• Revenue: Sales increased by 9.3% year-over-year to MXN20.3 billion; 11.7% increase excluding foreign exchange effects.

• Same-Store Sales: Overall growth of 7.7% year-over-year.

• EBITDA: Increased by 9.3% year-over-year to MXN2.85 billion with a margin of 14%.

• Digital Orders: 32.2 million digital orders, totaling MXN6.6 billion, contributing 32.5% to total sales.

• Starbucks Same-Store Sales: Increased by 2.6% overall; 1.9% in Mexico, declined by 12.3% in Europe, increased by 29.7% in South America.

• Domino's Pizza Same-Store Sales: Increased by 4.6% overall; 8.1% in Mexico, flat in Spain, 7.7% in Colombia.

• Burger King Same-Store Sales: Increased by 2.3% excluding Argentina; 0.9% growth in Mexico.

• Full-Service Restaurant Same-Store Sales: Growth of 6.3%; Vips 8.9%, Chili's 9.6%, Italianni's 9.5% in Mexico.

• Store Openings: 66 new stores opened in Q3, including 56 corporate units and 10 franchisees.

• Net Income: Decreased by 65.6% year-over-year to MXN186 million.

• EPS: MXN1.98; post IFRS 16 EPS increased to MXN3.65, a 54% year-over-year increase.

• CapEx: MXN4.2 billion in Q3; 58% for store openings and remodelings, 28% for maintenance, 14% for strategic projects.

• Debt: Pre-IFRS 16 gross debt increased by 5.6% to MXN32 billion; net debt-to-EBITDA ratio at 2.4 times.

• Cash Position: MXN4.6 billion at the end of the quarter.

• Warning! GuruFocus has detected 4 Warning Signs with ALSSF.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sales increased by 9.3% year-over-year, reaching MXN20.3 billion, with an 11.7% increase when excluding foreign exchange effects.

• EBITDA increased by 9.3% year-over-year, reaching MXN2.85 billion with a margin of 14%.

• Digital orders contributed 32.5% to total sales, with over 32.2 million digital orders served in the quarter.

• Alsea opened 100 new Starbucks stores globally and 45 new Domino's Pizza stores, reflecting significant expansion.

• Strong performance in the Full-Service Restaurant segment, with Vips achieving an 8.9% growth in same-store sales.

Negative Points

• Starbucks Europe same-store sales declined by 12.3%, affected by pressures in France and Benelux.

• Weather-related disruptions and security measures impacted sales in over 30 stores in Mexico.

• South America saw a decrease in same-store sales by 6.3% excluding Argentina.

• Adjusted EBITDA in South America declined by 28.8%, driven by the devaluation of the Argentinian peso.

• Net income for the third quarter decreased by 65.6% year-over-year to MXN186 million, mainly due to currency exchange translation effects.