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MarketLine Industry Profile
Foodservice in Mexico
December 2019
Reference Code: 0071-2333
Publication Date: December 2019
WWW.MARKETLINE.COM
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AND IS NOT TO BE PHOTOCOPIED
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Industry Profiles
1. Executive Summary
1.1. Market value

The Mexican foodservice industry grew by 3.8% in 2018 to reach a value of $71.8 billion.
1.2. Market value forecast

In 2023, the Mexican foodservice industry is forecast to have a value of $86.5 billion, an increase of 20.5% since 2018.
1.3. Market volume

The Mexican foodservice industry grew by 2.5% in 2018 to reach a volume of 13.5 billion transactions.
1.4. Market volume forecast

In 2023, the Mexican foodservice industry is forecast to have a volume of 15.2 billion transactions, an increase of
12.4% since 2018.
1.5. Category segmentation

Full service restaurant is the largest segment of the foodservice industry in Mexico, accounting for 47.3% of the
industry's total value.
1.6. Geography segmentation

Mexico accounts for 7.3% of the Americas foodservice industry value.
1.7. Market rivalry

The large number of companies with similar structures, offering similar products at similar prices increases the rivalry
level within this industry.
1.8. Competitive Landscape

Industry Profiles
The Mexican foodservice industry is characterized by the presence of a number of large scale multinational companies
that operate alongside smaller, independent foodservice outlets. At the top end of the industry, restaurant franchising
is common, with the likes of McDonald’s and Yum! Brands operating heavily franchised models, while Alsea acts as a
master franchisee for various global brands in Mexico. Food delivery is becoming a key growth strategy in this industry
with the proliferation of online delivery platforms such as UberEats and Rappi, while industry players are adapting to
new technology and changing consumer trends.

Industry Profiles
TABLE OF CONTENTS
1. Executive Summary2
1.1. Market value ................................................................................................................................ 2
1.2. Market value forecast .................................................................................................................. 2
1.3. Market volume ............................................................................................................................. 2
1.4. Market volume forecast ............................................................................................................... 2
1.5. Category segmentation ............................................................................................................... 2
1.6. Geography segmentation ............................................................................................................ 2
1.7. Market rivalry ............................................................................................................................... 2
1.8. Competitive Landscape ............................................................................................................... 2
2. Market Overview9
2.1. Market definition .......................................................................................................................... 9
2.2. Market analysis ............................................................................................................................ 9
3. Market Data11
3.1. Market value .............................................................................................................................. 11
3.2. Market volume ........................................................................................................................... 12
4. Market Segmentation13
4.1. Category segmentation ............................................................................................................. 13
4.2. Geography segmentation .......................................................................................................... 14
5. Market Outlook15
5.1. Market value forecast ................................................................................................................ 15
5.2. Market volume forecast ............................................................................................................. 16
6. Five Forces Analysis17
6.1. Summary ................................................................................................................................... 17
6.2. Buyer power............................................................................................................................... 19
6.3. Supplier power ........................................................................................................................... 20
6.4. New entrants.............................................................................................................................. 22

Industry Profiles
6.5. Threat of substitutes .................................................................................................................. 23
6.6. Degree of rivalry ........................................................................................................................ 24
7. Competitive Landscape26
7.1. Who are the leading players? .................................................................................................... 26
7.2. What strategies do the leading players follow? ......................................................................... 26
7.3. How is technology being used by the leading companies? ....................................................... 27
7.4. Which foodservice companies are successfully responding to consumer trends? ................... 27
8. Company Profiles29
8.1. McDonald's Corp ....................................................................................................................... 29
8.2. Yum! Brands, Inc. ...................................................................................................................... 34
8.3. Alsea SAB de CV....................................................................................................................... 37
8.4. Restaurant Brands International Inc .......................................................................................... 41
8.5. Domino's Pizza, Inc. .................................................................................................................. 44
8.6. Starbucks Corporation ............................................................................................................... 49
8.7. Doctor's Associates Inc ............................................................................................................. 56
8.8. Fomento Economico Mexicano SAB de CV .............................................................................. 59
9. Macroeconomic Indicators63
9.1. Country data .............................................................................................................................. 63
Appendix 65
Methodology............................................................................................................................................. 65
9.2. Industry associations ................................................................................................................. 66
9.3. Related MarketLine research .................................................................................................... 66
About MarketLine ..................................................................................................................................... 67

Industry Profiles
LIST OF TABLES
Table 1: Mexico foodservice industry value: $ billion, 2014–18 11
Table 2: Mexico foodservice industry volume: billion transactions, 2014–18 12
Table 3: Mexico foodservice industry category segmentation: $ billion, 2018 13
Table 4: Mexico foodservice industry geography segmentation: $ billion, 2018 14
Table 5: Mexico foodservice industry value forecast: $ billion, 2018–23 15
Table 6: Mexico foodservice industry volume forecast: billion transactions, 2018–23 16
Table 7: McDonald's Corp: key facts 29
Table 8: McDonald's Corp: Annual Financial Ratios 31
Table 9: McDonald's Corp: Key Employees 32
Table 10: McDonald's Corp: Key Employees Continued 33
Table 11: Yum! Brands, Inc.: key facts 34
Table 12: Yum! Brands, Inc.: Annual Financial Ratios 35
Table 13: Yum! Brands, Inc.: Key Employees 36
Table 14: Alsea SAB de CV: key facts 37
Table 15: Alsea SAB de CV: Annual Financial Ratios 39
Table 16: Alsea SAB de CV: Key Employees 40
Table 17: Restaurant Brands International Inc: key facts 41
Table 18: Restaurant Brands International Inc: Annual Financial Ratios 42
Table 19: Restaurant Brands International Inc: Key Employees 43
Table 20: Domino's Pizza, Inc.: key facts 44
Table 21: Domino's Pizza, Inc.: Annual Financial Ratios 46
Table 22: Domino's Pizza, Inc.: Key Employees 47
Table 23: Domino's Pizza, Inc.: Key Employees Continued 48
Table 24: Starbucks Corporation: key facts 49
Table 25: Starbucks Corporation: Annual Financial Ratios 51
Table 26: Starbucks Corporation: Key Employees 52
Table 27: Starbucks Corporation: Key Employees Continued 53

Industry Profiles
Table 30: Doctor's Associates Inc: key facts 56
Table 31: Doctor's Associates Inc: Key Employees 58
Table 32: Fomento Economico Mexicano SAB de CV: key facts 59
Table 33: Fomento Economico Mexicano SAB de CV: Annual Financial Ratios 60
Table 34: Fomento Economico Mexicano SAB de CV: Key Employees 61
Table 35: Fomento Economico Mexicano SAB de CV: Key Employees Continued 62
Table 36: Mexico size of population (million), 2014–18 63
Table 37: Mexico gdp (constant 2005 prices, $ billion), 2014–18 63
Table 38: Mexico gdp (current prices, $ billion), 2014–18 63
Table 39: Mexico inflation, 2014–18 63
Table 40: Mexico consumer price index (absolute), 2014–18 64
Table 41: Mexico exchange rate, 2014–18 64

Industry Profiles
LIST OF FIGURES
Figure 1: Mexico foodservice industry value: $ billion, 2014–18 11
Figure 2: Mexico foodservice industry volume: billion transactions, 2014–18 12
Figure 3: Mexico foodservice industry category segmentation: % share, by value, 2018 13
Figure 4: Mexico foodservice industry geography segmentation: % share, by value, 2018 14
Figure 5: Mexico foodservice industry value forecast: $ billion, 2018–23 15
Figure 6: Mexico foodservice industry volume forecast: billion transactions, 2018–23 16
Figure 7: Forces driving competition in the foodservice industry in Mexico, 2018 17
Figure 8: Drivers of buyer power in the foodservice industry in Mexico, 2018 19
Figure 9: Drivers of supplier power in the foodservice industry in Mexico, 2018 20
Figure 10: Factors influencing the likelihood of new entrants in the foodservice industry in Mexico, 2018 22
Figure 11: Factors influencing the threat of substitutes in the foodservice industry in Mexico, 2018 23
Figure 12: Drivers of degree of rivalry in the foodservice industry in Mexico, 2018 24

Industry Profiles
2. Market Overview
2.1. Market definition

Foodservice is defined as the value of all food and drink, including on-trade drinks not drunk with food, for immediate
consumption on the premises or in designated eating areas shared with other foodservice operators, or in the case of
takeaway transactions, freshly prepared food for immediate consumption. Foodservice is restricted to the sale of food
and drink in specific foodservice channels defined below and excludes vending machines.
The food service industry is valued according to total sales of all food and drink (soft and alcoholic) in or through
accommodation outlets, pubs, clubs, and bars, full service restaurants, quick service restaurants and fast food, and
other. The accommodation segment includes food and drinks sales in bed and breakfasts, guest houses, holiday parks,
hostels, and hotels and motels. The pub, club and bar segment includes food and drink sales at nightclubs, private
member and social clubs, and pubs and bars. The other segment includes food and drink sales in leisure venues, such
as visitor attractions; mobile operators, such as vans and other mobile operators; retailers, such as bakeries,
convenience stores, delicatessens, department stores, garden centers, service station forecourts, supermarkets and
hypermarkets, and other retail sales.
Market volume is defined as the total number of transactions.
All currency conversions were carried out at constant 2018 average annual exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
2.2. Market analysis

The Mexican foodservice industry has experienced moderate growth over the last five years, and this will continue
over the forecast period. This value growth has been driven by constant demand as reflected in the steady growth
seen in transaction volumes in this industry.
Growth in this industry has been driven by a growing middle class in Mexico, which has been aided by the economic
growth seen in the country. As such, average disposable incomes have been higher allowing for increased spending in
this industry. Growing tourism, both foreign and domestic due to the Peso’s depreciation, has also aided growth.
The Mexican foodservice industry had total revenues of $71.8bn in 2018, representing a compound annual growth
rate (CAGR) of 3.9% between 2014 and 2018. In comparison, the US and Canadian industries grew with CAGRs of 3.2%
and 3.1% respectively, over the same period, to reach respective values of $689.8bn and $56.0bn in 2018.
Industry transaction volume increased with a CAGR of 2.7% between 2014 and 2018, to reach a total of 13.5 billion
transactions in 2018. The industry's volume is expected to rise to 15.2 billion transactions by the end of 2023,
representing a CAGR of 2.4% for the 2018-2023 period.

Industry Profiles
The full service restaurant segment was the industry's most lucrative in 2018, with total revenues of $34.0bn,
equivalent to 47.3% of the industry's overall value. The quick service restaurant & fast food segment contributed
revenues of $24.4bn in 2018, equating to 33.9% of the industry's aggregate value.
The full service restaurant segment is benefitting from a growth in casual dining brands, such as Chili’s or Applebee’s,
which offer more affordable options.
The performance of the industry is forecast to follow a similar pattern with an anticipated CAGR of 3.8% for the five-
year period 2018 - 2023, which is expected to drive the industry to a value of $86.5bn by the end of 2023.
Comparatively, the US and Canadian industries will grow with CAGRs of 3% and 3% respectively, over the same period,
to reach respective values of $798.9bn and $64.8bn in 2023.
This industry will remain healthy throughout the forecast period. A growing older population with greater disposable
incomes will help to drive demand. What’s more, the female workforce is growing in the country, which will
contribute to growth in this industry. According to World Bank statistics, 37.2% of females were part of the workforce
in Mexico in 2018, with this percentage expected to grow in the coming years. As lifestyles become increasingly busy,
consumers are seeking greater convenience
within foodservice, with quick service operators in particular well placed to tap into this trend.

