Saudi fast food chain Herfy continues Asian expansion, opens 5th outlet in Bangladesh

Firm reports 'phenomenal success' in previous openings

  
A food delivery worker wearing protective face mask and gloves, following the outbreak of the coronavirus disease (COVID-19), carries Ramadan meal orders at a restaurant in Riyadh, Saudi Arabia April 26, 2020. Image used for illustrative purpose.

A food delivery worker wearing protective face mask and gloves, following the outbreak of the coronavirus disease (COVID-19), carries Ramadan meal orders at a restaurant in Riyadh, Saudi Arabia April 26, 2020. Image used for illustrative purpose.

REUTERS/Ahmed Yosri

Saudi Arabia’s largest fast food chain Herfy Food Services Co. has continued its expansion despite a decline in net profit in 2020.

The firm, which last year had to temporarily shut down a number of restaurants due to the government-imposed lockdown, said it has opened its fifth restaurant in Bangladesh.

The opening follows the “phenomenal success” of the previously opened four branches in the Asian state’s Dhaka, the firm said in a statement to the Saudi Stock Exchange (Tadawul), on which it shares trade.

Herfy is the largest quick service restaurant chain operating in Saudi Arabia.

Last Thursday, its stock closed at 67.10 Saudi riyals ($17.8) after rising 10 percent.  

The company has reported a 72 percent fall in full-year 2020 net profit to 53.5 million riyals.

It cited the temporary closure of restaurants during the COVID-19 lockdown and substantial impairment provisions as reasons for the decline.   

(Writing by Brinda Darasha; editing by Cleofe Maceda) 

brinda.darasha@refinitiv.com 

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021

More From Business