Americana Restaurants Shifts Focus to Regional Brands Amid Boycott Concerns & Financial Recovery
DUBAI – Americana Restaurants is actively pursuing acquisitions of Middle Eastern restaurant brands as part of a strategic shift to diversify its portfolio and bolster regional resilience, according to Chairman Muhammad Alabbar. The move comes after a challenging 2024, marked by a 39% drop in net profit and a 9% revenue decline, partially attributed to consumer boycotts targeting Western-affiliated brands.
Alabbar, a prominent shareholder, told the Financial Times that Americana has already evaluated several potential acquisitions and anticipates securing “one, two or three winning” brands. He indicated that opportunities exist within Kuwait, Saudi Arabia, the UAE, Egypt, and Lebanon, focusing on expanding existing restaurant concepts through commercial concessions.
“We studied some signs and rejected them, we are still looking and we will find one, two or three winning,” Alabbar stated.
The company’s vulnerability to boycott pressures, stemming from its reliance on Western franchises, prompted a period of cost-cutting and a renewed focus on local opportunities. “When such situations occur, you must make sure that you are sufficient enough to stay, we had to tighten the belt,” Alabbar explained, acknowledging consumer sentiment.”I do not blame them for their feelings.”
Despite the 2024 downturn, Americana demonstrated a strong recovery in the first half of 2025, reporting a 16% increase in profits and revenue. This positive momentum is being leveraged for expansion,evidenced by the January 2025 acquisition of operating rights for the 46-branch Petzaht chain in Oman. Americana also plans to launch Krispy Kreme in Morocco and Pets Coffee in Abu Dhabi.
Americana debuted on the Saudi and Abu Dhabi stock exchanges in December 2022 with a market capitalization of 22.6 billion riyals. While initially valued at that level, the company is currently trading at approximately 17.1 billion riyals. Alabbar emphasized that Americana’s low debt levels provide the financial adaptability to pursue further acquisitions and fund its aspiring expansion plans.
