Alsea Advances as Starbucks Deal Boon Seen: Mexico City Mover

Alsea SAB, the operator of Burger King and Starbucks restaurants in Mexico, rose for a fourth day as Credit Suisse Group AG said acquisitions in Argentina and Chile will be positive for the stock.

Alsea climbed 2 percent to 34.98 pesos at 12:13 p.m. in Mexico City, extending its gain this week to 8.6 percent. The country’s benchmark IPC was down 0.1 percent today.

The Mexico City-based company said yesterday in a statement to the stock exchange that it acquired the 18 percent of Starbucks Argentina and 82 percent of Starbucks Chile that it didn’t already own. The company also agreed to a plan to open 130 stores in the two countries over the next five years. Alsea didn’t disclose the prices or valuations for the transactions. Credit Suisse maintained a rating equivalent to buy.

“Strategically, more control and more growth for Alsea is a positive,” Credit Suisse analyst Antonio Gonzalez wrote today in a research note to clients. The call assumes that the transactions are accretive to Alsea’s valuation, as was the case in a recent deal to bring its stake in Starbucks Mexico to 100 percent, according to the note.

To contact the reporter on this story: Newley Purnell in New York at

To contact the editor responsible for this story: David Papadopoulos at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.