Americana Restaurants International

1. Company Overview & Earnings Context

Americana Restaurants International PLC is a leading restaurant operator listed on the Abu Dhabi Securities Exchange (ADX) and Saudi Exchange (Tadawul). The company operates across 12 countries in the Middle East, North Africa and Kazakhstan, managing a portfolio of international restaurant brands including KFC, Pizza Hut, Hardee’s, Krispy Kreme, Costa Coffee, Baskin-Robbins and TGI Fridays.

For the nine months ended September 30, 2026, Americana Restaurants reported its highest-ever nine-month revenue of USD 2.08 billion, representing 12.9% year-on-year growth. EBITDA increased 26.0% to USD 522.1 million, while net profit attributable to shareholders rose 60.4% to USD 217.2 million. Performance was supported by 7.0% like-for-like sales growth, continued restaurant expansion, operating efficiencies and effective cost management. The company also strengthened its brand portfolio through an exclusive development agreement with Taco Bell.

2. Financial Performance Snapshot

• Revenue: USD 2.08 billion (+12.9% YoY)

• Cost of Revenue: USD 916.6 million (+7.6%)

• Gross Profit: USD 1.16 billion (+17.5%)

• Gross Profit Margin: 55.9%, compared with 53.7%

• EBITDA: USD 522.1 million (+26.0%)

• EBITDA Margin: 25.1%, compared with 22.5%

• Operating Profit: USD 275.2 million (+52.5%)

• Profit Before Income Tax and Zakat: USD 254.8 million (+58.8%)

• Income Tax and Zakat: USD 37.5 million (+46.3%)

• Consolidated Net Profit: USD 217.4 million (+61.2%)

• Net Profit Attributable to Shareholders: USD 217.2 million (+60.4%)

• Net Profit Margin: 10.5%, compared with 7.4%

• EPS: USD 0.0259, compared with USD 0.0161 (+60.9%)

Compared with 9M 2025:

• Revenue increased from USD 1.84 billion to USD 2.08 billion.

• Gross profit increased from USD 987.6 million to USD 1.16 billion.

• EBITDA increased from USD 414.2 million to USD 522.1 million.

• Operating profit increased from USD 180.5 million to USD 275.2 million.

• Net profit attributable to shareholders increased from USD 135.4 million to USD 217.2 million.

• EPS increased from USD 0.0161 to USD 0.0259.

• Gross profit margin expanded by 218 basis points.

• EBITDA margin expanded by 262 basis points.

• Net profit margin expanded by 310 basis points.

3. Operational Highlights & Key Metrics

• Total Assets: USD 1.71 billion, compared with USD 1.73 billion at December 2025

• Total Equity: USD 405.2 million, compared with USD 490.0 million at December 2025

• Total Liabilities: USD 1.31 billion

• Cash and Cash Equivalents: USD 147.1 million

• Short-Term Bank Deposits: USD 184.5 million

• Total Restaurant Count: 2,769 (+4.2% YoY)

• Net New Restaurants Added Over 12 Months: 112

• Countries of Operation: 12

• Like-for-Like Sales Growth (9M 2026): 7.0%

• Like-for-Like Sales Growth (Q3 2026): 8.6%

• Q3 Revenue: USD 712.3 million (+14.4% YoY)

• Q3 EBITDA: USD 173.9 million (+24.8%)

• Q3 Net Profit Attributable to Shareholders: USD 70.0 million (+63.0%)

• Q3 EBITDA Margin: 24.4%

• Q3 Net Profit Margin: 9.8%

• Operating Cash Flow: USD 517.6 million (+37.0%)

• Free Cash Flow (Company-Reported): USD 225.4 million (+75.6%)

• Cash Conversion Ratio: 67%

• Net Cash Used in Investing Activities: USD 35.8 million

• Net Cash Used in Financing Activities: USD 489.2 million

• Dividends Paid During 9M 2026: USD 302.4 million

• H1 2026 Interim Dividend: USD 0.0120 per share

• Restaurant Expansion Target for FY2026: 120–130 net new restaurants

4. Key Performance Drivers

Americana Restaurants' financial performance was driven by broad-based sales growth across its key markets, supported by stronger customer demand, menu innovation, attractive value propositions and continued restaurant network expansion. Like-for-like sales increased 7.0% during the first nine months, while third-quarter like-for-like growth accelerated to 8.6%. Marketing campaigns, creator partnerships and locally relevant offerings helped strengthen customer engagement and brand relevance.

Profitability grew significantly faster than revenue, reflecting operating leverage, procurement efficiencies and disciplined cost management. Gross profit margin expanded by 218 basis points to 55.9%, while EBITDA margin improved by 262 basis points to 25.1%. These improvements were achieved despite higher input costs associated with geopolitical developments and increased utility expenses during the summer season.

The company's operating cash flow increased 37.0% to USD 517.6 million, while company-reported free cash flow rose 75.6% to USD 225.4 million. Strong profitability and working capital optimisation supported cash generation, with cash conversion reaching 67%.

Americana also continued expanding its restaurant portfolio, adding 112 net new restaurants over the preceding 12 months to reach 2,769 locations. In August 2026, the company signed an exclusive development agreement with Taco Bell to introduce the brand in the UAE, with plans for phased expansion across additional GCC markets. The agreement expands Americana's presence into the Mexican-inspired quick-service restaurant category.

5. Outlook & Forward Guidance

Americana Restaurants entered the final quarter of 2026 with positive business momentum and an improved profitability outlook. Based on prevailing trading conditions, management expects strong mid-single-digit like-for-like sales growth for the full year, supported by continued customer engagement, menu innovation and restaurant expansion.

Following the strong earnings performance during the first nine months, the company raised its full-year 2026 net profit margin expansion guidance to 150–175 basis points, compared with its previous guidance of 100–150 basis points. Management expects continued operating leverage, procurement efficiencies and cost discipline to support profitability despite ongoing cost pressures.

The company also expects to add 120–130 net new restaurants during 2026, expanding its presence across existing markets while strengthening its portfolio through strategic brand partnerships. The Taco Bell development agreement represents an additional growth opportunity, with the initial rollout planned for the UAE before expansion into other GCC markets.

Management remains focused on sustainable, profitable growth, operational efficiency, disciplined expansion and maintaining strong cash flow generation.

6. Investor Takeaway

Americana Restaurants delivered strong 9M 2026 results, achieving record nine-month revenue of USD 2.08 billion, EBITDA growth of 26.0% and net profit attributable to shareholders growth of 60.4%. The company's 7.0% like-for-like sales growth, expanding restaurant network and significant margin improvements demonstrate stronger operating performance and effective cost management.

Free cash flow growth of 75.6% further supports the company's financial position, while its increased full-year margin guidance signals management's confidence in continued profitability improvements. Looking ahead, investors should monitor like-for-like sales growth, restaurant expansion, operating margins, cash generation and the rollout of new brands, including Taco Bell, as key indicators of Americana Restaurants' long-term growth trajectory.