Herfy plans over 30 new restaurants in 2016

Herfy Food Services Co., which owns bakeries and meat plants and operates the kingdom’s largest fast-food chain, is planning to roll out more than 30 new restaurants this year and revamp 20 existing ones, according to the company's annual board report.

The company opened 45 new branches last year, exceeding the full-year target of 30 restaurants.

By the end of 2015, Herfy’s network included 300 restaurants, of which 36 were owned by the company.

Meanwhile, the restaurant segment sales grew by 19 percent year-on-year (YoY) to SAR 922 million by the end of last year, driven by the new additions.

In Q4-2015, the croissant production line was completed and put under trial run. Accordingly, Herfy is expected to offer new products this year.

The company’s sales rose by over 18 percent YoY to SAR 1.07 billion in FY15, according to the data compiled by Argaam.

Net profit declined 2 percent YoY to SAR 202.7 million. This was attributed to higher financing costs, rising expenses, and lower other income.