Speaker #1: Good afternoon. Welcome to Tab Gida Q4 2026 results conference call on the 27th of October 2026. Please note at this time all participants' lines are on listen-only mode.
Speaker #1: The format of the call today will be a presentation by the management and IR team followed by a question-and-answer session. So without further ado, I would like to pass the line to Mr. Chan Ostropak.
Speaker #1: Please go ahead, sir.
Speaker #3: Good day, everyone, and welcome to Tab Gida 2026 Q4 results conference call. My name is Jan Ostropak, Head of Investor Relations. Today's speakers are our co-CEO, Sinan Ünal, responsible for strategy and marketing; and Özgür Çetinkaya, who leads finance and franchise operations.
Speaker #3: Before we begin, I'd like to remind you that today's presentation includes forward-looking statements, which are subject to risks, and uncertainties, and may change over time.
Speaker #3: As in previous quarters, our financial results are reported under IS29 Inflation Accounting, to help provide additional context we have also included certain inflation unadjusted metrics.
Speaker #3: You can access today's presentation online for your reference. With that, let me hand the call over to Sinan.
Speaker #4: Thank you, Jan. Hello everyone, and welcome to our call. We delivered another quarter of strong performance with solid growth across our key operating and financial metrics.
Speaker #4: Further strengthening our market position while maintaining healthy profitability. Our system-wide sales grew by 34% year-on-year to 23.5 billion Turkish lira, supported by a healthy transaction growth, continued restaurant expansion, and a strong performance of our brands.
Speaker #4: The number of tickets increased by 7%, while delivery volumes grew even stronger by 14%, demonstrating the resilience of our business and our ability to continue attracting consumers in a difficult market.
Speaker #4: We believe our performance also reflects our strengthening competitive position. While some competitors have been reducing their restaurant networks and closing underperforming locations, we've continued to invest in our brands and expand our footprint.
Speaker #4: As a result, we believe we are gaining market share and further strengthening our leadership position. Importantly, this growth has been achieved with strong operational and financial discipline.
Speaker #4: Our revenues increased by 5% in real terms to 16.7 billion Turkish lira, while real EBITDA grew by 6% to 3.8 billion Turkish lira. We reached a solid 22.5% EBITDA margin, which represents a 26-bips improvement.
Speaker #4: We are particularly pleased that we've been able to sustain our profitability while continuing to grow our business in such a demanding environment. We also maintained our expansion momentum, opening 73 new restaurants during the quarter, bringing our total net worth to close to 2,200 restaurants.
Speaker #4: At the same time, we continued investing in digitalization and customer experience, adding nearly 400 self-order screens during the quarter. Overall, we are pleased with our third-quarter performance, particularly given the challenging market environment as consumers became increasingly selective in their spending.
Speaker #4: We believe these results demonstrate the strength of our brands, the quality of our execution, and our ability to deliver solid growth while protecting profitability even under challenging market conditions.
Speaker #4: As always, I would like to thank our restaurant teams and franchisee partners for their continued dedication, hard work, and strong execution, which have been key to achieving these results.
Speaker #4: Next slide, please. Our strong third-quarter performance was supported by three main pillars: starting with restaurant expansion, we accelerated our opening pace, adding 73 new restaurants in the third quarter, up from 40 in the second quarter.
Speaker #4: This brings our openings to 151 in the first nine months. As planned, openings this year are weighted toward the second half, further strengthening our market presence.
Speaker #4: Ustad Enerji also took an international step with three Ustad Enerji restaurants in China, now operated by our franchisee partner. We view the partner's discipline test and learn approach favorably, as it builds a foundation for the brand's future growth in this market.
Speaker #4: Alongside with new openings, we continued investing in our existing network, completing 22 renovations during the quarter and 81 year-to-date to keep our restaurants modern and attractive.
Speaker #4: Turning to our product portfolio and customer engagement, delivering compelling value remained our focus. Our multi-brand portfolio allowed us to adapt quickly with Popeyes and Arvi's leading ticket growth.
Speaker #4: Attractive value offerings, disciplined pricing, and effective cost management continue to drive customer traffic and keep our brands competitive. Targeted campaigns, such as our back-to-school value communication in September, further supported traffic.
