NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
Restaurant Brands Asia Ltd. posted in-line results with 3.1% same-store sales growth, 116 basis points expansion in gross margins and 120 bps higher Pre IND AS Ebitda margins. Burger King continues to focus on value strategy with burger combos (2 veg Burgers at Rs 79 and chicken at Rs 99) and value meals at Rs 99 to drive traffic in a tepid demand environment.
Indonesia business saw another muted quarter (-17% sales growth) due to sustained geopolitical issues and scale down in number of BK stores even as traction in Popeye's and value offerings sustained momentum.
India business seems on traction with gradual buildup of margins with-
steady improvement in store traffic,
sustained benefits from value meal and
strong growth in smaller towns.
Indonesia is expected to show recovery post Q3 led by-
Improving sentiments with time,
new range of chicken offerings,
desserts scalability and
sustained traction with higher average daily sales in Popeyes.
Given strong SSG outlook for long term, we expect India business to turn PBT positive from FY26, while Indonesia might take longer.
We value the company at Rs 134 (no change) on SOTP basis. Retain Accumulate.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.
