Americana Restaurants Intl. (1K) | Buy | Strong recovery, growth visibility improves

Research evidence excerpt

Americana Restaurants Intl. (1K) | Buy | Strong recovery, growth visibility improves

Americana Restaurants Intl. Buy | Target Price: SAR2.80

Company description Management

Americana Restaurants Intl. is the leading out-of-home dining (OOHD) and quick Mohamed Ali Rashed Alabbart, Chairman

service restaurant (QSR) operator in a >USD55bn total OOHD market across the 12 Amarpal Singh Sandhu, CEO Hars Bansal, CFO

markets of its presence in the MENA region and Kazakhstan. In 2024, about 80% of its

sales came from its top four markets, United Arab Emirates, Kingdom of Saudi Arabia, Key shareholders

Kuwait, Egypt, while the remaining 20% came from its eight other markets, Morocco, Free float 33.81% Adeptio AD investment SPC Ltd 66.00%

Qatar, Iraq, Oman, Bahrain, Jordan, Lebanon, and Kazakhstan.

Investment case Valuation methodology

n Americana Restaurants International is the largest OOHD n We value the company using a DCF methodology, a suitable

player in the MENA, with over 2,700+ restaurants across 12 method to capture the strong growth potential.

markets with 12 iconic brands. n We also use a comparative approach with a peer group

n Store roll-out, brand optimisation and fine-tuned offerings. comprising QSR chains and a few regional players.

n Effective supplier management and leasing followed by smart n Our TP is a blended approach of the two methodologies.

pricing. AMR's supply chain strategy focuses on economies of Risks to our rating

scale and diversification. An asset-light model/negative cash n Concentration in MENA/new regulations.

cycle and low capex requirement, (cash position >16% of the

n Food commodity price increases/supply bottlenecks. total assets).

n Continuing boycott of US brands in the MENA region.

Catalysts

n Rapid network expansion