Alsea, S.A.B. de C.V. (ALSEA) Earnings Call Transcript & Summary

Good morning, everyone, and thanks for joining again to our first quarter 2022 conference call. With us, we're having presenting our CEO, Fernando Gonzalez; our CFO, Rafael Contreras. So now I will leave you with Rafael -- with Fernando, sorry. Please go ahead.

Thank you very much, Salvador. Good morning, everyone, and thank you to share with us to join with us this first quarter 2022 earning calls. We will discuss, we will introduce you this quarter, impressive results, very good performance in the company by region, by brands. And of course, the taking on forward the strategy in the company. And finally, Rafael, will walk you through the financial company statements, okay. Firstly, I'm very pleased to introduce you that this is the fifth quarter with sustainable growth in terms of company that finally validate in this complicated situation in the last 2 years, the strategy in the company in order to keep the solid threshold that we will introduce you. Sales growth, 49% during this first quarter compared with 2021. And this allowed to let our EBITDA margin to achieve a very solid percentage of 22.7%, growing more than 69% in terms of EBITDA versus previous year. That means, we present MXN 1.4 billion versus this quarter, okay? And in terms of same-store sales, solid strong performance of 47 -- more than 47% versus 2021. And that's something that is crucial for us, growing 17.5% versus the same pre-pandemic period in 2019. Based on the solid and continuous target to improve our cost performance, company efficiency that allowed us to achieve operational cash situation of MXN 5.1 billion that we present and maintain the strategy and the performance that we introduce all of you during 2021 -- during the last quarter of 2021. In terms of perimeter, in terms of our footprint, comparing with the first quarter 2021, we opened 114 more restaurants across all our geographies and all our brands that keep enhancing our presence in the key markets, with the opening the key brands and the popular brands in all the geographies across the preference of our consumers. As I mentioned it before -- if you can pass the slides, sorry. As I mentioned before, sales were up versus the previous year, over year -- every year across -- achieving the MXN 15.2 billion sales that represented 49% grow in versus 2021 and 11 -- more than, over 11% versus pre-pandemic period in 2019. As you know, the strategy of delivery is crucial in our business model, achieving a percentage over 20% that represent that we are keeping this shifting in the strategies and the preference of our consumers and more than 11 orders -- 11 million orders during this first quarter that represent not just the shifting that we are -- all of us in our geographies we are perceiving and our customer is demanding to us, including the strategy in the company in order to guarantee the preference of our customers and this changing in the behaviors of our customers. And something that is crucial for us, I'm very pleased, I'm very happy to introduce you that we achieved close to 1 million active users in [ Guaplus ] in Mexico. When we are talking about active users, we are talking about the users that are using the systems in the last 6 months, so we're relatively prudent and consistent in terms of transmit this target that for us is crucial and is a base of our strategy in these years and the follow years. In terms of EBITDA and of course, this EBITDA pre-IFRS 16, as you know very well, then Rafael can introduce you all the data in terms of IFRS 16, but our EBITDA achieved more than MXN 1.8 billion, with a impressive growing in terms of first quarter '21, that is more or less 3x the EBITDA that we achieved in this period and with a sustainable and consistent growing versus 2019. Pre-pandemic, we are growing more than 21% of EBITDA, mainly based in all the strategy that we are implementing in the company. Of course, despite the difficult or the difficulties that we saw first in the last 2 years, the strategy in terms of cost efficiency and leverage efficiency in terms of company, in terms of operation. On the right side, you can see the evolution of our cost, the cost of the products sold that were improving 80 basis points versus the same period in the previous year and including 40 points versus 2019, achieving the 31.8% of our sales in terms of cost. Mainly based in the strategy that we are following with our partners, with our suppliers, with our alliance in order to try to compensate the evolution in terms of inflation in food and in energy that in all the geographies and probably all the companies who are suffering worldwide. This -- that means that the priority for us is always the collaborator and it's always the customer expectation. Talking about the geographies that we are implementing today our activities and try not to repeat all the data that you can see on the table is growing that we explained before, is consistent in all the geographies where we are working. In Mexico, in South America and in Europe are growing in terms of sales is close to the 50%, including over 50% of growing. In terms of Mexico, in terms of Europe and in terms of America, this growth in terms of adjusted EBITDA is including higher than the growing that we are performing in terms of sales, thanks to the strategies that probably in Alsea Day, if you remember, we introduced to all of you. And additionally to this, the big efforts and the learnings that in the company we get during this pandemic situation in terms of cost efficiency and in terms of operational efficiency. In terms of same-store sales that we try is to give an overview about our main achievements for the main brands or the core brands on the company. In terms of our main brands, Starbucks, Domino's and Burger King grew in all our key markets year-over-year. Starbucks in Spain and Mexico present impressive results in terms of growing with growth of sales of 54% and 41%, respectively. Domino's in Mexico had a 17% comparative store sales growth; and Burger King has increased in Mexico, Chile and Spain, 14%, 40% and 53%, respectively. Finally talking about Vips Mexico, as you remember in the presentation in Alsea Day about our turnaround plan, we are very pleased and very happy with the same-store sales positive by this brand in Mexico, achieving an 82% increase versus the same period in 2021. Of course, this is a period of pandemia and mobility restriction, but these data represent the consistently expansion and strategic activities that we are doing in the branch. Okay. First, about sustainable plan that we would like to introduce the performance and the achievements that we did in this first quarter, okay? That I would like is to share with you that we are proud to announce that we were awarded the Social Responsible Company distinction for the 11th straight year. Also, Alsea was included in the Standard & Poor's Sustainable yearbook 2022. This sustainable policy, confirming our commitment with all the society, all the communities where we are working today, okay? Moving to the energy consumption, just to reflect to you that today, 42% of our consumption in energy comes from clean energy, 53% for renewable energies that represent more or less at the 75% of our energy consumption in Mexico belongs to clean energies. This is a clean target for us, of course, due to the evolution of the energy worldwide, but much more than this for the commitment of the company to the sustainable plan that we introduced to all of you during Alsea Day and in the previous quarter. Finally, that we would like to review very fast is our activities in terms of [Foreign Language] movement, Va por mi Cuenta movement. Today, more than 4,000 people with situation of food poverty has the benefits to receive this help from Alsea. And of course, 100,000 -- close to 100,000 people benefit through donation of more than over 20 tons of food during this quarter. Okay. Finally, that I would like now is to let to you with Rafael that will follow you through the financial statements of this impressive quarter. Thank you very much, Rafael.

