Alsea will eliminate brands from its portfolio

Alsea, the operator of restaurants and cafes such as Starbucks, Domino's Pizza, and Burger King, will eliminate some brands from its portfolio that no longer fit its current growth strategy.

This was announced by Armando Torrado, the company's general manager, although he did not specify which brands will be affected. He stated that he is in negotiations with third parties to finalize these divestments.

"In the second quarter, I'll provide some news regarding other brands that are lined up to exit our portfolio, as we've already mentioned. We've been trying to do that, to rationalize the portfolio, and we already have some transactions or communications with third parties to do so," he said in his latest conference call with stock analysts.

Alsea's brands include Italianni's, Chili's Grill & Bar, Archie's, as well as PF Chang's, Vips, Foster's Hollywood, Ginos, TGI Fridays, and The Cheesecake Factory.

At the same time, it will integrate new international brands into its operations. As announced last April, one of them is Chipotle, a fast-food chain focused on fresh ingredients.

The opening of restaurants for the U.S.-based brand will begin in Mexico, and according to Armando Torrado, there are plans to expand the brand to other markets where it operates.

“I'm sure there are two or three top-tier brands around the world, and Chipotle is one of them,” he stressed.

Among the countries outside of Mexico where the company currently operates are Argentina, Chile, Colombia, Uruguay, Paraguay, Spain, France, and the Netherlands.

He added that the decision to "clean up the portfolio" and divest from brands that were relevant 20 years ago and are no longer so, responds to his plan to invest in others with greater growth potential, which connect with current consumer preferences.

Armando Torrado, who will step down as CEO of Alsea next month, reiterated that his global expansion strategy remains focused on taking advantage of the most profitable opportunities in its core markets.

As part of this strategy, they are expanding into iconic locations, such as the upcoming Starbucks, which will open in the Santiago Bernabéu shopping center in Madrid, Spain.