AmRest Holdings SE (EAT) Earnings Call Transcript & Summary

Hello, and welcome to today's AmRest Second Quarter Investor Presentation. My name is Jordan, and I'll be coordinating your call today. [Operator Instructions] I'm now going to hand over to Lukasz Wachelko to begin. Lukasz, please go ahead.

Good afternoon, ladies and gentlemen. My name is Lukasz Wachelko. I'm presenting WOOD & Company. And today, again, I have the pleasure of moderating the call with AmRest to present another quarter of the results. The company is being represented by Chief Financial Officer, Eduardo Zamarripa; and Santiago Camarero, Chief of Investor Relations. Not to take too much of your time, guys. The mic is yours.

Thank you, Lukasz, and good afternoon, and thank you for joining us. I hope that you and your families are doing well. Today, we will present the main highlights about second quarter of 2022 and first half year results for AmRest. As you know very well, AmRest is Europe's leading restaurant operator with a portfolio of 2,382 restaurants in 23 countries across Europe, Middle East and China. You can find updated information regarding our presence and brands in Slide 2. In Slide 3, we have remarked the 3 most relevant events on the quarter. First, we achieved a new record in revenues. Sales of EUR 606 million in Q2 constitutes the highest-ever quarterly revenues for the group. It is the third new record in the last 4 quarters. The only exception was quarter 1 affected by the normal seasonality pattern of our business, which nevertheless constitute the best first quarter ever. Second, our balance sheet continues to strengthen despite recording a EUR 53 million impairment in the valuation of our KFC Russia business. However, the total impairment figure was partially offset by the net reversal of impairments at restaurant level for the first time since the COVID eruption. In this respect, the number of units reversing impairments exceeds the number of units requirement additional impairment, resulting in a net reversal of EUR 2.3 million. Finally, we continue to make adjustments to our restaurant portfolio. On May 31, we completed the transfer of all our Pizza Hut restaurants located in Russia to a local operator, which has resulted in an exit of 59 units from our portfolio, 19 equity and 40 franchisees. In the case of Germany, where the MFA for Pizza Hut and the transfer of our 83 restaurants was scheduled to be completed also in May, we have agreed to extend the process until year-end in order to allow John to take over the business. You can find further information on these events in the Annex sections at the end of the presentation. In Slide 4, you can find quarterly and first half year sales evolution. The strong positive momentum continues, and AmRest is adapting and reading well the new consumer demand. On the right hand, you can find EBITDA margin evolution. Total EBITDA for half year reached EUR 176 million, which is an all-time high, with an increase of EUR 23 million versus the previous year. However, the bitter part is the slight decrease in terms of EBITDA margin that sits at 16%. However, this comparison is affected by the contribution of government support measures for COVID in 2021. In Slide 5, we have plotted AmRest total quarterly sales and the dine-in sales evolution. We can see how the gap between total sales and dine-in sales is becoming bigger. Takeaway and delivery channels have taken off around the world, driving the lifestyle changes. In the first half of 2022, these channels generated more than 60% of the group sales. On the other side, the dining channel continues to recover gradually along with the easing of COVID restrictions but remains in absolute terms, 10 percentage points lower than before the start of the pandemic. In Slide 6, you can find the evolution of the 12 months trailing average revenue per store that overcomes for first time the barrier of the EUR 900,000. As we have shared in the past, we consider this KPS a relevant indicator for monitoring the quality sales evolution. The positive evolution of revenues per restaurants provide sales leverage, key for maintaining margins in an inflationary environment. In this regard, AmRest is well positioned for margin expansion once cost pressure is diminished. In this regard, in Slide 7, we can recollect the latest inflation forecast from the European Commission. Their expectation is that inflation has already reached peak level or is about to do it during the next few months in most of the countries where we operate. In this regard, we are seeing that prices of many commodities are retreating from its peak recorded during the spring. Moreover, while supply chain disruptions continue to hamper global activity, there are some signs that they are diminishing. We do not know and we do not speculate on when the inflation would normalize. However, we do is -- what we do is have a more flexible hedging approach. Nonetheless, AmRest will continue to protect this margin. But as we stated, we are well positioned to record margin expansion when cost pressures moderate. Finally, in Slide 8, we want to share with you a couple of thoughts about our business model and challenges ahead. We have an attractive and well-balanced service offer, which 55 of our restaurants are QSR. AmRest's strength in the quick service has historically shown great resilience, even in the periods of contraction in consumption. In addition, having leading brands, global distribution capabilities, a motivated and committed team provides a competitive advantage that will allow us to face the future with optimism despite of the challenges ahead. With this, Santi will cover the main financial highlights of the quarter and half year. Santi, the mic is yours.