Industry Profiles
3. Market Data
3.1. Market value

The Mexican foodservice industry grew by 3.8% in 2018 to reach a value of $71.8 billion.
The compound annual growth rate of the industry in the period 2014–18 was 3.9%.
Table 1: Mexico foodservice industry value: $ billion, 2014–18
Year $ billion MXN billion € billion % Growth

2014 61.6 1,185.1 52.2
2015 64.1 1,233.3 54.4 4.1%
2016 66.7 1,281.9 56.5 3.9%
2017 69.2 1,330.9 58.7 3.8%
2018 71.8 1,381.0 60.9 3.8%
CAGR: 2014–18 3.9%
SOURCE: MARKETLINE MARKETLINE
Figure 1: Mexico foodservice industry value: $ billion, 2014–18

Industry Profiles
3.2. Market volume

The Mexican foodservice industry grew by 2.5% in 2018 to reach a volume of 13.5 billion transactions.
The compound annual growth rate of the industry in the period 2014–18 was 2.7%.
Table 2: Mexico foodservice industry volume: billion transactions, 2014–18
Year billion transactions % Growth

2014 12.2
2015 12.5 2.9%
2016 12.8 2.7%
2017 13.2 2.6%
2018 13.5 2.5%
CAGR: 2014–18 2.7%
Figure 2: Mexico foodservice industry volume: billion transactions, 2014–18

Industry Profiles
4. Market Segmentation
4.1. Category segmentation

Full service restaurant is the largest segment of the foodservice industry in Mexico, accounting for 47.3% of the
industry's total value.
The Quick service restaurant & fast food segment accounts for a further 33.9% of the industry.
Table 3: Mexico foodservice industry category segmentation: $ billion, 2018
Category 2018 %
Full service restaurant 34.0 47.3%
Quick service restaurant & fast food 24.4 33.9%
Accommodation 3.3 4.6%
Pub, club & bar 3.1 4.3%
Other 7.1 9.9%
Total 71.9 100%
Figure 3: Mexico foodservice industry category segmentation: % share, by value, 2018

Industry Profiles
4.2. Geography segmentation

Mexico accounts for 7.3% of the Americas foodservice industry value.
The United States accounts for a further 70.4% of the Americas industry.
Table 4: Mexico foodservice industry geography segmentation: $ billion, 2018
Geography 2018 %
United States 689.8 70.4
Brazil 121.3 12.4
Mexico 71.8 7.3
Canada 56.0 5.7
Rest of the Americas 41.6 4.2
Total 980.5 100%
Figure 4: Mexico foodservice industry geography segmentation: % share, by value, 2018

Industry Profiles
5. Market Outlook
5.1. Market value forecast

In 2023, the Mexican foodservice industry is forecast to have a value of $86.5 billion, an increase of 20.5% since 2018.
The compound annual growth rate of the industry in the period 2018–23 is predicted to be 3.8%.
Table 5: Mexico foodservice industry value forecast: $ billion, 2018–23
Year $ billion MXN billion € billion % Growth

2018 71.8 1,381.0 60.9 3.8%
2019 74.5 1,432.5 63.1 3.7%
2020 77.4 1,489.1 65.6 4.0%
2021 80.2 1,542.0 68.0 3.6%
2022 83.8 1,612.2 71.1 4.6%
2023 86.5 1,664.0 73.3 3.2%
CAGR: 2018–23 3.8%
Figure 5: Mexico foodservice industry value forecast: $ billion, 2018–23

Industry Profiles
5.2. Market volume forecast

In 2023, the Mexican foodservice industry is forecast to have a volume of 15.2 billion transactions, an increase of
12.4% since 2018.
The compound annual growth rate of the industry in the period 2018–23 is predicted to be 2.4%.
Table 6: Mexico foodservice industry volume forecast: billion transactions, 2018–23
Year billion transactions % Growth

2018 13.5 2.5%
2019 13.8 2.5%
2020 14.2 2.6%
2021 14.4 1.7%
2022 14.9 3.1%
2023 15.2 2.0%
CAGR: 2018–23 2.4%
Figure 6: Mexico foodservice industry volume forecast: billion transactions, 2018–23

Industry Profiles
6. Five Forces Analysis

The foodservice market will be analyzed taking providers of food service including restaurants and cafes, fast food
retailers, and caterers as players. The key buyers will be taken as individual consumers, and food wholesalers and
distributors as the key suppliers.
6.1. Summary
Figure 7: Forces driving competition in the foodservice industry in Mexico, 2018
The large number of companies with similar structures, offering similar products at similar prices increases the rivalry
level within this industry.
The buyers in this industry are individual consumers. This significantly weakens buyer power as the loss of any one
buyer’s custom is unlikely to have a significant effect on a player’s revenues. Additionally, the standing of any
individual customer is diminished because of the sheer volume of potential customers. The exception here would be
smaller, premium-priced independent restaurants that rely on regular custom.
Suppliers to this industry are generally wholesalers that sell to numerous businesses. Many of these are large scale
and supply a large number of companies, meaning the players are fairly dispensable and the suppliers have a high
level of bargaining power over the players in terms of pricing. However, chain restaurants exert much more power
over suppliers than independent players because their orders will be very large and the loss of business from one of
these would have a detrimental effect on the supplier’s revenue.
An abundance of suppliers, relatively low levels of capital outlay needed and an industry that is growing steadily,
makes it very attractive to new entrants. Despite these enabling factors, there are many barriers to entry. In a
generally low-margin industry, new entrants will face large, multinational incumbents such as McDonald’s. Such
incumbents benefit from scale economies that allow them to negotiate with suppliers, submit highly competitive bids
to price-sensitive customers and, therefore, improve their profitability.
Having a meal or drinks out is a non-essential activity which can be easily substituted by cooking at home with the
only switching cost being the time and effort to cook a meal. As such, the substitute threat is strong.

Industry Profiles
The growth of food delivery companies, such as UberEats, is ramping up rivalry in this industry. While these
companies have opened up new revenue streams for a variety of foodservice players, this is accompanied by
increasing competitive pressures.

Industry Profiles
6.2. Buyer power

Figure 8: Drivers of buyer power in the foodservice industry in Mexico, 2018
The buyers in this industry are individual consumers. This significantly weakens buyer power as the loss of any one
buyer’s custom is unlikely to have a significant effect on a player’s revenues. Additionally, the standing of any
individual customer is diminished because of the sheer volume of potential customers. The exception here would be
smaller, premium-priced independent restaurants that rely on regular custom.
Although the revenue generated by any particular consumer is minimal, collectively they represent wider consumer
interests, and foodservice outlets cannot afford to disregard the sensitivities of buyers. Buyer power has strengthened
over the years with the growth of online review sites and social media where buyers can have a collective voice.
Foodservice is not essential to the buyers; eating out is a leisure experience that can be avoided in difficult financial
times. As such, price can have an effect on demand. Many foodservice outlets, such as restaurants and cafes, will offer
deals and discounts at off-peak times to attract customers who would not necessarily be drawn in at full price. Other
tactics that foodservice players use include limited-time menu items and loyalty schemes in which they offer a reward
for repeat custom. For example, Alsea SAB de CV, the leading player in the Mexican foodservice market, offers a
loyalty program across all its brands. The ‘Wow Rewards’ scheme was introduced in 2016 and surpassed three million
members in 2018.
Large players in the foodservice industry invest heavily in brand-building, particularly in the low- and medium- price
segments. Such branding helps to drive customer loyalty which, along with social functions and the convenience of
foodservice, means the industry represents more to the consumer than a simple source of food.
Overall, buyer power is assessed as moderate.

Industry Profiles
6.3. Supplier power

Figure 9: Drivers of supplier power in the foodservice industry in Mexico, 2018
Suppliers to this industry are generally wholesalers that sell to numerous businesses. Many of these are large scale
and supply a large number of companies, meaning the players are fairly dispensable and the suppliers have a high
level of bargaining power over the players in terms of pricing. However, chain restaurants like McDonald's and
Starbucks exert much more power over suppliers than independent players because their orders will be very large and
the loss of business from one of these would have a detrimental effect on the supplier’s revenue.
Other suppliers include producers of base ingredients. The production of base ingredients stage is dominated by large
players, although individual farmers with smallholdings are present. For example, Starbucks sources its coffee beans
from coffee farmers. Crop production is dependent on land. The more land there is, the more crops that can be
produced. This increases financial viability and consequently, production is dominated by global powerhouses. For
example, Adecoagro is one of the largest owners of productive farmland in South America, while the likes of Bunge
and Cargill have revenue exceeding $40bn. In the case of the latter, it exceeds $100bn. McDonald’s uses Cargill as a
supplier. Small-scale farms are a feature of this stage of the value chain. Individual or family-owned farms are
commonplace and may in some cases be key suppliers to foodservice chains or local, independent restaurants. Such
suppliers have much less power than large, multinational agricultural companies.
Large foodservice chains often maintain relationships with a wide range of suppliers, which ensures stability and helps
to offset the dangers of local sourcing problems or price fluctuations. Where possible, long term contractual
obligations are avoided and switching costs are kept to a minimum. The leading companies in this industry, including
McDonald’s and Alsea SAB de CV, can dominate negotiations with certain suppliers. The leading players in this
industry often make up a larger proportion of a supplier’s revenues and as such can negotiate lower prices with
suppliers. Smaller, independent restaurants/cafes/coffee shops may find such negotiations difficult.
Backward integration is possible, with some foodservice companies growing their own produce or setting up their
own manufacturing facilities. This is particularly true for small, independent companies. Backward integration is also
possible by some of the larger industry players. For example, Starbucks purchased a 600-acre coffee farm in Costa Rica
in 2013. Forward integration by suppliers is less likely but is possible if a manufacturer/grower decides to establish
foodservice operations.
McDonald’s now uses chicken free of antibiotics in the US and Canada, along with KFC (Yum! Brands) and Burger King
(Restaurant Brands International). McDonald’s has plans to roll this out worldwide. While there is not official

Industry Profiles
timescale for when its Mexican chicken products will become antibiotic free, such a policy will mean producers have
to adhere to this new practice or risk losing such players as customers.
As food and drink inputs are fairly undifferentiated at the supply stage, players can choose from a selection of
suppliers, lowering the threat of an oligopoly. However, the players must be careful to choose suppliers with good
quality ingredients or risk damaging the reputation of the restaurant because of poor quality food or food poisoning.
The ability to switch suppliers can be made more difficult because the supply chain is likely to be complex which
increases supplier power.
Overall, supplier power can be assessed as moderate.

