Americana, which operates a number of restaurants under American brands, saw its profits drop by 48.2% during the first nine months of 2024 amid a regional boycott against brands accused of supporting the Israeli occupation state during its extensive aggression on Gaza.
Americana Restaurants, listed on the Saudi Stock Exchange, holds franchises for major global chains, including Pizza Hut and KFC.
The company disclosed on Thursday that its net profits for the first nine months of the current year fell by 48.2% to SAR 440.18 million (USD 117.4 million). In comparison, its net profits during the same period last year were SAR 850.11 million (USD 226.7 million).
According to the statement on Saudi Tadawul, the decrease in net profits was due to a decline in sales because of the geopolitical situation, increased depreciation fees, and the implementation of corporate taxes in the United Arab Emirates.
The countries in which it operates, according to its website, include those where Americana manages global brands such as KFC (Kentucky Fried Chicken), Pizza Hut, Hardee’s, Krispy Kreme, and TGI Fridays. Most of these brands are facing boycotts in the Middle East over allegations of supporting Israel, which commits crimes against humanity, or are partially owned by companies accused of supporting Israel.
During the third quarter of this year, the financial results of the company showed a 54.3% annual decrease in net profit to SAR 140.3 million (USD 37.4 million).
The decline was primarily due to a drop in sales during this quarter, influenced by the ongoing geopolitical situation in the region, “which was further exacerbated by a slowdown in consumer demand in some markets.”