Many thanks, Eduardo, and good afternoon to you all. Let me remark that the first half of the year, it has been a period in where we have set new high watermarks from a commercial perspective. We achieved record revenues and record EBITDA generation. In Slide 10, you can find the main financial highlights for the semester. The revenues increased by almost 32% to more than EUR 1.1 billion with our same-store sales level of 125%. The EBITDA generated reached EUR 176 million, exceeding by more than EUR 22 million, the level achieved during [ 2019 ] and also surpassing pre-COVID levels. Cash position reached EUR 240 million, and the total CapEx amounted EUR 43 million. With respect to the restaurant portfolio, 29 new stores were opened during the period. And following the traditional seasonality for our CapEx and new openings, we expect to accelerate significantly these metrics during the second part of the year. In Slide 11, we show the main financial highlights for the quarter, where we post a new quarterly sales record, reaching almost EUR 606 million. This is a year-on-year increase of more than 30%, surpassing the EUR 600 million mark for the first time. This is despite the significant impact of the COVID restrictions on our China business. Comparable same-store sales index was at 123%. And as usual, we would like also to share with you the most up-to-date information that you can find at the bottom of the slide. At the end of August, the same-store sales stood at 120%. So we can infer that the strong commercial momentum of AmRest continues. Regarding other metrics, the EBITDA generated claim to EUR 101 million, and the CapEx stood at almost EUR 27 million. In Slide 12, you can find our quarterly revenue trends. AmRest's strong sales momentum, supported by the reopening of economies and the gradual lifting of COVID restrictions in most of the regions where the group operates, underlines the group support ability to adapt to new consumer trends and the compelling value proposition that our customers find in our brands offering. As we have conveyed on several occasions, we offer quality and remarkable consumer experience at very competitive prices. In this regard, we continue to focus on our goal of making our customer experience more enjoyable, exciting and efficient while improving our restaurant results. As a consequence, we set a new record in terms of revenues, both for the quarter and for the half year. In Slide 13, you can find the EBITDA evolution. As we have stated, the EBITDA for the first half of the year reached EUR 176 million, an all-time high in absolute terms. This represents a margin of 16%. For Q2, we reduced our target EBITDA of EUR 101 million and a margin of almost 17%. These margins are lower than the figures of 2021. However, this is due to the fact that we registered, during the period, EUR 28 million of contributions from government support measures, of which EUR 20 million were booked during the second quarter. Excluding this extraordinary support contributions, the EBITDA margin of the first half of 2022 increased by 1 percentage point versus 2021 despite the ongoing high cost pressure. In Slide 14, you can find the cash flow generation per quarter. Let me remark that in Q2, the cash flow generated from operating activities was over EUR 100 million, allowing to cover CapEx and financing needs in addition to increase the cash position in EUR 46 million. The level of CapEx in the quarter amounted EUR 27 million, EUR 43 million in the semester. Investments were focused on ensuring the optimal state of our restaurants, advances in digitalization and the openings of new units, which, however, following the seasonality shown in previous years, is expected to concentrate most of the planned openings under necessary investments during the second half of the year. In this regard, in the Slide 15, you can find the changes in the restaurant portfolio. From an organic perspective, we opened 18 new units during the quarter, bringing the number of openings for the half year to 29. As we continue with our goal of optimizing the portfolio with a focus on profitability, managing the restaurant footprint regions or brands adjustments according to the group's strategic outlook. As a consequence, we closed 28 restaurants during the semester, of which 15 of them during the second quarter of the year. In addition, we have completed the transfer on May of all the Pizza Hut restaurants located in Russia to a third party, as ignited by our franchisor and termination of the master franchise agreement for this market, as it was previously agreed. This transfer has led to the exit of 59 restaurants. Likewise, in the case of Germany, where we will transfer before [ gearing ] the 83 Pizza