Industry Profiles
6.4. New entrants

Figure 10: Factors influencing the likelihood of new entrants in the foodservice industry in Mexico, 2018
An abundance of suppliers, relatively low levels of capital outlay needed and an industry that is growing steadily,
makes it very attractive to new entrants. Despite these enabling factors, there are many barriers to this industry. In a
generally low-margin industry, new entrants will face large, multinational incumbents such as McDonald’s and Yum!
Brands. Such incumbents benefit from scale economies that allow them to negotiate with suppliers, submit highly
competitive bids to price-sensitive customers and, therefore, improve their profitability.
The foodservice industry is a highly regulated one, and is subject to strict regulations on matters of food hygiene.
Mexican food safety standards are enforced by the Secretariat of Agriculture, Livestock, Rural Development, Fisheries
and Food. Such regulations are stringent because of the risk to human health associated with poor hygiene. Although
compliance imposes costs, many aspects of hygiene require good working practices rather than costly expenditure on
equipment. Such costs can be externalized to some extent, perhaps by only recruiting key staff members that have
already completed appropriate training.
The junk food tax will be a consideration for new entrants as it would add extra costs which would need to be passed
onto the consumer. The 8% tax on “non-essential” foods (including snacks, sweets, nut butters, cereal-based prepared
products) which are over 275 calories per 100 grams was passed in 2014 to encourage healthier eating habits.
However, new entrants could avoid these costs by adopting a healthier menu.
Although labor intensive, the industry rarely needs large numbers of highly-paid staff, and can rely instead on large
numbers of often low-paid employees, perhaps as temporary or part-time staff. In Mexico, the daily minimum wage
was increased in January 2019, from MXN88.36 ($4.60) to MXN102.68 (US $5.34). This may act as a barrier to market
entry for a newly established player.
Overall, the likelihood of new entrants is assessed as strong.

Industry Profiles
6.5. Threat of substitutes

Figure 11: Factors influencing the threat of substitutes in the foodservice industry in Mexico, 2018
Having a meal or drinks out is a non-essential activity which can be easily substituted by cooking at home with the
only switching cost being the time and effort to cook a meal. In times of economic difficulty consumers tend to spend
less on eating out and more on eating at home. It is usually cheaper than eating out and home-cooked food usually
contains fewer calories, and less salt and fat content, especially when compared to fast-food. Some players capitalize
on the drive for healthy eating with both McDonalds and Subway offering a salad option as an alternative in some of
their stores.
Other leisure activities may be considered substitutes such as the cinema, theatre, going to the park or the beach
although there are usually options to purchase food at the same time. One strategy adopted to deal with these types
of threats is to sell an experience, as well as food and drink. Chains may achieve this through investment in brand
building and advertising. Independent, full service restaurants may develop a more individualized identity, perhaps
focusing on the influence of a particular style of cooking. Foodservice players in Mexico, especially in recent years,
have been using unusual ideas such as Harry Potter themed restaurants to entice customers looking for more than
just a meal.
Overall, the threat of substitutes is assessed as strong.

Industry Profiles
6.6. Degree of rivalry

Figure 12: Drivers of degree of rivalry in the foodservice industry in Mexico, 2018
Full service restaurants dominate the foodservice industry in Mexico, with these companies accounting for 47.3% of
the industry value in 2018. This is followed by the quick service and fast food segment, which accounted for 33.9%.
Within both of these segments there are a number of large companies operating. For example, in the full service
segment, Alsea SAB de CV is the leading player with its Vips restaurant brand, this is followed by Yum! Brands with its
Pizza Hut chain. However, together these two companies account for less than 2% of sales in the full service
restaurants segment, demonstrating the sheer number of competitors that make up the industry. Similarly, in the
quick service segment, the two leading players, McDonald’s and Restaurant Brands International, account for only
around 3.6% of sales in this category. There exists a large number of independent or specialty foodservice companies
operating alongside large incumbents. For example, within the foodservice industry as a whole in 2018, almost 75% of
the foodservice outlets were owned by independent companies. As consumers incur no switching costs when
changing their foodservice provider, rivalry is intensified among players.
This trend is evident across all the segment of this industry, with numerous companies with similar structures, offering
similar products at similar prices. What’s more, there is rivalry between segments with this becoming increasingly
pronounced. For example, in the quick service segment there is growing competition from the increasingly crowded
and saturated coffee and tea market. Large players in this segment, such as Starbucks, are concentrating on expanding
their food offerings to diversify their revenue streams.
The growth of food delivery companies, such as UberEats and Rappi, are ramping up rivalry in this industry. While
these companies have opened up new revenue streams for a variety of foodservice players, this is accompanied by
increasing competitive pressures. This is particularly true for companies in the quick service and fast food segment.
These food delivery companies essentially turn full service restaurants into key competitors to fast food companies,
with the likes of UberEats delivering food from a range of national foodservice chains as well local, independent
restaurants.
It is possible to differentiate in terms of the types of food sold, the establishment, and the price of food. Players
benefit from the relative ease of expansion, and if the venture fails, exit costs are not unduly expensive; physical
assets such as restaurants do not represent significant sunk costs, even if owned rather than rented. They can usually
be sold for a good price. Additionally, most employees laid off will not be eligible for costly redundancy payments.

Industry Profiles
Market growth in Mexico is moderate so rivalry is more intense than in a region where it is rapidly growing and with
big chains dominating the industry, players have to work hard in order to thrive.
Overall, rivalry in the foodservice industry is assessed as strong.

Industry Profiles
7. Competitive Landscape
The Mexican foodservice industry is characterized by the presence of a number of large scale multinational companies
that operate alongside smaller, independent foodservice outlets. At the top end of the industry, restaurant franchising
is common, with the likes of McDonald’s and Yum! Brands operating heavily franchised models, while Alsea acts as a
master franchisee for various global brands in Mexico. Food delivery is becoming a key growth strategy in this industry
with the proliferation of online delivery platforms such as UberEats and Rappi, while industry players are adapting to
new technology and changing consumer trends.
7.1. Who are the leading players?

The leading player in the Mexican foodservice industry is Alsea SAB de CV. The company is a master franchisee for
various brands in Mexico including Starbucks, Burger King, and Domino’s Pizza. The company also completed the
acquisition of Sigla, S.A. (Grupo Vips) in October 2018, with the Vips chain being the leading full service food brand in
the country.
McDonald’s Corporation is a leading player in the Mexican foodservice industry, with over 500 outlets in operation in
the country at the end of 2018, including restaurants, dessert centers and McCafés. The company operates through a
variety of franchised and company-operated outlets, with revenues from franchised restaurants accounting for over
52% of McDonald’s total worldwide revenues.
Yum! Brands, Inc. operates as a leading player in this industry through its Pizza Hut and KFC brands. The company’s
Pizza Hut brand is the second largest leading player in the full service segment of this industry, while KFC is the
seventh largest brand by revenue in the quick service segment. The company operates a heavily franchised model,
with 99% of Pizza Hut and KFC restaurants operated by franchisees in 2018.
Doctor's Associates Inc. operates as a leading player in Mexico through its Subway brand. The company operated 990
outlets in Mexico at the end of 2018 with the company surpassing the 1,000 store number mark in 2019, all of which
are franchised. Subway offers delivery of its products through partnerships with online delivery services Postmates,
UberEats, and Rappi.
7.2. What strategies do the leading players follow?

Operating a franchised business model is a key strategy employed by the leading players in this industry. Essentially,
operating a franchised model means that the leading players are selling their brand name and reaping the financial
benefits from royalties, which are often paid as a percentage of sales. The day-to-day running of such restaurants is
the responsibility of franchisees. In this way, companies can expand without the overheads of premises or staffing
costs. As of 2018, McDonald’s restaurants worldwide were 93% franchised, with the company keen to become 95%
franchised in the long term. Similarly, Yum! Brands operates a heavily franchised business model with 99% of Pizza
Hut and KFC restaurants operated by franchisees in 2018. Meanwhile, all Subway stores are franchised.
Alsea SAB de CV differs from the other leading players in this industry in that its business model works the opposite
way around. Essentially, Alsea acts as a master franchisee for various global foodservice brands in Mexico. For
example, Alsea has a master franchise agreement for Domino’s Pizza and Burger King in Mexico. In this way, Alsea has
full operational control of Domino’s and Burger King outlets in the country. The company has entered into a similar
agreement with Starbucks, with Alsea having 100% ownership of the Starbuck’s business in Mexico for the duration of
the contract (currently until 2037). As the North American foodservice industry has faced maturity, many brands have
been looking internationally for expansion opportunities. Alsea has benefitted from this in Mexico, where the growing
middles class and increasing Americanization of consumer tastes has led to the growing success of US foodservice
brands in the country. Through its master franchise strategy, Alsea has ownership of globally renowned foodservice
brands in Mexico, allowing it to leverage the strong brand image of each of these companies and grow its presence
across the country.

Industry Profiles
Alsea has also used M&A activity to expand its business. In October 2018, Alsea completed the acquisition of Sigla,
S.A. (Grupo Vips). This gave Alsea full ownership of the Vips brand, which is the leading full-service restaurant chain in
Mexico.
A strategy that is currently being used by a number of players in this industry is food delivery, with various foodservice
companies partnering with online delivery platforms such as Rappi and UberEats. In 2018, McDonald’s entered into a
partnership with UberEats to roll out its McDelivery service in Mexico. The company has seen success with this
strategy. Alsea uses UberEats, Glovo and Rappi as delivery partners for its various brands. The company has taken the
delivery concept one step further with Burger King testing real-time food delivery to cars stuck in Mexico City
congestion.
7.3. How is technology being used by the leading companies?

Foodservice is an industry that for a long time relied upon more or less the same methods of selling and delivery, but
technology has had a transformative impact. Product innovation has been somewhat speedy. Major brands are
investing heavily into creating online and mobile platforms that make products exciting and attractive to consumers.
Food has never been so convenient and the encroachment of technology into a buying experience that formerly only
involved at most a phone call is beginning to dominate.
Starbucks is one such company that has invested in technology to grow its business. In October 2017, Starbucks closed
its online operations due to a failure to attract customers. The company took a renewed look at its electronic
operations and has since focused on improving the integration of technology between consumers and the purchasing
experience. Starbucks has been focusing on AI technology, dubbed the ‘Digital Flywheel’, targeted towards matching
Starbucks products to the needs of regular customers. Information from a wide range of sources is essential for the
mobile app to operate accurately. Even weather information is being used. If the weather is sunny where an app user
happens to be they will receive different suggestions compared to if the weather is wet. Weekends or holidays and
even major cultural and sporting events will also influence the way in which Starbucks products will be marketed on
the mobile platform. If consumers begin to frequent different Starbucks shops, the app knows that too. The system
has been built around customer acquisition, spend-based rewards, personalized offers, and convenient ordering.
Starbucks is becoming increasingly dependent upon shoppers using mobile platforms. Although walk-in customers
currently outnumber those buying via alternative means, the ratio is shifting, and the company has been attempting
to move in time with the demands of consumers before rivals snatch custom in what is an extremely competitive
industry. For the last two years the number of mobile customers has risen and this shift towards mobile use is likely to
continue at least for the immediate future.
McDonald’s has been focusing on the ease and efficiency of ordering with the introduction of self-ordering checkouts.
The company has been installing these checkouts in 1,000 stores per quarter throughout 2018 and 2019, with the aim
being to have this fully integrated across all McDonald’s stores. What’s more, McDonald’s announced in 2019 that it is
acquiring personalization company Dynamic Yield for $300m. Dynamic Yield works with a range of brands to create a
personalized online experience. McDonald’s plans to use its acquisition of the company to tailor its drive-thru menu to
reflect such factors as the weather, popular menu items, and drive-thru traffic. There are also plans to integrate the
technology into McDonald’s self-serve kiosks and its mobile app.
Burger King (operated by Alsea in Mexico) is using technology to trial real-time food delivery to cars stuck in Mexico
City congestion. Through the use of real-time traffic data, navigation app Waze, the Burger King app and digital
billboards, Burger King can establish the most congested areas and the times when the heaviest congestion occurs,
which leads to prompts that are pushed to digital billboards and ads within the Waze app. Those consumers that are
interested are then funneled to the Burger King app to order, which can be carried out through voice commands to
ensure that consumers do not break driving laws. According to the company, the campaign boosted daily delivery
orders in Mexico by 63%, while the daily download rate of the app grew by 44%.
7.4. Which foodservice companies are successfully responding

to consumer trends?

