MEXICO CITY – Fast-food chain operator Alsea on Wednesday warned it could adjust its guidance for 2024, due to a more challenging macro-economic environment and unfavorable foreign exchange, according to outlet Visor Financiero.
“It is possible we will need to make certain adjustments, particularly concerning revenue growth,” Visor cited Alsea’s finance chief Federico Rodriguez as saying in a call with analysts, adding that earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance should be maintained.
Alsea shares were down over 4.5% in late morning trading, the worst performer on Mexico’s main stock index, as over two million of its shares changed hands.
Alsea, which operates chain restaurants and cafes including Starbucks (NASDAQ: SBUX), Burger King, and Domino’s Pizza (NYSE: DPZ), had late on Tuesday posted a 68% dip in quarterly net profit, hit by a 7% year-on-year depreciation in the Mexican peso – even though sales ticked up nearly 2%.
In Europe, which typically makes up about 30% of the company’s sales, Alsea posted a close to 10% drop in same-store sales.
Visor said Rodriguez cited a more challenging consumer environment and a boycott against Starbucks and other U.S. brands in response to U.S. military support of Israel’s war in Gaza, which he said was having a “stronger impact than what we expected in October last year.”
Rodriguez also flagged a possible delay in opening around 20 to 25 new stores in Europe.
Analysts at Santander added that weak European performance should continue into the second half, notably in Paris as street barriers erected for the Olympic Games prevent locals from visiting stores, and as Spanish preference shifts to casual restaurants.
(Source: ReutersReuters)