Hut restaurants in the country. With all this, AmRest operates currently 2,382 units at the end of the semester, registering a decrease of 58 units during the year. If we go now to Slide 16, we show the cash and the debt evolution. Cash level increased by EUR 61 million to EUR 240 million during the last quarter. In financial debt, ex IFRS 16 stood at EUR 434 million, having been reduced by EUR 196 million since the start of the pandemic and by almost EUR 34 million during this year. This situation allowed us to comfortably comply with our current financial covenants. At the end of the semester, the group's leverage ratio stood at 2x and the debt interest coverage up 9x. This leverage is at the low end of the group's target range of 2x to 2.5x that we provide as a guidance a couple of quarters ago. On Slide 17, we provide a financial debt structure and the maturity profile. There have been no relevant changes in the quarter. As you can see, the largest proportion is long-term bank debt denominated in euros. In addition, we have a comfortable maturity profile until the end of 2024, where we have the maturity of the -- of our syndicated loans. In the interim, our expectation points to a sustainable and continuing increase in the cash flow generation of the group. In the Slide 18, we will focus on the results by different segments. In that slide, you can find the revenues, the EBITDA and the numbers of restaurants that we have for each region. Starting with CEE in Slide 19. Revenue during this semester reached EUR 523 million, 41% higher than in the same period of 2021. During the second quarter, sales amount to EUR 279 million, an increase of 35% compared to previous year. By country, the good performance of Czech Republic stands out, where almost 12% of the group revenues are already generated. The EBITDA was almost EUR 100 million in the semester and EUR 55 million for the second Q. This is almost EUR 7 million higher than in 2021 and represents an EBITDA margin of almost 20%. At the end of the quarter, the restaurant portfolio in the region amounts 1,086 units, following the opening of 7 restaurants during the quarter and the closure of 6. No restaurants were closed by COVID restrictions at the end of the period in the region. In Slide 20, you can find the main metrics for Western Europe. Revenues in the region were EUR 391 million in the first half of the year, a 20% increase year-on-year. EUR 205 million were generated in the second quarter. This is 17% higher than in '21. By countries, it is remarkable the excellent performance in Germany and in Spain, where the gradual return to dine-in consumption continues to boost activity levels. In terms of profitability, the EBITDA generated during the first half of the year amounted EUR 50 million, bringing the EBITDA margin to almost 13%. The EBITDA in the second quarter was EUR 27.5 million. This figure is 19% lower than in previous year. However, as we said, this comparison is affected by the recognition of the contributions from the government support measures during the first half of 2021. Although the contributions received correspond to support for all the amounts of the restrictions during the pandemic, the accounting recognition was made in a cash basis. The total number of restaurants in the region stood to 1,001, following the opening of 10 and the closure of 4 units during Q2, bringing the total number of openings in the regions during the half year to 15 and the closure to 13. Likewise, no restaurants were closed by COVID restrictions at the end of the period in the region. In Slide 21, we have China, where the commercial dynamics have been affected by the imposition of the strict lockdowns in some areas during the first quarter of 2022 and extended into the second quarter. All local governments executed the zero COVID-19 case strategy. And as soon as new cases were confirmed, the immediate restrictions were implemented. Nonetheless, operations gradually recovered during June. Our restaurants in Shanghai could provide delivery service and in Beijing could provide limited dine-in service. In this context, the revenues generated during the semester amount EUR 36 million. This is 25% lower than in 2021. During Q2, revenues were just EUR 14 million, almost half of those generated a year earlier. In terms of EBITDA, EUR 5 million were generated during the semester and EUR 0.7 million during Q2. These figures represent an EBITDA margin of 14% for the semester and just 4.6% for Q2, very far from the 30% levels obtained through 2021. The number of restaurants closed due to COVID varied a lot during the period. However, I can say with you that no restaurants are closed at the moment. This is all from my side. So back to you, Eduardo.