Industry Profiles
Americanization is a key consumer trend seen in the Mexican foodservice industry. Alsea is a company that has
successfully tapped into this growing trend. The company has gradually introduced a number of US-based foodservice
chains with globally recognized brands into the Mexican market. This began with Domino’s Pizza in 1990 and has gone
on to include Starbucks, Burger King, Chili’s, California Pizza Kitchen, and The Cheesecake Factory among others. Upon
launching these brands in Mexico, Alsea has ensured that the brand image has remained consistent with the
respective company’s brand images in the US, thus appealing to a range of consumers, particularly those in the
younger demographic. There have been no attempts to localize the brands, with Alsea instead keen to keep the
offerings of each brand in-line with the products and promotions seen in the US. This has been successful, with Alsea
SAB de CV going on to become the leading foodservice company in Mexico.

Industry Profiles
8. Company Profiles
8.1. McDonald's Corp
8.1.1. Company Overview
McDonald's Corp (McDonald's) is a foodservice retail chain operator. The company operates and franchises
McDonald’s restaurants that serve a locally-relevant menu of food and beverages. Its menu offering includes
hamburgers and cheeseburgers, chicken sandwiches, chicken nuggets, wraps, French fries, salads, oatmeal, shakes,
desserts, sundaes, soft serve cones, pies, soft drinks, coffee and other beverages. It also offers various breakfast items
such as McGriddles, Sausage McMuffin with Egg, Egg McMuffin, biscuit and bagel sandwiches and hotcakes.
McDonald's markets its products under a wide range of brands including Big Mac, Filet-O-Fish, Chicken McNuggets,
McFlurry, McMuffin, and McGriddles. It operates across North America, Latin America, Europe, Asia Pacific, and the
Middle East and Africa. It is headquartered in Chicago, Illinois, the US.
The company reported revenues of (US Dollars) US$21,025.2 million for the fiscal year ended December 2018
(FY2018), a decrease of 7.9% over FY2017. In FY2018, the company’s operating margin was 42%, compared to an
operating margin of 41.9% in FY2017. In FY2018, the company recorded a net margin of 28.2%, compared to a net
margin of 22.8% in FY2017.The company reported revenues of US$5,341.3 million for the second quarter ended June
2019, an increase of 7.8% over the previous quarter.
8.1.2. Key Facts
Table 7: McDonald's Corp: key facts
Head office: 110 N Carpenter StCHICAGO, Illinois, United States

Telephone: 16306233000
Fax: 13026365454
Number of Employees: 210000
Website: www.mcdonalds.com/
Financial year-end: December
Ticker: MCD
Stock exchange: New York Stock Exchange
SOURCE: COMPANY WEBSITE MARKETLINE
8.1.3. Business Description
McDonald's Corp (McDonald's) is an operator of foodservice retail chain. The company’s restaurants offer hamburgers
and cheeseburgers, chicken sandwiches, chicken nuggets, wraps, French fries, salads, oatmeal, shakes, desserts,
sundaes, soft serve cones, pies, soft drinks, coffee and other beverages. The company also offers various breakfast
items such as McGriddles, Sausage McMuffin with Egg, Egg McMuffin, biscuit and bagel sandwiches and hotcakes. In
FY2018, the company operated 37,855 restaurants in 120 countries, of which 2,770 were company-operated and
35,058 were franchised.
The franchise agreements include conventional franchise arrangements and developmental license or foreign
affiliates. Of the total franchises, 21,685 restaurants were franchised to conventional franchisees, 7,225 were licensed
to developmental licensees and 6,175 were licensed to foreign affiliates.

Industry Profiles
Under the conventional franchise arrangement, the company owns or secures leases for the land and building while
franchisees provide a portion of initial capital in the form of equipment, signs, seating and decor. Under the
developmental license arrangement, licensees provide capital for its complete business operations, comprising the
real estate interest. For this type of franchises, McDonald's receives initial fees upon the opening of a new restaurant
or grant of a new license as well as a royalty based on a percentage of sales. Also, the company owns an equity
investment in some of the foreign affiliated markets, which are referred as affiliates. The company receives a royalty
based on a percentage of sales in these markets.
McDonald’s classifies its operations into four segments: the US, International Lead Markets, High Growth Markets and
Foundational Markets and Corporate.

Industry Profiles
Table 8: McDonald's Corp: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % -2.36 -7.39 -3.11 -7.32 -7.87
Operating Income Growth % -9.30 -10.11 8.38 23.35 -7.64
EBITDA Growth % -9.30 -10.11 8.38 23.35 -7.64
Net Income Growth % -14.82 -4.80 3.47 10.79 14.10
EPS Growth % -11.18 0.22 14.55 15.41 18.02
Working Capital Growth % -23.54 365.54 -79.38 76.53 -55.69
Equity Ratios
EPS (Earnings per Share) USD 4.82 4.79 5.44 7.23 7.64
Dividend per Share USD 3.28 3.44 3.61 3.83 4.19
Dividend Cover Absolute 1.47 1.39 1.51 1.89 1.82
Book Value per Share USD 13.35 7.82 -2.69 -4.12 -8.16
Profitability Ratios
Gross Margin % 38.10 38.52 41.45 46.54 51.30
Operating Margin % 28.97 28.12 31.45 41.86 41.96
Net Profit Margin % 17.34 17.82 19.03 22.75 28.18
Profit Markup % 61.56 62.66 70.78 87.06 105.34
PBT Margin (Profit Before Tax) % 26.86 25.80 27.89 37.57 37.17
Return on Equity % 37.02 63.90
Return on Capital Employed % 25.25 20.42 28.10 30.90 29.57
Return on Assets % 13.43 12.55 13.59 16.02 17.79
Return on Working Capital % 552.95 106.77 561.07 392.05 817.13
Operating Costs (% of Sales) % 71.03 71.88 68.55 58.14 58.04
Administration Costs (% of Sales) % 9.15 9.73 9.79 10.18 10.47
Liquidity Ratios
Current Ratio Absolute 1.52 3.27 1.40 1.84 1.36
Quick Ratio Absolute 1.48 3.23 1.38 1.82 1.35
Cash Ratio Absolute 0.81 2.61 0.39 0.85 0.35
Leverage Ratios
Debt to Equity Ratio Absolute 1.16 3.40
Net Debt to Equity Absolute 1.00 2.32 -11.22 -8.28 -4.83
Debt to Capital Ratio Absolute 0.54 0.77 1.09 1.12 1.25
Efficiency Ratios
Asset Turnover Absolute 0.77 0.70 0.71 0.70 0.63
Fixed Asset Turnover Absolute 1.09 1.07 1.11 1.04 0.93
Inventory Turnover Absolute 145.36 148.73 181.35 207.30 186.34
Current Asset Turnover Absolute 5.94 3.68 3.40 4.49 4.48
Capital Employed Turnover Absolute 0.87 0.73 0.89 0.74 0.70
Working Capital Turnover Absolute 19.09 3.80 17.84 9.37 19.47
SOURCE: COMPANY FILINGS MARKETLINE

Industry Profiles
Table 9: McDonald's Corp: Key Employees
Name Job Title Board

Andrew J. McKenna Chairman Emeritus Non Executive Board
Catherine Hoovel Chief Accounting Officer Senior Management
Catherine Hoovel Corporate Vice President Senior Management
Catherine M. Engelbert Director Non Executive Board
Christopher Kempczinski Chief Executive Officer Executive Board
Christopher Kempczinski Director Executive Board
Christopher Kempczinski President Executive Board
Daniel Henry Executive Vice President Senior Management
Daniel Henry Global Chief Information Officer Senior Management
Enrique Hernandez, Jr. Chairman Non Executive Board
Francesca DeBiase Chief Supply Chain and Sustainability Officer Senior Management
President International Developmental
Ian F. Borden Senior Management
Licensed Markets
Jeanne P. Jackson Director Non Executive Board
Jerome Krulewitch Executive Vice President Senior Management
Jerome Krulewitch General Counsel Senior Management
Jerome Krulewitch Secretary Senior Management
John J. Mulligan Director Non Executive Board
John W. Rogers, Jr. Director Non Executive Board
Joseph Erlinger President McDonald's USA Senior Management
Kevin M. Ozan Chief Financial Officer Senior Management
Kevin M. Ozan Executive Vice President Senior Management
Lizette Williams Head Cultural Engagement, McDonald’s USA Senior Management
Lloyd H. Dean Director Non Executive Board
Senior Vice President Corporate Strategy and
Lucy Brady Senior Management
Business Development
Margaret H. Georgiadis Director Non Executive Board
Chief of Staff, Office of the Chief Executive
Mason Smoot Senior Management
Officer
Mason Smoot Senior Vice President Strategic Alignment Senior Management
Miles D. White Director Non Executive Board
Paul S. Walsh Director Non Executive Board
Senior Vice President Global Restaurant
Piotr Jucha Senior Management
Development and Restaurant Solutions Group

Industry Profiles
Table 10: McDonald's Corp: Key Employees Continued

Richard H. Lenny Director Non Executive Board
Robert A. Eckert Director Non Executive Board
Robert L. Gibbs Chief Communications Officer Global Senior Management
Robert L. Gibbs Executive Vice President Senior Management
Sheila A. Penrose Director Non Executive Board
Silvia Lagnado Executive Vice President Senior Management
Silvia Lagnado Global Chief Marketing Officer Senior Management

Industry Profiles
8.2. Yum! Brands, Inc.
Yum! Brands, Inc. (YBI) is a global quick service restaurant company. The company develops, operates, franchises and
licenses a global system of both traditional and non-traditional quick service restaurants. It operates restaurants
under the brand name of KFC, Pizza Hut and Taco Bell brands. KFC restaurants provide fried and non-fried chicken
products such as sandwiches, chicken strips, chicken-on-the-bone and other related chicken products. Pizza Hut offers
a wide variety of pizzas. Taco Bell’s restaurants serve Mexican-style food products, including tacos, burritos, nachos,
quesadillas, salads and other related food items. The company’s restaurants provide dine-in or carry-out, delivery and
drive-thru option services and operates worldwide. YBI is headquartered in Louisville, Kentucky, the US.
The company reported revenues of (US Dollars) US$5,688 million for the fiscal year ended December 2018 (FY2018), a
decrease of 3.2% over FY2017. In FY2018, the company’s operating margin was 40.4%, compared to an operating
margin of 47% in FY2017. In FY2018, the company recorded a net margin of 27.1%, compared to a net margin of
22.8% in FY2017.The company reported revenues of US$1,310.0 million for the second quarter ended June 2019, an
increase of 4.5% over the previous quarter.
8.2.2. Key Facts
Table 11: Yum! Brands, Inc.: key facts
Head office: 1441 Gardiner LnLouisville, Kentucky, United States

Website: www.yum.com
Ticker: YUM
Yum! Brands, Inc. (YBI) is a global quick service restaurant company that offers its food and restaurant services
through brands such as KFC, Pizza Hut, and Taco Bell. In FY2018, it operated through a network of 48,000 restaurants
in about 140 countries and territories.
YBI classifies its business into under three segments: KFC, Pizza Hut, and Taco Bell.

