Al -Jazeera Capital has granted its neutral recommendation to the share of Americana International Restaurants, “BLC”, which is included in the main Saudi market “Tadawul”, and set the target share price at 2.45 riyals, with the continued market challenges and the pressure of operational expenses.
“Americana” recorded a growth in revenue during the first quarter of 2025 by 14.1% and the fourth quarter of 2024 by 16.2%, compared to the same period in the previous year, but this growth came driven by a decrease in the base base, while the proverb continues to record lower levels than the pre -crisis stage, a trend expected to continue in the medium term.
Al -Jazeera Capital indicated that the margins of the total profit benefited from the low prices of commodities and the cost reduction initiatives, but the margins of operation have declined significantly from the pre -crisis average, as a result of the high costs of consumption and home delivery prices. Accordingly, the contraction compensation in operating margins is expected to gradually during 2024, by 333 basis points in the medium term.
Regarding the expansion plans, Al -Jazeera Capital expects that restaurants will be added at a slower pace than the previous directives, with the concentration of investment in the less affected markets in the boycott.
Despite the challenges, the power of cash flows and the debt -free financial center may enable the company to finance capital expenses internally, as profit distributions continue to recover.
Based on these factors, net profit expectations for the years 2025 were set at 192 million dollars and 2026 at 2.43 million dollars and 2027 at 286 million dollars, with a continuation due to the repercussions of the boycott.
The stock is currently traded at a expected profitable bond of 2025 at 25.7 times and 2026 at 20.3 times.
And Americana International Restaurants Company BLC was established in May 2022 as a private and fully owned company for the Kuwait Food Company – Americana.
In June 2022, the Kuwaiti Food Company transferred all restaurants to America Limited restaurants, later to change its name to Americana for international restaurants.
The company was included in the Abu Dhabi Stock and the main Saudi Financial Market (Tadawul) in December 2022, and this strengthened its position as a public joint stock company in the region.
Americana runs a wide range of international brands, such as Kentucky, Pizza Hut, Hardez, and Chrisby Karim, and its operations are spread in several countries, including the UAE, Saudi Arabia, Kuwait, Egypt, Qatar, Kazakhstan, Bahrain, Jordan, Oman, Lebanon, Morocco, and Iraq.