Speaker #4: New seasonal products and targeted campaigns kept our menus fresh, while kids' menus and toy offerings social media initiatives and strategic partnerships helped us connect with a broader customer base and encourage repeat visits.
Speaker #4: In recognition of our efforts, we've received 8 awards at The Hammers across various categories, including Growth, Marketing, and AI-Driven Marketing. Finally, digital channels continue to be an important growth driver.
Speaker #4: Both delivery and self-order screens increase their share of total sales, supported by targeted promotions, operational improvements, and wider restaurant coverage. We see further opportunities as digital becomes an increasingly important part of our business.
Speaker #4: Overall, our strong execution helps us expand faster, keep our brands competitive, and grow our digital channels giving us confidence in our continued growth. Next slide, please.
Speaker #4: We continued to build strong momentum in restaurant expansion. Opening 73 restaurants in the third quarter and bringing total openings for the first nine months to 151.
Speaker #4: This expansion was well diversified across our brands, reflecting the strength of our portfolio and supporting a balanced growth strategy. Another exciting milestone was our entry into the Chinese market, with three Ustad Energy restaurants taking the brand into a new international market.
Speaker #4: Overall, accelerated openings, broad participation across our brands, and this latest international step demonstrate the continued momentum of our expansion strategy. Next slide, please. Alongside our restaurant expansion, we continued to focus on product innovation, compelling value offers, and engaging brand experience to support sales.
Speaker #4: Our value menus add Burger King and Arvi's kept affordability front and center, and remained customer favorites. Seasonal products added variety and fresh reason to visit our restaurants.
Speaker #4: Ice cream remained a highlight with 17.5 million units sold in the third quarter and 41 million year-to-date. It may be an interesting fact for many of you, but we are among the top ice cream sellers in the nation in terms of units sold, including all packaged ice cream brands.
Speaker #4: We also brought excitement to our kids' menus, through popular characters and collaborations, including Paw Patrol, Dragon Ball, and at Burger King and Snoopy Charms at Popeyes.
Speaker #4: We participated 21 events during the quarter and 41 year-to-date, and hosted cinema nights at Popeyes restaurants. Moreover, we launched AVM and Ustad Energy branded social media short series, which generated 138 million total views across 18 million unique accounts in just three months.
Speaker #4: Our Subway brand helped running events with local running clubs, which brought people together, strengthened customer and consumer engagement, and reinforced the brand's positioning. All this helped us strengthen our connection with our customers.
Speaker #4: Together these initiatives combine value, innovation, and customer engagement, keeping our brands relevant and giving customers more reasons to choose us. Next slide, please. Now, let's turn to digitalization, a key pillar of our growth strategy.
Speaker #4: Digital channels continue to play a growing role in our sales mix, reaching 56% of total sales in the first nine months of 2026, showing significant growth over the past two years.
Speaker #4: Delivery accounted for 30% of total sales in the third quarter, up from 28% a year ago. Targeted promotions supported this growth. While operational improvements, including smart box implementation and improved packaging, helped strengthen customer scores.
Speaker #4: We also saw strong progress in self-order screens. Restaurant penetration reached approximately 80% across our major brands, expanding access to a convenient ordering experience. Customer adoption is also encouraging.
Speaker #4: For the restaurants that have self-order screens, more than 40% of orders came through these screens. Self-order screens generate nearly 20% higher average checks than counter orders, driven by effective cost and upselling offers.
Speaker #4: All in all, these results highlight the momentum of our digital channels and their importance in supporting our sales growth. That wraps up the business overview, and I'll now hand it over to Özgür to make you to take you through our financial results.
Speaker #1: Thank you, Sinan. Let me now walk you through how our operational performance and commercial initiatives translated into our financial results. As usual, we present our results, both with and without IS29 inflation accounting, to give a clearer picture of the underlying business performance.
Speaker #1: The figures on this slide are inflation-adjusted. We delivered another quarter of solid real growth in both revenue and EBITDA. Third quarter revenue increased by 5% year-on-year in real terms to 16.7 billion TL.
Speaker #1: As a reminder, our revenue includes sales from company-operated restaurants and commissions from our franchise network. Despite cost pressures from higher oil prices, disciplined cost management, effective pricing, and commercial initiatives helped us improve our EBITDA margin.