Industry Profiles
Table 12: Yum! Brands, Inc.: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % -49.66 -2.57 -0.97 -7.52 -3.23
Operating Income Growth % -15.63 -5.47 17.29 64.15 -16.84
EBITDA Growth % -15.63 -5.47 17.29 64.15 -16.84
Net Income Growth % -3.67 22.07 28.06 -18.44 15.07
EPS Growth % -42.73 -2.12 4.07 -45.10 106.73
Working Capital Growth % 49.13 63.55 -114.21 400.00 -109.45
Equity Ratios
Book Value per Share USD 3.56 2.17 -15.82 -19.08 -25.90
Gross Margin % 57.46 57.85 59.50 61.23 46.73
Profit Markup % 135.08 137.26 146.93 157.92 87.72
Return on Equity % 67.94 140.83
Return on Assets % 12.34 15.65 24.32 24.90 32.67
Return on Working Capital % 845.23 277.49
Liquidity Ratios
Leverage Ratios
Debt to Equity Ratio Absolute 2.16 4.31
Net Debt to Equity Absolute 1.79 3.97 -1.50 -1.31 -1.23
Efficiency Ratios
Inventory Turnover Absolute 9.42 15.87 66.86 91.16
Working Capital Turnover Absolute 31.94 5.91

Industry Profiles
Table 13: Yum! Brands, Inc.: Key Employees

Artie Starrs Chief Executive Officer Pizza Hut Senior Management
Brian Cornell Chairman Non Executive Board
Christopher M. Connor Director Non Executive Board
Clay Johnson Chief Digital and Technology Officer Senior Management
David Gibbs Chief Financial Officer Senior Management
David Gibbs Chief Operating Officer Senior Management
David Gibbs President Senior Management
David Russell Corporate Controller Senior Management
David Russell Senior Vice President Finance Senior Management
Elane B. Stock Director Non Executive Board
Gavin Felder Chief Strategy Officer Senior Management
Greg Creed Chief Executive Officer Executive Board
Greg Creed Director Executive Board
Julie Felss Masino President Taco Bell North America Senior Management
Justin Skala Director Non Executive Board
Vice President Investor Relations, Corporate
Keith Siegner Senior Management
Strategy and Treasurer
Liz Williams President Taco Bell International Senior Management
Mark King Chief Executive Officer Taco Bell Division Senior Management
Michael J. Cavanagh Director Non Executive Board
Mirian M. Graddick-Weir Director Non Executive Board
Monica Rothgery Chief Operating Officer KFC U.S. Senior Management
Paget L. Alves Director Non Executive Board
Robert D. Walter Director Non Executive Board
Scott Catlett General Counsel Senior Management
Scott Catlett Secretary Senior Management
Tanya Domier Director Non Executive Board
Thomas C. Nelson Director Non Executive Board
Tony Lowings Chief Executive Officer KFC Global Senior Management
Tracy Skeans Chief Transformations and People Officer Senior Management
Vipul Chawla President Pizza Hut International Senior Management

Industry Profiles
8.3. Alsea SAB de CV
Alsea SAB de CV (Alsea) is a quick-service restaurant chain operator. The company operates franchised outlets of
leading global chains such as Starbucks, Burger King and Domino’s Pizza. It also operates franchised outlets of full-
service restaurant brands including California Pizza Kitchen, Chili’s Grill & Bar, Italianni’s, P.F. Chang’s China Bistro,
Vips, El Porton, Foster’s Hollywood, La Vaca Argentina, Canas y Tapas and The Cheesecake factory. Alsea’s menu
includes a wide variety of pizzas, hamburgers, sandwiches, bagels, desserts, and drinks. The company operates various
restaurants in Spain, Mexico, Colombia, Chile, Brazil, Uruguay, and Argentina. Alsea is headquartered in Mexico City,
Mexico.
The company reported revenues of (Mexican Pesos) MXN46,156.6 million for the fiscal year ended December 2018
(FY2018), an increase of 8.5% over FY2017. In FY2018, the company’s operating margin was 7.1%, compared to an
margin of 2.6% in FY2017.The company reported revenues of MXN14,580.5 million for the second quarter ended June
2019, an increase of 6.5% over the previous quarter.
8.3.2. Key Facts
Table 14: Alsea SAB de CV: key facts
Avenida Revolucion N 1267Torre Corporative, Piso 21, Colonia Los Alpes,

Head office:
Delegation Álvaro Obregón, , MEXICO, D.F., Mexico, Mexico
Website: www.alsea.net
Ticker: ALSEA*
Stock exchange: Mexico Stock Exchange
Alsea SAB de CV (Alsea) is a multi-brand restaurant operator. The company offers a wide variety of pizzas,
hamburgers, sandwiches, bagels, desserts, and drinks through 14 leading brands such as Domino’s Pizza, Starbucks,
Burger King, vips, Fosters Hollywood, Chili’s, California Pizza Kitchen, P.F. Chang’s, Archies, The Cheesecake Factory,
Italiannis, EL Porton, Canasy Tapas, and LAVACA. The company operates 3,688 units, of which 2,947 are corporate and
741 franchised. In FY2018, Alsea operated 1,139 units of Domino’s Pizza, 1,024 Starbucks, 666 Burger King, 286 vips,
229 Fosters Hollywood, 76 Chili’s, 16 California Pizza Kitchen, 35 P.F. Chang’s, 32 Archies, 3 The Cheesecake Factory,
95 Italiannis, 64 EL Porton, 19 Canasy Tapas, and 4 LAVACA. It served 450 million clients and has over 80,000
collaborators in Spain, Mexico, Colombia, France, Chile, Portugal, Andorra, Brazil, Uruguay, and Argentina.
The company classifies its operations into four segments: Fast Service Restaurants, Coffee Shops, Casual Dining
Restaurants, and Family Restaurants.
Fast Service Restaurants segment of the company include 1,805 units under Domino’s and Burger King Brands. Its
Coffee Shops segment operates 1,024 units under the brand name, Starbucks.
Casual Dining Restaurants segment of the company operates 573 units under various brands, which includes California
Pizza Kitchen, P.F. Chang’s, Italiannis Pasta Pizza and Ving, EL Porton Mexico En Cada Ingrediente, Fosters Hollywood,

Industry Profiles
Canasy Tapas, LAVACA, Chili’s, Archies and The Cheesecake Factory. Under Family Restaurants segment, the company
operates 286 restaurants under the brand vips.
Geographically, the company’s operates through three segments: Mexico, Spain and South America.

Industry Profiles
Table 15: Alsea SAB de CV: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % 45.16 41.69 16.77 12.80 8.53
Operating Income Growth % 31.17 60.29 17.55 34.25 -11.33
EBITDA Growth % 37.35 53.53 19.84 25.43 -0.90
Net Income Growth % -2.11 47.18 1.55 9.34 -12.51
EPS Growth % -5.82 24.95 1.37 12.47 -21.58
Working Capital Growth % 403.20 -7.77 29.02 140.38 23.09
Equity Ratios
EPS (Earnings per Share) MXN 0.82 1.17 1.19 1.31 1.14
Dividend per Share MXN 0.50 0.77 0.68 0.78
Dividend Cover Absolute 2.34 1.55 1.92 1.46
Book Value per Share MXN 10.46 10.68 10.92 11.38 13.85
Gross Margin % 68.09 68.57 68.76 69.61 69.26
Profit Markup % 213.35 218.13 220.06 229.09 225.33
Return on Equity % 7.61 10.97 10.93 11.49 8.24
Return on Assets % 3.08 3.08 2.80 2.80 2.03
Return on Working Capital % -59.69 -103.74 -94.52 -52.79 -38.55
Liquidity Ratios
Leverage Ratios
Debt to Equity Ratio Absolute 1.32 1.40 1.66 1.59 2.24
Net Debt to Equity Absolute 1.25 1.33 1.46 1.44 2.09
Efficiency Ratios

Industry Profiles
Table 16: Alsea SAB de CV: Key Employees

Adriana Norena Director Non Executive Board
Alberto Torrado Chairman Executive Board
Antonio Garcia Director Burger King Mexico Senior Management
Armando Torrado Director Executive Board
Armando Torrado Managing Director Alsea South America Executive Board
Cosme Torrado Martinez Director Non Executive Board
Fabian Gosselin Director Non Executive Board
Federico Tejado Chief Executive Officer Alsea Europe Executive Board
Federico Tejado Director Executive Board
Gerardo Rojas Managing Director Alsea Mexico Senior Management
German Ramirez Managing Director Alsea Colombia Senior Management
Guillermo Madrigal Director Supply Chain Senior Management
Ivan Moguel Director Non Executive Board
Javier Toussaint Director Vips Senior Management
José Luis Portela Managing Director Starbucks Mexico Senior Management
Juan Zamora Director Domino’s Mexico Senior Management
Julio Gutiérrez Director Non Executive Board
Leon Kraig Director Non Executive Board
Maria del Socorro Guajardo Director Human Resource Senior Management
Pablo de los Heros Managing Director Alsea Argentina Senior Management
Pablo Torrado Director Executive Board
Rafael Contreras Chief Financial Officer Senior Management
Rafael Herrero Managing Director Alsea Spain Senior Management
Raul Mendez Director Non Executive Board
Salvador Aponte Director Information Technology Senior Management
Xavier Mangino Secretary Senior Management

Industry Profiles
8.4. Restaurant Brands International Inc
Restaurant Brands International Inc (RBI) is a quick-service restaurant operator. The company owns, operates and
franchises restaurants under Tim Hortons, Popeyes and Burger King brand names. RBI’s Tim Hortons restaurants offer
premium tea, blend coffee, espresso-based hot and cold specialty drinks, classic sandwiches, grilled paninis, wraps
and soups. RBI also offers fresh baked goods such as donuts, bagels, cookies, muffins, and pastries. Its Popeyes
restaurants offer spicy chicken, fried shrimp and other seafood, chicken tenders, red beans and rice. RBI’s Burger King
restaurants offer flame-grilled hamburgers, chicken and other specialty sandwiches, soft drinks and French fries. The
company has operations mainly in Canada and the US. RBI is headquartered in Oakville, Ontario, Canada.
The company reported revenues of (US Dollars) US$5,357 million for the fiscal year ended December 2018 (FY2018),
an increase of 17.1% over FY2017. In FY2018, the company’s operating margin was 35.8%, compared to an operating
margin of 35.3% in FY2017. In FY2018, the company recorded a net margin of 11.4%, compared to a net margin of
14.2% in FY2017.The company reported revenues of US$1,400.0 million for the second quarter ended June 2019, an
increase of 10.6% over the previous quarter.
8.4.2. Key Facts
Table 17: Restaurant Brands International Inc: key facts
Head office: Suite 300130 King Street West, Toronto, Ontario, Canada
Website: www.rbi.com
Restaurant Brands International Inc (RBI) is a quick service restaurant operator. As of December 31, 2018, the
company franchised and owned more than 25,000 restaurants in about 100 countries and the US territories.
RBI classifies its business operations into three segments: Tim Hortons, Burger King and Popeyes Louisiana Kitchen
(Popeyes).

