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A group of Americana Restaurants

Americana Restaurants nets $2.41bn revenue in 2023

DUBAI, February 15, 2024

Americana Restaurants International, the largest out-of-home dining and quick service restaurant operator in Mena, has along with its subsidiaries registered $2.41 billion in revenues for FY 2023, thus posting a 1.5% year-on-year growth on account of record 300 gross new store openings. 
 
The company demonstrated resilient performance, despite $106 million impact of unfavourable foreign exchange movements, especially in Egypt, and impact on business during the fourth quarter due to recent regional geopolitical tensions, the company said in a press release.
 
Adjusted ebitda increased to $550.8 million, reflecting a 2.8% growth year-on-year with a healthy adjusted ebitda margin of 22.8%.  Net profit (attributable to shareholders of the Parent Company) for 2023 increased by 0.1%, with a net profit margin of 10.8% driven by operational efficiencies and gross margin improvements. 
 
This was achieved despite higher depreciation charges of $32.8 million (vs. 2022) due to new store openings, and the lower revenue impact on Q4 earnings.
 
Americana Restaurants International allocated $167.9 million, equivalent to 7% of revenues, for gross capital expenditures, facilitating the opening of 300 gross new restaurants.
 
This expansion brought the total store count to 2,435, as at the end of 2023, enhancing the reach of renowned brands, it stated.
 
Additionally, the company launched Peet's Coffee in the region, by opening stores in the UAE and Saudi Arabia, a strategic move aimed at leveraging the growing demand for premium coffee. 
 
Impressed with the results, Americana Restaurants Board has announced an ordinary dividend of $130 million (equivalent to $0.0154 per share) for 2023 in line with its previous guidance, and an additional one-time special dividend of $50 million (equivalent to $0.0059 per share).
 
The dividend will be subject to shareholders approval at their upcoming Annual General Meeting.
 
KFC expansion
KFC celebrated its 50th year in the region, opening its 1,000th store and dominating the chicken segment across all the Company’s markets. KFC contributed 61.3% of the company’s revenues, amounting to $1.47 billion.
 
Last year, KFC had opened 97 gross new units, with expansion primarily focused on Saudi Arabia, Morocco and the UAE including a successful launch in Baghdad. 
 
Hardee's revenues soar
Hardee's generated revenues of $395.5 million, contributing 16.4% of Americana Restaurants' total revenues. Hardee's remained focused on expansion, and opened 33 gross new stores in 2023.
 
The brand prioritised product innovation, operational excellence, digitalisation, and implemented diverse omnichannel strategies to elevate the overall customer experience.
 
Pizza Hut revenue boost
Pizza Hut contributed approximately 11.7% of Americana Restaurants' revenues, totalling $281.3 million in FY 2023. The brand delivered 6.4% growth in revenue.
 
During 2023, Pizza Hut further expanded by opening 56 gross new stores, with a primary focus on Saudi Arabia, and the UAE, as well as by broadening geographic coverage with market entry in Iraq.
 
Krispy Kreme
Krispy Kreme contributed approximately 4.1% of annual revenues, generating $97.8 million in revenue, posting a healthy 8.3% year-on-year growth. The brand expanded its reach by opening 84 gross new stores and a successful entry in Kazakhstan market.
 
The brand continued to excel on product innovation and offered unique co-branded donuts in partnership with global brands such as Kitkat and Nutella. 
 
Financial stability 
Americana Restaurants maintains a robust balance sheet and solid financial position. Cash flow from operations increased by 18.9% to reach $539.8 million in 2023. With adjusted Free Cash Flow of $182.8 million and a cash conversion ratio of 52.1%, Americana Restaurants exhibits a strong financial stability that enables it to pursue growth objectives, fulfil its capital expenditure obligations and support the dividend policy. 
 
On its future outlook, the company said it remains focused on expansion and penetration through strategic growth opportunities.
 
The company will continue to increase its share of wallet and share of voice through purposeful innovation, raising the bar on operational efficiencies, adopting next generation digital technology and marketing initiatives, it added.-TradeArabia News Service



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