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Executive Summary
Americana Restaurants International PLC (ADX: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 $1.22 billion, while net profit grew by 15.7% to $92.5 million compared to the same period last year. This growth was driven by a combination of strong like-for-like (LfL) sales performance and aggressive store expansion.
The restaurant operator, which manages popular brands including KFC, Hardee’s, Pizza Hut, and Krispy Kreme across the Middle East, North Africa, and Kazakhstan, added 214 new restaurants over the past 12 months, bringing its total restaurant portfolio to 2,638 locations.
As shown in the following comprehensive performance dashboard, Americana delivered strong results across all key metrics:
Financial Performance Highlights
Americana’s 15.6% revenue growth was fueled by robust like-for-like sales growth of 12.4% and contributions from new store openings. The company’s EBITDA increased by 17.9% to $274.9 million, while net profit rose by 15.7% to $92.5 million, indicating improved operational efficiency.
The following chart breaks down the key drivers of revenue growth, showing how LfL growth contributed $125 million and new store openings added $77 million to the top line, partially offset by closures, foreign exchange impact, and other factors:
The company’s power brands, which contribute 93-94% of total revenue, all demonstrated strong growth. Pizza Hut led with an impressive 24.8% increase, followed by Hardee’s at 21.2%, KFC at 14.5%, and Krispy Kreme at 4.2%. This performance reflects the company’s successful marketing campaigns and product innovations.
The breakdown of performance by power brand is illustrated in this chart:
Profitability metrics also showed significant improvement, with EBITDA growing by 17.9% to $275 million and net profit increasing by 15.7% to $92.5 million. The company’s net profit margin expanded from 7.6% to 8.3%, demonstrating enhanced operational efficiency.
Expansion Strategy
Americana Restaurants continued its aggressive expansion strategy, adding 214 gross new restaurants over the past 12 months while closing 53 underperforming locations. The company’s disciplined approach to capital allocation is evident in its average payback period of 3.1 years for new restaurant investments.
The following chart details the company’s restaurant portfolio evolution and pipeline for 2025:
For 2025, Americana has provided guidance of 150-160 net new store openings. The company has already secured sites for many of these locations and has others under construction or in the approval process, indicating a clear path to achieving this target.
Strategic Initiatives
Americana highlighted several strategic initiatives driving its growth, including a balanced approach between value campaigns and premium offerings. The company’s value campaigns include promotions like 50% off self-pickup and pairs deals, while innovation efforts have introduced premium items across its brand portfolio.
The company’s product innovations and value campaigns are showcased here:
Digital transformation remains a key focus area, with initiatives yielding a 10% uplift in the customer journey from zero to first order in KFC operations in Saudi Arabia and UAE. The company also reported an 8% improvement in cost per install for its apps and is leveraging personalized offers through WhatsApp and targeted audience strategies via Meta and TikTok.
Additionally, Americana is expanding into premium retail through the carpo franchise and plans to launch an Americana loyalty program, scaling up loyalty initiatives across its KFC, Pizza Hut, and Hardee’s brands.
Forward Guidance
Looking ahead, Americana Restaurants has provided a positive outlook for the remainder of 2025, focusing on continued revenue recovery through successful marketing campaigns and product innovation. The company expects to maintain strong operating leverage while offsetting the impact of incremental home delivery costs.
The company’s guidance for 2025 is summarized in this slide:
Americana has signed a franchise agreement to expand the carpo brand in the GCC region and is exploring other inorganic growth avenues for long-term platform development. The company also plans to scale up its loyalty program across multiple brands to enhance customer engagement and retention.
Financial Stability
Americana demonstrated strong financial stability with effective cost management. Despite inflationary pressures, the company maintained its cost of inventory at 29.2% of revenue, unchanged from H1 2024. This stability was achieved through locked vendor contracts and efficient supply chain processes.
The company’s negative working capital position strengthened from -$440 million to -$487 million, reflecting efficient operational management. Free cash flow improved significantly from $44 million in H1 2024 to $111 million in H1 2025, providing ample resources for continued expansion and shareholder returns.
Overall, Americana Restaurants’ H1 2025 results demonstrate the company’s ability to execute its growth strategy effectively while maintaining profitability in a competitive market environment. The combination of strong like-for-like growth, disciplined expansion, and strategic initiatives positions the company well for continued success in the remainder of 2025 and beyond.
Full presentation:
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