Americana Restaurants International (AMR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $573.4 million, up 16.2% year-over-year, driven by 13.9% like-for-like sales growth, new store openings, and digital initiatives.

• EBITDA rose 17.4% to $121.7 million, with net profit up 16.5% to $32.6 million, reflecting strong operational leverage and cost control.

• The restaurant network expanded to 2,630 stores across 12 countries, with 174 net additions and 236 gross new restaurants in the last 12 months, including the integration of 46 Pizza Hut Oman stores.

• Power brands (KFC, Pizza Hut, Hardee's) contributed 94% of sales, with double-digit growth across KFC (+14.8%), Hardee's (+12.6%), Pizza Hut (+26.6%), and Krispy Kreme (+22.7%).

• Recognized as a top YUM franchise globally, with strong digital engagement, a 200% increase in kiosk transactions, and expanded CSR initiatives during Ramadan.

Financial highlights

• Like-for-like sales grew 13.9% year-over-year; adjusted for Ramadan, the impact was a 0.4% sales delta (~$2.7 million).

• EBITDA margin was 21.2%, net profit margin 5.7%, both in line or slightly improved from last year.

• CapEx for Q1 was $28 million (4.8% of revenue), including new store openings and the Pizza Hut Oman acquisition.

• Free cash flow conversion reached 50.1% in Q1 2025, with free cash flow of $33.5 million.

• Net working capital remained stable at -8.9% of revenue, reflecting effective inventory management.

Outlook and guidance

• Full-year guidance reaffirmed: targeting 150-160 net new store openings in 2025, with expansion prioritized in UAE, Saudi Arabia, Kuwait, and Iraq.

• Focus remains on transaction recovery, average check growth, operational efficiency, and digital innovation.

• Gross margins expected to remain in line with or slightly better than 2024, supported by stable commodity costs and efficiency gains.

• Plans for new product launches, loyalty program expansion, and omnichannel development.

• Higher tax charges in some markets may impact net income in future quarters.