2 2026 AmRest Holdings SE Earnings Call

September 4, 2026

Speaker #1: Hello everyone, and thank you for standing by. Today's AmRest first half 2026 results call will be underway in around two minutes' time. Thank you for waiting.

Operator: Hello everyone, and thank you for standing by. Today's AmRest H1 2026 results call will be underway in around 2 minutes time. Thank you for waiting. Hello, and welcome to today's AmRest H1 2026 results call. My name is Seb, and I will be the operator for your call today. If you would like to ask a question at the end of the presentation, please press star one on your telephone keypad, or you can submit a written question using the Q&A chat box. This is located in the top right-hand corner of the presentation screen. I will now hand you over to Lukasz Wachelko from Wood & Company to begin. Please go ahead when you are ready.

Operator: Hello everyone, and thank you for standing by. Today's AmRest H1 2026 results call will be underway in around two minutes time. Thank you for waiting. Hello, and welcome to today's AmRest H1 2026 results call. My name is Seb, and I will be the operator for your call today. If you would like to ask a question at the end of the presentation, please press star one on your telephone keypad, or you can submit a written question using the question-and-answer chat box. This is located in the top right-hand corner of the presentation screen. I will now hand you over to Lukasz Wachelko from Wood & Company to begin. Please go ahead when you are ready.

Speaker #1: Hello, and welcome to today's AmRest first half 2026 results call. My name is Seb, and I'll be the operator for your call today. If you'd like to ask a question at the end of the presentation, please press star 1 on your telephone keypad.

Speaker #1: Or you can submit a written question using the Q&A chat box. This is located in the top right-hand corner of the presentation screen. I will now hand you over to Lukasz Wachelko from Wood & Co to begin.

Speaker #1: Please go ahead when you're ready.

Speaker #2: Good afternoon, ladies and gentlemen. My name is Łukasz Wachelko. As was said, I'm presenting Wood & Co. I have, again, the pleasure of moderating the quarterly call with AmRest, with the company represented by CFO Mr. Eduardo Samaripa and IR and Strategic Planning Director Mr. Santiago Camarero Aguilera.

Lukasz Wachelko: Good afternoon, ladies and gentlemen. My name is Lukasz Wachelko. As was said, I am presenting Wood & Company, and I have again the pleasure of moderating the quarterly call with AmRest. The company represented by CFO Mr. Eduardo Zamarripa and IR and Strategic Planning Director, Mr. Santiago Comas Aguilera. With no further ado, Eduardo, the mic is yours.

Lukasz Wachelko: Good afternoon, ladies and gentlemen. My name is Lukasz Wachelko. As was said, I am presenting Wood & Company, and I have again the pleasure of moderating the quarterly call with AmRest. The company represented by Chief Financial Officer Mr. Eduardo Zamarripa and Investor Relations and Strategic Planning Director, Mr. Santiago Camarero Aguilera. With no further ado, Eduardo, the mic is yours.

Speaker #2: With no further ado, guys, the mic is yours.

Speaker #1: Thank you, Lukasz. Good afternoon, everyone, and thank you for joining. We appreciate your time and your continued interest in AmRest. I'm Eduardo Samaripa, and I'm joined today by Santiago Camarero, our Head of Strategy and Investor Relations.

Eduardo Zamarripa: Thank you, Lukasz. Good afternoon, everyone, and thank you for joining. We appreciate your time and your continued interest in AmRest. I am Eduardo Zamarripa, and I am joined today by Santiago Comas, our Head of Strategy and Investor Relations. Before we begin, I would like to frame the H1 of the year in a simple way. AmRest has the scale, leading brands, and a strong operation platform. Our priority is to convert those assets into higher and more predictable value per share. That means concentrating capital where returns are proven, taking corrective actions where performance is below our expectations, and converting lower investment intensity into sustainable free cash flow. The trading environment remains demanding. Consumers are cautious. Restaurant traffic is under pressure in several markets, and performance across our portfolio is uneven. We are not satisfied with every element of the results.

Eduardo Zamarripa: Thank you, Lukasz. Good afternoon, everyone, and thank you for joining. We appreciate your time and your continued interest in AmRest. I am Eduardo Zamarripa, and I am joined today by Santiago Camarero Aguilera, our Head of Strategy and Investor Relations. Before we begin, I would like to frame the H1 of the year in a simple way. AmRest has the scale, leading brands, and a strong operation platform. Our priority is to convert those assets into higher and more predictable value per share. That means concentrating capital where returns are proven, taking corrective actions where performance is below our expectations, and converting lower investment intensity into sustainable free cash flow. The trading environment remains demanding. Consumers are cautious. Restaurant traffic is under pressure in several markets, and performance across our portfolio is uneven. We are not satisfied with every element of the results.

Speaker #1: Before we begin, I would like to frame the first half of the year in a simple way. AmRest has the scale, leading brands, and a strong operating platform.

Speaker #1: Our priority is to convert those assets into higher and more predictable value per share. That means concentrating capital where returns are proven, taking corrective actions where performance is below our expectations, and converting lower investment intensity into sustainable free cash flow.

Speaker #1: The trading environment remains demanding. Consumers are cautious. Restaurant traffic is under pressure in several markets, and performance across our portfolio is uneven. We are not satisfied with every element of the results.

Speaker #1: However, this should not hide the progress we are making in the areas that define the Group's financial capacity: cash generation, capital discipline, and portfolio quality.

Eduardo Zamarripa: However, this should not hide the progress we are making in the areas that define the group's financial capacity, cash generation, capital discipline, and portfolio quality. So let's please turn to slide 2. AmRest is a leading listed restaurant operator in Europe and a trusted operating partner for some of the world's most reputable and iconic global brands. 30 June 2026, we operated 2,133 restaurants across eight brands and 22 countries, supported by more than 44,000 employees and serving approximately 30 million customers every month. Our portfolio is diversified across four complementary restaurant categories. Quick service restaurants represent 48% of the portfolio, coffee 21%, fast casual 17%, and casual dining 14%. This provides exposure to different consumer occasions, price points, and channels. But scale alone is not the investment case.

Eduardo Zamarripa: However, this should not hide the progress we are making in the areas that define the group's financial capacity, cash generation, capital discipline, and portfolio quality. So let's please turn to slide two. AmRest is a leading listed restaurant operator in Europe and a trusted operating partner for some of the world's most reputable and iconic global brands. 30 June 2026, we operated 2,133 restaurants across eight brands and 22 countries, supported by more than 44,000 employees and serving approximately 30 million customers every month. Our portfolio is diversified across four complementary restaurant categories. Quick service restaurants represent 48% of the portfolio, coffee 21%, fast casual 17%, and casual dining 14%. This provides exposure to different consumer occasions, price points, and channels. But scale alone is not the investment case.

