Reduced like-for-like sales due to the regional geopolitical situation and weaker consumer demand in some markets, along with unfavourable foreign exchange movements, hit Americana Restaurants International’s topline growth in the financial year 2024, but the company displayed strong financial and operational resilience despite the market conditions.
In FY 2024, Americana Restaurants recorded revenues of $2.20 billion, a 9 per cent decline compared to the previous year. However, gross profit margins remained robust, supported by favourable commodity prices and effective procurement and revenue management strategies, despite implementing value offers to gain transaction momentum.
The company registered a sequential recovery throughout the year, bolstered by strategic initiatives to elevate consumer engagement through product innovation, targeted promotional activities, digital assets expansion and strengthening community engagement.
All this led to 14.1 per cent year-on-year growth in revenue and 26.3 per cent year-on-year growth in net income attributable to parent shareholders in the fourth quarter of 2024. Excluding the $3.8 million one-off charge in Q4 2023 and $12.6 million impairment charges in Q4 2024, net income increased 47.6 per cent year-on-year.
Americana boosts store network
The company also opened 213 gross new stores during the year, demonstrating confidence in the long-term market potential. Capital expenditure spent for the year was $115.3 million, representing 5.2 per cent of total revenues. The new stores brought the total store count to 2,590 across 12 markets.
In January 2025, Americana expanded its presence in Oman by acquiring the Pizza Hut business from the Khimji Ramdas Group. With 46 Pizza Hut stores in the country, Americana Restaurants has increased its network of Pizza Hut restaurants across the region to 456 stores.
Americana Restaurants reported adjusted EBITDA of $484.3 million for the year, resulting in 22 per cent margin. The adjusted EBITDA declined by 12.1 per cent compared to 2023, impacted by a decrease in revenues, and higher home delivery costs.
Net profit (attributable to shareholders) for the year was $158.8 million, a decline of 38.8 per cent year-on-year, impacted by lower adjusted EBITDA, increased depreciation charges due to new store openings and corporate tax implementation in the UAE.
The Board has announced a cash dividend of $127 million (equivalent to $0.01512 per share).
FY 2025 Outlook
Looking ahead, Americana Restaurant expects continued recovery, driven by the positive momentum in Q4 2024. The focus will remain on recovering transactions and growing the average check.
The company also plans to strengthen its market presence. Additionally, it will drive product innovation to evolve its core offerings and target new day parts, alongside a continued focus on digital leadership. The introduction of corporate tax in key markets is anticipated to impact profitability.
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