top of page

Financial difficulties lead famous fast-food chain to bankruptcy. Brazilian Economy.

12/01/2025. Brazilian Economy


Seeking to rebound, several American fast-food chains have filed for bankruptcy in the past five years, a reflection of the financial crisis triggered by the Covid-19 pandemic.


FALENCIA

A case that illustrates this situation is that of the fast-food chain BurgerFi. The company, which at one point operated 144 units focused on burgers and pizzas in the United States, recently went through a similar process. Seeking to reverse the situation, BurgerFi made the decision to close 19 of its underperforming company-owned stores and adopted a policy of reducing operating costs. In addition to the decline in consumption observed in the post-pandemic period, the fast-food company had to deal with the challenges of high inflation and rising food and labor costs. The BurgerFi bankruptcy case illustrates the financial difficulties that the fast-food sector is currently facing in the United States. Several companies in the industry are encountering obstacles in adjusting to the new post-pandemic economic reality.


What's the state of the economy in Brazil? Things aren't looking too good for 2025. Brazilian Economy


Brazil's economy is expected to slow down this year after a projected growth of 3% in 2024, the UN says.


FALENCIA

The UN expects the pace of Brazil's economic growth to slow in 2025. This projection is based on a tighter monetary policy, coupled with reduced fiscal spending and weaker export performance.


Finance Minister Fernando Haddad also believes that the Central Bank's more restrictive monetary policy will result in a swift response from the economy.


Despite this projected slowdown, the UN report indicates that Brazil's resilient growth and Argentina's gradual recovery, after a long period of recession, should sustain the economic momentum in Latin America.


The UN, however, warns that there are significant risks that could undermine this outlook. "A sharper-than-expected downturn in the economies of China and the United States would negatively affect exports, remittances, and capital flows to the region, on the external front," the Organization added.


A scenario of greater uncertainty in commodity prices could negatively impact investor confidence, discouraging long-term investments.


In his column for CNN Money, Gilvan Bueno analyzes the economic challenges for 2025, both in the international and Brazilian contexts. For him, interest rates, public debt, and the labor market are among the most critical factors.


Despite this, the specialist notes signs of a slower pace in the economy. The rising cost of money has led many entrepreneurs to review their expansion plans and postpone new investments. Added to this is the apprehension about a possible increase in default rates, particularly among companies.


According to MĂĄrcio Estrela, a consultant at Abracam (Brazilian Exchange Association), the dollar experienced an overshooting at the end of 2024. He explains that pressures typical of this time of year, such as profit remittances abroad and accounting closures, contributed to this scenario. In addition, as the Abracam consultant explained, higher-than-expected inflation and some dissatisfaction in the financial market regarding the announced fiscal measures contributed to the rise of the American currency. Projecting the scenario for the new year, Estrela foresees a mitigation of this trend. "The expectation is that the exchange rate will stabilize, and that at the end of the first quarter it will be at a level, I wouldn't say exactly of equilibrium, but close to 6.05, 6.10," he stated. Estrela emphasized that this estimate depends, among other factors, on the absence of a worsening of the fiscal scenario by the government.


1 view0 comments

Comments


© 2022 Contabilizza KT Prime

Est San Francisco 2008. Room 1713 -

Zip code 06765-001 Taboao da Serra - SP

CNPJ: 23.458.288/0001-48

Siga a gente:

  • Facebook
  • Instagram
  • Whatsapp
  • Blogger
bottom of page