Speaker #1: So, let's please turn to slide 2. AmRest is a leading listed restaurant operator in Europe and a trusted operating partner for some of the world's most reputable and iconic global brands.

Speaker #1: As of June 30, 2026, we operated 2,133 restaurants across 8 brands and 22 countries, supported by more than 44,000 employees and serving approximately 30 million customers every month.

Speaker #1: Our portfolio is diversified across four complementary restaurant categories. Quick service restaurants represent 48% of the portfolio. Coffee, 21%. Fast casual, 17%. And casual dining, 14%.

Speaker #1: This provides exposure to different consumer occasions, price points, and channels. But scale alone is not the investment case. The strategic value lies in the operating infrastructure behind this footprint: restaurant development, supply chain, digital and delivery capabilities, brand management, and local teams with deep market experience.

Eduardo Zamarripa: The strategic value lies in the operating infrastructure behind this footprint: restaurant development, supply chain, digital and delivery capabilities, brand management, and local teams with deep market experience. Our objective and effort is to utilize these platforms more effectively, directing growth towards the brands and geographies where we can demonstrate attractive economic and sustainable returns. This is a large and diversified platform, but our decision framework is increasingly focused on returns rather than scale for its own sake. Moving to slide 3. This slide summarizes the financial performance for the H1 of the year. Revenues amounted to more than EUR 1.2 billion, excluding the effect of business deconsolidation in the previous year. SEM revenue decreased by 0.7% year over year. EBITDA reached EUR 177.7 million, representing a margin of 14.4%. However, the most important positive development was cash generation. Operating cash flow decreased by EUR 27 million.

Speaker #1: Our objective and effort is to utilize this platform more effectively, directing growth toward the brands and geographies where we can demonstrate attractive economic and sustainable returns.

Speaker #1: This is a large and diversified platform, but our decision framework is increasingly focused on returns rather than scale for its own sake. Moving to slide 3, this slide summarizes the financial performance for the first half of the year.

Speaker #1: Revenues amounted to more than €1.2 billion. Excluding the effect of business deconsolidation in the previous year, SEM revenue decreased by 0.7% year over year.

Speaker #1: EBITDA reached 177.7 million euros, representing a margin of 14.4%. However, the most important positive development was cash generation, operating cash flow decreased by 27 million euros, at the same time investing cash outflow decreased by almost 31 million euros.

Eduardo Zamarripa: At the same time, investing cash outflow decreased by almost EUR 31 million. Nonetheless, we have also maintained the development of the portfolio with 29 openings in the H1 of the year and 85 openings over the last 12 months. Finally, leverage remained at roughly 2 times EBITDA. The key message for me is that while the P&L reflects concentrated pressure in selected markets, cash generation and financial flexibility are moving in the right direction. This distinction matters because it demonstrates the underlying capacity of our platform. Moving to slide 4, please. Here we can find the reported H1 performance into context. Revenue, excluding the SEM business they consolidated last year, declined by 0.7%. EBITDA amounted almost EUR 178 million, and the margin was 14.4%, compared with 15% in the H1 of 2025. However, the downside was highly concentrated.

Speaker #1: Nonetheless, we have also maintained the development of the portfolio, with 29 openings in the first half of the year and 85 openings over the last 12 months.

Speaker #1: Finally, leverage remained at approximately 2.0 times EBITDA. The key message for me is that, while the P&L reflects concentrated pressure in selected markets, cash generation and financial flexibility are moving in the right direction.

Speaker #1: This distinction matters because it demonstrates the underlying capacity of our platform. Moving to slide 4, please. Here, we can find the reported first-half performance in context.

Speaker #1: Revenue, excluding the SEM business deconsolidated last year, declined by 0.7%. EBITDA amounted to almost €178 million, and the margin was 14.4%, compared with 15% in the first half of 2025.

Speaker #1: However, the downside was highly concentrated. Excluding Czechia and the disposal, revenue increased by approximately 2% on the same basis. EBITDA margin increased 0.4%, to an EBITDA margin of 14.9%.

Eduardo Zamarripa: Excluding Czechia and the disposal, revenue increased by approximately 2%. On the same basis, EBITDA margin increased 4 percentage points to an EBITDA margin of 14.9%. Czechia is an important market, and we are fully focused on restoring the business. Purpose is to show the isolated effect of this market. Most of our core platforms remain healthy and continue to demonstrate their earnings capacity. If we now go to slide 5, please. This slide brings together four strategic developments that support our investment thesis. First, free cash flow evolution is moving into the right direction, supported by both stronger operating cash flow and less intensive investment effort. Second, we continue to apply a more selective approach to capital allocation, with greater focus on execution, cash generation, and investment returns.

Speaker #1: Czechia is an important market, and we are fully focused on restoring the business. The purpose is to show the isolated effect of this market. Most of our core platforms remain healthy and continue to demonstrate their earnings capacity.

Speaker #1: If we now go to slide 5, please. This slide brings together four strategic developments that support our investment thesis. First, free cash flow evolution is moving in the right direction.

Speaker #1: Supported by both the stronger operating cash flow and less intensive investment effort. Second, we continue to apply a more selective approach to capital allocation, with greater focus on execution, cash generation, and investment returns.

Speaker #1: Third, shortly after the reporting period, we completed the innovation amendment and extension of our syndicated financial agreement, which materially increased our financial flexibility. And fourth, and the last point, we expanded our brand portfolio by announcing the launch of Taco Bell in Poland. This is not growth for growth's sake; it is our commitment to a disciplined introduction of a new leading global QSR brand in our largest market, using infrastructure and capabilities that we already have in place.

Eduardo Zamarripa: Third, shortly after the reporting period, we completed the innovation amendment and extension of our syndicated financial agreement, materially increasing our financial flexibility. Fourth, and the last point, we expanded our brand portfolio by announcing the launch of Taco Bell in Poland. This is not growth for growth. It is our commitment for a disciplined introduction of a new leader global QSR brand in our largest market, using infrastructure and capabilities that we have already in place. All these aspects are key to support the group's future growth and our long-term value creation objective. Moving to slide 6, we have information that is central to our message today because it shows the financial conversion already taking place.

Speaker #1: All these aspects are key to supporting the group's future growth and our long-term value creation objectives. Moving to slide 6, we have information that is central to our message today, because it shows the financial conversion already taking place.

Speaker #1: Free cash flow, defined as operating cash flow excluding lease payments less investment cash flow, improved from negative €26.2 million in the first half of 2025 to positive €25.6 million in the first half of 2026.

Eduardo Zamarripa: Free cash flow defines operating cash flow, excluding lease payments, less investment cash flow improved from -EUR 26.2 million in H1 2025 to +EUR 25.6 million in H1 2026. This represents a year-on-year improvement of almost EUR 52 million. The improvement reflects a stronger working capital discipline, better cash conversion, and disciplined CapEx. Many things are moving in the right directions. Nevertheless, the direction is clear. The combination of operational cash flow discipline and lower investment intensity is translating into substantially better free cash flow. For us, this is a strategic shift. Growth will continue. Returns are attractive, but free cash flow and value creation per euro invested are critical in our decision metric. Moving to slide 7, please. You can see the continued normalization of the investment intensity.

