Will Americana Restaurants pick up Five Guys’ regional franchise?

Dubai: Americana Restaurants International is exploring a deal to buy the Middle Eastern operator of brands including Five Guys and Cinnabon, according to people familiar with the matter, in a move that would further expand its network of international food franchises.

The firm is in talks to acquire Cravia Inc. from its private equity owner, Fajr Capital.

Still, a transaction would mark a significant addition to Americana's portfolio, which includes KFC, Pizza Hut and Krispy Kreme in the region.

Americana, which is listed in Abu Dhabi and Riyadh, counts an investment vehicle owned by Saudi Arabia's sovereign wealth fund and real estate tycoon Mohamed Alabbar among its shareholders. Its shares have fallen nearly 60% from an all-time high in late 2023, amid job cuts, an internal restructuring and a consumer boycott of its brands following the start of the Israel-Hamas war.

Its pursuit of Cravia comes against the backdrop of the escalating conflict between Israel and Iran, which has dragged regional equity markets lower, pushed crude prices higher and could weigh on deal-making in the region.

Cravia, owned by Fajr since 2016, has grown into a regional player with 78 outlets and more than 2,000 employees. In addition to Five Guys and Cinnabon, it operates or manages several other food and beverage brands, including Zaatar W Zeit, Seattle's Best Coffee and Carvel.

Interest in the company reflects a broader trend in the Gulf, where regional operators with established infrastructure and brand relationships are becoming increasingly attractive to investors. Last year, Saudi Arabia's Cenomi Retail opened 14 Subway outlets across the kingdom in a single day - a sign of how global brands are leaning on local partners to accelerate expansion in one of the world's fastest-growing consumer markets.