Middle East Pizza Hut operator Americana Restaurants Q1-2025 revenues are healthy

30/04/2025 08:47 AST

Americana Restaurants has turned around its fortunes with revenues up 16.2% in Q1-2025, to total $573.4 million, and with net profit a healthy 16.5% higher to $32.6 million. This reverses a string of underwhelming numbers for the Middle East's biggest restaurant operator, with franchises such as Pizza Hut, KFC and others.

"The company entered 2025 with a focus on strengthening transaction recovery, enhancing average check, and continuing investments in digital capabilities," said a statement.

"While higher tax charges in certain markets may affect net income in upcoming quarters, the company is managing these developments through financial planning and operational flexibility.

"Americana Restaurants aims to maintain steady progress across key performance areas and deliver value to its stakeholders while growing its presence in the key markets."

The stock, traded on ADX and Tadawul, is at SR2.3, still some distance removed from the 52-week high of SR3.48.

Based on the Q1-25 returns, Americana Restaurants is getting back on track. It's free cash flow sure has returned to positive territory at $33.5 million from a negative $26.5 million a year ago.

The company, listed on ADX and Saudi Tadawul, had seen its results suffer from foreign exchange volatility in some of the markets it's in. Plus, last year, there was also the blowback from the tensions surrounding the Gaza crisis.

Keep adding new locations
Through it all, Americana Restaurants has been adding new locations, with 14 new stores and the integration of 46 additional stores from Pizza Hut Oman. It brought the total count to 2,630 locations in 12 countries. "This expansion reflects the company's steady network growth and continued investment in key markets," said a statement.

Gulfnews