Americana Restaurants International (AMR) Q4 2024 earnings summary

Executive summary

• Revenue reached $2.20 billion in 2024, a 9% year-over-year decline, but Q4 2024 delivered 14.1% growth and 26.3% net income increase, signaling recovery.

• Opened 213 gross and 155 net new stores, surpassing 2,590 outlets, with major expansion in KSA and the acquisition of Pizza Hut Oman.

• Launched digital initiatives, loyalty programs, and Americana Digital Platform kiosks, driving product innovation and engagement.

• Proposed a $127.0m dividend for 2024, subject to shareholder approval.

Financial highlights

• FY24 revenues were $2,196.8m, down 9.0% year-over-year; like-for-like sales declined 12.5%.

• Adjusted EBITDA was $484.3m (22.0% margin), down 12.1% from 2023; net profit was $158.8m (7.2% margin), down 38.8%.

• Adjusted free cash flow was $94.8m, down 48.1% from 2023; free cash flow conversion declined to 34.8%.

• Capex totaled $115.3m (5.2% of revenue), with average capex per new restaurant at $327k.

• Q4 2024 saw double-digit revenue and margin growth, with gross margin improving to 70.8% from 68.9% in 2023.

Outlook and guidance

• 2025 guidance targets 150-160 net new store openings, with continued expansion in UAE, KSA, Kuwait, and Iraq.

• Focus on transaction recovery, average check growth, and enhanced store efficiency through digital and inventory controls.

• Gross margin expected to slightly improve in 2025; ongoing investment in digital leadership and loyalty programs.

• Profitability to be affected by new corporate tax regimes in key markets.