Thank you, Santiago. To sum up, very positive sales dynamics, a further strengthening of the balance sheet, a feeder portfolio make me confirm once again that we are on the right track in this challenging environment, setting solid pillars to become the European leader that inspires the global restaurant industry. Many thanks, everyone. And with this, we are open to any questions you may have.

[Operator Instructions] We have an audio question sent into us by JP Rolandez of The L.T. FUNDS.

Congratulations for an outstanding first half, really impressive. I have actually 3 questions. They are business questions. One, could you elaborate a little bit what's going on in Russia? Two, same question with Germany because apparently, you are ending your franchise for Pizza Hut, and you say that Germany is doing very well. So it's a bit odd. And also today, there was the news that Mr. McGovern has taken the master franchise for Burger King in Poland. So maybe you could explain to us how this happened and what is the context. And actually, I have a fourth question, which is much more general. How do you see your expansion in 2023 roughly? It's very foggy at the moment, 2023, but you are on a dynamic path, and you probably have a first catch of how many restaurants you would like to open, for example. So these are the 4 business questions.

Excellent. Thank you, JP, and thank you for making these questions. So I'll address the -- I'll start addressing them. In terms of Russia, we have a review and a study, of course, the actions to be adopted. For the time being, we have reduced our presence in the country with the exit of 59 restaurants, the whole Pizza Hut business, and infer a meaningful way the value of our remaining business. At this moment, we have stopped the capital investment. And there is no expansion plans at this moment because, as I said, capital and investments have been stopped in that market. In terms of Germany, as mentioned, we -- and we announced previously, we had an agreement with John to exit that market, and that remains in progress. We have 83 stores in Pizza Hut Germany, and we have agreed at this moment to extend the end of the MFA until year-end, and that's where we are going to transfer the assets of that country. In terms of the MFA in BK in Poland, until today, we have not received any official communication from RBI regarding this agreement. So at this moment, we are not able to speculate on how this is going to work. So as soon as we have information from RBI, we will be able to share something additional with you. In terms of expansions in 2023, as you said right now, we are facing a very foggy dynamic. We continue committed to the growth of the company. We have been taking very significant steps for positioning AmRest for the growth strategy. As you saw, we are lowering the leverage of the company. Right now, we are at the level that we feel more comfortable and more focused and with more stronghold in order to address this growth. We have never stopped the growth, but we consider that right now, we are better positioned to do that. Something that even Santi mentioned, we are -- we should be expecting to have a higher number of openings in the second half of the year. And of course, in 2023, we will continue growing in terms of the stores. At this moment, we are not able to communicate the guidance. But one of the things that we do can share is something that is happening around the world. We could expect some delays in terms of the expansion, and this is due to the supply chain issues that are happening around the world. But the commitment of growth of AmRest is there, as you can see in the numbers, and we are very well positioned to get into this.

Yes. If I make a complement regarding to this growth. I think that when we speak about growth, we have to see this concept in a very broad perspective. Capillarity is very important for the restaurant industry and our business. But as we were showing, what we have each time is more digital sales, distribution through different channels. And what we are showing is that we have more or less the same level of restaurants right now that we have previous to COVID times. We have a pandemic. We have all this situation with the war in Ukraine. However, in terms of revenues, we have 1/5, 20% more revenues than we have previous to COVID. And what we have also is reached record levels in terms of EBITDA generation. The EBITDA for the first half for this semester is 6% higher than it was back in 2019. So we continue to be committed with the growth. We continue to be committed, as Eduardo was explaining in terms of new opening. But I think that it's important to have this broad perspective with respect to the meaning of growth.

Right. But in Germany, you are continuing with Starbucks. And are you developing Sushi Shop or...

So in Germany, as you were saying, currently, we are -- we have 3 brands in this country, KFC, Pizza Hut and Starbucks. The biggest presence that we have in the country is coming from Starbucks. And what we have announced so far in terms of strategy changes is just the asset of Pizza Hut. So in the case of Sushi, of course, we have a plan of expansion. And of course, in due time, we will be communicating what are the different steps that we are going to take.

Our next question comes from Dominik Czainski of Aviva.

I have a few questions. First, you have shown 30% growth of sales in the second quarter, and you have mentioned in directors report that the number of transactions were up by 27%. And based on this data, it looks like you've had a ticket value change just a little bit above 0. Can you give us more color about this issue in this inflationary environment? Maybe the first one.

Sure. Thank you for the question, Dominik. So this is a very interesting topic. So as you were saying, one of the important things is that the number of transactions is increasing quite strongly. So this is a very important measure of the traffic that we have, of the penetration that we have and engagement that we have with our customers. But what we are starting to see is a certain level of shift in terms of the channel distribution. So of course, in this inflationary environment, with the cost pressure that we are facing, we are increasing prices. Despite the increases in these prices, what you can infer is that all the sales growth that we are capturing is coming by the increase in the number of transactions. So part of the reason, for example, is coming because the average check that you have in the delivery channel is much higher than you have in other channels. But what we are seeing is that the people is choosing other options before delivery. So we are reducing the number of transactions that we have through delivery. So the channel really that is gaining more momentum right now is the takeaway. So this is why we have delivery metric. I don't know if with this, I have answered your question.

Yes. And maybe one more about the dine-in channel that generated 10 percentage point lower sales in absolute terms, as you have mentioned, and how it looks like from the volume in traffic terms.