Industry Profiles
Table 18: Restaurant Brands International Inc: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % 4.58 238.02 2.31 10.38 17.06
Operating Income Growth % -95.08 4383.27 44.65 -3.17 18.78
EBITDA Growth % -92.56 2845.09 44.41 -3.06 18.34
Net Income Growth % -30.94 132.40 64.12 5.39 -5.67
EPS Growth % -185.74 96.15 62.51 3.29
Working Capital Growth % -4.59 -64.24 256.66 -89.33 -2.75
Equity Ratios
EPS (Earnings per Share) USD -1.16 0.50 1.45 2.12 2.44
Dividend Cover Absolute -3.87 1.13 2.34 2.72 1.35
Book Value per Share USD 9.30 5.92 7.27 9.13 6.40
Gross Margin % 86.95 55.35 58.34 59.57 66.06
Profit Markup % 666.50 123.94 140.02 147.32 194.66
PBT Margin (Profit Before Tax) % -21.19 16.63 28.94 24.08 25.80
Return on Equity % 3.12 8.10 12.31 29.14 37.99
Return on Assets % 1.19 1.89 3.28 3.22 2.96
Liquidity Ratios
Leverage Ratios
Efficiency Ratios

Industry Profiles
Table 19: Restaurant Brands International Inc: Key Employees

Alexandre Behring Co-Chairman Executive Board
Alexandre Van Damme Director Non Executive Board
Ali G. Hedayat Director Non Executive Board
Carlos Alberto da Veiga Sicupira Director Non Executive Board
Daniel S. Schwartz Co-Chairman Executive Board
Duncan Fulton Chief Corporate Officer Senior Management
Golnar Khosrowshahi Director Non Executive Board
Jill M. Granat General Counsel Senior Management
Jill M. Granat Secretary Corporate Senior Management
Joao M. Castro-Neves Director Non Executive Board
Jose E. Cil Chief Executive Officer Senior Management
Joshua Kobza Chief Operating Officer Senior Management
Marc Caira Vice Chairman Executive Board
Matthew Dunnigan Chief Financial Officer Senior Management
Neil Golden Director Non Executive Board
Paul J. Fribourg Director Non Executive Board
Roberto Moses Thompson Motta Director Non Executive Board

Industry Profiles
8.5. Domino's Pizza, Inc.
Domino's Pizza, Inc. (Domino's or 'the company') is one of the leading pizza restaurant chains in the world. The
company operates through a network of company-owned and franchise stores located in the US. Domino's offers
various products including various pizza products with different toppings and other products such as chicken wings,
soft drinks, pasta-based dishes, oven-baked sandwiches, boneless chicken, bread side items, and desserts.The
company stores are located in Australia, Canada, India, South Korea, Mexico, the UK, Turkey, Japan, France and
others. The company is headquartered in Ann Arbor, Michigan, the US.
The company reported revenues of (US Dollars) US$3,432.9 million for the fiscal year ended December 2018 (FY2018),
an increase of 23.1% over FY2017. In FY2018, the company’s operating margin was 16.7%, compared to an operating
margin of 18.7% in FY2017. In FY2018, the company recorded a net margin of 10.5%, compared to a net margin of
10% in FY2017.
8.5.2. Key Facts
Table 20: Domino's Pizza, Inc.: key facts
Head office: 30 Frank Lloyd Wright DrAnn Arbor, Michigan, United States
Telephone: 13026587581
Fax: 13026555049
Website: www.dominos.com
Ticker: DPZ
Domino's Pizza, Inc. (Domino's or 'the company') is one of the major pizza delivery companies in the world. It operates
through a network of more than 14,856 locations in more than 86 countries around the world. The company sells 2.5
million pizzas per day worldwide.
The company operates through three business segments: supply chain, domestic stores and international franchise.
The supply chain segment operates 18 regional dough manufacturing and food supply chain centers in the US, one
thin crust manufacturing center, one vegetable processing center and a facility to provide equipment and supplies to
certain of its domestic and international stores. The company also operates five dough manufacturing and food supply
chain centers in Canada. The supply chain segment of Domino’s leases a fleet of over 600 tractors and trailers, and
regularly supplies food and supplies to more than 6,000 stores.
The domestic stores segment consists of franchise operations. The segment oversees a network of 5,195 franchised
stores located around the US. It also operates a network of 392 company-owned stores located in the contiguous US.
As of December 31, 2017, the average domestic franchisee owned and operated seven stores; and about 14 of the
company's domestic franchisees operated more than 50 stores, including its largest domestic franchisee, which
operated 187 stores. Furthermore, 271 of Domino’s domestic franchisees operated one store each.

Industry Profiles
The international franchise segment oversees the company's network of 9,269 international franchise stores (as of
December 31, 2017) in more than 85 international markets. The principal sources of revenues from these operations
are royalty payments generated by retail sales from franchised stores.

Industry Profiles
Table 21: Domino's Pizza, Inc.: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % 10.63 11.17 11.55 12.75 23.13
Operating Income Growth % 10.05 17.40 11.99 14.80 9.68
EBITDA Growth % 10.05 17.40 11.99 14.80 9.68
Net Income Growth % 13.71 18.58 11.35 29.45 30.25
EPS Growth % 14.61 22.21 24.05 36.49 40.59
Working Capital Growth % 67.91 39.26 -59.33 96.90 3.15
Equity Ratios
Book Value per Share USD -21.95 -36.12 -39.15 -63.76 -74.19
Gross Margin % 29.83 30.82 31.05 31.06 37.95
Profit Markup % 42.51 44.55 45.03 45.06 61.15
Return on Assets % 28.99 27.62 28.32 35.79 41.51
Liquidity Ratios
Leverage Ratios
Debt to Equity Ratio Absolute -1.23 -1.24 -1.16 -1.15 -1.16
Net Debt to Equity Absolute -1.21 -1.17 -1.14 -1.14 -1.15
Efficiency Ratios

Industry Profiles
Table 22: Domino's Pizza, Inc.: Key Employees

Andrew B. Balson Director Non Executive Board
Art D'Elia Chief Brand Officer Senior Management
Art D'Elia Chief Innovation Officer Senior Management
Art D'Elia Senior Vice President Senior Management
C. Andrew Ballard Director Non Executive Board
Corie S. Barry Director Non Executive Board
David A. Brandon Chairman Executive Board
Diana F. Cantor Director Non Executive Board
J. Kevin Vasconi Chief Information Officer Senior Management
J. Kevin Vasconi Executive Vice President Senior Management
J. Patrick Doyle Chief Executive Officer Executive Board
J. Patrick Doyle Director Executive Board
J. Patrick Doyle President Executive Board
James A. Goldman Director Non Executive Board
Jeffrey D. Lawrence Chief Financial Officer Senior Management
Jeffrey D. Lawrence Executive Vice President Senior Management
Joe Jordan Executive Vice President International Senior Management
John Macksood Executive Vice President Supply Chain Senior Management
Judith L. Werthauser Chief People Officer Executive Board
Judith L. Werthauser Director Executive Board
Judith L. Werthauser Executive Vice President Executive Board
Kevin S. Morris Executive Vice President Senior Management
Kevin S. Morris General Counsel Senior Management
Lisa V. Price Chief Human Resources Officer Senior Management
Lisa V. Price Executive Vice President Senior Management
Chief Marketing Officer Australian and New
Melody Livingston Senior Management
Zealand
Patricia E. Lopez Director Non Executive Board
Richard E. Allison, Jr. President International Senior Management
Richard L. Federico Director Non Executive Board
Russell J. Weiner President International Senior Management

Industry Profiles
Table 23: Domino's Pizza, Inc.: Key Employees Continued

Executive Vice President Franchise
Scott R. Hinshaw Senior Management
Operations and Development
Executive Vice President Communications,
Timothy P. McIntyre Senior Management
Legislative Affairs and Investor Relations
Tom Curtis Executive Vice President USA Senior Management
Troy A. Ellis Executive Vice President Supply Chain Senior Management

Industry Profiles
8.6. Starbucks Corporation
Starbucks Corporation (Starbucks or ‘the company’) is a premier roaster, marketer and retailer of specialty coffee. The
company offers a range of coffee and tea beverages, tea and related products, including packaged roasted whole
bean and ground coffees, and food and snack offerings. It also produces and sells a variety of ready-to-drink
beverages, such as Frappuccino coffee drinks, Starbucks Doubleshot espresso drinks, Starbucks Refreshers beverages,
and chilled multi-serve beverages through various channels including grocery stores, warehouse clubs, convenience
stores, specialty retailers and US foodservice accounts. The company operates in countries across North America, Asia
Pacific, EMEA, and Latin America. Starbucks is headquartered in Seattle, Washington, the US.
The company reported revenues of (US Dollars) US$24,719.5 million for the fiscal year ended September 2018
margin of 12.9% in FY2017.
8.6.2. Key Facts
Table 24: Starbucks Corporation: key facts
Head office: 2401 Utah Avenue SouthSeattle , Washington, United States

Website: www.starbucks.com/
Financial year-end: September
Ticker: SBUX
Stock exchange: NASDAQ
Starbucks Corporation (Starbucks or ‘the company’) is a global coffee retail chain that specializes in coffee and other
related beverages. The company purchases, roasts and sells whole bean coffees along with handcrafted coffee, tea
beverages and a variety of fresh food items, through its company-operated stores. It also sells various coffee and tea
products and licenses its trademarks through other channels such as licensed stores, grocery and national foodservice
accounts. As of September 2018, the company operated 15,341 company-operated stores and 13,983 licensed stores.
Some of the key brands under which the company offers its products include Starbucks, the Starbucks logo, Tazo,
Seattle’s Best Coffee, Teavana, Frappuccino, Starbucks VIA, Evolution Fresh, Ethos and La Boulange. The company
manages collaborative relationships with PepsiCo Inc, Anheuser-Busch InBev, Tingyi Holding Corp, Arla Foods and
others for its global ready-to-drink beverage businesses.
The company operates through five segments: the Americas; China/Asia Pacific (CAP); Channel Development; EMEA;
and Corporate and Other.
Across the Americas, EMEA and CAP regions, the company sells coffee and other beverages, complementary food,
packaged coffees, single-serve coffee products and select merchandise through company-operated stores and
licensed stores. The Americas, CAP and EMEA segments also include certain foodservice accounts, primarily in Canada,
Japan and the UK. In FY2018, the Americas segment reported revenues of US$16,732.2 million, which accounted for
67.7% of the company's total revenue. In FY2018, the CAP segment reported revenues of US$4,473.6 million, which

Industry Profiles
accounted for 18.1% of the company's total revenue. In FY2018, the EMEA segment reported revenues of US$1,048
million, which accounted for 4.2% of the company's total revenue.
The Channel Development segment, Starbucks offers roasted whole bean, ground coffees under several brands
including Seattle's Best Coffee, Starbucks and Teavana. It also offers single-serve products and a variety of ready-to-
drink beverages under Frappuccino, Starbucks Doubleshot, Starbucks Refreshers beverages and TeavanaTM/MC
brands through its company-operated and licensed stores. The company distributes and markets CPG and foodservice
products through Nestle, In FY2018, the Channel Development segment reported revenues of US$2,297.3 million,
which accounted for 9.3% of the company's total revenue.
The Corporate and Other segment of the company includes Teavana, Seattle's Best Coffee, Evolution Fresh, and
certain developing businesses such as Starbucks Reserve Roastery & Tasting Room. In FY2018, the Corporate and
Other segment reported revenues of US$168.4 million, which accounted for 0.7% of the company's total revenue.
Starbucks operates its business through two varieties of stores, including Company-operated stores and licensed
stores. As of September 2018, the company operated 17,454 stores in Americas, in which 9,684 company-operated
stores and 7,770 licensed stores; 8,530 stores in CAP, which includes 5,159 company-operated and 3,371 licensed
stores; 3,320 stores in EMEA, in which 490 company-operated and 2,830 licensed stores; and 20 Corporate and Other
stores, in which 8 company-operated and 12 licensed stores. In FY2018, the company generated approx. 52% of its
revenue from company-operates stores and 48% of revenue from licensed stores.

