The bad streak for the Mexican group extends until the beginning of today’s trading session with its shares losing almost 4% before the market opened. Red in the last month, meanwhile, is close to 10% (-9.5%).
The Mexican restaurant operator Alsea recorded a 34% year-on-year drop in profits in the first quarter. The company reported a net profit of 404,126 million pesos (US$24.44 million), despite the increase in sales in the same stores of 10.1% year-on-year during the period.
Likewise, the appreciation of the Mexican peso affected the company again in the first months of 2024, since the gain of close to 8% of the local currency against the dollar, compared to its price at the end of March 2023.
The bad streak for the Mexican conglomerate extends until this Thursday with its shares losing almost 4% before the market opens. Red in the last month, meanwhile, is close to 10% (-9.5%).
The war in Gaza and the Starbucks boycott
In Mexico, 56% of revenue was generated, with a 10.10% increase in sales in comparable stores, that is, those with more than a year of operation, while total sales increased by 13.1%. However, In Europe the situation was different, since the boycott in countries like Holland and France has affected American brands like Starbucks.
Specifically, sales of Alsea on European lands they decreased by 2.4% during the first quarter of 2024.
The company is evaluating strategies to mitigate the boycott against Starbucks due to the conflict in Gaza, which is already hitting sales in the old continent hard.
Alberto Torrado, general director of Alsea, mentioned that they are developing a loyalty program to counteract the negative results and expect an improvement in the environment and trusts that the Olympics in Paris could boost Starbucks salesespecially in some regions of France.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
