Riyadh — Mubasher: Ghida Alsultan for Fast Food Company announced a 36.46% decline in net profit for the first half (H1) of 2026 that reached SAR 2.75 million compared to SAR 4.33 million in H1-25.
Earnings per share (EPS) fell to SAR 0.86 in H1-26 from SAR 1.35 in the year-ago period, according to a bourse filing.
The company reported that revenues decreased by 3.53% to SAR 103.50 million in January-June 2026 from SAR 107.29 million in H1-25.
Ghida Alsultan attributed the decline in sales to lower sales at existing branches due to intense competition in the fast-food sector and shifting demand, which offset the positive contribution from the acquisition of Simple Burger (SMPL BRGR) brand as of 1 March 2026.
Profitability was further pressured by a 6.41% drop in gross profit and higher administrative costs related to wages.
Additionally, the company recorded financing costs from lease obligations and its share of losses from an associate, Brand Developers, which is currently in its startup phase.
Total shareholders' equity decreased by 25.72% to SAR 47.08 million as of 30 June 2026. This was primarily driven by the accounting treatment of the SAR 23.80 million acquisition of Simple Burger, which resulted in a SAR 19.05 million direct reduction in retained earnings.