Industry Profiles
Table 25: Starbucks Corporation: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % 16.51 11.24 5.02 10.42 7.24
Operating Income Growth % 27.57 6.14 -0.89 39.28 -18.38
EBITDA Growth % 27.27 6.80 -0.13 36.14 -13.24
Net Income Growth % 33.33 2.19 2.38 56.63 -20.34
EPS Growth % 23.89 13.73 9.05 16.70 9.47
Working Capital Growth % -71.42 -34.62 403.41 540.82 -107.56
Equity Ratios
Book Value per Share USD 3.92 4.03 3.81 0.89 -5.26
Gross Margin % 59.36 60.07 59.63 58.84 67.83
Profit Markup % 146.07 150.45 147.69 142.96 210.88
Return on Equity % 39.23 47.39 47.89 52.93 386.34
Return on Assets % 23.80 21.08 20.12 23.46 16.60
Liquidity Ratios
Leverage Ratios
Net Debt to Equity Absolute 0.14 0.25 0.27 0.58 -1.36
Efficiency Ratios

Industry Profiles
Table 26: Starbucks Corporation: Key Employees

Andrew Campion Director Non Executive Board
Andy Adams Senior Vice President Store Development Senior Management
Senior Vice President Partner Resources,
Angela Lis Senior Management
Global Retail
Belinda Wong Chief Executive Officer Starbucks China Senior Management
Brady Brewer Chief Operating Officer Starbucks Japan Senior Management
Senior Vice President Logistics and U.S.
Carl Mount Senior Management
Retail Supply Chain
Chris Carr Chief Procurement Officer Senior Management
Chris Carr Executive Vice President Senior Management
Chris Fallon Senior Vice President Business Technology Senior Management
Clara Shih Director Non Executive Board
Clifford Burrows President Siren Retail Senior Management
Senior Vice President Operations Services
Denise Nelsen Senior Management
and the US Alignment
Duncan Moir President Global Channel Development Senior Management
Emily Chang Senior Vice President U.S. Marketing Senior Management
Senior Vice President Global Food Safety,
George Dowdie Senior Management
Quality and Regulatory
Gerri Martin-Flickinger Chief Technology Officer Senior Management
Gerri Martin-Flickinger Executive Vice President Senior Management
Senior Vice President Marketing, Brand and
Gina Woods Senior Management
Partner Communications
Hans Melotte Executive Vice President Global Supply Chain Senior Management
Holly May Senior Vice President Global Total Rewards Senior Management
Isabel Ge Mahe Director Non Executive Board
James G. Shennan Director Non Executive Board
Janet Landers Senior Vice President Business Technology Senior Management
Javier G. Teruel Director Non Executive Board
Senior Vice President Retail and Core
Jeff Wile Senior Management
Technology Services
Senior Vice President Partner Resources,
Jen Frisch U.S. Retail, Licensed Stores and Operations Senior Management
Services
President International, Channel Development
John Culver Senior Management
and Global Coffee and Tea
Senior Vice President Global Public Affairs
John Kelly Senior Management
and Social Impact
Senior Vice President Analytics and Market
Jon Francis Senior Management
Research
Jorgen Vig Knudstorp Director Non Executive Board

Industry Profiles
Table 27: Starbucks Corporation: Key Employees Continued

Joshua Cooper Ramo Director Non Executive Board
Katie Seawell Senior Vice President Siren Retail Operations Senior Management
Kelly Bengston Chief Procurement Officer Global Sourcing Senior Management
Kelly Bengston Senior Vice President Global Sourcing Senior Management
Kevin R. Johnson Chief Executive Officer Executive Board
Kevin R. Johnson Director Executive Board
Kevin R. Johnson President Executive Board
Leo Tsoi Chief Operating Officer Starbucks China Senior Management
Liz Muller Chief Design Officer Senior Management
Lucy Lee Helm Chief Partner Officer Senior Management
Lucy Lee Helm Executive Vice President Senior Management
Senior Vice President Global Product
Luigi Bonini Senior Management
Innovation
Deputy General Counsel-Law and Corporate
Mark Fordham Senior Management
Affairs
Senior Vice President Law and Corporate
Mark Fordham Senior Management
Affairs
Senior Vice President U.S Licensed Stores
Mark Ring Senior Management
and Latin America
Martin Brok President Starbucks EMEA Senior Management
Mary N. Dillon Director Non Executive Board
Matthew Ryan Chief Marketing Officer Senior Management
Matthew Ryan Executive Vice President Senior Management
Mellody Hobson Director Non Executive Board
Michael Conway Executive Vice President Starbucks Canada Senior Management
Michael Conway President Starbucks Canada Senior Management
Michelle Burns Senior Vice President Global Coffee and Tea Senior Management
Myron E. Ullman, III Director Non Executive Board
Nzinga Shaw Chief Inclusion and Diversity Officer Senior Management
Patrick Grismer Chief Financial Officer Senior Management
Patrick Grismer Executive Vice President Senior Management
Rachel Gonzalez Executive Vice President Senior Management
Rachel Gonzalez General Counsel Senior Management
Rachel Gonzalez Secretary Senior Management

Industry Profiles

Rosalind G. Brewer Chief Operating Officer Executive Board
Rosalind G. Brewer Director Executive Board
Rosalind G. Brewer President Americas Executive Board
Rossann Williams Executive Vice President U.S. Retail Senior Management
Rossann Williams President U.S. Retail Senior Management
Senior Vice President US Beverage Category
Sandra Stark Senior Management
and Global Innovation
Sara Trilling President Starbucks Asia Pacific Senior Management
Sara Trilling Senior Vice President Starbucks Asia Pacific Senior Management
Satya Nadella Director Non Executive Board
Senior Vice President Store Development and
Scott Keller Senior Management
Design
Chief Executive Officer Tata Starbucks Private
Sumitro Ghosh Senior Management
Limited
Takafumi Minaguchi Chief Executive Officer Starbucks Japan Senior Management
Tom Ferguson Senior Vice President West Division Senior Management
Vivek Varma Executive Vice President Public Affairs Senior Management

Industry Profiles

Industry Profiles
8.7. Doctor's Associates Inc
Doctor's Associates Inc (Subway) is an operator of quick service restaurants. The company conducts business
operations under Subway brand. It offers a wide variety of hot and cold subs, sandwiches, salads, sides, fresh breads,
wraps, veggies, toppings, desserts, cookies and beverages. It also provides catering services. Its catering menu
includes sandwich platters, giant subs, subway meals, and cookie platters. Subway provides all the support and
training for its franchisees. The company also offers online ordering, gift cards, dine-in, and take-away services in its
restaurants operating across the world. It has presence in the Americas, Europe, Africa, Asia-Pacific, and the Middle
East. Subway is headquartered in Milford, Connecticut, the US.
8.7.2. Key Facts
Table 30: Doctor's Associates Inc: key facts
Head office: 325 Sub Way Milford, Connecticut, United States

Website: www.subway.com
Financial year-end: April
Doctor's Associates Inc (Subway) is an operator and franchisor of quick-service restaurants under Subway brand. The
company’s restaurants primarily offer sandwiches, salads, sides, breakfast, kids’ menu and fresh fit choices. The
company operates over 44,000 restaurants, including 21,000 franchisees in more than 100 countries worldwide.
Subway serves more than seven million sandwiches in a day across the world. It operates outlets in the Americas,
Africa, Europe, Asia-Pacific, and the Middle East.
The company’s restaurants offer a substantially uniform menu, with a few geographic variations that include hot and
cold subs, breakfast, salads, soups, side dishes and beverages. Subway’s sandwich menu offerings include black forest
ham, chicken and bacon ranch melt, cold cut combo, Italian BMT, roast beef, steak and cheese, classic tuna, turkey
breast, and veggie delite. The breakfast offerings include bacon, egg and cheese; black forest ham, egg and cheese;
steak, egg and cheese; and egg and cheese. Its kid’s menu features turkey breast, roast beef, veggie delite and black
forest ham. Its chopped salad range include chicken and bacon ranch salad, black forest ham, cold cut combo,
meatball marinara salad, roast beef salad, spicy Italian salad, and veggie delite salad. Its sides and drinks menu
includes chips, cookies, musselman’s apple sauce, 1% low fat milk, honest kids, Coca Cola fountain sodas, simply
orange, X2 sport energy, fruit punch, and coffee.
Its Signature wraps offerings include new sesame-ginger glazed chicken, new sweet n’ smoky steak and guac, chipotle
southwest steak and cheese, savory rotisserie-style chicken caesar, cold cut combo, and sweet onion chicken teriyaki.
It also offers breads, toppings and extras, which includes fresh-baked breads, tasty cheeses, crisp veggies, and
flavorful sauces. The company offers fresh fit menu, which includes high source of proteins, two veggies and 24 grams
of whole grain. Its fresh fit menu offerings comprise oven roasted chicken, roast beef, sweet onion chicken teriyaki,
rotisserie-style chicken, subway club, and turkey breast.

Industry Profiles
Subway also offers catering services for corporate meetings and family gatherings. Its catering menu comprises
sandwich platters, giant subs, subway meals, wrap platters, drinks and sides and deserts. Its restaurants also offer
online ordering service.