So the dine-in is a curious case. We were really -- we're expecting to see more of a [ climbing effect ] with the easing of the restrictions. But what we are seeing is a gradual recovery. So every single month, since I think that almost a year ago, what we are seeing is that we have an increase in this distribution channel. So as we are speaking, numbers are increasing, traffic is increasing over there. And this is the trend that we are seeing. So part of this is very positive momentum, we wanted to share that it was coming through the coming back of this channel. And of course, the other part is coming because we have adapted I think very well to the new demands of the clients with the takeaway and the delivery model.

Sure. And then you have made almost EUR 53 million impairment in Russia. And how much Russia is still work in the books?

So the net asset value of this business is around EUR 78 million.

We've had a text questions sent into us. Firstly asking how big a part of the sales growth in 2Q was related to volume increase? And how much came from inflation?

As we were discussing, we have taken price actions in all our brands, in all our countries, more or less price increases are in the range of mid-single digits. But we have this shift also in terms of how the clients want to have the deliveries. So instead of to be choosing the delivery channel, what we are seeing is a shift to other distribution channels with different size in terms of the checks. So I think that the more really key metric to measure is the number of transactions. So from this 30% increase, we discussed previously with Dominik, 27% of that are coming from an increase in the number of transactions. So really, the growth is coming because we have more traffic and more presentation. And maybe I think that this is an indication that we are gaining market share in many of our markets.

Having a higher traffic talks about, as I was mentioning during the call in terms of the resilience of the QSR restaurants. So that helps in terms of the revenues. But also, we have been doing revenue management initiatives across the countries and across the brands. It's important to understand the consumer, to understand the behavior of that and also the pressures that we are facing. The cost of food is increasing in important numbers as we have stated and as we have seen in the news. The same happens for energy. So we get that mix, and we want to protect the profitability of the business, but important initiatives have been taken in terms of the design of the menus, the menus, the offerings that we can offer to our consumers. And it's important to deliver the value that our clients are expecting in our restaurants.

And we've also had a question sent in to us asking, firstly, regarding second round inflation, do you expect wage hikes? And secondly, you mentioned that commodities are already falling, but the summer has been dry and also the war is not helping grain prices. What do you expect for the second half of the year in raw materials and margins?

It's a challenging second half as we were mentioning. As we mentioned, the expectation is that we have reached the peak, and that's the expectation. And as we mentioned, there's not something that us can assure at 100% or anyone, but at least those are the expectations from the economic forecasters. The second half is going to be a challenging one, but we will continue making exactly the same efforts, monitoring the input that we have in terms of cost of food and also in terms of the cost of labor. That's another important fact. We have seen some countries in which we have implemented wage increases, and there has been countries that have implemented or enforced minimal wage increases. So it's part of the equation in an inflationary environment, and we need to see how we can react into this. And as I mentioned, is the effect of these pressures in terms of cost of sales but also how we can offset this also with increases in terms of pricing.

We've just had a follow-up voice question coming from Tomasz Sokolowski of Santander.

I hope I'm -- I got one question about Russia. And okay, second Q was strongly -- I mean sales growth and EBITDA growth was strongly reflected by results in this region. You've got over 200 KFC restaurants still opened in Russia. You strongly benefited from lack of competition. And how would you see the future and the performance of sales, EBITDA in coming quarters, years, taking into account the global approach and global attitude to investments in Russia to be present in Russia? Because correcting the results about the extremely strong performance in second Q in Russia, results would be, okay, not so good -- maybe not so good, not as bad -- as good as it was. I'd like to hear your opinion.

Yes. And that's -- and thank you, Tomasz, for your question. In terms of Russia, it's very important to highlight that we are, of course, being very close to the -- to studying all the actions that we need to adopt. And as I mentioned, we are working and we have reduced our presence in the country, and that -- and we exited 59 of the restaurants that we have. So it's 100% of the Pizza Hut business. And as I mentioned, CapEx and investment has been stopped. And that's the approach that we are getting for that market. We work in order to achieve good results in terms of the overall AmRest. So if we see the results of CEE -- if we see the results of Western Europe, we are working very hard to improve and we are focusing on improving and keeping the best efforts in the markets that we are present. If you see CEE, of course, we continue growing, the traffic continues growing. We're working on revenue management initiatives. We are facing some more challenging times in Western Europe. But anyway, we consider that we are on the right track in the business.

We have no further questions, so I'll hand back for any closing remarks. We've just received a follow-up question from [indiscernible] of PZQ.

