Americana Restaurants International (AMR) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue was $1.05 billion, down 15.2% year-over-year, with like-for-like sales declining 20.3% due to regional geopolitical conflict, weak consumer demand, and increased competition.

• Net profit for H1 was $80 million, a 44.8% decrease year-over-year, impacted by lower sales, higher depreciation from new store openings, and UAE corporate tax.

• Adjusted EBITDA reached $232.7 million (22.1% margin), down 20.2% year-over-year, mainly from negative operating leverage.

• 273 gross new restaurants opened in the last 12 months, with 81 in H1 2024; 36 more under construction.

• Strategic focus on value offerings, digital ordering, product innovation, and targeted promotions to drive recovery.

Financial highlights

• H1 2024 revenue: $1.05 billion, down 15.2% year-over-year; Q2 revenue up 13.3% sequentially from Q1.

• Adjusted EBITDA: $232.7 million, margin 22.1%, down from 23.5% last year.

• Net profit: $80 million for H1, margin at 7.6%, down 4.1 percentage points year-over-year.

• CapEx at $47 million (4.4% of revenue), mainly for new store openings.

• Adjusted free cash flow conversion dropped to 33.4% from 58.4% in H1 2023.

Outlook and guidance

• 2024 net new store opening guidance revised to 175–185, focusing on markets less impacted by conflict.

• Management expects continued quarter-on-quarter recovery but full recovery timing remains uncertain.

• Recovery strategy centers on value offers, product innovation, and building customer trust.

• Medium-term guidance will be provided once recovery clarity improves.