Speaker #1: This represents a year-on-year improvement of almost €52 million. The improvement reflects stronger working capital discipline, better cash conversion, and disciplined capital expenditures.

Speaker #1: Many things are moving in the right direction. Nevertheless, the direction is clear. The combination of operational cash flow discipline and lower investment intensity is translating into substantially better free cash flow.

Speaker #1: For us, this is a strategic shift. Growth will continue; returns are attractive. But free cash flow and value creation per euro invested are critical in our decision metric.

Speaker #1: Moving to slide 7, please. You can see the continued normalization of the investment intensity. Capex as a percentage of sales declined from almost 10% to 5.3% by the end of the second quarter of 2026.

Eduardo Zamarripa: CapEx as a percentage of sales declined for almost 10% to 5.3% by the end of Q2 2026. At the same time, our gross opening trajectory of equity stores has remained broadly stable, while the number of renovations has moderated following the regulated post-COVID catchup program. This is not simply a reduction in investments. It is a transition towards better investments where we are most selected in new development, prioritizing projects with the strongest risk-adjusted returns, and using portfolio optimization as an active capital allocation tool. Moving to slide 8. Following the reporting period, we strengthened the group's financial profile of the group through the renovation of our syndicated financial agreement. The new agreement increases the revolving credit facility up to EUR 100 million, changes repayments from quarterly to semiannual, and introduces a two-year grace period.

Speaker #1: At the same time, our gross opening trajectory of equity stores has remained broadly stable, while the number of renovations has moderated, following the elevated post-COVID catch-up program.

Speaker #1: This is not simply a reduction in investments. It's a transition towards better investments, where we are more selective in new development, prioritizing projects with the strongest risk-adjusted returns, and using portfolio optimization as an active capital allocation tool.

Speaker #1: Moving to Slide 8. Following the reporting period, we strengthened the financial profile of the group through the innovation of our syndicated financial agreement.

Speaker #1: The new agreement increases the revolving credit facility up to €100 million, changes repayments from quarterly to semiannual, and introduces a two-year grace period.

Speaker #1: It extends final maturity to June 2031, with two optional one-year extensions subject to lenders' approval, and reduces the applicable interest margin. It also amends selective financial covenants and provides the possibility to establish an additional accordion facility.

Eduardo Zamarripa: It extends final maturity to June 2031 with two optional one-year extensions object to lenders approval and reduces the applicable interest margin. It also meant selected financial covenants and provides the possibility to establish additional accordion facilities. The agreement is supported by eight banks partners across five countries. It provides a longer and more efficient maturity profile, lower funding costs, and greater liquidity hedging. This additional flexibility should not be interpreted as a change in our financial discipline. Its value gives us the capacity to manage volatility, execute portfolio actions, and finance elective opportunities without compromising a prudent leverage profile. If we go to slide 9, here we show how the portfolio has evolved and how we think about short term future growth. At the end of June, AmRest operated 2,133 restaurants consisting of 1,891 equity restaurants and 242 franchise restaurants.

Speaker #1: The agreement is supported by eight bank partners across five countries. It provides a longer and more efficient maturity profile, lower funding cost, and greater liquidity headroom.

Speaker #1: This additional flexibility should not be interpreted as a change in our financial discipline. Its value is that it gives us the capacity to manage volatility, execute portfolio actions, and finance selective opportunities without compromising a prudent leverage profile.

Speaker #1: If we go to slide 9, here we show how the portfolio has evolved and how we think about short-term future growth. At the end of June, AmRest operated 2,133 restaurants, consisting of 1,891 equity restaurants and 242 franchise restaurants.

Speaker #1: Over recent years, we have combined organic development with strategic adjustments, including investments in Pizza Hut Russia, Pizza Hut Germany, Pizza Hut France, the sale of KFC Russia, and other businesses, with no restaurant count as a CM.

Eduardo Zamarripa: Over recent years, we have combined organic development with strategic adjustments, including divestments in Pizza Hut Russia, Pizza Hut Germany, Pizza Hut France, the sale of KFC Russia, and other businesses with no restaurant count at the CM. But no less important from the strategic perspective. These actions demonstrate that the perimeter is not static. We have been taking significant strategic decisions by actively reshaping the portfolio. We are creating the capacity to introduce new, fresh, attractive businesses with a stronger growth potential and compelling long-term economics. We will grow where returns are attractive, renew restaurants where investment supports customers' experience and cash generation, and optimize our exit activities where long-term value creation is limited. The planned launch of Taco Bell Poland fits this framework. The first restaurants are expected to open in Q4 2026.

Speaker #1: But no less important from the strategic perspective, this action demonstrates that the perimeter is not static. We have been taking significant strategic decisions by actively reshaping the portfolio. We are creating the capacity to introduce new, fresh, attractive businesses with stronger growth potential and compelling long-term economics.

Speaker #1: We will grow where returns are attractive, renew restaurants where investment supports customers' experience and cash generation, and optimize our exit activities where long-term value creation is limited.

Speaker #1: The planned launch of Taco Bell Poland fits this framework. The first restaurants are expected to open in the fourth quarter of 2026. Poland is our largest market, and we can leverage existing development, supply chain, digital, delivery, and operating capabilities.

Eduardo Zamarripa: Poland is our largest market, and we can leverage existing development, supply chain, digital delivery, and operating capabilities. Our approach is controlled initial exposure, close monitor of unit economics, and expansion based on proven returns. This gives us meaningful upside potential while maintaining capital discipline. With this, let's jump to slide 10, and let me share with you some of the commercial flavors from our brands. In a cautious consumer environment, our brands stay relevant through a balanced mix of innovation, value, and customer engagement. At KFC, we combine product innovation with clear value. Double Down returned as a distinctive chicken-led platform, while the new protein shake expanded the brand into new consumption occasions. At the same time, offers such as 4 You Box, Tuesday Bucket, and selected 50% promotions supported affordability and traffic across markets.

Speaker #1: Our approach is controlled initial exposure, close monitoring of unit economics, and expansion based on proven returns. This gives us meaningful upside potential while maintaining capital discipline.

Speaker #1: With this, let's jump to slide 10, and let me share with you some of the commercial flavors from our brands. In a cautious consumer environment, our brands stay relevant through a balanced mix of innovation, value, and consumer engagement.

Speaker #1: At KFC, we combine product innovation with clear value. Double Down returned as a distinctive, chicken-led platform, while the new product in Shake expanded the brand into new consumption occasions.

