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Restaurant operator Americana Restaurants posted Q1 2024 net profit attributable to shareholders of $28 million, nearly half its profit in the same quarter of 2023, due to the regional geopolitical situation and the effect of Ramadan period.
Americana Restaurants, the MENA franchisee of fast-food restaurants KFC and Pizza Hut said its Q1 revenue fell 16% to $493.5 million.
The company, which is dual-listed on Abu Dhabi's ADX and Riyadh's Tadawul exchanges, said the drop in revenues were primarily driven by lower like-for-like sales due to ongoing geopolitical tensions in the region, as well as the seasonal effect of Ramadan period.
Higher depreciation charges and rent expenses on account of new store openings during the period also impacted the bottom line, it said in a statement on Tuesday.
Americana said it will continue its expansion strategy in markets which are less impacted by the current regional macro-environment and expects to open up to 225 net new stores in 2024.
In April, the company's shareholders approved distribution of total dividends amounting to $179.4 million, split between ordinary dividend of $129.7 million and an additional one-time special dividend of $49.7 million.
Americana is owned by Saudi Arabia's Public Investment Fund and an investment consortium, Adeptio, led by Dubai businessman Mohammed Alabbar, founder of Dubai-listed Emaar Properties. Americana was acquired by Adeptio in 2016, while PIF bought a 50% stake in Adeptio later that year.
(Writing by Brinda Darasha; editing by Seban Scaria)
