Americana Restaurants International, the largest out-of-home dining and quick service restaurant operator in the Middle East & North Africa region and Kazakhstan, reported revenues of $1.61 billion in the first nine months of 2024, a decline of 15.2 per cent compared to the same period in 2023.
In a filing with Abu Dhabi Securities Exchange (ADX) and the Saudi Exchange (Tadawul), the group said topline growth continued to be impacted by lower like-for-like sales due to the evolving regional geopolitical situation and slow consumer demand observed in some markets.
Americana Restaurants reported $555 million in revenues in Q3 2024, marginally down by 0.8 per cent compared to Q2 2024, reflecting business resilience amidst continued conflict.
Americana also continued to expand its regional footprint by adding 113 gross new stores in the first nine months of 2024, bringing its total restaurant count to 2,504 as of 30 September 2024.
The company registered a year-on-year improvement in gross margins, supported by favourable commodity trends and procurement initiatives. It reported an adjusted EBITDA of $350.6 million, resulting in 21.8 per cent margin. The adjusted EBITDA margin was impacted by lower revenue base; partially supported by various cost mitigation efforts.
Net profit (attributable to the shareholders of the parent company) for the 9M 2024 was reported at $117.4 million, a decrease of 48.2 per cent year-on-year. In addition to the impact from lower EBITDA, net income declined due to incremental depreciation charges on account of new store openings during the period, as well as the implementation of corporate tax in the UAE.
The Company witnessed a noticeable recovery in average daily transactions as well as average daily sales per store in Q3 2024, compared to the previous quarter.
Americana continued to maintain a healthy balance sheet with no leverage and strong cash reserves. With an adjusted free cash flow of $56.2 million, the company is adequately positioned to meet its capex requirements.
As for its outlook, Americana Restaurants said it “is focused on building transaction momentum through various strategic initiatives such as everyday value offers across markets to increase order frequency, targeted promotional activities aimed at driving engagement, and competitive deals to attract new customers”.
In addition, it is implementing a strategic blend of revenue enhancement initiatives, store expansion programme, cost-saving practices, and technology integration to enhance its operational performance.
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