Alsea SAB de CV
BMV:ALSEA
Alsea SAB de CV
Alsea SAB de CV, a prominent player in the food service industry, has peppered its presence across the Latin American dining landscape since its inception in 1990. With its roots firmly planted in Mexico City, Alsea has grown from a humble franchise operation into a formidable gastronomic empire, effectively mastering the art of restaurant operation and management. The company initially gained traction by becoming the leading franchisee for recognizable brands like Domino's Pizza and Starbucks in Mexico. As it expanded, Alsea diversified its portfolio by acquiring and operating a plethora of domestic and international restaurant brands, including Burger King, The Cheesecake Factory, and Chili's. Through these strategic partnerships, Alsea has been able to leverage brand strength and operational expertise to enhance its market footprint.
The company thrives through a multi-faceted business model that expertly blends franchising, joint ventures, and owned operations, allowing it to tap into varying streams of revenue. By aligning with globally recognized brands and operating them under licensing agreements, Alsea reduces risks associated with brand building, while capturing substantial market share in the fast food, casual dining, and coffee shop segments. Moreover, Alsea actively invests in customer loyalty programs and technological innovations, such as delivery apps and digital payment systems, to enhance customer experience and operational efficiency. By strategically position itself within a growing consumer base in Latin America, Alsea capitalizes on the burgeoning demand for dining experiences, effectively converting consumer traffic into shareholder value while continuously expanding its geographic reach and brand portfolio.
Alsea SAB de CV, a prominent player in the food service industry, has peppered its presence across the Latin American dining landscape since its inception in 1990. With its roots firmly planted in Mexico City, Alsea has grown from a humble franchise operation into a formidable gastronomic empire, effectively mastering the art of restaurant operation and management. The company initially gained traction by becoming the leading franchisee for recognizable brands like Domino's Pizza and Starbucks in Mexico. As it expanded, Alsea diversified its portfolio by acquiring and operating a plethora of domestic and international restaurant brands, including Burger King, The Cheesecake Factory, and Chili's. Through these strategic partnerships, Alsea has been able to leverage brand strength and operational expertise to enhance its market footprint.
The company thrives through a multi-faceted business model that expertly blends franchising, joint ventures, and owned operations, allowing it to tap into varying streams of revenue. By aligning with globally recognized brands and operating them under licensing agreements, Alsea reduces risks associated with brand building, while capturing substantial market share in the fast food, casual dining, and coffee shop segments. Moreover, Alsea actively invests in customer loyalty programs and technological innovations, such as delivery apps and digital payment systems, to enhance customer experience and operational efficiency. By strategically position itself within a growing consumer base in Latin America, Alsea capitalizes on the burgeoning demand for dining experiences, effectively converting consumer traffic into shareholder value while continuously expanding its geographic reach and brand portfolio.
Sales Growth: Alsea reported a 5.7% year-over-year increase in total sales to MXN 21 billion for Q3, with 6.7% growth excluding foreign exchange effects.
Profitability: EBITDA rose 1.8% to MXN 2.9 billion, though the margin declined by 50 basis points year-over-year to 13.7%, mainly due to lower consumer demand in September.
Regional Performance: Mexico and Europe posted strong sales growth, while South America saw a 4.7% sales drop, reflecting weaker consumption except in Colombia.
Brand Highlights: Starbucks and Domino's delivered positive same-store sales growth across most regions, though Burger King saw declines outside Argentina.
Digital & Loyalty: Loyalty sales grew 7.9% to MXN 5.1 billion, with digital orders accounting for 37.4% of total sales.
Guidance Lowered: Management cut 2025 guidance to high single-digit top-line growth and low single-digit EBITDA growth, citing weaker consumption trends and FX headwinds.
Remodeling Focus: The company is prioritizing store remodelings, especially in Starbucks and full-service restaurants, noting strong sales uplift and ROI from these initiatives.
CapEx & Debt: CapEx for the first 9 months was MXN 3.8 billion, with full-year expected around MXN 6–6.1 billion. Net debt (pre-IFRS 16) increased to MXN 34.5 billion.