Speaker #1: EBITDA grew by 6% in real terms to 3.8 billion TL with an EBITDA margin of 22.5%, up 26 basis points year-on-year. Turning to the bottom line, net income was 629 million TL in Q3 2026.
Speaker #1: Let me explain the main factors affecting this quarter's bottom line. First, as discussed in previous quarters, Q3 2025 benefited from a favorable tax accounting effect.
Speaker #1: At the time, tax calculations still assumed that inflation accounting would apply in statutory financials. We expect a more comparable year-on-year picture when we report our full year results.
Speaker #1: Second, lower interest rates reduced our financial income, as most of our cash is held in fixed Finally, let me provide an update on our structured product investment.
Speaker #1: In the first half, we recorded a profit of approximately 1 billion TL on an initial investment of 2.6 billion TL, equivalent to a return of around 40%.
Speaker #1: This already matched our full year return objective. With our investment target achieved, we chose to lock in the gain and limit further exposure. We therefore expect no additional profit from this product in the second half of 2026.
Speaker #1: Moving on to nine-month results, revenue grew by 10% in real terms to 49 billion TL, while EBITDA also increased by 10% to 10 billion TL.
Speaker #1: Our EBITDA margin remains stable at 20.8%. I would like to highlight the broader perspective of financial results. Economic conditions are getting tougher, consumers' purchasing power is declining, and we are seeing many QSR companies appear to reduce their restaurant footprint.
Speaker #1: Against this backdrop, delivering strong real growth while maintaining our margins is particularly important. Our continued revenue and EBITDA growth, together with stable EBITDA margins, gives us confidence in achieving our full year guidance.
Speaker #1: Next slide, please. Let's now look at our performance before IS29 inflation adjustments. We delivered another quarter of strong growth, with number of tickets increasing by 7% year-on-year to 71.1 million in Q3 2026.
Speaker #1: Together with a higher average ticket size, this drove 34% growth in system-wide sales to 23.5 billion Turkish Lira in the third quarter. Revenue grew by 38% year-on-year to 16.3 billion TL.
Speaker #1: We matched this revenue growth with 40% EBITDA growth, reaching 3.6 billion TL, while increasing our EBITDA margin by 30 basis points to 22.3%. For the first nine months, we generated 203 million tickets, with system-wide sales exceeding 64 billion TL.
Speaker #1: Revenue increased by 44% year-on-year to 44.8 billion TL. EBITDA grew by 46% to 9.3 billion TL, slightly ahead of revenue growth, with an EBITDA margin of 20.7%.
Speaker #1: Next slide, please. Let me now turn to our balance sheet. We continue to maintain a strong and healthy financial position, supported by our cash-generative business model and disciplined financial management.
Speaker #1: As of the end of third quarter, we held 9.5 billion TL in cash and cash equivalents, with no financial debt on our balance sheet.
Speaker #1: We have no material foreign currency exposure. With no fixed denominated debt and a local sourcing model, we are well protected against currency volatility. Importantly, our balance sheet remains exceptionally strong and continues to provide ample financial flexibility to support future growth opportunities.
Speaker #1: Combined with our strong cash flow generation, we believe this capital structure positions us well to execute our long-term strategy while maintaining a prudent financial profile.
Speaker #1: Next slide, please. Finally, let me say a few words about our outlook for the rest of the year. The environment remains challenging. Inflation has stayed above the level we assumed when we set our guidance, which continues to pressure consumers' purchasing power.
Speaker #1: At the same time, we are still seeing cost inflation, and we expect this headwinds to continue throughout the fourth quarter. Having said this, we have been managing this environment for some time, and our business is built to adapt.
Speaker #1: One of our key strengths is our diversified brand portfolio. Having a meaningful presence in chicken-based concepts, alongside our beef brands, provides a natural buffer against volatility in input cost.
Speaker #1: We are also staying disciplined on pricing. Our value offerings, across brands, allow us to remain accessible for consumers while protecting both traffic and profitability.
Speaker #1: In the first nine months of 2026, we opened 151 new restaurants, with more than 50 additional openings already in the pipeline, giving us strong confidence in achieving our full year restaurant expansion targets.
Speaker #1: On the financial side, our nine-month performance remains fully aligned with our full year revenue growth and profitability guidance, reinforcing our confidence in delivering on our 2026 commitments.
