Americana Restaurants profit rises as Gaza boycott eases 

Alamy via Reuters

• Americana Q4 profit up
• Includes KFC and Pizza Hut
• Positive 2025 outlook

Americana Restaurants, the largest food service business in the Middle East and North Africa, said profit rose in the fourth quarter as a consumer boycott that is related to the Gaza conflict eased.

Net income in the three months to December 31 rose 26 percent to $41 million, compared with $32 million in the same period in 2023, said the Mena franchisee for classic American brands such as KFC, Pizza Hut and Hardee’s. Revenue rose 14 percent to $589 million.

Across the full year revenue fell compared with 2023, dragging annual profit down 9 percent to $158 million from $259 million, the company said.

The Israel-Hamas war began in October 2023, leading many in the Middle East and beyond to boycott American brands due to their perceived support for Israel.

Bahrain’s Sico Bank said the recovery in Americana’s profit was driven by “effective revenue and cost management”.

• Americana acquires Pizza Hut business in Oman
• Americana to invest $100m in Saudi French fries factory
• Americana CEO says boycott ‘worst is behind us’

Founded in Kuwait but now based in the UAE’s Sharjah emirate, Americana’s share price is trading at about AED2.52 on the Abu Dhabi exchange, up from its November low of AED2.12. That is still below its AED2.62 IPO price in December 2022. Americana is also listed on the Saudi stock exchange.

McDonald’s similarly announced a recovery in its Middle East sales in the fourth quarter, helping offset weaker performance elsewhere in the world.  

Americana’s recovery is expected to persist into this year.

“We expected FY25 to be a relatively stronger year as a result of a lower base, considering the impact initially started in November  2023, but we expect a gradual lessening of the boycott effect,” Sico said in its note.