Americana Restaurants delivers $2.41 billion revenue in FY 2023

ABU DHABI: Americana Restaurants, the leading restaurant operator in the MENA region and Kazakhstan, announced its financial results for the year 2023, showing revenue growth, margin improvement, and dividend payout despite challenging market conditions.

The company, which operates popular brands such as KFC, Pizza Hut, Hardee’s, and Krispy Kreme, reported revenues of $2.4 billion, up 1.5% from 2022, driven by the opening of 300 new stores across its markets. The company also launched Peet’s Coffee, a premium coffee chain, in the UAE and Saudi Arabia, tapping into the growing demand for specialty coffee.

Americana Restaurants achieved an adjusted EBITDA of $550.8 million, up 2.8% from 2022, with a margin of 22.8%. The company also posted a net profit of $260.6 million, slightly higher than 2022, with a margin of 10.8%. The company attributed its resilient performance to operational efficiencies and gross margin improvements, which offset the negative impact of currency fluctuations, especially in Egypt, and regional geopolitical tensions, which affected the business in the fourth quarter.

The company also announced a dividend payout of $180 million for 2023, comprising an ordinary dividend of $130 million and a one-time special dividend of $50 million, subject to shareholders approval at their Annual General Meeting. The company reaffirmed its commitment to delivering value to its shareholders and positioning itself for continued growth in the future.

KFC

KFC celebrated its 50th year in the region, opening its 1,000th store and dominating the chicken segment across all the Company’s markets. KFC contributed approximately 61.3% of the Company’s revenues, amounting to $1,479.4 million. In 2023, KFC opened 97 gross new units, with expansion primarily focused on Saudi Arabia, Morocco and the UAE including a successful launch in Baghdad.

Hardee’s

Hardee’s generated revenues of $395.5 million, contributing approximately 16.4% of the Company’s total revenues. Hardee’s remained focused on expansion, and opened 33 gross new stores in 2023. The brand prioritized product innovation, operational excellence, digitalization, and implemented diverse omnichannel strategies to elevate the overall customer experience.

Pizza Hut

Pizza Hut contributed approximately 11.7% of Americana Restaurants’ revenues, totalling $281.3 million in FY 2023. The brand delivered 6.4% growth in revenue. During 2023, Pizza Hut further expanded by opening 56 gross new stores, with a primary focus on Saudi Arabia, and the UAE, as well as by broadening geographic coverage with market entry in Iraq.

Krispy Kreme

Krispy Kreme contributed approximately 4.1% of annual revenues, generating $97.8 million in revenue, posting a healthy 8.3% year-on-year growth. The brand expanded its reach by opening 84 gross new stores and a successful entry in Kazakhstan market. The brand continued to excel on product innovation and offered unique co-branded donuts in partnership with global brands such as Kitkat and Nutella.

Americana Restaurants maintains a robust balance sheet and solid financial position. Cash flow from operations increased by 18.9% to reach $539.8 million in 2023. With adjusted Free Cash Flow of $182.8 million and a cash conversion ratio of 52.1%, Americana Restaurants exhibits a strong financial stability that enables it to pursue growth objectives, fulfil its capital expenditure obligations and support the dividend policy.

The Company remains focused on expansion and penetration through strategic growth opportunities. The Company will continue to increase its share of wallet and share of voice through purposeful innovation, raising the bar on operational efficiencies, adopting next generation digital technology and marketing initiatives.