RBA Releases Q2 & H1 FY26 Earnings Call Transcript, Reports Strong India Performance
RBA released its Q2 & H1 FY26 earnings call transcript, reporting 15.6% revenue growth in India, improved margins, and strategic store expansion. Indonesia's Burger King is growing, but Popeyes remains a challenge.
The announcement provides detailed financial performance for a key quarter, outlines strategic initiatives for growth and profitability in India, and discusses the performance and future plans for its international operations. These details are crucial for investors to assess the company's current health and future trajectory.
The company reported robust revenue growth, positive SSSG, and improved gross margins in India, along with a clear strategy for digital transformation and profitability. Management expressed confidence in future store expansion and margin targets, indicating a positive outlook despite challenges in the Indonesia Popeyes business.
* Restaurant Brands Asia Limited (RBA) released the transcript of its Investor/Analyst call held on October 31, 2025, regarding the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. * India Business Highlights: * Achieved 10 consecutive quarters of positive traffic Same Store Sales Growth (SSSG) in dine-in, driven by a barbell strategy combining value offerings (e.g., ₹79 and ₹99 for two, ₹99 cafe campaign) and premium launches (Korean Fest, King's Collection, Deluxe Whopper at ₹140-₹150). * 91% of transactions are now digital, with a 70% growth in monthly app activity and plans to activate CRM for increased customer frequency. * Focused on profitability, anticipating a 1 percentage point reduction in utility costs by next year due to new broilers and e-coolers. Improved delivery business margins by 1 percentage point with significant revenue growth. * Gross margin increased from 67.7% in Q1 to 68.3% in Q2, with a long-term target of 70% by FY29, potentially sooner. * Restaurant EBITDA stood at 10.4%, a slight dip from 10.6% last year, attributed to conscious investment in additional staff for digital initiatives and table service, expected to rationalize in coming quarters. * Company EBITDA (cash basis pre-IndAS) was ₹28.4 crores (5%), ₹4 crores higher than the same quarter last year and ₹6 crores higher than the previous quarter. * Opened 14 new restaurants, reaching 533, with a target of 580 by year-end and 60-80 new restaurants annually until FY29, aiming for approximately 800 stores. * Reported a revenue of ₹568 crores, marking an overall growth of 15.6% (2.8% from SSSG and the remainder from new stores). Average Daily Sales (ADS) were ₹120,000. * GST benefits on certain raw material costs were passed directly to consumers to further drive traffic, contributing to a strong October and expected good Q3. * Indonesia Business Highlights: * Burger King business is progressing steadily, with Average Daily Sales (ADS) showing consistent improvement (IDR 1 million to IDR 2 million additional ADS daily) for 12 out of the last 13 months. * The Popeyes business (25 restaurants) remains a challenge, with efforts focused on eliminating losses and achieving a neutral financial position. * Significant corporate overhead reduction, with approximately ₹20 crores saved in G&A. * Burger King Indonesia has 136 stores, with ADS at IDR 18 billion and a gross profit of 56.8%. Store EBITDA was negative (-3%) due to incremental marketing spend of approximately IDR 6 billion. * Consolidated Indonesia company EBITDA loss was ₹33 billion, partly due to marketing investment in Burger King and losses from Popeyes. * Management continues to explore alternative solutions for the Popeyes business, including potential exit from that market, while focusing on improving the Burger King segment.
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Restaurant Brands Asia Limited filed this with the NSE as a statutory disclosure, categorised under concall transcript released. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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