Thank you, Fernando. Thank you all to join us. To begin, as we did in the previous quarter in order to present a comparable analysis versus the financials of the previous year, all the explanations and notes reported in our earnings release, including the effects from the statement related to the hyperinflation in Argentina and as well as IFRS 16. Our weekly sales trends as the quarter progress were encouraging, a good omen for the rest of the year. In-store sales also gathered momentum. As customers are returning to restaurants in person after off and on lockdowns for the best part of 2 years, it's important to notice that during the first quarter and also in the first weeks of April, we have already achieved similar weekly sales levels than the one reported in the best weeks on December 2021. As Fernando mentioned, delivery share was 20.2% with Domino's Pizza and without Domino's Pizza, 10%. Weekly delivery sales showed a steady upward trend last 3 quarters, MXN 1.2 billion per quarter without Domino's Pizza, while in store also keeps growing. Our pre-IFRS 16 EBITDA was up 20.5% when compared to the first quarter of 2019, and this is significantly higher than 2020 and 2021 first quarters. At a regional level, as also Fernando mentioned, all 3 regions have posted impressive growth. As you can see, Mexico, more than 83%, Europe, more than 100% and South America, close to 80%, while in store also keeps growing. In January, we issued a EUR 300 bond with a 5-year [Foreign Language] and a rate of 5.5%. And regarding our waiver covenants, we were comfortably compliant during the quarter. In terms of gross debt to EBITDA and EBITDA to interest paid ratios, at the end of the quarter, we reported at 3.8x and 3.3x respectively, and both much better than the bank covenants that we have. Our prudent approach to CapEx without sacrificing needed investment, led to MXN 700 million being spent during the first quarter of 2022, in which 49% was allocated to maintenance, 36% to all store openings and remodeling and 15% to other projects. The debt structure at the end of the quarter was 97% long term, with 62% in Mexican pesos, 32% in euros and 0.3% in Chilean pesos. In March, we prepaid a Mexican bond of MXN 1.1 billion. We prepared it, the amortization was in September, and we prepared it in March. So we expect to deleverage going forward and meet all of our debt covenants, thanks to our healthy and ongoing EBITDA and cash generation. So thank you, and we can go to Q&A.

