Americana Restaurants H1 2025 presentation: 15.6% revenue growth fueled by expansion

Executive Summary

Americana Restaurants International PLC (AMR) reported robust financial results for the first half of 2025, with double-digit growth across all key metrics. The company’s revenue increased by 15.6% to $1,217.0 million, while EBITDA rose by 17.9% to $274.9 million compared to the same period last year. Net profit grew by 15.7% to $92.5 million, maintaining a stable margin of 7.6%.

The strong performance was driven by a 12.4% increase in like-for-like (LfL) sales and continued expansion of the restaurant portfolio, which now stands at 2,638 locations across the MENA region. The company added 214 gross new restaurants in the last twelve months and has 53 additional sites under construction.

As shown in the following comprehensive performance dashboard:

Quarterly Performance Highlights

Americana’s power brands demonstrated strong recovery in H1 2025, with double-digit growth in transactions across most of its portfolio. KFC, the company’s largest brand, generated $726 million in revenue, up 14.5% year-over-year with 11.8% LfL growth. Hardee’s saw the highest LfL growth at 17.2%, contributing to a 21.2% overall revenue increase to $212 million. Pizza Hut delivered the strongest total growth at 24.8%, reaching $160 million in revenue.

The following chart illustrates the performance of each power brand:

The company’s profitability metrics showed significant improvement, with EBITDA margin expanding to 22.6% from 22.1% in H1 2024. This growth was achieved despite increased costs associated with home delivery and the establishment of a Center of Excellence for IT in India.

As demonstrated in this chart of EBITDA and net profit growth:

Detailed Financial Analysis

Revenue growth of 15.6% was primarily driven by $125 million from LfL growth and $77 million from new store openings, partially offset by a $20 million negative foreign exchange impact and $14 million from store closures. The company’s revenue mix remains heavily weighted toward stable pegged currencies, which accounted for 84% of total revenue in H1 2025.

Notably, Americana’s channel mix continues to evolve, with significant increases in dine-in (from 12.9% to 18.8%), takeaway (from 16.7% to 23.4%), and kiosks (from 5.3% to 14.0%), while home delivery decreased from 47% to 42.1% of total sales.

The following revenue bridge illustrates these dynamics:

The company’s net profit margin, when adjusted for one-off reliefs in Q1 2024 and incremental Pillar II tax impact, increased by 1.4 percentage points to 8.3% in H1 2025. However, the reported margin remained stable at 7.6% due to an $8.2 million incremental Pillar II tax impact.

Cost of inventory remained stable at 29.2% in H1 2025, unchanged from H1 2024, despite inflationary pressures. This stability was attributed to locked vendor contracts and efficient supply chain processes.

Free cash flow conversion improved significantly to 68% in H1 2025 from 33% in H1 2024, driven by stronger operating cash flow and improved working capital management.

Strategic Initiatives

Americana continues to execute its disciplined capital allocation strategy across its portfolio, with an overall payback period of 3.1 years for new restaurant investments. KFC leads with the shortest payback period of 2.3 years, followed by Hardee’s at 3.1 years and Pizza Hut at 4.2 years.

The company’s expansion strategy is illustrated in this capital allocation breakdown:

Digital transformation remains a key focus area, with the company reporting a 10% uplift in first-order conversion in KFC operations in Saudi Arabia and the UAE, along with an 8% improvement in cost per install for its apps. Personalized offers and targeted audience strategies on platforms like Meta (NASDAQ:META) and TikTok are driving customer engagement.

Americana is also diversifying its portfolio through strategic expansion into premium retail with Carpo franchises in Kuwait, Qatar, Saudi Arabia, and Bahrain.

The company’s geographic footprint spans 12 markets across the MENA region, with the highest concentration of restaurants in Saudi Arabia (736), UAE (606), and Egypt (446). This regional distribution is illustrated in the following portfolio evolution chart:

Forward-Looking Statements

For the full year 2025, Americana has maintained its guidance of 150-160 net new store openings. The company expects continued revenue recovery supported by successful marketing campaigns and product innovations, while profitability is anticipated to benefit from strong operating leverage.

Management highlighted several strategic priorities for the remainder of 2025, including maintaining value leadership, exploring inorganic growth avenues, and enhancing digital capabilities through loyalty programs and customer engagement platforms.

As shown in the company’s 2025 guidance:

Americana Restaurants continues to demonstrate strong operational execution and financial discipline, positioning itself for sustained growth in the MENA region’s quick-service restaurant market. The company’s focus on digital transformation, menu innovation, and strategic expansion provides a solid foundation for future performance.

Full presentation:

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