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Americana Restaurants International and its subsidiaries including KFC, Pizza Hut, and Hardy’s will maintain strong growth momentum in 2022, with annual revenue of $2.38 billion, a year-over-year increase of 15.9%.
Net income (attributable to shareholders of the parent company) to rise 27.1% to $259.2 million in 2022, with a net profit margin of 10.9%, said Abu Dhabi Securities in its first financial results announcement since its historic dual listing Exchange (ADX) and the Saudi Stock Exchange (Tadawul).
Americana Restaurants’ revenue growth was driven by strong year-over-year sales growth of 13.6% and 220 new store openings. The company’s adjusted EBITDA was $536 million, up 15.4% from 2021, and the EBITDA margin was 22.5%.
landmark year
Mohamed Ali Rashed Alabbar, Chairman of Americana Restaurants, said: “As a pioneer with more than 50 years of tradition in the Middle East and North Africa, 2022 is a landmark year. Get ready to become one of the most profitable, growth-oriented and diversified restaurant operators.
“The MENA region remains uniquely attractive for al fresco dining, with a strong macro economy, a growing young population and rapid urbanization. These dynamics, combined with the cultural internationalism of our target markets, provide our business with Springboard for growth in the Middle East and Kazakhstan.
The immediate focus of “Americana Restaurants” will be to leverage the strengths of its platform to increase the penetration of existing brands, enter new categories and expand organically and inorganically by entering new markets. The company will also continue to invest in restaurant redesigns and organizational efficiencies to minimize capital payback periods and keep costs under control. “
As of 2022, Americana Restaurants has 2,183 restaurants in operation, with “powerhouse brands” KFC, Pizza Hut, Hardee’s and Krispy Kreme combined for 186 sales. As the strength and scale of its omnichannel platform continues to grow, home delivery contributed 39% of total revenue, followed by food delivery (24%), dine-in (21%), drive-thru (10%) and others (6 %) .
dividend outlook
Americana Restaurants Board declared a second-half 2022 dividend of $103.5 million, or $0.0123 per share, in line with its previous guidance. The dividend will be approved by shareholders at the Annual General Meeting (date TBD).
KFC
KFC contributed about 61% of the company’s revenue ($1.5 billion) in fiscal 2022, topping a record 100 million transactions for the first time. The brand achieved strong year-over-year sales growth of 17.9%, solidifying KFC’s No. 1 brand position in the chicken category. In 2022, KFC will open 54 new stores, and the expansion will be mainly concentrated in Saudi Arabia, Morocco and the United Arab Emirates.
Hardy’s
Fiscal 2022 is a year of transformation for Hardee’s, with the brand generating $403 million in revenue, or about 17% of the company’s revenue. These results were supported by solid performances in all major markets, notably Saudi Arabia, Kuwait and the UAE. Hardee’s is adding 18 new stores in 2022, for a total of 391 stores in the 10 markets in which it operates.
Pizza Hut
In fiscal 2022, Pizza Hut accounted for about 11% of US restaurant revenue ($264 million). The brand maintained its leadership position in its core market for a year in a row by delivering 12% overall revenue growth. Americana Restaurants to re-launch Pizza Hut in Saudi Arabia in June 2022 with national franchise (excluding Jeddah). Pizza Hut’s revamped value proposition increases brand relevance for Saudi consumers through superior quality, pizza innovation, value for money and an omnichannel experience. The brand footprint is successful in the Kingdom, with 30 stores to open in the second half of 2022.
Donut
Krispy Kreme contributed about 4 percent of annual revenue, generating $90 million in sales, boosted by its opening in Jordan and accelerating growth in Egypt. In 2022, Krispy Kreme has stepped up product innovation by partnering with major confectionary brands such as KitKat and Lotus. It opened 68 new units and expanded mainly off-site in Saudi Arabia.
Balance Sheet and Cash Flow
Americana Restaurants maintains a very healthy balance sheet and a strong overall financial position. With adjusted free cash flow of $179 million and a cash conversion rate of 49.3%, the company is well positioned to deliver on its growth and capex commitments and support its dividend policy.
Business concept
Looking ahead, Americana Restaurants is well positioned to seize opportunities to improve profitability by maintaining a strong focus on revenue growth and margin expansion.
Management will continue to execute and refine the company’s long-term strategy in the Middle East, North Africa and Kazakhstan in pursuit of industry-leading shareholder value creation. — trade arab news agency
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