Yes. Finally. Okay.

[Operator Instructions]

Can you hear me?

Yes. Sorry, sorry.

Yes, I'm pretty sure there are a lot of questions just be difficult to find the button here. One question for you, Fernando, just curious on your thoughts on Domino's Pizza trends. I mean, we have seen the results in the U.S., there are some concerns of a potential deceleration in the second half. We have seen the headwinds in terms of labor. So I mean just curious on what's your thoughts for Mexico and Europe? And why is this market different relative to the U.S. that is allowing you to operate -- well, to report better trends than in the U.S.? Essentially, your thoughts on this, on the difference among markets, that would be my question for you, Fernando.

Okay. Thank you very much for your questions. Sorry again for the technical problems. About Domino's Pizza, firstly, every year geography is fully different, until now, obviously. In terms of Mexico in order to start one by one, we consider that the operational part, the operational performance of Domino's is crucial and we are very proud about the effort of the team about the banking proposition. We are continuous evolving in terms of value proposition, including migration of our digital systems, in order to have a proposal that was very attractive for the customers. Today, the brand recognition in Mexico is amazing. The target and the effort of the teams is amazing. The motivation of the team is incredible and the innovation in terms of products, in terms of performance and in terms of the efficiency in terms of due time that we needed to deliver one pizza in this case, to any kind of products to your home. We are one of the leader worldwide in term of this in Mexico. We have a very good performance. And we are confident that our efforts in terms of cost evolution and efficiency evolution, that means that we are really believing that we can keep this growing and including try to fight about and to try to work on this situation that the work in terms of inflation and in terms of energy is affecting to all of us. In terms of Europe, in Europe, in terms of competition, in terms of value proposition, we consider that we have -- we're very proud and very consistent and solid position. In terms of performance, in terms of habit of purchase, in terms of value proposition to the customers, in terms of time and in terms of adjustment of the customers' behaviors and the customer preferred. So of course, the food is different every geography, but that we try to adopt this proposal to the gastronomy and the culinary habits of our customers. We consider that the situation, unfortunately, is not the same in every geography. As you can see in our data is very solid in all the geographies in terms of Domino's, of course. And in terms of evolution in Mexico, where our same-store sales despite that, of course, Domino's is a value proposition that is relatively below the seasonality. So in terms of mobility restriction that, of course, a company where the 60% of the sales or the 40% of the sales in restaurant is not delivery, but it's against seasonality restriction that we suffer, we are growing 17% in terms of same-store sales. So our growing is solid. It's solid every month, not just every quarter, and including this month, the performance is quite good. Of course, we cannot communicate this data, but it's quite good. That means that the team and all the team and all Alsea is doing something very well and understanding the preference of our customers. It's currently the same situation in Europe. It's true that, of course, Europe, the first quarter was relatively most difficult despite a very good performance and very good effort versus other geographies due to these mobility restrictions that all of you probably know very well in Europe. But we consider that our evolution in our geographies in LatAm, in Europe and in Mexico is very solid and we are confident that we can keep this performance during the next period, the next quarter.

Rodrigo, I will say that in terms of labor, we don't have the problems that they have in the U.S. We have our crew almost close to 100% covered in all of our stores in South America and also in Mexico and in Europe. So we don't have that kind of problems here, not just in Domino's, not in all of our brands.

