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AmRest Holdings SE (PL:EAT)
:EAT
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AmRest Holdings SE
(EAT)
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Select Model
Rating:64Neutral
Price Target:
zł16.00
▲(6.24% Upside)
Action:DowngradedDate:09/28/25
AmRest Holdings SE's overall stock score reflects its stable financial performance and strategic improvements, offset by high leverage and regional challenges. The technical indicators suggest potential bearish momentum, while the valuation indicates a relatively high P/E ratio. The earnings call provided a balanced view of growth opportunities and challenges.
Positive Factors
Revenue Growth
Consistent revenue growth indicates expanding market presence and effective brand management, supporting long-term business sustainability.
Digital Engagement
High digital sales reflect strong adaptation to consumer trends, enhancing customer experience and operational efficiency, crucial for future growth.
Supply Chain Management
Internalizing supply chain management can lead to cost efficiencies and improved control over operations, strengthening long-term competitive positioning.
Negative Factors
High Leverage
Significant leverage can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term financial health.
Challenges in Western Europe
Declining sales in Western Europe, especially in key markets like France, highlight regional challenges that could hinder overall growth prospects.
Delayed Restaurant Openings
Delays in restaurant openings can slow growth momentum and revenue generation, affecting strategic expansion plans and market penetration.
AmRest Holdings SE (EAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
zł2.60B
Dividend Yield4%
Average Volume (3M)113.98K
Price to Earnings (P/E)38.0
Beta (1Y)0.63
Revenue Growth0.79%
EPS GrowthN/A
CountryPL
Employees16,384
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.06
Shares Outstanding219,554,180
10 Day Avg. Volume85,334
30 Day Avg. Volume113,982
Financial Highlights & Ratios
PEG Ratio-1.45
Price to Book (P/B)2.39
Price to Sales (P/S)0.35
P/FCF Ratio4.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.14
Revenue Forecast (FY)zł2.68B
AmRest Holdings SE Business Overview & Revenue Model
Company DescriptionAmRest Holdings SE (EAT) is a leading restaurant operator in Central and Eastern Europe, with a diverse portfolio of brands across various dining segments. The company operates both its own restaurants and franchises, offering a range of fast food, casual dining, and coffee shop experiences. Key brands under AmRest include KFC, Pizza Hut, Burger King, and Starbucks, among others, catering to a wide array of consumer preferences and dining occasions.
How the Company Makes MoneyAmRest generates revenue primarily through the operation of its restaurant locations, which includes both company-owned and franchised outlets. The company earns money by selling food and beverages directly to customers at these locations. Additionally, revenue is derived from franchise fees and royalties paid by franchisees as part of their ongoing agreement to operate under AmRest's brand names. The company also benefits from economies of scale in procurement and supply chain management, which helps to enhance profitability. Significant partnerships with global brands like Starbucks and KFC further bolster its revenue streams, while strategic expansions into new markets and continuous innovation in menu offerings contribute to growth.
AmRest Holdings SE Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a balanced but cautiously optimistic picture: AmRest delivered modest top-line growth, resilient EBITDA (EUR 407m) and an improved net profit (+33% YoY) while materially reducing CapEx and demonstrating strong cash generation. Strength in Central & Eastern Europe, digital channel penetration (~62%) and strategic moves (SCM disposal) are notable positives. However, margin compression (‑0.8pp), market-specific challenges (France −13%, China −8%), the Czech food safety episode and persistent cost pressures temper near-term visibility. Management expects mid-single-digit growth in 2026 with H2 acceleration and a 2–3 percentage point midterm margin recovery, underpinning a constructive outlook despite current headwinds.Q4-2025 Updates
Positive Updates
Group Revenue Growth (FY2025)
Like-for-like group revenues increased by 2.4% year-on-year, reaching almost EUR 2.6 billion in FY2025.
EBITDA Generation and Profitability
Group EBITDA reached EUR 407 million with a 15.9% margin in FY2025; fourth-quarter EBITDA was EUR 106 million (~17% margin) demonstrating resilience in profitability despite headwinds.
Net Profit Improvement
Net profit increased to EUR 18 million in FY2025 from EUR 13.5 million in the prior year, a ~33.3% rise, supported by lower impairments and interest charges.
CapEx Reduction and Discipline
CapEx was reduced to EUR 158 million in 2025 from EUR 194 million in 2024 (≈18.6% decline), while maintaining openings (92 in 2025), reflecting tighter capital allocation and improved execution/efficiency.
Strong Central & Eastern Europe Performance
CEE sales were EUR 1.6 billion (+6.5% YoY), with EBITDA of EUR 306 million and an EBITDA margin above 19%; Hungary grew +10.2% and Poland nearly +9% for the year.
Digital Sales and Technology Momentum
Digital channels (excluding casual dining) accounted for ~62% of total sales in 2025; company scaled data-driven platforms, AI agents and analytics to improve decision-making, pricing and promotion efficiency.
Strategic SCM Disposal and Operational Simplification
Disposed 51% stake in SCM and terminated mutual commercial agreements, enabling AmRest to internalize supply chain management and pursue identified synergies and value-creation opportunities across ~2,000 restaurants.
Cash Generation and Liquidity Position
Quarterly operating cash flow was EUR 109 million in Q4; year-end net financial debt was EUR 518 million with leverage at 2.3x (within internal target) and available liquidity > EUR 146 million plus > EUR 140 million of unused committed lines.
Sustainability Improvements
Energy consumption in restaurants fell by 11% and water consumption by 4% year-on-year in 2025, supporting ESG integration into supply chain and operations.