Speaker #1: At the same time, offers such as Orient Box, Tuesday Bucket, and selected 50% promotions supported affordability and traffic across markets. At La Tagliatella, we reinforce its premium positioning through an exclusive collaboration with Michelin-star chef Pepe Dominguez.

Eduardo Zamarripa: At La Tagliatella, we reinforced its premium positioning through an exclusive collaboration with Michelin star chef Pepe Rodríguez. The partnership brought together the brand's Italian heritage and contemporary culinary creativity, helping refresh the proposition and strengthening customer interest. At Starbucks, the brand delivered strong results from its spring and summer beverage platforms. Protein lattes launched in April added close to 3 percentage points to the beverage sales mix, with no visible cannibalization of existing promotional activity. The Starbucks Rewards also continue to build momentum, reaching more than 15% of transactions. Together, these results show the value of relevant innovations supported by a stronger loyalty engagement. Moving to slide 11, the same formula of innovation, value, and local relevance supported progress across the rest of the portfolio. Sushi Shop showed a clear improvement in Q2 led by France and supported by a stronger execution across most European markets.

Speaker #1: The partnership brought together the brand's Italian heritage and contemporary culinary creativity, helping refresh the proposition and strengthen customer interest. At Starbucks, the brand delivers strong results from its spring and summer beverage platforms.

Speaker #1: Protein Latte, launched in April, added close to 3 percentage points to the beverage sales mix, with no visible cannibalization of existing promotional activity. The Starbucks Rewards also continue to build momentum, reaching more than 15% of transactions.

Speaker #1: Together, these results show the value of relevant innovation supported by stronger loyalty engagement. Moving to slide 11, the same formula of innovation, value, and local relevance supported progress across the rest of the portfolio.

Speaker #1: Sushi shops show a clear improvement in the second quarter, led by France and supported by stronger execution across most European markets. The Adrian Cachot collaboration became the brand's best-performing chef partnership to date.

Eduardo Zamarripa: The Adrien Cachot collaboration became the brand's best performing chef partnership to date. Switzerland and Luxembourg markets remained strong, while Spain and Belgium improved sequentially. At Blue Frog, we launched Flavors of China, combining regional Chinese inspiration with the brand's Western casual dining identity. The platform strengthened local relevance and gave customers fresh reasons to engage with the brand. In Pizza Hut, we focused on two clear customer needs: value and excitement. Both boxes offered an accessible complete meal with a K-wave menu used Korean and Spanish flavors to encourage trial. Both initiatives were brought together under Deliver Good Times, reinforcing Pizza Hut as a brand that combines good food, convenience, and shared locations.

Speaker #1: Switzerland and Luxembourg markets remain strong, while Spain and Belgium improved sequentially. At Blue Frog, we launched Flavors of China, combining regional Chinese inspiration with the brand's Western casual dining identity.

Speaker #1: The platform strengthened local relevance and gave customers fresh reason to engage with the brand. In Pizza Hut, we focus on two clear customer needs.

Speaker #1: Value and excitement. Boxas offered an accessible, complete meal with a K-weight menu, using Korean and Spanish flavors to encourage trial. Both initiatives were brought together on the Defeat Good Times, reinforcing Pizza Hut as a brand that combines good food, convenience, and shared locations.

Speaker #1: And finally, at Burger King, we continue to sharpen its value proposition together with attractive collaborations, as it has been with the successful premiere of The Mandalorian.

Eduardo Zamarripa: Finally, at Burger King, we continued to sharpen its value propositions together with attractive collaborations, as it has seen successful premiere of The Mandalorian. With this, Santi, if you can cover the financial main highlights, please.

Speaker #1: With this, Santi, if you can cover the financial main highlights, please. Thank you, Eduardo, and good afternoon, everyone. Before moving into the detailed financial section, let me place the second quarter results in a broader strategic context.

Santiago Comas: Thank you, Eduardo, and good afternoon, everyone. Before moving into the detailed financial section, let me place the Q2 results in their broader strategic context. Q2 does not present a uniform picture. At group level, revenue was really stable. But the headline results combines resilient performance across most of the portfolio with significant pressure concentrated in a limited number of markets. This distinction is important, not for looking away from the areas requiring improvement, but to understand where earnings capacity remains intact and where decisive actions are needed. In this environment, our priority is not to protect volumes at any cost. It is to recover profitability, profitable traffic, hotel restaurant level economics, and to ensure that every EUR of capital supports sustainable returns. The quarter should therefore be read through three lenses. The first one, the quality of the underlying portfolio. Second, the corrective actions in underperforming markets.

Santiago Camarero Aguilera: Thank you, Eduardo, and good afternoon, everyone. Before moving into the detailed financial section, let me place the Q2 results in their broader strategic context. Q2 does not present a uniform picture. At group level, revenue was really stable. But the headline results combines resilient performance across most of the portfolio with significant pressure concentrated in a limited number of markets. This distinction is important, not for looking away from the areas requiring improvement, but to understand where earnings capacity remains intact and where decisive actions are needed. In this environment, our priority is not to protect volumes at any cost. It is to recover profitability, profitable traffic, hotel restaurant level economics, and to ensure that every EUR of capital supports sustainable returns. The quarter should therefore be read through three lenses. The first one, the quality of the underlying portfolio. Second, the corrective actions in underperforming markets.

Speaker #1: The quarter does not present a uniform picture. At group level, revenue was really stable. But the headline results combine resilient performance across most of the portfolio, with significant pressure concentrated in a limited number of markets.

Speaker #1: This distinction is important—not for looking away from the areas requiring improvement, but to understand where earnings capacity remains intact and where decisive actions are needed.

Speaker #1: In this environment, our priority is not to pursue volumes, then cost. It is to recover profitable traffic—hotel and restaurant-level economics—and to ensure that every euro of capital supports sustainable returns.

Speaker #1: The quarter should, therefore, be read through three lenses: the first is the quality of the underlying portfolio; second, the corrective actions in underperforming markets; and finally, the stronger conversion of earnings into cash.

Santiago Comas: And finally, the stronger conversion of earnings into cash. At the same time, it is important that we remain realistic. Same-store sales were below last year. Consumer demand remains cautious and weaker traffic reduced operating leverage in selected markets. Restoring that operating leverage is the key management priority that we have. Let us now move to slide 13 with the financial highlights of the quarter please. Here you can see that sales were stable and the portfolio development continued while profitability reflected weaker operating leverage. At the same time, capital deployment was materially lower. With this backdrop, sales reached almost EUR 642 million, broadly flat compared with the Q2 2025 while the same-store sales index was 98. EBITDA amounted to EUR 101 million and the non-IFRS EBITDA was EUR 50.6 million. The operative profit reached about EUR 22 million, representing a margin of 3.5%. Net profit was almost EUR 4 million.

