The popular peri-peri chicken chain Nando's has announced a significant acceleration of its UK expansion plans, revealing intentions to open 14 new restaurants across the country this financial year. This ambitious move comes on the back of a stellar financial performance that saw the company's operating profits more than double.
Financial Performance Fuels Expansion
In its latest accounts, Nando's reported a robust 8% increase in revenues, which rose to £1.48 billion for the financial year ending 23 February 2025. This growth was driven by what the company described as "strong customer demand" and an increase in sales volumes.
The most striking figure was the leap in operating profit, which skyrocketed to £146.6 million, up from £59.8 million the previous year. This impressive result was bolstered by stronger sales and a one-off receipt, providing the financial firepower for the new expansion programme.
New Restaurant Locations and Strategy
The 14 new sites planned for the current year to February 2026 mark an increase from the 12 restaurants Nando's opened in Britain during the prior financial year. The company confirmed that several of these new locations have already launched.
The new restaurants will be situated in towns and cities across the UK, including:
- Bedford
- Derby
- Peterborough
- Bishop Auckland
- Maidenhead
- Sheffield
- Edinburgh Gyle
- Paddington
- Liverpool Edge Lane
This expansion is part of a dual strategy to grow its portfolio of company-owned restaurants while also extending its international footprint.
Navigating Economic Headwinds
Despite the positive results, Nando's struck a note of caution regarding the current financial climate. The South African-owned business highlighted increased cost pressures, particularly following tax and wage increases that took effect in April.
Rob Papps, Group Chief Executive of Nando's, acknowledged the challenges, stating: "The macro-economic outlook for the financial year ending February 2026 remains uncertain."
To mitigate these pressures, the company is implementing productivity improvements and rolling out energy-efficient grills across its UK and Ireland estates to reduce energy costs. However, Nando's added that while these actions have been effective, "we anticipate that cost pressures will continue to affect our overall performance in the current financial year."
Looking ahead, Mr Papps expressed confidence, citing "significant growth potential in all our markets." The company plans to continue investing through menu innovation, enhancements to its digital capabilities, and the planned new restaurant openings, including the 14 sites across the UK.
