Alamar Foods Expands Its Saudi Franchise Portfolio with SAR85 Million Five Guys Acquisition
Alamar Foods plans to acquire Five Guys' Saudi franchise for up to SAR85 million, strengthening its multi-brand portfolio and presence in the Kingdom.
The Saudi Arabian franchise market is seeing further consolidation as established restaurant operators seek to expand their portfolios and strengthen their positions in key food service segments. Alamar Foods Company has signed a share purchase agreement to acquire 100% of AlShaghaf Arabia LLC, also known as Cravia Arabia Company, the exclusive franchisee of Five Guys in Saudi Arabia. The transaction is valued at up to SAR85 million, subject to post-closing adjustments and performance conditions.
Alamar Foods Strengthens Its Position in Saudi Arabia's Restaurant Market
Through this acquisition, Alamar Foods will take control of the Five Guys franchise operations in the Kingdom, adding a globally recognised premium burger brand to its existing portfolio. Cravia Arabia currently operates 13 Five Guys restaurants across Riyadh, Jeddah, Dammam and Khobar, giving Alamar an established presence in four major Saudi cities.
The transaction supports Alamar Foods' strategy to enter the burger segment of Saudi Arabia's quick service restaurant (QSR) market. It also represents an opportunity for the company to broaden its activities beyond its existing brands and strengthen its position in a competitive restaurant industry.
A Financially Established Franchise Operation
The financial profile of Cravia Arabia is another important element of the proposed acquisition. The company is debt-free and is expected to generate approximately SAR17 million in adjusted EBITDA after IFRS 16 for 2025.
Its revenues reached SAR83.19 million in 2022, SAR81.85 million in 2023 and SAR74.48 million in 2024. The transaction value, which could reach SAR85 million, remains subject to post-closing adjustments and performance conditions.
A Multi-Brand Strategy for Long-Term Growth
For Alamar Foods, the acquisition is part of a broader strategy to expand into new restaurant categories, reinforce its market position and pursue profitable growth. Adding Five Guys to its portfolio will allow the operator to enter the premium burger segment while leveraging its existing scale and operational expertise.
According to Filippo Sgattoni, CEO of Alamar Foods, the transaction is intended to support the company's expansion into core categories, strengthen its multi-brand platform and create long-term growth opportunities. He also highlighted the potential to improve operational performance and generate synergies through Alamar's resources and experience.
Franchise Consolidation in Saudi Arabia
The planned acquisition illustrates the growing importance of multi-brand franchise operators in the development of Saudi Arabia's restaurant sector. Rather than focusing on a single concept, established operators can pursue growth by bringing complementary brands into their portfolios, diversifying their market exposure and building on existing operational capabilities.
For the wider Middle East franchise market, this transaction highlights how acquisitions can become a strategic growth route for regional operators seeking to strengthen their presence, enter new food categories and manage established international franchise brands. It also underlines Saudi Arabia's importance as a market for investment and expansion in the regional food and beverage franchise industry.
Middle East Franchise Editorial Team