Alsea Reports Positive Growth in 2Q23
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Alsea Reports Positive Growth in 2Q23

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Eliza Galeana By Eliza Galeana | Junior Journalist & Industry Analyst - Thu, 07/27/2023 - 18:00

Earnings of the restaurant operator Alsea, owner of brands such as Starbucks, Vips and Domino's, grew by 89.7% in 2Q23. The group’s net income doubled between April and June 2023 reaching MX$490 million (US$29.3 million), which represents 106.9% growth compared to the MX$237 million (US$14.1 million) reported during the same period in 2022. 

The financial report emphasized that increasing profits were mainly due to a MX$336 million (US$20.05 million) reduction in the comprehensive financing result, thanks to a MX$438 million (US$26.1 million) benefit from exchange rate fluctuations. Likewise, efficiencies in expense control were also an important factor that contributed to positive growth. 

Armando Torrado, Director, Alsea, said that the quarterly results were a reflection of the strong demand for the company’s brands and solid consumer behavior, supported by its highly competitive business model. "We have followed up our expansion strategy by adding 39 new corporate restaurants and 14 franchises to our team, with a primary focus on our core brands, Starbucks and Domino's Pizza," he said. Additionally, Torrado pointed out the opening of the first Starbucks store in Paraguay, which is considered a significant milestone for the company, marking the brand's entry into the South American country.

The document specifies that the delivery business represented over MX$3.2 billion (US$191.4 million) for Alsea, with 12.3 million orders and a 17.1% share of the total revenue. Moreover, during 2Q23, Starbucks experienced a 26.1% growth in at-store sales, while the fast-food and casual dining segments saw increases of 19.2% and 10.2%, respectively, compared to 2022. 

Burger King Mexico began the installation of Digital Kiosks, closing the quarter with 18 units placed in six stores, which resulted in a 17% increase in the average ticket. "We will continue to implement this strategy at a national scale and are planning to expand the project to South America in the coming quarters," Torrado stated.

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