I have 3 actually, but my first question is about your pricing power. Are you planning further price increases during this fall or winter? Second question is about new lockdown in China, which was introduced this week. Is it affecting your stores in China and how? And my third question is about carbon dioxide shortages. Have you already noticed any impact in your business? For instance, do you expect any impact for your fizzy drink or meat producers?

Okay. In terms of pricing power, as inflationary rates continue, as we said, the expectation is that the peak has already been passed, but inflation remains and the percentage are significant. So it's an analysis that we are running in constant basis, which is the position that we may take in terms of pricing because we have pressures and also we want to defend the consumers. So if we consider and we see that it's needed a price increase, of course, we will continue to adjust prices, but always responsibly with a revenue management strategy. And that's what we are seeing for our portfolio, and that's what we are seeing outside. Price increases continue to be there, but the important part is to do that in a responsible way. In terms of the China lockdowns, those are the things that we closely see, and we always do respect all the regulations that are made within the countries. Of course, if lockdowns start again or continue is something that can affect the result of the company. As you are seeing, we have been able, even in China with this lockdown, to continue operating and having the best results possible. The team in China is doing an extremely good work to operate with this -- even with these restrictions.

And then regarding the last question that you have about the CO2 shortages, to be honest, we will need to contact our procurement team to see if they have any info in this respect. Nothing has been raised to ourselves at this stage. But if you don't mind, I mean, we can follow that.

Operator, is there any more questions?

We have no further questions on the line, so I'll hand back for closing remark.

Actually, can I take the liberty and ask a couple of questions from my end?

Of course.

Okay. So in fact, what I'm getting a lot of interest from investors related to the current situation with Burger King in Poland. So if you could remind us what happened and what led to you losing the development agreement with Burger King? And well, why we are currently in this fairly weak situation?

Lukasz, as it was communicated, Burger King terminated the contract to us. And what we mentioned at that moment is that we will continue operating the Burger Kings that we have in CEE mainly. Particularly in Poland, we have 46 BKs. And at this moment, those 46 BKs represent around 0.5% of the EBITDA of the company.

Yes. But so I wanted you to help us understand why Burger Kings -- well, I haven't followed the growth path of KFCs and why, in fact, they are so small in your business? It was the -- any particular reason behind it? It's like chicken much better than burgers? Why Burger King wasn't developed as much as other brands?

So we have certain development agreement with different franchisors according with our strategic outlook. It was what it was agreed at that time. As you know, right now, what we are doing really is to review all the strategic outlook and fit of the portfolio. So this is where we are at right now. So we received the termination of development agreement of Burger King, just to remind, at the beginning of the year in February, this termination of agreements, I don't know if it was a coincidence, it happened in other markets as well. In the case of some of our competitors that were running this type of restaurants in Spain and Portugal received similar notice. So I don't know if this has been a global approach. But what we have at that time, it was 90 BKs with individual franchise agreements. Most of these agreements, they are going to be running for quite a long period of time. So our commitment with the brand is to continue to run operations in the best possible way. In fact, we are doing quite well. What we have seen is that our figures, they have improved. And right now, in the case of Poland, as Eduardo was saying, so 0.5 of a percentage point is what really represents in terms of EBITDA this business. And this is what we can tell you at this stage.

Okay. So I understand that asking you a question, what are you seeing the [indiscernible] corporation? And you have -- any plans would be a bit too early, yes?

It's too early, Lukasz. As I mentioned...

Okay. But I understand that if you would be offered a nice price for the operations of BK in Poland, you would potentially take it and invest in elsewhere, say KFC.

Sorry, Lukasz, can -- I lost part of your question. Can you repeat it?

Okay. So again, if you would be offered a nice price for your operations of BK in Poland and having the possibility of investing this cash elsewhere, I understand that you would consider, but it's not that you are saying, yes or no at this stage. It's just all the options are open, yes?

Lukasz, at this moment, what we mentioned since we received the termination notice is that we have the commitment to operate the restaurants and do it in an excellent way. That's the way that AmRest has already -- always done things, excellency in operations.

You're speaking [indiscernible]. So yes, I understand. Basically, I believe that most of the questions I wanted to ask have been already asked and answered. So if there are no questions from the room, operator, can you help me here?

We have no further questions on the phone lines.

Okay. So guys, very, very thank you.

Thank you for following the conference call. And we hope to see you soon in one of our restaurants. Have a great weekend.

Thank you very much.

This concludes today's call. Thank you for joining. You may now disconnect your lines.