By Sohaib Shams
Nando's has reported an £11.3 million pre-tax loss for the year to February, reversing a £38.2 million profit from the previous year, even as revenue grew 2 per cent to £1.51 billion. The chicken chain attributed the downturn to elevated energy, labour and food costs amid a challenging macroeconomic environment.
Financial Performance
Chief executive Rob Papps described the company's performance as "positive" given the sector backdrop, but warned that cost pressures remain broadly elevated due to geopolitical conditions and sustained global inflation. While some commodity prices have eased, the operating environment continues to be difficult for both the business and its customers.
Expansion Plans
Despite the loss, Nando's opened 34 new restaurants during the year, including 11 in the UK and Ireland, bringing its total estate to 984 sites. The group invested £116.6 million in capital expenditure to support its expansion strategy and is rolling out energy-efficient grills across its UK and Ireland locations.
Papps said the company plans to open 15 new restaurants in the UK and Ireland this year, while its drive-thru format in Australia has performed strongly. Investments in digital experiences and menu innovation are also intended to position the brand for future growth.