Industry Profiles
Table 31: Doctor's Associates Inc: Key Employees

Carissa Ganelli Chief Digital Officer Senior Management
Carrie Walsh Chief Marketing Officer North America Senior Management
Chris Carroll Chief Advertising Officer Senior Management
John Chidsey Chief Executive Officer Senior Management
Vice President Global Brand Management and
Len Van Popering Senior Management
Innovation
Mike Macrie Chief Information Officer Subway Senior Management
Tracy Steinwand Director Global Operations Senior Management
Trevor Haynes President North America Senior Management

Industry Profiles
8.8. Fomento Economico Mexicano SAB de CV
Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA) is a beverage and retail company with focus on soft drinks;
fuels; pharmaceuticals, health and beauty products. It is one of the major franchise bottler and supplier of Coca-Cola
trademark beverages including sparkling beverages, still beverages and bottled water. The company produces,
markets, distributes, and sells Coca-Cola trademark beverages, including sparkling beverages, such as colas and
flavored sparkling beverages; and waters and still beverages comprising juice, coffee, tea, milk, value-added dairy,
sports, energy, and plant-based drinks FEMSA offers services such as logistics, refrigerator sales and recycling plastics.
The company operates a chain of convenience stores; drugstores and fuel service stations in Mexico, Guatemala,
Nicaragua, Costa Rica, Panama, Brazil, Chile, Argentina, Colombia, Venezuela and the Philippines. FEMSA is
headquartered in Monterrey, Mexico.
The company reported revenues of (Mexican Pesos) MXN469,744 million for the fiscal year ended December 2018
margin of 9.6% in FY2017.The company reported revenues of MXN115,938.2 million for the first quarter ended March
2019, a decrease of 8.5% over the previous quarter.
8.8.2. Key Facts
Table 32: Fomento Economico Mexicano SAB de CV: key facts
Telephone: 528183286000
Fax: 528183686080
Website: www.femsa.com/es/
Ticker: FEMSAUBD
Stock exchange: Mexico Stock Exchange
Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA) is a Mexican multinational company with focus on beverage
and retail industries in 12 countries.
The company classifies its business operations into five reportable segments: Coca-Cola FEMSA, FEMSA Comercio
Retail Division, FEMSA Comercio Health Division, FEMSA Comercio Fuel Division and Other.

Industry Profiles
Table 33: Fomento Economico Mexicano SAB de CV: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % 2.07 18.27 28.22 10.12 6.78
Operating Income Growth % 4.78 6.67 1.20 17.78 4.96
EBITDA Growth % 4.74 7.00 2.06 18.19 5.78
Net Income Growth % 4.89 5.88 19.55 100.61 -43.43
EPS Growth % 5.75 4.74 19.39 92.38 -47.67
Working Capital Growth % 20.62 -28.25 48.11 140.56 -0.03
Equity Ratios
EPS (Earnings per Share) MXN 0.93 0.99 1.18 2.16 1.15
Book Value per Share MXN 9.53 10.15 11.84 13.99 14.37
Gross Margin % 41.82 39.53 37.10 36.84 37.29
Profit Markup % 71.88 65.38 58.97 58.34 59.47
Return on Equity % 9.80 9.74 9.98 16.94 9.33
Return on Assets % 4.54 4.50 4.43 7.48 4.12
Liquidity Ratios
Leverage Ratios
Efficiency Ratios

Industry Profiles
Table 34: Fomento Economico Mexicano SAB de CV: Key Employees

Alberto Bailleres Gonzalez Director Non Executive Board
Alejandro Gil Ortiz Alternate Secretary Senior Management
Alfonso de Angoitia Noriega Director Non Executive Board
Alfonso Garza Garza Director Executive Board
Vice President of Strategic Businesses of
Alfonso Garza Garza Executive Board
FEMSA
Alfonso Gonzalez Migoya Director Non Executive Board
Armando Garza Sada Director Non Executive Board
Arturo Fernandez Perez Director Non Executive Board
Barbara Garza Laguera Gonda Director Non Executive Board
Bertha Michel Gonzalez Director Non Executive Board
Carlos Eduardo Aldrete Ancira Secretary Senior Management
Daniel Alberto Rodriguez Cofre Chief Executive Officer FEMSA Comercio Executive Board
Daniel Alberto Rodriguez Cofre Director Executive Board
Enrique F. Senior Hernandez Director Non Executive Board
Eva Maria Garza Laguera Gonda Director Non Executive Board
Federico Reyes Garcia Director Non Executive Board
Francisco Javier Fernandez
Director Non Executive Board
Carbajal
Francisco Jose Calderon Rojas Director Non Executive Board
Francisco Zambrano Rodríguez* Director Non Executive Board
Genaro Borrego Estrada Vice President, Corporate Affairs Senior Management
Gerardo Estrada Attolini Director Corporate Finance Senior Management
Javier Gerardo Astaburuaga
Director Executive Board
Sanjines
Javier Gerardo Astaburuaga Vice President-Corporate Development of
Executive Board
Sanjines FEMSA
John Anthony Santa Maria
Chief Executive Officer Coca Cola FEMSA Executive Board
Otazua
John Anthony Santa Maria
Director Executive Board
Otazua
Jose Antonio Fernandez Carbajal Chairman Executive Board
Jose Fernando Calderon Rojas Director Non Executive Board
Vice President Administration and Corporate
Jose Gonzalez Ornelas Senior Management
Control of FEMSA
Jose Manuel Canal Hernando Director Non Executive Board
Juan Carlos Garza Garza Director Non Executive Board

Industry Profiles
Table 35: Fomento Economico Mexicano SAB de CV: Key Employees Continued

Juan Guichard Michel Director Non Executive Board
Mariana Garza Laguera Gonda Director Non Executive Board
Max Michel Suberville Director Non Executive Board
Maximo Jose Michel Gonzalez Director Non Executive Board
Michael Larson Director Non Executive Board
Miguel Eduardo Padilla Silva Chief Executive Officer Executive Board
Miguel Eduardo Padilla Silva Director Executive Board
Moises Naim Director Non Executive Board
Othon Paez Garza Director Non Executive Board
Paulina Garza Laguera Gonda Director Non Executive Board
Ricardo E. Saldivar Escajadillo Director Non Executive Board
Ricardo Guajardo Touche Director Non Executive Board
Robert E. Denham Director Non Executive Board
Roberto Campa Cifrian Vice President Corporate Affairs of FEMSA Senior Management
Sergio Deschamps Ebergenyi Director Non Executive Board
Víctor Alberto Tiburcio Celorio Director Non Executive Board

Industry Profiles
9. Macroeconomic Indicators
9.1. Country data
Table 36: Mexico size of population (million), 2014–18
Year Population (million) % Growth

2014 119.7 1.1%
2015 121.0 1.1%
2016 122.3 1.0%
2017 123.5 1.0%
2018 124.7 1.0%
Table 37: Mexico gdp (constant 2005 prices, $ billion), 2014–18
Year Constant 2005 Prices, $ billion % Growth

2014 1,068.2 2.2%
2015 1,104.3 3.4%
2016 1,145.5 3.7%
2017 1,188.4 3.8%
2018 1,233.6 3.8%
Table 38: Mexico gdp (current prices, $ billion), 2014–18
Year Current Prices, $ billion % Growth

2014 1,294.7 2.7%
2015 1,382.4 6.8%
2016 1,469.2 6.3%
2017 1,571.5 7.0%
2018 1,680.8 7.0%
Table 39: Mexico inflation, 2014–18

Industry Profiles
Year Inflation Rate (%)

2014 4.0%
2015 3.5%
2016 3.1%
2017 3.1%
2018 3.1%
Table 40: Mexico consumer price index (absolute), 2014–18
Year Consumer Price Index (2005 = 100)

2014 144.4
2015 149.4
2016 154.1
2017 158.9
2018 163.9
Table 41: Mexico exchange rate, 2014–18
Year Exchange rate ($/MXN) Exchange rate (€/MXN)

2014 13.3026 17.6558
2015 15.8724 17.6105
2016 18.6872 20.6677
2017 18.8954 21.3509
2018 19.2279 22.6911

Industry Profiles
Appendix
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of
each definition are carefully reviewed at the start of the research process to ensure they match the requirements of
both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data
to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which
can then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry Profiles
9.2. Industry associations
9.2.1. International Hotel & Restaurant Association
48 Boulevard de Sébastopol, 75003 Paris, FRA

Tel.: 33 1 4488 9220
Fax: 33 1 4488 9230
www.ih-ra.com
9.3. Related MarketLine research
9.3.1. Industry Profile
Global Foodservice
Foodservice in Asia-Pacific
Foodservice in the United States

Industry Profiles
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MarketLine Industry Profile

Reference Code: 0071-2333

Publication Date: December 2019

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Market volume

1.4. Market volume forecast

1.5. Category segmentation

1.6. Geography segmentation

1.7. Market rivalry

1.8. Competitive Landscape

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© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

1.1. Market value ................................................................................................................................ 2

1.2. Market value forecast .................................................................................................................. 2

1.3. Market volume ............................................................................................................................. 2

1.4. Market volume forecast ............................................................................................................... 2

1.5. Category segmentation ............................................................................................................... 2

1.6. Geography segmentation ............................................................................................................ 2

1.7. Market rivalry ............................................................................................................................... 2

1.8. Competitive Landscape ............................................................................................................... 2

2.1. Market definition .......................................................................................................................... 9

2.2. Market analysis ............................................................................................................................ 9

3.1. Market value .............................................................................................................................. 11

3.2. Market volume ........................................................................................................................... 12

4.1. Category segmentation ............................................................................................................. 13

4.2. Geography segmentation .......................................................................................................... 14

5.1. Market value forecast ................................................................................................................ 15

5.2. Market volume forecast ............................................................................................................. 16

6. Five Forces Analysis17

6.1. Summary ................................................................................................................................... 17

6.2. Buyer power............................................................................................................................... 19

6.3. Supplier power ........................................................................................................................... 20

6.4. New entrants.............................................................................................................................. 22

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6.5. Threat of substitutes .................................................................................................................. 23

6.6. Degree of rivalry ........................................................................................................................ 24

7.1. Who are the leading players? .................................................................................................... 26

7.2. What strategies do the leading players follow? ......................................................................... 26

7.3. How is technology being used by the leading companies? ....................................................... 27

8.1. McDonald's Corp ....................................................................................................................... 29

8.2. Yum! Brands, Inc. ...................................................................................................................... 34

8.3. Alsea SAB de CV....................................................................................................................... 37

8.4. Restaurant Brands International Inc .......................................................................................... 41

8.5. Domino's Pizza, Inc. .................................................................................................................. 44

8.6. Starbucks Corporation ............................................................................................................... 49

8.7. Doctor's Associates Inc ............................................................................................................. 56

8.8. Fomento Economico Mexicano SAB de CV .............................................................................. 59

9.1. Country data .............................................................................................................................. 63

9.2. Industry associations ................................................................................................................. 66

9.3. Related MarketLine research .................................................................................................... 66

About MarketLine ..................................................................................................................................... 67

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Table 2: Mexico foodservice industry volume: billion transactions, 2014–18 12

Table 3: Mexico foodservice industry category segmentation: $ billion, 2018 13

Table 4: Mexico foodservice industry geography segmentation: $ billion, 2018 14

Table 5: Mexico foodservice industry value forecast: $ billion, 2018–23 15

Table 6: Mexico foodservice industry volume forecast: billion transactions, 2018–23 16

Table 7: McDonald's Corp: key facts 29

Table 8: McDonald's Corp: Annual Financial Ratios 31

Table 9: McDonald's Corp: Key Employees 32

Table 10: McDonald's Corp: Key Employees Continued 33