Burger King faces exit from Argentina with divestment of Alsea in a competitive market

The Mexican group Alsea put Burger King’s operations in Argentina up for sale. The decision is part of a regional disinvestment plan that also includes Chile and Mexico. The company has managed 116 stores in the South American country since 2006.

The chain arrived in the Argentine market in 1989 with the opening of its first unit in the Belgrano neighborhood, Buenos Aires. Currently, the stores are distributed in provinces such as Buenos Aires, Córdoba and Mendoza.

• Alsea prioritizes the growth of Starbucks, with 133 coffee shops in Argentina.
• BBVA bank leads the search for possible buyers.
• The strategy follows the sale of operations in Spain in 2024 to the Cinven fund.

Alsea divestment strategy

Alsea seeks to simplify its brand portfolio to increase profitability. The process involves the three countries where Burger King holds the license. Globally, the chain has more than 17,000 units in more than 100 countries.

In December 2024, the company completed the sale of 54 stores in Spain. The measure reflects adjustments in markets with below-expected performance. Alsea maintains operations of other brands in the region.

Historical presence in Argentina

Burger King began operations in Argentina 36 years ago. The expansion reached 100 units in 2017. The stores operate in 11 provinces, including Santa Fe and Tucuman.

The chain faced impacts from the Covid-19 pandemic with a drop in sales. Iconic units, such as the one on the corner of Corrientes and Florida, closed in 2019. The fast food sector registers stagnation in local consumption.

Competition in the fast food sector

McDonald’s leads the hamburger market in Argentina. The local chain Mostaza occupies second place with affordable prices and expansion in shopping centers. Burger King competes for third place.

Artisan burger restaurants have gained ground in recent years. Fried chicken chains also grew as competitors. Consultants highlight the commoditization of the category with a focus on delivery and promotions.

Innovation in broader menus puts pressure on traditional operators. Mass consumption faces persistent economic challenges.

Candidates to acquire the operations

Local groups like DGSA, owner of Kentucky and Sbarro, are showing interest. The Inverlat fund, linked to Havanna, is evaluating entering the segment. The Ecuadorian group Int Food, operator of KFC, emerges as an international option.

• DGSA operates in fast food with several brands.
• Inverlat managed Wendy’s and KFC in the past.
• Int Food has expanded in the region since 2018.

The sales process continues ifn defined deadlines. Alsea avoids comments on market speculation.

Continuity of other Alsea brands

The company continues with Starbucks in Argentina. The coffee chain has 133 active units. The focus is on expanding businesses with higher returns.

Alsea operates in 12 countries with 4,785 stores in total. Brands such as Domino’s and Chili’s are part of its diversified portfolio. The strategy aims at operational efficiency throughout Latin America.