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6015

Governance: A

AMERICANA

Americana Restaurants International PLC - Foreign Company

1.92 SAR / Share

As of: May 28, 2026

64.6x P/E Ratio Trailing 12 Months

29.3x P/B Ratio Price to Book Value

3.0% Dividend Yield Annual Dividend / Share

16.13B SAR Market Cap Total Valuation

0.78 Beta Systematic Risk Index

9.7% Net Margin Net Profit / Revenue

The Story

Americana Restaurants operates a highly efficient, multi-brand franchise network across the Middle East and North Africa, delivering exceptional returns on capital with a robust self-funded growth profile.

Source: Q1 2026 (2026-05-10)

Value Creation +62.8% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)

Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price

3.0%

Sustainable Growth Rate Rate at which company can grow internally using reinvested profits

+34.5%

Payout Ratio Percent of net profits distributed as dividends

190.8%

Net Margin Net profit margin generated from total operational revenue

9.7%

ROIC Return on Invested Capital

70.2%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

64.6x

P/B Ratio Market capitalization compared to corporate book value

29.3x

EV / EBITDA Operating multiple reflecting core operational leverage

27.4x

EV / SALES Asset pricing multiple relative to total topline revenue

6.7x

Growth Story

Under the metaphor of 'The Expanding Banquet,' Americana's revenue trajectory demonstrates resilient expansion, with TTM revenue reaching $2.59 billion, up from $2.51 billion in FY 2025 and $2.20 billion in FY 2024. This growth is supported by a powerful 5-year average reinvestment rate of 49.12% and an exceptional 5-year average ROIC of 70.21%, yielding a sustainable growth rate of 34.48%. Strategic acquisitions, such as the purchase of Yummy Junction (operating Malak Al Tawouk in the UAE) in early fiscal 2026 and Pizza Hut Oman in fiscal 2025, alongside plans to expand the Malak Al Tawouk brand into Saudi Arabia, underscore the company's capacity to scale its footprint. This aggressive yet disciplined reinvestment strategy ensures that Americana possesses the long-term capacity to self-fund its regional expansion.

Profitability Dynamics

Framed as 'The High-Yield Kitchen,' the core of Americana's value creation lies in its extraordinary profitability profile, characterized by a TTM operating margin of 12.25% and a profit margin of 9.65%, translating to a TTM net income of $249.56 million. The company generates immense economic value, as evidenced by its massive 5-year average ROIC of 70.21% compared to a WACC of just 7.39%, creating a value-creation gap of 62.82%. This high-return model is fueled by strong cash generation, which supports both capital expenditures—amounting to $94.88 million TTM—and substantial shareholder distributions, including a proposed dividend of $201.57 million in early fiscal 2026.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.78

Cost of Equity Minimum required rate of return demanded by shareholders

7.7%

WACC Weighted average cost of total debt and equity funding

7.4%

Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors

7.9%

Risk Factors

Under the metaphor of 'Navigating the Regional Winds,' Americana operates in a complex geographical landscape despite its strong financial footing. The company carries a total debt of $1.27 billion against a cash balance of $139.49 million, with lease liabilities representing a significant portion of its financing obligations, standing at $633.14 million as of Q1 2026. Its market risk is relatively moderated, reflected in a relevered beta of 0.78. However, business-specific risks are prominent, including hyperinflationary adjustments in Lebanon, currency translation volatility across diverse MENA markets, and ongoing assessments for open-year tax and Zakat disputes. Additionally, management must navigate logistical and supply chain risks stemming from heightened geopolitical tensions in the Middle East, though no major operational disruptions have occurred to date.

Governance Disclosures

Rating: A

We track 12 key governance and oversight matters for this company in our database.

Significance: 5/10 Entrenchment

Consolidation of Subsidiary with Minority Equity Interest

The Group consolidates Bahrain and Kuwait Restaurants Company as a subsidiary despite holding only a 40% equity interest, because it has the exclusive right to manage the company, appoint all key management, and make all key operating decisions.

Mitigating Factors: The consolidation is based on contractual arrangements that grant the Group power over the investee to appoint key management and make key operating decisions.

Significance: 5/10 Entrenchment

Consolidation via De Facto Control

The Group consolidates Bahrain and Kuwait Restaurants Company despite holding only 40% of voting rights, based on exclusive management rights and the power to appoint key management.

Mitigating Factors: Consolidation is based on contractual arrangements that grant the Group power over the investee's relevant activities.

For more, click here to view the full governance profile →

In-Depth Analysis