Speaker #1: As a result, we are maintaining our full year 2026 guidance, around 10% new store openings, 8 to 10% real revenue growth, and maintaining our EBITDA margin.
Speaker #1: Thank you.
Speaker #2: Rafael, we can start the Q&A session.
Speaker #3: Thank you. Thank you very much. Ladies and gentlemen, we will now move to the question-and-answer section. If you would like to ask a question, please press star 2 on your phone, and wait for your name to be prompted.
Speaker #3: If you are dialed in, by the web, you can type your question in the box provided, or request to ask a voice question. To give every participant a chance to ask questions, we would kindly ask you to limit your question to two at a time.
Speaker #3: It will be possible to ask follow-up questions. Okay. Our first voice question comes from Maxim Nekrosov from Citi. Maxim, please go ahead. Your line is now open.
Speaker #4: Hello. Yes, thank you so much for the presentation, for the results. The more interesting comments about the market share dynamic I was wondering if you can quantify, if you have seen any specific change in the market share.
Speaker #4: Or at least just directionally, where do you think the market share is coming from? It's more organized than the very large QSR chains, or kind of smaller ones?
Speaker #4: And the second question on the like-for-like traffic, if you can provide the number or, let's say, the direction, and also how the traffic has been behaving in October, so far, right, would be really helpful.
Speaker #4: Thank you.
Speaker #2: Thank you, Maxim. We unfortunately don't have a research or something that we can disclose publicly, but there public suppliers so we see their results, and then we have some calculations, of course, which shows also the market tendency.
Speaker #2: Besides that, we know that some numbers of the especially the shopping malls entry datas, et cetera, so that helps with the comparison regarding our performance.
Speaker #2: So having said this, having a positive comp numbers quarter after quarter, so we are 100% sure that we are gaining market share regarding the overall economical environment.
Speaker #2: Coming to the second question, I guess you are asking about the general consumer behavior. Then I mean, consumers mainly remain focused on value and are more selective so affordability plays a central role.
Speaker #2: In their choices, so in this environment, quick service restaurants like us stand out as a value option. And we see customers moving toward more affordable products, including chicken and overall our multi-brand portfolio allows us to respond to this, which with especially Popeyes and Arvies, leading ticket growth without diluting Burger King.
Speaker #2: So we grew tickets this year on top of a 23% increase in the same quarter last year. So I mean, on top of this, there is still an ongoing like-for-like sales.
Speaker #2: Around 4 to 5% even on this quarter. I think this quarter was even the most challenging one, most demanding one. I mean, overall, after especially the holiday season, with extra school and back to sea, in September, we began to see the pace of the second quarter return and also October has started quite well.
Speaker #2: So I'm quite on the positive side. On the LFL sales, for the rest of the year as well.
Speaker #4: Thank you so much.
Speaker #3: Okay. Thank you. Thank you very much. Our next voice questions come from Ishimandashi from AK Yatirim. Ishi, please go ahead. Your line is now open.
Speaker #5: Hi. Thank you very much for the presentation. You have already mentioned about the October performance, but compared to the first half or compared to the nine-month, we are having a higher base for the fourth quarter.
Speaker #5: So for the overall fourth quarter, performance would you expect a similar 5% real growth on a year-over-year basis on post-IS financials? That's my first question.
Speaker #5: And how do you see the appetite going forward on franchise and company-owned restaurant openings? You have already reached your 10% growth in stores number of stores guidance for this year.
Speaker #5: And do you see a similar appetite going forward as well, given the recent overall consumer weakness? Do you also see any change in the appetite for opening of particularly franchise stores?
Speaker #5: And I have another question regarding your financial income.
Speaker #2: I think we should make a little stop so I will not be able to respond to all of it. So maybe we take like two parts.
Speaker #2: So let me start with if it's okay for you, let me start with the opening pace. So so far, we opened like 151 outlets, and the guidance was around like 200-ish.
Speaker #2: So I mean, we are in line. With this track, so we opened 73 restaurants in the quarter three. There is a pipeline, 50-plus restaurants, so we don't have any doubts opening new restaurants.
Speaker #2: Coming to franchisee appetites, there is still a huge pipeline for the franchisee request. So especially on the pipeline restaurants, we see still a franchisee request especially imagining and also thinking that we are at the bottom of the pyramid.