Negative Updates
EBITDA Margin Compression and Temporary Headwinds
Group EBITDA margin declined by 0.8 percentage points versus prior year (impacted by SCM deconsolidation, temporary Czech market issues and still-elevated operating cost pressures including labor and food).
Weakness in Western Europe, Notably France
Western Europe revenues fell 3% to EUR 870 million in 2025; France declined ~13% year-on-year. Q4 Western Europe sales were down 4% and Q4 EBITDA margin dropped more than 1 percentage point versus prior year.
China Sales Decline
Blue Frog (China) revenues declined 8% in EUR terms (−4% in local currency) to EUR 85 million in 2025, reflecting a volatile consumer backdrop and FX headwinds, despite EBITDA margin remaining healthy (>19%).
Czechia Food Safety Allegations and Short-Term Impact
Misleading social media allegations on food safety negatively affected Czechia sales in late 2025; the company reports progressive recovery after multiple audits confirmed no systemic issues, but the incident dampened Q4 performance locally.
Same-Store Sales and Q4 Trading Weakness
Fourth-quarter same-store sales index was 96 (implying negative comps) with Q4 revenues up only 1% YoY (EUR 636 million), signaling a challenging end to the year and cautious consumer spending in some markets.
Portfolio Optimization and Net Closures
Net openings slowed: 92 new restaurants in 2025 versus 109 in 2024 (≈15.6% fewer openings). Western Europe recorded 19 openings but 32 closures (about half of closures in France) as part of ongoing portfolio pruning, which can weigh near-term top-line expansion.
Persistent Cost Pressures
Operating cost pressures remain elevated in certain markets—particularly labor—and some absolute food prices remain high despite easing inflation, constraining margin recovery in the near term.
Company Guidance
The company guided that 2026 should see mid‑single‑digit revenue growth with a clear H2 bias (second half stronger than the first), a “strong increase” in free cash flow driven by higher operating cash generation and tighter investment control (continued CapEx optimization after 2025 CapEx of EUR 158m), and a plan to maintain a similar level of gross openings to 2025 (92 restaurants) while accelerating portfolio optimization with a higher level of closures; management reiterated it will preserve a prudent risk profile and keep leverage at the low end of its target range (2.3x year‑end 2025), and over the medium term expects to reaccelerate to high single‑digit revenue growth and recover around 2–3 percentage points of margin versus current levels, all supported by disciplined capital allocation and improved operating cash flow.AmRest Holdings SE Financial Statement Overview
Summary
AmRest Holdings SE shows positive revenue growth and improved profitability, with a stable gross profit margin and better net profit margin. However, high leverage with a debt-to-equity ratio of 4.35 poses financial risk, despite strong free cash flow growth and healthy cash flow ratios.Income Statement
AmRest Holdings SE has shown a positive revenue growth trend with a TTM growth rate of 10.8%. The gross profit margin is stable at around 12%, and the net profit margin has improved to 1.3% in the TTM, indicating better profitability. However, the EBIT and EBITDA margins suggest room for improvement in operational efficiency.75
Positive
Balance Sheet
The company maintains a high debt-to-equity ratio of 4.35, indicating significant leverage, which poses a risk. However, the return on equity has improved to 9.05% in the TTM, showing better utilization of equity. The equity ratio remains low, reflecting a higher reliance on debt financing.60
Neutral
Cash Flow
AmRest Holdings SE has demonstrated strong free cash flow growth of 11.9% in the TTM, and the operating cash flow to net income ratio is healthy at 0.74. The free cash flow to net income ratio of 0.52 indicates a solid conversion of earnings into cash, supporting financial flexibility.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.59B | 2.56B | 2.43B | 2.42B | 1.92B | 1.52B |
| Gross Profit | 310.30M | 323.10M | 308.20M | 269.00M | 212.90M | 60.60M |
| EBITDA | 404.50M | 377.70M | 355.00M | 353.00M | 335.60M | 99.10M |
| Net Income | 22.60M | 8.50M | 44.90M | 6.60M | 32.90M | -183.70M |
Balance Sheet | ||||||
| Total Assets | 2.33B | 2.37B | 2.35B | 2.28B | 2.17B | 2.11B |
| Cash, Cash Equivalents and Short-Term Investments | 144.50M | 139.60M | 227.50M | 229.60M | 198.70M | 204.80M |
| Total Debt | 1.60B | 1.59B | 1.51B | 1.53B | 1.49B | 1.53B |
| Total Liabilities | 1.93B | 1.98B | 1.95B | 1.95B | 1.87B | 1.85B |
| Stockholders Equity | 384.90M | 372.60M | 385.40M | 320.10M | 298.70M | 257.80M |
Cash Flow | ||||||
| Free Cash Flow | 216.20M | 192.70M | 173.40M | 224.50M | 258.80M | 87.40M |
| Operating Cash Flow | 395.50M | 408.50M | 370.50M | 362.50M | 356.90M | 178.80M |
| Investing Cash Flow | -180.40M | -214.50M | -133.00M | -138.10M | -96.60M | 11.70M |
| Financing Cash Flow | -228.50M | -268.50M | -233.50M | -192.10M | -270.40M | -95.00M |
AmRest Holdings SE Technical Analysis
Negative
15.06
Price Trends
13.40
Negative
13.55
Negative
14.07
Negative
Market Momentum
-0.25
Positive
27.66
Positive
29.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:EAT, the sentiment is Negative. The current price of 15.06 is above the 20-day moving average (MA) of 13.08, above the 50-day MA of 13.40, and above the 200-day MA of 14.07, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 27.66 is Positive, neither overbought nor oversold. The STOCH value of 29.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PL:EAT.
AmRest Holdings SE Peers Comparison
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-24.27%
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PL:SFS
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0.41
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.