That's great. And actually, my other question was for you, Rafa. So I mean we have seen other industries, retailers adjusting salaries and band salaries in increase of minimum wage. I'm just curious for the case of Alsea, have we already seen that flowing through the P&L? Or perhaps we may see step up on labor expenses in the third quarter? How should we think about that? And also, if you can give us an update on the hedging strategy that you have. I mean, the same old in terms of covering your U.S. needs, mozzarella cheese? And any update that you can give us on the hedging will be helpful.

Well, in terms of increasing of minimum wage in Mexico, we already have the 22% since the 1st day of January. So it's in our results in the first quarter earnings going to be for the next 3 quarters, and we already have it also in our projection for the full year. The other thing that is in our results is the amount that we have to pay in terms of the share in profit that we have to pay in Mexico. It is already also in the numbers in each brand. So here in Mexico, it is -- in Europe, the increase in minimum -- in wages, it's around 1.5% to 2%, and it's already also in our numbers and the same in South America, that's already in our numbers in the first quarter. In terms of the hedge strategy, we increased the number of months that we cover. In our policy, it was the next 12 months' needs and it's around USD 10 million per month, and we increased that for 1.5 years because we have the opportunity to hedge with a pretty, I would say, low FX, the fact. So we have covered the next 15 -- 18 months. And as you know, our policy that we can cover between 50% to 75%, and right now, we are close to 60% over the next 15 months. And with an FX average of MXN 20 -- of MXN 20.2.

Sorry, Rodrigo. Just to add something about the labor, not just talking about Domino's, despite that, as explained, Rafael, everything is already included in our P&L. So in your data, there is no surprises or we don't have to have big surprises or surprises in the next month. The target of the company is to be the best payer and the best employer in the industry. And we are working every day, including sustainable plans in order to improve this compensation and benefits condition for our colleagues or all our collaborators. So that we tries to be very efficient in the performance of sales and the performance in cost in order to remunerate every day a bit better to all the efforts of our colleagues and the motivation of them. Today, the situation is relatively -- is very solid, including that we try to work in advance of the minimum wage salary increase, that implement in every geography, so many times due to the government's principles that, of course, we respect.

No, that's great to hear, Fernando. Thank you very much, and a good move there with the hedging policies, Rafa.

Our next question is from Alan Alanis from Santander.

First of all, congratulations for the results and congratulations for this format, and we couldn't find the button there on top. But I think that you're first world, finally, there's a company in first world instead of just the old call where we have to deal with the operator. So the first time is tough, but I hope you keep it this way. Much better. Three questions. One have been around food inflation, another one around elasticity and the third one around guidance. The price of wheat, price of cheese, all of these prices are going up. I mean, how -- you spoke about the hedges already, but those were the hedges around the FX. Could you speak a little bit about the food inflation in your raw materials? And how much are you passing to the consumer? Number two, what elasticity are you expecting on that? Because with this inflation, I mean, your products are a little bit more discretionary than basic, although I have a lot of debate with my team that are big funds of Starbucks and Domino's. But what elasticity do you expect? And with such an impressive results in the first quarter, any change in the guidance? That will be it.

Okay. Do you want to answer? Up to you.

Okay. Take it.