Speaker #2: And having the reducing purchasing power, there is a downtrending towards us, and we are enjoying it. With all of our brands. So it's not only for Burger King, it's not only for Popeyes.
Speaker #2: We have strong franchisee demand for all of the seven brands. I think I missed the first part of your question, and also the last part.
Speaker #5: Oh, it's about the real growth trajectory for the fourth quarter. Will it be the similar will it be similar like 5% for the fourth quarter?
Speaker #5: Do you expect?
Speaker #2: I think the toughest one, the most demanding quarter was quarter three. I mean, the tourism season was weaker than plans in the coastal and seasonal location, as visitor numbers fell, and like, I mean, the geopolitical backdrop was not in anyone's plan at the start of the year.
Speaker #2: But I mean, starting with back to school, so I mean, we adapted and came through the quarter in line with our expectation without margin dilution.
Speaker #2: So with back to school and back to sea in September, we began to see the pace of the second quarter return. So I mean, as I said, October also has started quite well, and looking at nine months results, we have achieved like 10% real growth while maintaining a stable EBITDA margin.
Speaker #2: Both of which are, I think, very much in line with our full year outlook. So I mean, talking about the fourth quarter, I mean, our full year guidance remains unchanged.
Speaker #2: So we are confident about it.
Speaker #5: So I feel like you are more I'm sorry.
Speaker #2: The only thing is the rain. I mean, if weather helps, we will be more happy. We will be happier. Sorry.
Speaker #5: So I feel like you are more close to the you have a range in your sales guidance. So I feel like you are more close to the upper end of your guidance rather than the lower end of your guidance.
Speaker #5: For the full year.
Speaker #2: We will definitely be within our full year guidance.
Speaker #5: Okay. Regarding the financial income, you have already mentioned in your review that there was a structured product in the second half. You are estimating lower return in there, and that is why you have lower financial income in the third quarter as well.
Speaker #5: I think that trend will continue in the fourth quarter as well. And for 2027, should we expect a more balanced financial income distribution? I mean, at least every quarter, we will see some financial income based on your net cash position.
Speaker #5: Could we assume like that for the year?
Speaker #2: Sorry. I mean, let me take the last one. For next year, I mean, we won't be repeating the product. So we expect a more balanced financial income.
Speaker #2: And for the first part of the question, I'm leaving Özgür to answer it.
Speaker #3: I'm very glad you asked that question. Because I think it gives us an opportunity to explain something we actually managed rather well. As you may recall, we were often asked about our large cash balance and how effectively we were using it.
Speaker #3: We took a rather creative approach to treasury management and worked with an experienced asset manager specializing in international structured products. Our objective was simple.
Speaker #3: Protect the value of our cash against inflation. Generate returns at few percentage points above bank deposit rates. And do so with a disciplined risk framework.
Speaker #3: And it worked exceptionally well on an initial investment of 2.6 billion TL. We generated approximately 1 billion TL in profit during the first half of 2026, representing a return of nearly 40%.
Speaker #3: We effectively achieved our targeted full year return within six months. So we decided to lock in the gains. In other words, we front-loaded an entire year's expected financial return into the first half.
Speaker #3: Consequently, that income will not recur in the second half. Which naturally affects the quarterly net income comparison. Lower interest rates have also reduced our recurring financial income.
Speaker #3: So I wouldn't let the 49% decline in quarterly net income obscure the underlying picture. Our operating performance remains solid. With real revenue and EBITDA growth, and an improvement in EBITDA margins.
Speaker #3: When we report our full year 2026 results, I believe the picture will become much clearer. The cash was effectively deployed. We protected shareholder value against inflation.
Speaker #3: And we achieved returns comfortably above deposit rates. All within a disciplined risk framework. Ultimately, the timing of financial income should not be confused with the quality of our earnings or the effectiveness of our cash management.
Speaker #5: Thank you very much.
Speaker #1: Okay. Thank you. Thank you very much. Our next voice question comes from Aaron Ertis from Yapı Kredi. Aaron, please go ahead. Your line is now open.
Speaker #4: Hello. Thank you for the presentation, Sinan Bey and Özgür Bey. I'm congratulations for the results. I have three questions. The first one regarding the financial income.
Speaker #4: You just answered it. But I have a follow-up. Could you elaborate on this decision and the current status of the products? And apart from that, interest income on deposits also declined sharply.
