Alsea Rallies in Mexico After Doubling Fourth-Quarter Profit
Alsea SAB, a Domino’s Pizza and Starbucks operator in Latin America, jumped to a record after profit doubled in the fourth quarter as the integration of an Italian-style chain went smoother than some analysts expected.
The stock rose 2.3 percent to 29.68 pesos at the close in Mexico City. It was the highest price since the shares started trading in 1999, according to data compiled by Bloomberg.
Mexico City-based Alsea reported adjusted earnings per share of 20 centavos, compared with the 18-centavo average estimate of three analysts surveyed by Bloomberg. Net income doubled while revenue rose 24 percent. The company closed its acquisition of the Italianni’s restaurants in February 2012, according to an annual report filed yesterday.
“Alsea rounded up the year with positive operating figures,” Luis Willard and Bernardo Velez, analysts at Mexico City-based Grupo Bursatil Mexicano, wrote in a report today. The company benefited from “a solid consumption environment and an integration of Italianni’s that appears to have been smoother than anticipated.”
The analysts maintained their rating for the stock at the equivalent of sell.
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