08/05/2026 01:54 AST
Shatirah House Restaurant Co., popularly known as Burgerizzr, has reported a 201.79 percent profit increase in the first quarter of 2026, signaling strong growth of the food sector in the Kingdom.
In a bourse filing, the company attributed this rise in profits to SR5.72 million ($1.52 million) to contributions from newly opened branches, in addition to higher same-store sales for the brand.
Burgerizzr said it was also driven by the consolidation of revenue from the newly acquired brand, Coffee Bean Trading Co., following the completion of the acquisition in the fourth quarter of 2025.
The food service and restaurant industry in Saudi Arabia has been witnessing rapid growth in recent years, with Mordor Intelligence projecting the Kingdom's food service market will hit $48.6 billion in 2031, representing a compound annual growth rate of 8.11 percent from 2026.
Arjun Vir Singh, partner and global head of financial services at Arthur D. Little, told Arab News the results are further evidence of how Vision 2030 is reshaping the food and beverages industry in the country.
"The demand environment is clear. The Kingdom welcomed an estimated 122 million domestic and inbound visitors in 2025, with a trajectory toward 150 million visitors by 2030, which could further strengthen the restaurant industry," said Singh.
He added: "The occupancy of giga-projects in Diriyah, the Red Sea, AlUla, and Qiddiya continues to generate strong demand for premium dining, while Riyadh Season has firmly established the sector as a strategic tool for tourism and economic development."
The Tadawul statement further said that Burgerizzr's total revenues for the first quarter stood at SR104.71 million, representing a 33.5 percent increase compared to the year-ago period.
Other companies in the sector to show growth include Americana Restaurants International, a franchise operator for brands like KFC, Pizza Hut, and Hardee's.
In April, the firm reported a net profit of SR236.9 million in the first quarter of 2026, representing an increase of 94 percent compared to the same period in the previous year.
It said the rise in net profit was driven by ongoing menu innovation and expansion of its restaurant network.
While larger operators posted strong profit growth, Herfy Food Services Co. narrowed its loss to SR3.9 million in the first quarter of the year, compared to the SR18.6 million loss it incurred in the year-ago period.
Singh told Arab News that technology and data are becoming core to restaurant performance operating in Saudi Arabia, helping them to stabilize revenues.
"On the operational front, AI-powered tools are significantly enhancing unit economics. Solutions such as menu engineering, demand forecasting, dynamic pricing, and personalized customer engagement allow operators to improve margins and deliver more stable revenues," added Singh.
Arab News
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