So thank you very much for your question, Alan. And sorry for the technical problems. Again, in terms of food inflation, firstly, the company from the previous year, Rafa, was a specific plan in order to manage this international situation in terms of food and in terms of energy. When we're talking about food, something validates our strategy when you can reflect or we can't reflect in the P&L that this evolution is not affecting as we were expecting despite the plans in the companies, including working with this worst situation or worser scenario. What we are doing in terms of food or in term of food inflation? Despite the comment for Rafael that we're working is very close to our partnerships in order to advance this purchase to try to reflect as low as is possible and including, in some cases, below the cost inflation in terms of price inflation. And gaining finally, in all the brands and all of them, they are doing a very good job in order to work in terms of mix and in terms of innovation, in order to try to increase the value proposition and to try not to reflect as probably the condition demand to us, this inflation. Of course, there is inflation in the market. This is something that is not possible to avoid. And of course, the strategy in terms of prices in the first quarter was very good. The price increase was very low versus the cost inflation worldwide due to several things. One, the powerful of Alsea in order to increase the prepurchases or increase the stocks. And of course, in terms of innovation, in terms of mix that allowed to us -- for all the brands to play this game that today we have to do it. And of course, working with scenarios in terms of cost efficiency or operational efficiency that allowed to us this elasticity if we need to invest in terms of margin, in order to use this language, that we can compensate with the efficiency in terms of operation, not to [Foreign Language] that all of you expect. And of course, in order to try to help in this inflation that we have worldwide, that we consider that all the brands and all the companies who have to try to do an effort in order to benefit our customers and the consumption of the people in general. Till now, the evolution, as you can reflect in the result, is quite nice. It's quite good. And of course, our team is fully focused just on this. Finally, in terms of company, we are working in all the scenarios in terms of the elasticity, the elasticity today is very tough to manage. Why? Because finally, the inflation is not just a company, it's the world, unfortunately. And something that is important not just food inflation, but of course, the increase in worldwide is we are suffering and despite all the compensation that we try to do it in terms of energy inflation that is affecting due to the worldwide situation to all of us. And for this, our main effort is not just in order to reduce the cost of the kilowatt, it's in order to reduce the consumption of kilowatt. And this is something that I apologize because today, including -- we are not reflecting this data. Sometimes it's not relevant for everybody, but this is the strategy in the company. It's not just to consume less price, to consume less kilowatts in order to help the final food inflation or food price representation that we are doing in our revenue. I don't know if you want to add anything?

So in terms of guidance, Alan, that you mentioned, we have different scenarios because in our projection, we thought that the inflation, it was -- it's going to be around 8%. And in different scenarios that we have right now, the worst scenario that the inflation can be for the full year, around 7 points more than or double the inflation that we project. And we try to mitigate this inflation with price strategy and all the things that Fernando mentioned. But the worst scenario, it can impact us between 0.4%, 0.5% for the total EBITDA for the year for the guidance that we mentioned in the Alsea Day. But that's the worst scenario that we couldn't increase prices in the same trend that the inflation increase.

Got it. So just to be clear, I mean, right now, food inflation is already at that worst case scenario, right? I mean, generally, free to be said is at 8%, but food inflation, at least speaking about Mexico, is easily above 15%. I mean -- but at this point in time, just to be clear, with the information that you have, you are -- you feel comfortable to maintain the guidance that you did in the Investor Day a few days ago?

Exactly. Exactly. Yes.

Okay. Cool. Well, best of luck and again, congratulations for the results. And I know that the first time is kind of weird to do this, but I think it works much better to see each other and go.

Thank you very much, Alan.

Thank you, Alan.

Our next question is from Sergio Matsumoto from Citi.

Before the pandemic, I recall there was an emphasis in, by management to increase traffic in Mexico in the stores. Obviously, that might have changed through that pandemic. But I'm wondering if you're still at some point, will go back to those initiatives such as making certain appropriate menu changes and increasing service levels and perhaps increasing the store manager compensation? Any plans to kind of go back to that priority? Or if you could update us on that.

Okay. So in terms of traffic, in terms of orders, that is one of the main topics in the company despite the evolution of the sales. We are working deeply by brand, of course, brands are Starbucks, we have increase in the orders per store in the same store sales, but orders per store. And including in the last quarter in all the brands, basically, we are growing in orders versus 2021 and we are trying to recover because we're having a situation relatively flat, lightly below 2019 in the month of March. And we are working deeply in order to recover these orders. Of course, there is a balance sheet between order and ticket on the average value of the ticket. This is typical worldwide. But we are working in order to try to recover the situation. And the first quarter was really affected by the mobility restriction in Mexico. In March, the data is relatively much more amazing, and we are recovering the situation, including in April, and we are working in terms of value proposition, in terms of communication, in terms of marketing and in terms of emotional link with our customers in order to recover in all the brands, probably stepped as I said, in terms of Starbucks that today, the situation and the performance is relatively good. It's really good and including much better in 2019 in terms of frequency, in terms of orders, okay?

