Top-line gains were also driven by positive momentum in like-for-like sales, which measures revenue growth for restaurants that have been operational for 12 months. Like-for-like revenue increased 7.2% vs. H1 2022, enabled by healthy performance of KFC and Pizza Hut, in particular.

In Q2 2023, compared to Q2 2022, the Company delivered 13.5% revenue growth, which was supported by positive impact from fewer number of Ramadan days.

With first-half adjusted EBITDA of SAR1,094.0 million ($291.7 million), up 7.7% vs. H1 2022, the Company maintained a healthy adjusted EBITDA margin of 23.5% despite an increase in carryover inventory costs compared to H1 2022. Americana Restaurants strategically increased its inventory levels in 2022 to prevent stock-outs and to counteract global supply chain disruptions. Subsequently, management has successfully phased out the higher cost inventory during H1 2023; this combined with the lowering costs of key commodities will support the margin expansion in future periods.

The Company maintains a healthy balance sheet and strong overall financial position. With adjusted free cash flow for H1 2023 of SAR 416.0 million ($110.9 million) and a cash conversion ratio of 58.4%, Americana Restaurants is well-positioned to meet its growth and capital expenditure commitments as well as to support its dividend policy.

Americana Restaurants is well-equipped to pursue growth across its markets of operation. By the end of the year, the Company expects to have added 250-260 net new restaurants, focusing on growth opportunities across its markets of operations with a focus on Saudi Arabia. During the second half of the year, Americana Restaurants will continue to phase out existing inventory, which was strategically built up during 2022 to counteract global supply disruptions, supported by cool-off in key commodities as the Company looks to expand profit margins. In Egypt, Americana Restaurants remains focused on optimizing operations, expanding franchisor support and driving further cost efficiencies as it proactively navigates currency-related challenges in the country. The Company is also in a strong position to continue scaling up its new brands, including further expansion of Pizza Hut and Peet’s Coffee in Saudi Arabia. The Company remains committed to expanding its digital offering and optimizing off-premises revenue channels.