Burger King is on sale in Argentina. The Mexican group Alsea, owner of the local operation for over 10 years, seeks buyers for the network and also intends to dispose of brand use license in Chile and Mexico. The information was published by the newspaper La Nación.
Burger King entered Argentina in 1989 and today has 116 units. Another 86 units in Chile and 175 more in Mexico are also part of the negotiation that total 377 stores distributed in the three markets.
The sale is part of an Alsea divestment strategy, which, just over a year ago, sold 54 stores of the same chain in Spain to focus on Starbucks and Domino’s brands that are also part of its portfolio.
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At the time, according to a report by the Argentine newspaper Clarín, Armando Torrado, former CEO of Alsea and current chairman of the Board of Directors stated that “the transaction is aligned with the strategy of simplifying the brands portfolio to grow efficiencies to increase the profitability of the company.”
According to Torrado, the company intended to eliminate brands from the catalog that no longer fit the company’s growth strategy. However, they were not specified which brands and negotiations would be underway. In addition to Burger King, Domino´Se Starbucks, the company also operates PF Chang, Tgifridays, The Cheesecake Factory and Chili’s Grill & Bar restaurants among others.
BBVA Spanish Bank has been hired to conduct the search for buyers who may include international investment funds and other fast food operators. To support the sale, Alsea would have the support of BBVA, which would already be, according to sources of the sector, in conversations with potential buyers.
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By 2018, Burger King network was Argentina’s second largest fast food network, second only to McDonald’s. But the local network Mostaza, founded in 1998 it has fired it with competitive prices and presence in inland cities.
Since then, Alsea had difficulty growing the operation in the country – which only got worse with the pandemic, which led to the closing of units in the country.