Speaker #4: What were the main drivers? And the my second question regarding to cash generation. After lease payments, when we adjusted to IFRS 16 adjustments, the cash generation is declined year over year.
Speaker #4: And it includes meanwhile the main related party receivables and advances. Do you see these as temporary? And how should we think about these payments going forward?
Speaker #4: Thank you. Thank you so much.
Speaker #3: And a your first question the financial structure product will expire on December 19, 19-ish, Aaron. And the other your other question is about working capital.
Speaker #3: The this is actually a temporary situation. We had taken this approach before. In a difficult operating environment, we used our financial strength to increase our purchasing power.
Speaker #3: Paying in advance strengthened our negotiating position and allowed us to secure better purchase prices. This was one of the tools we used to keep foot costs under control and maintain our margins.
Speaker #3: It also helps maintain continuity in our supply chain which matters for the long-term sustainability of our business. We think long-term and are comfortable with this approach.
Speaker #3: The strength of our working capital model remains something we are very proud of. As I said, this is a temporary situation. And we expect working capital to improve visibly by year-end.
Speaker #4: Thank you. Lastly, the regarding to IFRS 16 adjustments. When I look at the fixed rents share in the total, rent-related cash outflows, it's increasing.
Speaker #4: What was the main reason?
Speaker #3: You know, Aaron, we keep the to open the pace of restaurant openings, you know. And this also increases the rent expenses when you relate to IFRS 16.
Speaker #3: Also, we are making renovations for the old ones, old restaurants. We are renovating them. This all making some pressure on IFRS 16 adjustments.
Speaker #4: Okay. Thank you. But it's temporary as well. Yeah?
Speaker #3: Yes.
Speaker #4: Thank you. Thank you so much.
Speaker #1: Thank you. Thank you very much. Our next voice question comes from Muharrem Gulsever from Perform Asset Management. Muharrem, your line is now open. Please go ahead.
Speaker #4: Thank you very much for the presentation. And opportunity to ask question. As far as we observe, I mean, the purchasing power is under an immense pressure nowadays.
Speaker #4: So unfortunately, we don't have a comparable data for such periods on your company. If you I mean, provide some data on private I mean, when the private conception consumption is on a declining phase, like 2019, how your life for likes were going to look like.
Speaker #4: And my second question would be on this PBT margin side. I mean, I understand all this financial income and IFRS changes. But I guess at the PBT level, everything is basically I mean, the zero-sum game.
Speaker #4: And when we compare your profit before tax margin with the previous year and the year before the 2024, I mean, in almost two years, we are seeing close to 250 to 300 basis margin erosion at the PBT level.
Speaker #4: So should we expect I mean, the current PBT margin level is a floor? Or do you think that there might be further downside potential on this side?
Speaker #4: And where you see your normalized profit before tax margin indeed in the medium to long run? Thank you.
Speaker #2: I mean, we generally try to guide I mean, starting for from the last question. So we generally try to guide the EBITDA since I mean, there are kind of a lot of changes in the tax environment, etc.
Speaker #2: So that's why we are mostly focused on the EBITDA levels. And for the first nine months, we are at the same level within the nine months combined figures.
Speaker #2: We are exactly at the same level compared to the previous year. So I mean, I think that's the normalized margin levels. And especially during quarter like the third one and also having this macroeconomical and geopolitical environment in place, these numbers are strong enough.
Speaker #2: I mean, we believe that at least. So and also we shouldn't be forgetting that I mean, we are cycling 23% ticket growth last year.
Speaker #2: And this year still we grew by 7%. I think that was the second piece of your question. Coming back to the first one, I mean, let me try to give you a world comparison and also a local Whopper index, I would call.
Speaker #2: Answer. So Burger King Turkey is now the has the highest average tickets per restaurant within all of the Burger Kings in the world. Popeyes has the same.
Speaker #2: So I mean, it's I think worldwide comparison. So coming back to purchasing power index, we have an index. We are dividing the minimum wage by the menu prices of Whopper, King Chicken, and also our lowest value meal.
Speaker #2: So what we are trying to do right now is to have the comparison with 2021, 2022, and 2023 and all the years. Also back to 2019.
