Key facts
- Alsea lowered its 2026 earnings growth forecast to low-single digits from mid-single digits.
- The company reported a 53% drop in second-quarter net profit.
- Second-quarter revenues reached 21.09 billion pesos ($1.205 billion).
- Alsea's Q1 2026 net profit declined 65.7% due to debt refinancing costs and FX headwinds.
- JPMorgan downgraded Alsea to Neutral from Overweight.
Mexican restaurant and cafe chain operator Alsea has lowered its 2026 earnings growth forecast to low-single digits from mid-single digits, citing weak consumer spending and currency headwinds. The company reported a 53% drop in second-quarter net profit to 531.5 million pesos ($30.37 million) on revenues of 21.09 billion pesos ($1.205 billion).
Consumer spending was particularly weak in April, and the strength of the Mexican peso against the U.S. dollar and euro reduced reported revenues. In the first quarter of 2026, Alsea's net profit fell 65.7% to 115 million pesos from 335 million pesos, with revenue up 1.4% to 20 billion pesos. This sharp profit decline was attributed to the early repayment of a U.S. dollar-denominated bond, which incurred significant financing costs and early-exit penalties on derivative instruments, alongside FX headwinds that caused South America revenues to drop 10.7% in peso terms. Same-store sales growth also slowed from 5.1% to 4.1% year-over-year.
Despite these challenges, Alsea invested 876 million pesos in capital expenditures and opened 32 new locations in the first quarter. JPMorgan has downgraded Alsea to Neutral from Overweight, setting a price target of MXN 52, citing constrained disposable income in the market.