Pret a Manger, a prominent name in the UK’s food-to-go market, has reported substantial growth in its international operations, with a significant portion of its revenue now originating from outside the UK.
The sandwich and coffee chain recorded a 10% year-on-year increase in sales, amounting to £569 million in its half-year results.
This positive outcome has been largely attributed to the company’s targeted expansion into new markets, with operations now spanning 18 different countries.
Although based in the UK, the company has emphasized the importance of global growth as a key component of its future strategy. It has ambitious plans to open ten new stores on the US east coast by 2026, with New York emerging as a pivotal area for its overseas operations.
In 2023, the company successfully launched 81 new outlets globally, more than half of which were situated outside the UK.
Chief Executive Pano Christou highlighted the importance of this international growth, noting, “The fact that £1 in every £4 is now spent outside the UK is both an achievement and an opportunity for our business.” He further expressed his excitement about bringing the brand to more locations worldwide in the coming years.
However, this expansion has not been without its challenges. The company has faced increasing competition from more affordable alternatives, such as Greggs, which has resulted in escalating debts.
To support its international ambitions, the firm underwent a board restructuring earlier this year, appointing Konrad Meyer as its new chairman. Meyer, who played a key role in the £1.5 billion takeover by a German firm in 2018, has been an active member of the board.
Pret’s recent financial disclosures revealed adjusted earnings before interest, tax, depreciation, and amortization of £166 million for 2023, marking a 12% increase from the previous year’s £147.8 million.
Additionally, shareholders injected £250 million in new capital in September to enhance liquidity and reduce specific banking facilities.
Pret a Manger’s focus on expanding its international footprint is yielding promising results, as evidenced by substantial sales growth and strategic financial moves. While the company faces competitive pressures, its commitment to growth in new markets remains firm.