Alicosta BK Holding S.A.

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What it is

Alicosta BK Holding’s core activities are the rental, purchase and sale of real estate and equipment to its related company, plus investment in the operator of the Burger King fast-food franchise; it owns the building, land and machinery of the restaurant outright, and holds 50% of the shares of the operating entity, Restaurantes Rápidos RESRAP S.A.

Income flows in two ways: rent charged to the franchise operator, and a 50% share of the restaurant’s operating results. The company was designed to carry no financial debt, making shareholders direct owners of a property asset that also participates in the trading profits of the outlet.

Who owns it

Alicosta’s 2012 stock listing was presented as a globally unique opportunity for retail investors to participate directly in the economics of a Burger King restaurant, with Ecuador claiming a world first in this type of capital-markets product. The company was incorporated in January 2012 in Guayaquil.

The entire 235,000-share capital was offered to the public at $12.00 per share at the time of listing; the current free-float structure and any controlling bloc are not disclosed in available open sources. A general shareholders’ meeting was called in February 2022, with documentation available through the company’s own investor portal.

Who runs it

Paul E. Palacios signed the most recent publicly available management report — the 2015 shareholder letter — as Presidente (Chairman and chief executive).

Whether this role has since changed is not disclosed in available sources; the company employs only four people as of 2024.

The legal adviser to the company as a listed issuer was the law firm Panda Asociados (per the 2015 filing); no CFO or separate board chair is named in available open filings.

The money, in plain words

In the last publicly available audited year (2015), the company collected $293,927 in rental and related income and kept about 20 cents from every dollar — a net profit margin of roughly 20.3% (our calculation), respectable for a micro property-holding company. Management recommended distributing 100% of that $59,572 net profit as dividends, which has been the stated policy from inception.

In the most recently filed period tracked by EMIS, revenue fell about 1.1% while total assets also slipped slightly, but net margin edged up by approximately 1 percentage point — suggesting the company cut costs faster than revenues declined. At the current exchange-listed price of $9.50 per share (against a $1.00 nominal), the entire enterprise is valued at roughly $2.23 million — a market capitalisation that reflects the replacement value of one restaurant property and its income stream (our calculation).

What it is doing now

Burger King has operated in Ecuador since 1982, and the local franchise — now running approximately 15 restaurants nationally — conducted Ecuador’s first-ever fast-food securitisations, in 2006 and 2009, before Alicosta’s 2012 equity listing. Alicosta’s single restaurant, at km 11.5 on the Vía a la Costa road in Guayaquil, remains the sole asset; no expansion or new listing has been announced in available sources.

The company continues to file with Ecuador’s securities regulator (SCVS) and the Bolsa de Valores de Guayaquil, maintaining its status as a listed issuer; the most recent annual general meeting notice found in open sources dates to March 2022.

What to watch

• Revenue trend: Income depends entirely on one rental contract and one restaurant’s sales; any softness in foot traffic at the Vía a la Costa outlet flows directly to shareholders.
• Dividend continuity: The company’s appeal rests on passing all net profit to investors; any change to that 100%-payout policy would materially alter its investment case.
• Liquidity: With a market cap of roughly $2.2 million and just 235,000 shares, trading is thin; the bid-ask spread can be wide, and the price ($9.50 versus a $12.00 IPO price) reflects over a decade of illiquidity risk.
• Governance disclosure: More recent audited financials and updated board information are not available in open sources; investors should request the latest SCVS filing directly.

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This is news, not investment advice.