Mariano Tannenbaum : Perfect. And thanks, Julia for the question. First of all, we continue to improve the SG&A as a percentage of revenues. In fact 2023 has the lowest percentage of SG&A, as a percentage of revenue in the history of the company. The positive impact that we should expect that you mentioned from the devaluation of Argentina will have an impact during 2024 as the devaluation happened only in the first – in the last two weeks of last year. And the increase in absolute terms can also be explained by the investment in Digital that the company continues to have and is driving sales and helping us to drive sales above inflation. And also, due to the increase last year in the stock price that has an impact on the mark-to-market of the long-term management compensation plan that we already mentioned.
Regarding the second part of the question about how much is Argentina now of total sales and EBITDA? It remains the same as in 2022. In 2023, 16% approximately of total sales.
Daniel Schleiniger : Great. Thanks, Mariano. The next questions come from Thiago Bortoluci from Goldman Sachs. Good morning, Marcelo and Arcos team. Congrats on the strong EPS. Could you also please comment on sequential gross margin performance, i.e. versus the third quarter of 2023 per division? And that’s the first part of Thiago’s question. And I guess, I give that over to you Marcelo.
Marcelo Rabach: Okay. Yeah, hi, Thiago. Thanks for your question. What we saw in the second half, I would tell you of 2023 and that’s the trend, which – with which we started in 2024 is less pressure coming from food and paper costs. That’s why our food and paper improved in the second half and improved sequentially in the fourth quarter of this year when compared to the third quarter. And we are using strategically that room in our costs and in our margins in order to impress in offering the most compelling value proposition in the markets. And that’s why I think one of the main reasons I think we continue to gain market share and we continue to build this customer base which will allow us to create and generate to capture shareholder value for the long-term for the company.
We are experiencing a leadership position, which is bit strong and we are building on that leadership position using in our favor the less pressure that we are seeing in terms of food and paper costs.
Daniel Schleiniger : Great. Thanks, Marcelo. And a second part of Thiago’s question, we will come back to you Mariano and he says, could you walk us through the impacts from Argentina on your P&L? Thanks. Again I am assuming we are talking about the fourth quarter of ’23.
Mariano Tannenbaum : Yes. Perfect. Yeah the FX sheet on the P&L is as described in our press release. Other operating income that includes a total of $7.4 million non-cash expense. That’s primarily related to higher impairments and write-offs of long-lived assets versus the prior year. Within this number, above $3.5 million is related to the devaluation in Argentina. In addition, in the 4Q there is an FX non-cash remeasurement is also $11.5 million. But keep in mind that for the full year 2023, the impact is positive in $5 million. So, those are the main impacts that we have in the P&L. On top of that, we have an improvement in our effective tax rate, as well related to Argentina due to generated non-taxable gain below also the operating line. That actually is giving us or allowing us to have the effective tax rates below the 5% that you can see in our results.
Daniel Schleiniger : Great. Thanks, Mariano. And I actually don’t see any more questions in the queue. So that brings U.S. to the end of the Q&A session.
Daniel Schleiniger : Like Luis and I remain available to any analyst or investor that has a question related to our results or our expectations for 2024. Thanks again to everyone for your interest in Arcos and joining the webcast today. Look forward to speaking with you again sometime in the middle of May when we report our first quarter 2024 earnings results. And until then, stay safe and have a great day.