Speaker #2: I can tell that as far as I mean, having the comparison only for the food court side or I would call like dine-in side in the restaurant side, we are nearly the same level compared to 2019, which was the highest ever numbers.
Speaker #2: So we are as of today around at the highest level where compared to this time, the delivery was around 8% of the total volume.
Speaker #2: Now is 25 to 30%, which comes on top of this numbers. I think it's a good comparison for you. Coming back to the purchasing power piece, now the number if you divide the minimum wage with the menu price of Whopper, the index starts generally with around like 95, 96.
Speaker #2: And towards the year end, it comes to 75, 74, 76. Now we are around 74, which was the case in 2023, which was the case in 2024.
Speaker #2: But in generally, in November. This year, we had this increase earlier. So starting from July. But what we did to cover it, so we focused mostly on two parts.
Speaker #2: The first one we played with the protein mix. Beef cost roughly three times as much as chicken as an input. So and that difference also shows in menu price as well.
Speaker #2: So we tried to be more affordable with the chicken piece. So that's how we covered. And we did this without diluting the beef side.
Speaker #2: So this is where the growth comes. So I think that's the most precious part. And the second piece was the ice cream part. This year, we put more communication behind ice cream than ever before.
Speaker #2: So as for the first time, we built a campaign around the celebrity with Kenan Doğulu singing our ice cream jingle. And if you remember, I don't know.
Speaker #2: I mean, during the presentation, I said we are among the I mean, top ice cream sellers in Turkey. These products are like profitable products.
Speaker #2: So that's also helps with the I mean, traffic and also the profit I think. So that was a very good mix and also thinking back, back about the third quarters, I think what matters to us is that ticket grew 7% on top of a 23% increase last year.
Speaker #2: And that the EBITDA margin even improved 26 basis points to 22.5%, which is I think world-class level.
Speaker #4: Thank you very much.
Speaker #1: Thank you. Thank you very much. Our next voice question comes from Alper Özdemir from Azimut. Alper, please go ahead. Your line is now open.
Speaker #4: Hello. As a follow-up to Ajay's question, about the structured product, was there a minimum guaranteed return for that product, or I'm trying to ask the potential downside in this product's total return.
Speaker #3: There was actually a minimum guarantee. It's a widely used instrument internationally. Simply it was a capital protected structure not specifically designed with the minimum return in order to manage our cash without destroying the value.
Speaker #3: Our objective was straightforward. To beat inflation, and earn a few percentage points above deposit rates.
Speaker #4: So you're saying that.
Speaker #3: It's stuck in the gains.
Speaker #4: Yeah. I understand. But so you're saying that the minimum guaranteed return in this product is comparable to deposit rates.
Speaker #3: Yes. It's locked. Right now.
Speaker #4: No, I understand. You closed the position currently with a substantial gain but I'm trying to understand the risk level of that product. To better understand or to better understand the risk profile of the financial management.
Speaker #3: So I'm saying that.
Speaker #2: I mean, let me take this piece. I mean, there was no risk about the product. So there was no loss risk or there was no capital loss risk.
Speaker #2: There was a minimum gain part and I mean, we were happy with the earnings, etc. And then we locked the product and it's done.
Speaker #2: I mean, so we are just waiting for the maturity which is December 19 and it has no risk at all. So I mean, it's already closed position.
Speaker #2: There was no risk.
Speaker #4: Yeah, I understand. But there was no risk to capital or there was no risk to a comparable gain in such as deposit rates.
Speaker #2: There was no risk at capital. There was an amount guaranteed minimum amount guaranteed for the earnings part, interest part. So then we are above of it.
Speaker #2: So then we locked the product. So we are happy with the gain. And we locked and that's it. I mean, we are just waiting for the maturity.
Speaker #2: So it's already closed and there is no risk at all.
Speaker #4: Thank you.
Speaker #1: Okay. Thank you. Thank you very much. Our last question is a text question from Orkun Godek Deniz Yeterim. Thank you for the presentation. Could you elaborate on your cash management and investment strategies in light of recent developments in the fund market?
Speaker #1: Has your company been impacted in any way?
Speaker #3: Absolutely zero exposure or interaction for that matter.
Speaker #4: Okay.
Speaker #1: Thank you. Thank you very much. As we have now further questions, we would like to thank you everyone for participating in our earnings call today.
