Restaurant operator Alsea posts nearly 40% profit jump, citing hungry customers

By Thomson Reuters Feb 26, 2024 | 6:37 PM

MEXICO CITY (Reuters) – Mexican restaurant chain operator Alsea on Monday posted a 37% jump in its net profit for the last three months of 2023, citing an uptick in sales linked to better consumer trends.

Net profit hit 1.05 billion pesos ($62 million).

Alsea, which operates chain stores including Starbucks, Burger King and Domino’s Pizza, also reported quarterly net revenues up 8% from a year earlier to 19.88 billion pesos.

Net profit landed well above median forecasts of analysts polled by LSEG, who had predicted a quarterly net profit of just 587 million pesos, although they had estimated slightly higher revenues at 20.2 billion pesos.

Sales in Mexico grew 14% while in Europe they grew 2.7% and slid by 0.5% in South America.

Stripping out effects from a stronger Mexican peso, Alsea said sales in Europe would have climbed 9%.

Alsea, which operates chain restaurants, fast food joints and coffee shops in dozen countries across Europe and Latin America, makes more than half of its sales from Mexico and close to a third across western Europe.

Chief Executive Armando Torrado said in a statement that earnings had benefited from an efficient operating strategy, positive consumer trends, new product roll-out and digital innovation.

($1 = 16.9666 Mexican pesos at end-December)

(Reporting by Sarah Morland and Natalia Siniawski; Editing by Kylie Madry)