Santiago Camarero Aguilera: And finally, the stronger conversion of earnings into cash. At the same time, it is important that we remain realistic. Same-store sales were below last year. Consumer demand remains cautious and weaker traffic reduced operating leverage in selected markets. Restoring that operating leverage is the key management priority that we have. Let us now move to slide 13 with the financial highlights of the quarter please.

Speaker #1: At the same time, it's important that we remain realistic. Same-store sales were below last year. Consumer demand remains cautious, and weaker traffic reduced operating leverage in selected markets.

Speaker #1: Restoring that operating leverage is the key management priority that we have. Let's now move to slide 13 with the financial highlights of the quarter, please.

Speaker #1: Here, you can see that sales were stable and that the portfolio development continued, while profitability reflected weaker operating leverage. At the same time, capital deployment was materially lower.

Santiago Camarero Aguilera: Here you can see that sales were stable and the portfolio development continued while profitability reflected weaker operating leverage. At the same time, capital deployment was materially lower. With this backdrop, sales reached almost EUR 642 million, broadly flat compared with the Q2 2025 while the same-store sales index was 98. EBITDA amounted to EUR 101 million and the non-IFRS EBITDA was EUR 50.6 million. The operative profit reached about EUR 22 million, representing a margin of 3.5%. Net profit was almost EUR 4 million.

Speaker #1: With this backdrop, sales reached almost €642 million, broadly flat compared with the second quarter of 2025, while the same-store sales index was 98.

Speaker #1: EBITDA amounted to €101 million, and the non-IFRS EBITDA was €50.6 million. The operating profit reached about €22 million, representing a margin of 3.5%.

Speaker #1: Net profit was almost €4 million. We opened 17 restaurants during the quarter, including 13 equity restaurants and four franchise units. Capex was €24 million, compared with almost €39 million in the same period last year.

Santiago Comas: We opened 17 restaurants during the quarter, including 13 equity restaurants and four franchise units. CapEx was EUR 24 million compared with almost EUR 39 million in the same period of last year. Moving to page 14, we find the recent trajectory of revenue and same-store sales. Revenue increased sequentially from EUR 589 million in Q1 to EUR 642 million in Q2. This is supported by the normal seasonality of our business. However, on a year-on-year basis, sales were greatly flat. The same-store sale index improved from 96 in the Q1 to 98 in the Q2. This sequential movement is encouraging but we should remain cautious. Comparable sales were still below last year and the recovery was uneven across different markets. Therefore, the appropriate conclusion is not that the challenges have disappeared, but the group sales stabilized during the quarter and the gap versus last year narrowed.

Santiago Camarero Aguilera: We opened 17 restaurants during the quarter, including 13 equity restaurants and four franchise units. CapEx was EUR 24 million compared with almost EUR 39 million in the same period of last year. Moving to page 14, we find the recent trajectory of revenue and same-store sales. Revenue increased sequentially from EUR 589 million in Q1 to EUR 642 million in Q2. This is supported by the normal seasonality of our business. However, on a year-on-year basis, sales were greatly flat. The same-store sale index improved from 96 in the Q1 to 98 in the Q2. This sequential movement is encouraging but we should remain cautious. Comparable sales were still below last year and the recovery was uneven across different markets. Therefore, the appropriate conclusion is not that the challenges have disappeared, but the group sales stabilized during the quarter and the gap versus last year narrowed.

Speaker #1: Moving to page 14, we find the recent trajectory of revenue and same-store sales. Revenue increased sequentially from €589 million in Q1 to €642 million in Q2.

Speaker #1: This is supported by the normal seasonality of our business. However, on a year-on-year basis, sales were really flat. The same-store sale index improved from 96 in the first quarter to 98 in the second quarter.

Speaker #1: This sequential movement is encouraging, but we should remain cautious. Comparable sales were still below last year, and the recovery was uneven across different markets.

Speaker #1: Therefore, the appropriate conclusion is not that the challenges have disappeared, but that group sales stabilized during the quarter and the gap versus last year narrowed.

Speaker #1: If we go to slide 15, please, this page summarizes the evolution of EBITDA and EBIT and how margins progressed into the second quarter.

Santiago Comas: If we go to slide 15 please. This page summarizes evolution of EBITDA and EBIT and how margins progress into the Q2. EBITDA decreased from EUR 107.7 million in Q2 2025 to almost EUR 101 million in Q2 2026. The EBITDA margin declined from 16.8% to 15.7%. The operating profit amounted EUR 22 million compared with EUR 34 million last year and the margin was 3.5%. The main driver of this decrease in profitability was lower operating leverage in markets affected by weaker sales and transaction volumes, particularly Czechia, Romania, and Germany. These effects were partially offset by strong performance in Hungary and also by improving profitability in France. In this situation, our operational priority is to recover traffic while improving labor productivity and maintaining rigorous control on every semi variable cost line. In this regard, we bring you in slide 16 how to translate the margin movement into its principal components.

Santiago Camarero Aguilera: If we go to slide 15 please. This page summarizes evolution of EBITDA and EBIT and how margins progress into the Q2. EBITDA decreased from EUR 107.7 million in Q2 2025 to almost EUR 101 million in Q2 2026. The EBITDA margin declined from 16.8% to 15.7%. The operating profit amounted EUR 22 million compared with EUR 34 million last year and the margin was 3.5%. The main driver of this decrease in profitability was lower operating leverage in markets affected by weaker sales and transaction volumes, particularly Czechia, Romania, and Germany.

Speaker #1: EBITDA decreased from €107.7 million in Q2 2025 to almost €101 million in Q2 2026, and the EBITDA margin declined from 16.8% to 15.7%.

Speaker #1: The operating profit amounted to €22 million, compared with €34 million last year. The margin was 3.5%. The main driver of this decrease in profitability was lower operating leverage in markets affected by weaker sales and transaction volumes.

Speaker #1: Particularly Czechia, Romania, and Germany. These effects were partially offset by a strong performance in Hungary and also by improving profitability in France. In this situation, our operational priority is to recover traffic while improving labor productivity and maintaining rigorous control on every semi-variable cost line.

Santiago Camarero Aguilera: These effects were partially offset by strong performance in Hungary and also by improving profitability in France. In this situation, our operational priority is to recover traffic while improving labor productivity and maintaining rigorous control on every semi variable cost line. In this regard, we bring you in slide 16 how to translate the margin movement into its principal components. The starting point is Q2 2025 EBITDA margin. Both merchandise costs were almost flat year-on-year, however, depression was concentrated in payroll and Social Security cost together with pressure from occupancy depreciation and other operating expenses. General and administrative cost remained disciplined, thus together with other operating items partially mitigated the decline.

Speaker #1: In this regard, we show you in slide 16 how to translate the margin movement into its principal components. The starting point is the Q2 2025 EBITDA margin.

