Americana sees higher gross profit margins in H2 2023

Logo of Americana Restaurants International

Americana Restaurants International, a fast-food restaurant operator in the Middle East and Kazakhstan, is expected to report higher gross profit margins (GPMs) in H2 2023, while gradually phasing out the strategic inventory, the company said in Q1 2023 financial results statement.

The company seeks to improve adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin by 250-300 basis points (bps) in the medium term.

The fast-food restaurant operator opened 49 new restaurants in Q1, bringing its restaurant portfolio to 2,228 by March 31, 2023.

Americana has 63 new restaurants under construction and expects to open 250-300 new ones annually in the medium term.

Saudi Arabia provides a compelling opportunity for restaurant expansion, while Iraq offers an exciting greenfield opportunity.

During the current period of economic headwinds in Egypt, the company will focus on operations, people transformation, and cost efficiencies.

Americana’s Q1 2023 net earnings declined to SAR 218 million, compared to SAR 270 million in a year-earlier period, Argaam reported.