Alsea’s net profit falls 61% in the first quarter due to the exchange rate and greater pressure on costs

Mexican restaurant and cafe chain Alsea has taken a hit to its profits due to cost pressures and exchange rate shocks. The company reported this Tuesday a 61% drop in its net income during the first quarter, compared to the same period last year, going from 229 million pesos to 89 million pesos, according to its financial report on the Mexican Stock Exchange. Analysts explain that although the company had a positive performance in sales, the prepayment of its debt impacted its net profits, placing the firm below the market consensus. The multinational, which manages restaurant chains such as Domino’s Pizza and Starbucks in Europe and Latin America, recorded sales of more than 20.1 billion pesos in the first quarter of the year, which represented an increase of 1.3%, compared to the same period of 2025. From January to March of this year, Alsea disbursed 876 million pesos in capital investments. Of that amount, some 708 million pesos were allocated to the opening of 20 corporate units, remodeling, renovations and replacement of equipment. Christian Gurría, CEO of Alsea, acknowledged in his financial report that they face a “challenging consumer environment”, despite this, he assured that they have consistent execution, with a resilient operating model and performance in line with their expectations. «The quarter began with good dynamism, moderating towards March. All regions recorded growth in local currency, although the reported figures were impacted by exchange effects,» he indicated. In Mexico, the operator of restaurant and food establishments registered an increase of 4.9% in sales. Alsea Mexico’s revenues represented 56% of consolidated sales in the first quarter of 2026. On the other hand, in Europe, its sales grew by 1.5%, in local currency, mainly driven by the optimal performance in Spain. However, Alsea’s outlook in Latin America is not so flattering. The company acknowledged that Alsea South America’s sales fell by 10.7% to reach 2,865 million pesos. “This was mainly affected by a foreign exchange loss, which counteracted the continued positive trend in Colombia accompanied by the recovery in Chile,” said the firm. According to analysts, despite the growth in sales, Alsea faced pressures due to the exchange rate, costs and the prepayment of a bond in dollars impacted net income. «The drop in net profit is technical and non-recurring, as a result of the debt restructuring in dollars carried out at the beginning of the year. The challenging consumer environment and exchange rate pressure in South America are the monitoring factors for the coming quarters,» Grupo Financiero Kapital concludes in its analysis.