I would say that in Mexico, the number that we have in March versus 2019, it's negative 6%. So I think it's a number that affects the delivery part because in terms of delivery, you have a higher ticket, but less orders. And as you know, without Domino's Pizza, 10% now of our sales is on delivery. But we are working in terms of orders to increase orders in the restaurant.

Okay. Understood. Second question, if I may. In Europe, just recall a slide that you showed a few moments ago that the EBITDA was slightly before the pandemic. What does it take to get that EBITDA up to pre-pandemic levels, just considering that the other geographies appear to have done that or got beyond it? What does it take in Europe to do that?

In terms of sales, Europe in March, it's already in the numbers of 2019, in terms of same-store sales. So in March, we are already there. In the first quarter of this year, the Omicron heroes in terms of sales, but in March, we are already recovered the number, and we are flat versus 2019 in terms of same-store sales in Europe.

Our next question is from Ulises Argote from JPMorgan.

I think that technical issues are now on my side, and I cannot get my mic to work, but maybe that's not such a bad thing. So can you hear me well?

Yes. Thank you.

Perfect. A couple of questions on my side. So one, kind of following up on the raw materials but maybe now on the supply chain side of the question. Also, are you facing any disruptions there? And if you can give us any color on how you're managing to keep the availability of your key products?

Okay. Thank you very much for your question, Ulises. In terms of supply chain, in Mexico and in the rest of the geographies, in this moment, we are not suffering big impacts in terms of stock outs. This is something a principle that we are following every day in all the geographies. And in this moment, it's true that there is more complication in terms of supply chain worldwide. But the potential of the company to buy in advance to play with this kind of supply chain products, food and food equipment in order to deliver equities between geographies allow us to not suffer much more travels. Of course, that we are working in the companies in order to prepare a potential few -- a potential disruption in order to guarantee this availability of the products in all the restaurants and including the communication between supply chain and the capability to react to this COVID situation. Until this moment, despite the problems that all the companies will have today, we are not suffering much more in terms of stock outs, including in countries as Mexico, the stock-outs keep in a very low level in terms of no availability of products for our restaurants, very low level, quite similar to the previous years, to 2021. So -- but despite that data, it's not complicated, we are working in a worser scenario in terms of communication, in terms of purchases, communication with our partnerships in order to guarantee of this delivery to the restaurants. I don't know Rafael, if you want to add anything?

That is very clear. And then the second one, maybe this is one for you, Fernando. But obviously, you've been involved with the company for some quarters now, and this was your first one fully there with the CEO cap on. So I wanted to ask you what are the main topics that you're currently focusing on? What are you spending your day to day on? And if you've come across any positive or negative surprises? Anything that you can share with us? That would be super interesting.

Thank you very much, Ulises. Probably some of the words that I'm going to say is probably you listened during Alsea Day. That is true is that we are quite focused in the profitability and the performance during this year, as I explained -- we explained in the Alsea Day. It's true that the main part of my time and all the company is fully focused in this situation of inflation, mobility restriction, cancellation that below to all the countries to recover the normality and of course, in our case, the performance of our customers and focusing the digital transformation in the company. So this is no different than the targets that we explained in Alsea Day. But probably today is the main target in the company, how we are trying to adapt and to manage probably a situation that is not stable as in other moments. But it's something that this starts as we dedicate much more time to be focused in this clarification in order to guarantee something that for us is the criteria, is the values of the company and is the value for all of us. That is the customer. So we have to be quite focused on the customers and in our collaborators and our colleagues. And this -- in this format has been fully the focus despite to try to very dynamic in the company to keep the digital transformation in the company and the focus this managing of a situation that probably for all of us is relatively not clear. Probably, there is some situation due to the worldwide events that happened in the world that is disturbing a bit the normal evolution of the business. The most important for us is this, it's not different that we explained. We continue with organic growth, with the development of our core brands and the casual dining that for us is critical in order keep an evolution in our formats and to adapt to the shifting of the customer behaviors that sure that after the pandemia, all the companies were going to reflect. This is my main topics. Probably, I don't try to explain so many topics. I prefer -- I consider that in the companies in order to keep this evolution in the profitability and on the sales that we are showing to you in this quarter. This is the main period in the company. Due to the current situation and focus on the digital transformation that allowed to us to keep this performance in terms of cost, in terms of efficiency and in terms of management of the food cost inflation that we try to be finally represent today. I don't know if -- with this, I answered all your expectations, if there's any question specific that you want my answer, Don't hesitate to tell me.

