Alsea (ALSEA) Q2 2025 earnings summary

Executive summary

• Net sales rose 14.2% year-over-year to MXN 21.5 billion, with same-store sales up 4.9% and digital sales comprising 38.6% of total sales.

• EBITDA margin improved to 21.5% post-IFRS 16, with digital orders totaling 35.3 million and loyalty program users reaching 8 million.

• Net income surged 552.7% to MXN 1,025 million, with EPS up 575% year-over-year.

• Strategic priorities include disciplined organic growth, brand portfolio optimization, capital allocation, and ESG integration.

• A development agreement with Chipotle was signed, with the first location in Mexico expected in early 2026.

Financial highlights

• Total sales rose to MXN 21.5 billion, up 14.2% year-over-year, with gross profit up 12.7% and operating income up 9.3%.

• Same-store sales grew 4.9% year-over-year, with Starbucks at 3.8%, Domino’s Pizza at 2.5%, and Burger King at 4.4%.

• EBITDA increased 10.5% to MXN 3 billion, margin at 14.2%, contracting 40 bps year-over-year.

• Net debt/EBITDA ratio reached 2.7x at quarter-end.

• Free cash flow was negative MXN 2,677 million, mainly due to higher interest expenses and seasonal cash consumption.

Outlook and guidance

• On track to meet 2025 guidance, with solid progress across regions and continued focus on high-ROI brand expansion and innovation.

• Expecting continued organic expansion, prioritizing quality over quantity and high-ROI remodelings.

• Emphasis on maintaining strong free cash flow and a healthy balance sheet.

• Ongoing integration of ESG commitments into daily operations.

• Anticipate gradual recovery in cash usage as sales volumes normalize and working capital efficiency improves.