Food & Drink

Americana reports growth in revenue and profit

April 30, 2025, 11:13 AM

KFC is one of the many fast food brands operated by Americana Restaurants in the Middle East

Americana Restaurants reported a higher net income for the first quarter of 2025 compared with this time last year, as a consumer boycott targeted at the company’s brands related to the Gaza conflict eased.

Net profit in the three months to March grew 16.5 percent in the quarter to $32.6 million, driven by higher revenue and margin improvement.

Revenue rose 16.2 percent year-on-year “despite softening consumer demand in certain markets, additional days of Ramadan this year, and impact from the currency devaluation primarily in Egypt”, it said in a statement.

The largest fast food service operator in the Middle East and North Africa, which operates brands such as KFC, Pizza Hut, Hardee’s, Krispy Kreme, TGI Fridays and Peet’s Coffee, opened 14 new stores during the quarter.

It also integrated 46 additional outlets from Pizza Hut Oman, bringing the total store count to 2,630 across 12 countries.

The statement added, “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, whose shares are listed on both the Saudi Exchange and the Abu Dhabi Securities Exchange (ADX), had a 39 percent decline in net profit last year.

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.

Founded in Kuwait but now based in the UAE’s Sharjah emirate, the company’s shares are up by 4 percent year-to-date on the ADX at AED2.30, as of Tuesday’s closing price.