Mexican restaurant operator Alsea reported earnings of 316.76 million pesos ($15.7 million) in the third quarter of the year, an increase of 83% year-on-year.
The total income of the company, which manages franchises of international chains such as Burger King, Domino’s Pizza and Starbucks, totaled 17,518 million pesos in the period, an increase of more than 25% compared to the same period of the previous year.
“These results indicate continued strong demand for our brands as we navigate a difficult macroeconomic environment,” Alsea CEO Armando Torrado said in the statement.
Starbucks and Domino’s Pizza remain the restaurant operator’s most profitable brands, with revenue growth of 43.3% and 16.5%, respectively.
Alsea opened 37 new Starbucks stores in the quarter
The company highlighted in its report the income of the Starbucks chain, which registered a year-on-year growth of 43.3% between July and September and also its same-store sales, which increased by 30.5% compared to the previous period of 2021.
The Starbucks operator cut the bar for 37 new stores during the third quarter of the year, with an investment of 916 million pesos.
In September, the company reported that it will make an investment of some 225 million dollars to open 200 new cafeterias in Mexico and undertake remodeling and strategic projects until 2026, an operation that would generate more than 2,600 direct jobs. Mexico is one of the largest markets for Starbucks worldwide. The brand has 753 stores and more than 10,000 collaborators throughout the country.
The company, which also operates the Chili’s and some Burger King brands, accumulates capital investments of 2,490 million pesos, of which 1,211 million pesos (48.6%) were allocated to the opening of 98 units.
Sales of stores with more than a year in operation registered an increase of 30.5%.
Casual food brands posted same-store sales growth of 20.3% compared to the third quarter of 2021. The fast-food segment had same-store sales growth of 29.6% in the quarter.
Alsea reported that the pace of digital sales has not slowed down despite the reopening of restaurants.
In the third quarter of the year, sales in the delivery channels of the chains that the company operates, including Chilis, Starbucks and Domino’s Pizza, grew 14.8%, compared to the third quarter of 2021, when some restaurants still They had limited seating.
The company delivered 11 million home orders in the period. This channel represents 16.7% of the company’s consolidated sales, according to the information that the company sent to the Mexican Stock Exchange (BMV).
Alsea will continue to strengthen this sales channel. “During the last two years we have made significant progress in our omnichannel strategy, however, there is still great potential for growth. In the coming years we will capitalize on the opportunities through the implementation of more and better digital platforms,” said Armando Torrado, CEO of Alsea in the statement.
Alsea’s operating flow grew 10.6% to 3,478 million pesos, from the 3,144 million pesos registered in the third quarter of last year.
Performance by region
Alsea’s sales in Mexico reported an increase of 25.3% to 8,403 million pesos, compared to 6,705 million pesos in the same period of 2021. Mexico represented 48.0% of the company’s consolidated sales.
Sales in Europe represented 31.0% of consolidated sales. The region reported 5,435 million pesos, an increase of 12.5% compared to the third quarter of 2021. This increase is related to the normalization of the consumption trend.
Alsea South America’s sales represented 21.0% of consolidated sales. The region had an increase in sales of 51.9% to 3,680 million pesos, compared to 2,423 million in the third quarter of 2021. This increase is mainly related to the economic reactivation in Argentina, Colombia, Chile and Uruguay.