No, no. I think it was more of a broader sense in kind of picking your brain given the opportunity. So thank you very much for sharing your thoughts and congratulations again for the strong start of the year.

Thank you.

Our next question is from Antonio Hernández from Barclays.

Congrats on your results. My question is regarding -- I mean, we've clearly seen the recovery across all geographies and congrats on that. Still wanted to get a little more light on your April numbers on how has this performance compared to March across these different geographies? And how does that compare to your expectations previously incorporated in your guidance?

Of course, Antonio, as you know, we cannot transmit much more that about the April performance. It's true that in order not to give specific data, our performance in April is quite good. We are very happy, and we are very confident in the strategy and the evolution of the market. We consider our budget is every time much more demanding. This is fully true and our target is to achieve the commitment that we have with all of you in terms of sales, in terms of EBITDA, in terms of efficiency, in terms of growing, in terms of expansion, in terms of development. We keep very confident on this data, including the evolution in March is not bad. We're really confident about this performance and in terms of same-store sales and in terms of order evolution that is true despite the different seasonality that we have today in terms of holidays, in terms of, of course, the typical period that we have versus 2019 and 2021. But until this moment, our data are quite good we're very, very good in terms of performance of sales and in terms of April, of course, we don't have yet a performance in terms of EBITDA, but we are not expecting a big disruption in terms of the strategy that we have until this moment.

And in one of the charts, you can see the sales evolution. There is 3 weeks of April. And in that 3 weeks of April, we have MXN 1.2 billion, MXN 1.3 billion, MXN 1.2 billion. The MXN 1.3 billion is one of the best weeks that we have in the year and also is the amount of one of the best weeks that we have in December. So April looks pretty good. Also, we have this weekend here in Mexico, the Children's Day that it's pretty good also day for sales, and we expect to have a better sales than in 2019. For just one example, the Semana Santa here in Mexico, that week, it was 20% higher in terms of sales than the Semana Santa that we had in 2019.

Of course, this is April. It's true that there is -- this is not in every month. But it's true that in terms of performance, as I explained, we are very satisfied and very confident for April. The most important for us is the commitment for the next quarter, step by step. And we are not expecting in this moment, not to achieve the target that all of you before in order budget.

[Operator Instructions] Our next question is from Marisol Andrade from Credit Suisse.

Congrats on the results. I was just wondering regarding home delivery growth during the quarter, which was a very impressive growth. Can you give us any color on which brands are driving this growth? And how much of the growth can be attributed to the Domino's app and website?

Yes. We have that. We don't want to -- finally now Rafael is trying to give you exactly that brand by brand. It is true that the evolution in the delivery, mainly the delivery in order to [indiscernible], it's in all the brands. So it's true that there is some brands that the performance is very satisfy, Starbucks and Domino's, of course. But including in the casual, the evolution is quite good. Now if you want, we can give some data...

We can give you for the first quarter, for example, Starbucks grew versus previous year, 9.5%; Domino's Pizza, 67%; Burger King, 27%. And in terms of cash flow a PF Chang's all the Italian around 30%. So those are the main ones.

And how much of this growth is driven by Domino's specific app and website? Is it more than Wow+?

Yes. Yes, of course. Yes, yes. The Domino's app that we mentioned olo, it's around 25% of the total sales just in Domino's. And while we start with the delivery app this at the end of last year, so right now, it represents of the total home delivery because the aggregators maybe is 90% of the home delivery and 10% right now it's with Wow+.

