AmRest Holdings SE: Navigating Growth Amid Challenges

AmRest Holdings SE ((PL:EAT)) has held its Q3 earnings call. Read on for the main highlights of the call.

AmRest Holdings SE’s recent earnings call painted a picture of both achievement and challenge. The company celebrated record revenues and a robust EBITDA margin, yet faced significant hurdles in Western Europe and China. While Central and Eastern Europe delivered strong results, the overall sentiment was tempered by macroeconomic headwinds and uneven regional performance.

Historic Sales Record

AmRest achieved a historic sales record of EUR 660.5 million for Q3 2025, marking a 3.5% increase when excluding the impact of asset dispositions. This milestone underscores the company’s ability to drive growth despite challenging market conditions.

Strong EBITDA Performance

The company’s EBITDA reached EUR 111.2 million, with a solid margin of 16.8%. This performance highlights AmRest’s operational efficiency and ability to maintain profitability in a competitive landscape.

Digital Orders Increase

Digital orders accounted for 62% of total transactions, emphasizing the growing importance of the omnichannel ecosystem. This shift in consumer behavior is a critical factor in AmRest’s strategy moving forward.

Expansion and Renovation

AmRest opened 16 new restaurants and renovated 46 units, demonstrating its commitment to growth and modernization. These efforts are aimed at enhancing customer experience and expanding market presence.

Resilient Central and Eastern Europe Performance

Sales in Central and Eastern Europe grew by 7.8% year-on-year, with Hungary posting double-digit growth of 10.3% and Poland seeing an almost 9% increase. This region continues to be a strong performer for AmRest.

Western Europe Sales Decline

Sales in Western Europe declined by 2.7% year-on-year, with France experiencing a nearly 14% drop due to weak consumer confidence. This decline highlights the challenges faced in this region.

Challenges in China

Sales in China decreased by 10% in nominal terms, impacted by a challenging macroeconomic environment and a global consumer spending slowdown. This reflects the broader economic challenges affecting the region.

Operating Profit Margin Decline

AmRest’s operating profit margin declined by 2.7 percentage points compared to last year, with an operating profit of EUR 42.3 million. This decline indicates pressure on profitability amid challenging conditions.

Sushi Shop Struggles in France

The Sushi Shop brand faced challenges in France, prompting plans for restructuring and operational improvements. This move aims to address the brand’s performance issues in the market.

Revised Guidance

AmRest revised its revenue and profitability guidance for 2025 due to current market conditions, expecting low single-digit sales growth and an EBITDA margin slightly above the current year-to-date of 15.6%. This adjustment reflects the company’s cautious outlook amid ongoing challenges.

Forward-Looking Guidance

During the Q3 2025 results call, AmRest provided guidance indicating a challenging but resilient market performance. Despite record revenues and strong EBITDA, the company highlighted ongoing macroeconomic challenges, particularly in markets like France. Looking forward, AmRest anticipates low single-digit sales growth and an EBITDA margin slightly above the year-to-date figure of 15.6%, with fewer new restaurant openings compared to last year.

In conclusion, AmRest Holdings SE’s earnings call revealed a company navigating through both achievements and challenges. While record revenues and strong performance in Central and Eastern Europe are commendable, the difficulties in Western Europe and China, along with revised guidance, suggest cautious optimism. The company’s focus on digital transformation and strategic expansion remains key to its resilience in a fluctuating market environment.