Alsea (ALSEA) Q1 2025 earnings summary

Executive summary

• Announced a strategic partnership with Chipotle Mexican Grill to launch in Mexico, with first locations expected in early 2026, supporting long-term growth strategy.

• CEO transition underway, with Christian Gurría set to take over in July 2025; current CEO Armando Torrado delivered his final earnings call.

• Net sales rose 12.8% year-over-year to nearly MXN 20 billion, with digital orders accounting for 38.7% of total sales and loyalty program users reaching 8.2 million.

• 34 new stores opened in Q1, with global footprint at 4,795 units and over 75,300 team members.

• Continued focus on digital transformation, ESG initiatives, and expansion, including solar panel installations and social investment.

Financial highlights

• Total sales increased 12.8% year-over-year to MXN 20 billion; same-store sales grew 5.1% overall.

• Digital sales surged 21.6% year-over-year, reaching MXN 7.4 billion; digital orders represented 38.7% of total sales.

• EBITDA margin was 11.7% pre-IFRS16 (MXN 2.3 billion, down 9.1%) and 19.1% post-IFRS16 (MXN 3.8 billion); net income fell 23.9% to MXN 335 million.

• CapEx for Q1 was MXN 1.1 billion, with 64% for store development and 36% for technology and process improvements.

• Free cash flow was negative MXN 2,424 million, mainly due to deferred payments and seasonal cash consumption.

Outlook and guidance

• Management reaffirmed commitment to 2025 guidance, expecting top-line growth in low teens and mid-single digit EBITDA growth, despite margin contraction.

• Digital transformation, loyalty program expansion, and ESG initiatives remain key priorities.

• April performance showed strong recovery, with high single-digit same-store sales growth and positive trends across key brands and geographies.

• Management expects disciplined execution and focus on regional opportunities to support long-term growth in 2025, despite ongoing economic volatility and cautious consumer behavior.