Santiago Comas: The starting point is Q2 2025 EBITDA margin. Both merchandise costs were almost flat year-on-year, however, depression was concentrated in payroll and Social Security cost together with pressure from occupancy depreciation and other operating expenses. General and administrative cost remained disciplined, thus together with other operating items partially mitigated the decline. Moving to slide 17, these tables puts the income statement and the cash flow side by side. Revenue was barely flat, while EBITDA declined, reflecting the operating leverage dynamics that we have just discussed. On the other side, cash performance was considerably more constructive. Net cash from operating activities increased by EUR 17.5 million. Investing cash outflows decreased by EUR 15 million. Finally, the net equity restaurant count increased by 31 units over the last 12 months, showing that the groups continue to develop while reducing investment intensity. Moving to slide 18, we find the debt and liquidity evolution.

Speaker #1: Food and merchandise costs were almost flat year on year. However, the pressure was concentrated in payroll and social security costs, together with pressure from occupancy, depreciation, and other operating expenses.

Speaker #1: General and administrative costs remain disciplined, and together with other operating items, partially mitigated the decline. Moving to slide 17, this table puts the income statement and the cash flow side by side.

Santiago Camarero Aguilera: Moving to slide 17, these tables puts the income statement and the cash flow side by side. Revenue was barely flat, while EBITDA declined, reflecting the operating leverage dynamics that we have just discussed. On the other side, cash performance was considerably more constructive. Net cash from operating activities increased by EUR 17.5 million. Investing cash outflows decreased by EUR 15 million. Finally, the net equity restaurant count increased by 31 units over the last 12 months, showing that the groups continue to develop while reducing investment intensity. Moving to slide 18, we find the debt and liquidity evolution.

Speaker #1: Revenue was really flat, while EBITDA declined, reflecting the operating leverage dynamics we have just discussed. On the other side, cash performance was considerably more constructive.

Speaker #1: Net cash from operating activities increased by €17.5 million, and investing cash outflows decreased by €15 million. Finally, the net equity restaurant count increased by 31 units over the last 12 months.

Speaker #1: This shows that the group has continued to develop while reducing investment intensity. Moving to slide 18, we see the debt and liquidity evolution. First, the balance sheet remains prudent and maintains a high liquidity buffer.

Santiago Comas: First, the balance sheet remains prudent and with a high-liquidity buffer. At the end of June, net financial debt was EUR 505 million, compared with EUR 580 million at the end of 2025. On the other hand, liquidity reached EUR 162 million, and all available credit lines amounted almost EUR 91 million. The leverage ratio was 2.5 times, which remains consistent with a proven financial profile. This position, combined with the financing innovation explained earlier, gives us additional capacity to absorb volatility and execute selective portfolio decisions. The objective is not to use flexibility indiscriminately, but to preserve optionality while maintaining financial discipline. Going into slide 19, we can find the breakdown of revenue, EBITDA, and the number of restaurants that we have in each geography. These segments comprise businesses in 22 countries where, once again, we have observed very different commercial dynamics.

Santiago Camarero Aguilera: First, the balance sheet remains prudent and with a high-liquidity buffer. At the end of June, net financial debt was EUR 505 million, compared with EUR 580 million at the end of 2025. On the other hand, liquidity reached EUR 162 million, and all available credit lines amounted almost EUR 91 million. The leverage ratio was 2.5 times, which remains consistent with a proven financial profile. This position, combined with the financing innovation explained earlier, gives us additional capacity to absorb volatility and execute selective portfolio decisions. The objective is not to use flexibility indiscriminately, but to preserve optionality while maintaining financial discipline. Going into slide 19, we can find the breakdown of revenue, EBITDA, and the number of restaurants that we have in each geography. These segments comprise businesses in 22 countries where, once again, we have observed very different commercial dynamics.

Speaker #1: At the end of June, net financial debt was €505 million, compared with €580 million at the end of 2025. On the other hand, liquidity reached €162 million.

Speaker #1: And other available credit lines amounted to almost €91 million. The leverage ratio was 2.5 times, which remains consistent with a prudent financial profile. This position, combined with the financing innovation explained earlier, gives us additional capacity to absorb volatility and execute selective portfolio decisions.

Speaker #1: The objective is not to use flexibility indiscriminately, but to preserve optionality while maintaining financial discipline. Going into slide 19, we can find the breakdown of revenue, EBITDA, and the number of restaurants we have in each geography.

Speaker #1: These segments comprise businesses in 22 countries where, once again, we have observed very different commercial dynamics. Turning to slides 20 and 21, we present the key metrics for Central and Eastern Europe.

Santiago Comas: Turning to slides 20 and 21, we present the key metrics for Central and Eastern Europe, our largest segment. CEE remained the group's largest region, representing more than 63% of the group sales. Revenue increased by almost 2% to EUR 407 million. EBITDA declined to EUR 76.4 million, with a margin decrease by 1 percentage point to 18.8%. The region combines strong underlying growth in selected core markets as the case of Poland or Hungary, with a material concentration of downside in Czechia and Romania. The restaurant portfolio reached 1,292 units at the end of the period, following the gross opening of 20 restaurants during the H1 of the year. Moving to slides 22 and 23, we bring you the information of our Western European business.

Santiago Camarero Aguilera: Turning to slides 20 and 21, we present the key metrics for Central and Eastern Europe, our largest segment. CEE remained the group's largest region, representing more than 63% of the group sales. Revenue increased by almost 2% to EUR 407 million. EBITDA declined to EUR 76.4 million, with a margin decrease by 1 percentage point to 18.8%. The region combines strong underlying growth in selected core markets as the case of Poland or Hungary, with a material concentration of downside in Czechia and Romania. The restaurant portfolio reached 1,292 units at the end of the period, following the gross opening of 20 restaurants during the H1 of the year. Moving to slides 22 and 23, we bring you the information of our Western European business.

Speaker #1: Our largest segment, PE, remained the group's largest region, representing more than 63% of group sales. Revenue increased by almost 2% to €407 million.

Speaker #1: EBITDA declined to €76.4 million, with the margin decreasing by 1 percentage point to 18.8%. The region combined strong underlying growth in selective key markets, such as Poland or Hungary, with a material concentration of downside in Czechia and Romania.

Speaker #1: The restaurant portfolio reached 1,282 units at the end of the period, following the gross opening of 20 restaurants during the first half of the year.

Speaker #1: Moving to slides 22 and 23, we bring you the information on our Western European business. Western Europe generated revenue of €212.5 million in the quarter.

Santiago Comas: Western Europe generated revenue of EUR 212.5 million in the quarter, down 3.2%, and generated an EBITDA of almost EUR 31 million, with a margin of 14.5%. While the reported EBITDA was below the previous year, the comparison was affected by some one off gains recorded in Q2 2025. Again, this comparison, the region shows signs of improving underlying momentum, especially in the case of France that performed slightly ahead of expectations. The improvement indicates that the operational and commercial measures implemented are gaining traction, with the recovery increasingly visible in profitability even before a full normalization of sales has been achieved. The restaurant portfolio closed the period with 759 units, following the gross opening of 8 restaurants during the H1 of the year. Finally, in slides 24 and 25, we bring you the numbers of China. China generated quarterly revenues of EUR 22.5 million, broadly stable compared with Q2 2025.