Okay. That was super clear. I had another question regarding the impact from the distribution of profits to employees. Just to understand if we saw that last quarter and we're seeing that this quarter and just to see if this is an impact that we're going to see throughout the year?

Well, yes. This is a provision that we are doing brand by brand because the profit sharing depends on each operating fiscal profit. And we are -- we have a provision every quarter. So the total amount for the year that we are projecting is close to MXN 200 million for the whole year. And it's different brand by brand. So on Mexico, it's around MXN 200 million. And we are -- we have a provision of the amount of 1 quarter, 25%.

It's fully reflected in the financial statements that you see, the -- of course, the [Foreign Language] that we are getting for 2022. And of course, now that we have to do it is to pay 2021. That, of course, is we have a provision, so there is not an impact in terms of financial statements.

So every quarter, it's going to be around MXN 50 million.

Yes.

Our next question is from Ãlvaro GarcÃa from BTG Pactual.

Two quick ones for Rafa. One, I was wondering if you could talk to us about the growth ex-Argentina in South America? I feel like Argentina may be distorting that sales growth a bit? And my second question is on dividends. When do you think is a realistic time, given how strong results have been, to potentially see a dividend? Do you think '23 is in the cars? Or is that something that is probably more likely a 2024 event?

Yes. Well, in terms of same-store sales growth versus '29 -- versus '20 -- yes, versus 2019, it's Chile grew 14% versus 2021 grew 50%. Colombia versus 2019, 44% and versus 2021, 16%. This is without Argentina now because Argentina, it's [ 200% and 114% ]. So that's in terms of same-store sales. And in terms of dividend, we have a restriction with banks that we have to be lower than 3.5x total debt to EBITDA. So in our projections, we are planning to be close at that number at the end of 2023. So we are going to be able to pay dividends in 2024.

Our next question is from Paulina Moreira from Compass Group.

First of all, congrats on the results. They're really great. And my question is more in Europe. I understand that this is the first quarter without any help from Starbucks, from the government and all after the pandemic. So margins are around 250 basis points below 2019, if I'm correct. Is 26% the new margin that we should be expecting in Europe? Or in all the crisis have passed margins are going to increase to pre-pandemic dynamic levels? Can you give us some color on this?

Okay. In the only region that we are with an EBITDA margin lower versus prior, it's in Europe. And the effect is because of IFRS 16, because we have last year closures. And also, we have some discounts in terms of rents that are impacted last year, IFRS 16 amounts that we have in that quarter. So that's why it looks a better margin last year than the one that we have this year. We don't have any more these benefits in terms of rents in this first quarter and also in the last quarter last year, we didn't have that. So right now, the margin that we have has the normal percentage in terms of sales of -- in terms of rents. So that's why.

Okay. So we should expect like Europe margins to be around 26% from now on?

Yes. We are projecting that it's going to be better for '23 and '24. So we mentioned that pre-IFRS 16, we expect that for 2024, we're going to be close in terms of 14% EBITDA margin.

[Operator Instructions] That was the last question. I will now hand over to Mr. Fernando Gonzalez for final comments.

Okay. So firstly, thank you very much for all your time during this period. Don't hesitate if there is any question, we're fully -- all the teams to answer to all of you. As I explained, we are very satisfied in terms of company about this first quarter. We have a big challenge in front of us. But we consider that we have in the company, the basis to guarantee all the targets that we communicated to all of you. Until now the performance, despite the international situation, we are managing in the current way, all the efforts and the learning in the company during the last 2 years is reflected in the P&L that you are showing today and the dynamic and the strength of the company allowed us to try to be very comfortable about the performance for the next quarter that we hope that was as exciting and impressive as we have in this period. Finally, thank you very much for your time for all your questions. Sorry for the technical problems that probably we have it. This managing of these meetings is not the same when we've seen presence all where is through a digital way, but we hope and we wanted to do that we try not to have any kind of problems in the next period. Thank you very much for your time. Thank you very much for all the team and the team that helped us to have this streaming with our, too. Thank you.

Grupo Alsea would like to thank you for your participation in today's web conference. Thank you.