Fast food operator Americana knocked by ME tensions

Image credit: Americana

Americana Restaurants International, a fast food restaurant operator in the Middle East, saw revenue decline 15 per cent in the fourth quarter as geopolitical tensions impacted its business performance, a senior executive said on Thursday.

Loss in earnings follows industry trend

Americana, the regional franchisee for brands such as KFC, Hardee’s and Pizza Hut, listed on the Abu Dhabi and Saudi exchanges in late 2022, raising $1.8bn through an initial public offering (IPO).

“Our full year like-for-like revenue growth was negative due to the notable impact on business performance in the fourth quarter driven by the regional geopolitical situation which has impacted the majority of international brands including ours,” Harsh Bansal, the company’s CFO said in an earnings call.

“The revenue in Q4 2023 declined 15 per cent,” he said, adding that the company anticipated a continued recovery over future quarters.

Read the full earnings report issued by Americana:

Americana earlier declared a one-time special dividend of $50m as well as a $130m ordinary dividend for the full year, sending its Abu Dhabi listed shares almost 15 per cent higher.

The shares are up 5.11 per cent year to date.

The company reported full-year net profit attributable to shareholders of $259.5m, little changed from 2022.

Full year revenue rose 1.5 per cent to $2.41bn.

Executives said the company was focused on redirecting expansion towards countries that have been less affected by regional instability while allowing markets that are recovering time to stabilise.

Read: KFC, Pizza Hut holding firm Americana Restaurants lists on MSCI UAE Index