Santiago Camarero Aguilera: Western Europe generated revenue of EUR 212.5 million in the quarter, down 3.2%, and generated an EBITDA of almost EUR 31 million, with a margin of 14.5%. While the reported EBITDA was below the previous year, the comparison was affected by some one off gains recorded in Q2 2025. Again, this comparison, the region shows signs of improving underlying momentum, especially in the case of France that performed slightly ahead of expectations.

Speaker #1: Down 3.2% and generated an EBITDA of almost €31 million, with a margin of 14.5%. While the reported EBITDA was below the previous year, the comparison was affected by some one-off gains recorded in Q2 2025.

Speaker #1: Again, this comparison in the region shows signs of improving underlying momentum, especially in the case of France, which performed slightly ahead of expectations. The improvement indicates that the operational and commercial measures implemented are gaining traction.

Santiago Camarero Aguilera: The improvement indicates that the operational and commercial measures implemented are gaining traction, with the recovery increasingly visible in profitability even before a full normalization of sales has been achieved. The restaurant portfolio closed the period with 759 units, following the gross opening of 8 restaurants during the H1 of the year. Finally, in slides 24 and 25, we bring you the numbers of China. China generated quarterly revenues of EUR 22.5 million, broadly stable compared with Q2 2025.

Speaker #1: With the recovery increasingly visible in profitability, even before a full normalization of sales has been achieved. The restaurant portfolio closed the period with 759 units, following the gross opening of eight restaurants during the first half of the year.

Speaker #1: And finally, in slides 24 and 25, we bring you the numbers for China. China generated quarterly revenues of €22.5 million, broadly stable compared with Q2 2025.

Santiago Comas: Nonetheless, despite this stability, the underlying sales environment remained challenging during the quarter. The EBITDA reached EUR 4.4 million, compared with EUR 5.3 million in the last year. Consequently, the EBITDA margin declined from 22.8% to 19.8%. Nevertheless, the business continued to deliver a solid level of profitability with an EBITDA margin close to 20%, despite a soft demand environment. The results were recorded against some still challenging consumer backdrop. Spain's economy continued to be supported by policy easing exports and industrial production. However, consumer demand remains subdued, with retail sales growing at a considerably slower pace than headline GDP. Finally, the number of restaurants managed by Blue Frog in the region at the end of the quarter was 80 units, following the opening of one restaurant. With this, I pass the mic to you, Eduardo.

Santiago Camarero Aguilera: Nonetheless, despite this stability, the underlying sales environment remained challenging during the quarter. The EBITDA reached EUR 4.4 million, compared with EUR 5.3 million in the last year. Consequently, the EBITDA margin declined from 22.8% to 19.8%. Nevertheless, the business continued to deliver a solid level of profitability with an EBITDA margin close to 20%, despite a soft demand environment. The results were recorded against some still challenging consumer backdrop. Spain's economy continued to be supported by policy easing exports and industrial production. However, consumer demand remains subdued, with retail sales growing at a considerably slower pace than headline GDP. Finally, the number of restaurants managed by Blue Frog in the region at the end of the quarter was 80 units, following the opening of one restaurant. With this, I pass the mic to you, Eduardo.

Speaker #1: Nonetheless, despite this stability, the underlying sales environment remained challenging during the quarter. The EBITDA reached €4.4 million, compared with €5.3 million in the last year.

Speaker #1: Consequently, the EBITDA margin declined from 22.8% to 19.8%. Nevertheless, the business continued to deliver a solid level of profitability, with an EBITDA margin close to 20%, despite a soft demand environment.

Speaker #1: The results were recorded against a still challenging consumer backdrop. China's economy continued to be supported by policy easing, exports, and industrial production. However, consumer demand remained subdued.

Speaker #1: With retail sales growing at a considerably slower pace than headline GDP. Finally, the number of restaurants managed by Blue Frog in the region at the end of the quarter was 82 units, following the opening of one restaurant.

Speaker #1: And with this, I pass the mic to Eudora.

Speaker #2: Thank you, Santi. Before we move to questions, let me close with our outlook for the remainder of 2026. When we presented our expectations for the year, we anticipated single-digit growth in both revenue and profitability.

Eduardo Zamarripa: Thank you, Santi. Before we move to questions, let me close with our outlook for the remainder of 2026. When we presented our expectations for the year, we anticipated single-digit growth in both revenue and profitability. Based on the H1 performance, the slower recovery of consumer traffic in selected markets, and the continuing pressures on operating leverage, we now expect revenue and profitability growth for 2026 to be slightly positive rather than growing at a single-digit rate. This is consequence of a more cautious view of the pace of commercial recovery, particularly in the markets currently under pressures. At the same time, the view does not alter our confidence in the quality of our core platforms or the strategic actions already underway. With that, Santi and I are ready to take your question.

Speaker #2: Based on the first half performance, this lower recovery of consumer traffic in selected markets and the continuing pressures on operating leverage, we now expect revenue and profitability growth for 2026 to be slightly positive, rather than growing at a single-digit rate.

Speaker #2: This is a consequence of a more cautious view of the pace of commercial recovery, particularly in the markets currently under pressure. At the same time, the view does not alter our confidence in the quality of our core platforms or the strategic actions already underway.

Speaker #2: With that, Santi and I are ready to take your questions.

Speaker #3: Thank you. To ask a question, please press star 1 on your telephone keypad. If you would like to withdraw your question, please press star 2.

Operator: Thank you. To ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, please press star two. You can also submit a written question using the Q&A chat box in the top right-hand corner of the screen. We will pause for just a moment while any questions are registered.

Operator: Thank you. To ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, please press star two. You can also submit a written question using the question-and-answer chat box in the top right-hand corner of the screen. We will pause for just a moment while any questions are registered.

Speaker #3: You can also submit a written question using the Q&A chat box in the top right-hand corner of the screen. We'll pause for just a moment while any questions are registered.

Speaker #2: While we're waiting, maybe I will use the privilege of moderator and ask a couple of questions from my end. The first would be about Taco Bell.

Lukasz Wachelko: While we are waiting, maybe I will use the privilege of moderator and ask a couple of questions from my end. First would be about Taco Bell. If you could shed some light, how many restaurants shall we expect, this year or next year, what are your goals for this project?

Speaker #2: If you could shed some light, how many restaurants shall we expect this year and next year? What are your goals for this project? Well, Lukasz, this is something very relevant, as we were mentioning previously.

