Americana revised its store guidance for FY2024 from 175-185 in 2Q24 to 150-160 stores in 3Q24 to align with business trend. The Company added 32 gross new stores in 3Q24 leading to a total store count of 2,504 stores at the end of 3Q24.

Americana Restaurant added 81 new stores in UAE and KSA with a portfolio of 2,477 restaurants in 1H24.

Americana added 37 restaurants in 1Q24 with a total restaurant of 2,456 and plans to add 200-225 restaurants in FY2024.

AMR revenue declined 15.0% YOY to USD 516 Mn in 4Q23, mainly due to the ongoing geopolitical situation and unfavorable FX movements.

AMR launched dynamic pricing strategy in key markets for KFC in four countries and Hardees in three countries

Americana Restaurants (AMR) plans to open 250-260 net new stores in 2023, with a strong focus on growth opportunities in its market of operation, with a key focus in Saudi Arabia.

Americana Restaurants’ (the Company/ Americana) net profit at tributable to equity shareholders declined 19.3% YOY to USD 58 Mn in 1Q23, lower than our estimate of USD 73 Mn. This was main ly driven by a decline in gross profit due to higher cost of revenue and rise in operating expenses.

Americana Restaurants’ (Americana/the Company) net profit rose 11.5% YOY to USD 66 Mn in 4Q22, lower than our estimate of USD 88 Mn.

We initiate coverage on Americana Restaurants (“AMR” or “the Company”) with a target price of AED 3.96 per share. AMR is a leading restaurant operator in the four Out of Home Dinning (OOHD) market categories (QSR, FSR and casual dining, coffee shops, and indulgence restaurants) across 12 countries with a portfolio of 2,090 restaurants as of 3Q22 and revenue of USD 2,052 Mn in FY2021.