Americana Restaurants reports 15.2% decline in revenue to US$1.61B in first 9 months of 2024

MENA – The largest QSR and out-of-home dining restaurant operator in the Middle East and North Africa, Americana Restaurants has reported revenues of US$1.61 billion in the first nine months of 2024, a decline of 15.2% compared to the same period in 2023.

The company reported a year-on-year improvement in gross margins, driven by favorable commodity trends and effective procurement initiatives.

It announced adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$350.6 million, resulting in a margin of 21.8%.

However, the adjusted EBITDA margin for the first nine months of 2024 was affected by a lower revenue base, albeit partially mitigated by various cost reduction strategies.

For the first nine months of 2024, the net profit attributable to the shareholders of the Parent Company was reported at US$117.4 million, reflecting a 48.2% decrease compared to the previous year.

This decline in net income was attributed to lower EBITDA, increased depreciation charges related to new store openings during the period, and the introduction of corporate tax in the UAE.

Americana, which operates brands such as KFC, Krispy Kreme, and Pizza Hut across the Middle East, North Africa, and Kazakhstan, reported a net profit of US$37.4 million for the third quarter of 2024.

In terms of revenue, Americana Restaurants generated US$555.0 million in Q3 2024, marking a slight decrease of 0.8% from Q2 2024, reflecting resilience despite ongoing conflicts in the region.

The company also observed a significant recovery in both average daily transactions and average daily sales per store compared to Q2 2024.

Additionally, Americana Restaurants expanded its presence by opening 113 new stores in the first nine months of 2024, raising its total restaurant count to 2,504 as of September 30, 2024.

In the past year, consumer boycotts in several Muslim-majority countries have targeted American brands in protest against U.S. support for Israel’s military actions, particularly its ongoing operations in Gaza, Lebanon, and the West Bank.

This boycott has also affected Gulf retail giant AlShaya Group, which operates Starbucks in the region; sources indicated in March that the company laid off over 2,000 staff as a result.

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