Eduardo Zamarripa: Well, Lucas, this is something very relevant as we were mentioning previously. Launching a new brand in one of our strongholds, we consider that is a key priority for us, and this will reinforce the portfolio that we have over there. The idea is that before year-end, we could be opening three restaurants in Poland and a higher number next year. Every year we will increase the number of openings over there, but what I can advance you is that this year we should be having these three openings.

Speaker #2: Launching a new brand is one of our strong goals; we consider this a key priority for us. And this will reinforce the portfolio that we have over there.

Speaker #2: So the idea is that before year-end, we could be opening three restaurants in Poland, and a higher number next year. So every year we will increase the number of openings over there.

Speaker #2: But what I can advance you is that this year we should be having these three openings. Okay, thank you. And I have questions regarding free markets.

Lukasz Wachelko: Okay. Thank you. I have questions regarding three markets, third market for Czech Republic. You have some issues for the bad PR, call it this way since autumn last year, and it still continued. Sales were down 16% in Q2. Do you see that Q3 is making that too? When should we expect problems to be over? You are already reaching the low base effects.

Speaker #2: First, market we'll check Republic. Or, you have some issues for the best PR scholars this way. It was autumn last year, and it still continued. Sales were down 15% in the second quarter.

Speaker #2: Do you see that the third quarter is bringing that to an end? When should we expect problems to be over? Well, you are already reaching the low base effect.

Speaker #2: Thank you, Lukasz, for raising that topic. As you mentioned, in the chart market the situation is that sales remained under pressure, impacted—as you were saying—by this negative publicity.

Eduardo Zamarripa: Thank you, Lucas, for raising that topic. As you mentioned, in the Czech market, the situations, the sales remained under pressure, impacted as you were saying, of this negative publicity. The customer traffic has been affected despite the execution of AmRest of a comprehensive KFC growth plan during the H1 of the year. We are reinforcing the branch operational excellence, food quality, food safety standards, leveraging digital tools, employee training, and restaurant-level initiatives. Sales have not been recovered to pre-COVID levels as you were mentioning. We are keeping this as a very important strategic initiative and focusing on the regulatory, on the recovery of the market. We expect that with the new topics that we, and new activities that we are performing in the market, the plan will allow the recovery of the customer traffic and sales. Timing, difficult to tell, Lucas.

Speaker #2: Customer traffic has been affected. Despite the execution by AmRest of a comprehensive KFC growth plan during the first half of the year, we are reinforcing the brand's operational excellence, food quality, food safety standards, and leveraging digital tools.

Speaker #2: Employee training and restaurant-level initiatives. Sales have not recovered to pre-COVID levels, as you were mentioning. We are keeping this as a very important strategic initiative and focusing on the regulatory aspects of the recovery of the market.

Speaker #2: So, we expect that with the new topics and new activities that we are performing in the market, the plan will allow the recovery of customer traffic and sales.

Speaker #2: Timing is difficult to tell, Lukas. Okay, thank you. And what about Romania? We are seeing from all your peers that the market is slowing down.

Lukasz Wachelko: Okay. Thank you. What about Romania? We are seeing from all the peers of yours that the market is slowing down. How do you see the dynamics within this market?

Speaker #2: How do you see the dynamics within this market? This is a challenging one. Lukasz, as you said, we are suffering in that market. But that's something that is happening to some other peers as well.

Eduardo Zamarripa: This is a challenging one. Lukasz, as you said, we are suffering in that market, but that is something that is happening to some other peers. Hopefully, everything is a cycle, so we expect this cycle ends soon and we can go back to the path recovery as soon as possible.

Speaker #2: So hopefully everything is a cycle. So we expect that this cycle ends soon and we can go back to the path of recovery as soon as possible.

Lukasz Wachelko: Thank you. Last of mine in this batch: food prices under pressure on the food prices in the region or seeing deflation? How does the food cost look from your perspective?

Speaker #2: Thank you. And the last minor of mine in this batch—food prices. Do you see any pressure on food prices in the region, or are you seeing deflation?

Speaker #2: How does the food cost look from your perspective?

Speaker #1: So, in this sense, I mean, you have seen that in the latest quarter we have been benefiting from some easing in terms of the cost pressure.

Santiago Comas: In this sense, I mean, you have seen that in the latest quarter we have been benefiting by some easing in terms of the cost pressure, but it is true that although still not reflected in our books, expectations for next year if the conflict in the Middle East continue, it is going to put some pressure. What I can tell you is that it still is not something that is affecting us, and in the short term we do not expect any affectations due to the long-term purchases that we have for the year.

Santiago Camarero Aguilera: In this sense, I mean, you have seen that in the latest quarter we have been benefiting by some easing in terms of the cost pressure, but it is true that although still not reflected in our books, expectations for next year if the conflict in the Middle East continue, it is going to put some pressure. What I can tell you is that it still is not something that is affecting us, and in the short term we do not expect any affectations due to the long-term purchases that we have for the year.

Speaker #1: But it's true that although still not reflected in our books, expectations for next year if the conflict in the Middle East continue is going to be is going to put some pressure.

Speaker #1: So what I can tell you is that it still is not something that is affecting us, and in the short term, we don't expect any affectations due to the long-term purchases that we have for the year.

Speaker #2: Okay, thank you. Do we have any questions from the room? I don't want to monopolize the call.

Lukasz Wachelko: Okay, thank you. Do we have any questions from the room? I do not want to monopolize the call.

Speaker #3: Just another reminder: for any questions on the line, you can press star 1 on your telephone keypad. You can also submit a written question using the Q&A box in the top right-hand corner of the screen.

Operator: Just another reminder for any questions on the line you can press star one on your telephone keypad, and you can also submit a written question using the Q&A box in the top right hand corner of the screen. We currently have no questions waiting on the line.

Operator: Just another reminder for any questions on the line you can press star one on your telephone keypad, and you can also submit a written question using the question-and-answer box in the top right hand corner of the screen. We currently have no questions waiting on the line.

Speaker #3: So currently, you have no questions waiting on the line.

Speaker #2: Okay, so if we don't have further questions, thank you very much for your participation in the conference call. Hopefully, we will see you soon in one of our restaurants in Europe.

Santiago Comas: Great. If we don't have further questions, thank you very much for your participation in the conference call, and hopefully we see you soon in one of our restaurants in Europe. Thank you very much and have a good weekend.

Santiago Camarero Aguilera: Great. If we don't have further questions, thank you very much for your participation in the conference call, and hopefully we see you soon in one of our restaurants in Europe. Thank you very much and have a good weekend.

Speaker #2: Thank you very much, and have a good weekend.

Speaker #1: Okay, thanks.

Eduardo Zamarripa: Many thanks.

Speaker #2: Thank you.

Lukasz Wachelko: Thank you.

Operator: This concludes today's conference call. Thanks everyone very much for joining. We hope you enjoy the rest of your day.