Restaurant Brands Asia Limited has expanded its employee stock ownership program with a fresh allotment of equity shares under its employee stock option scheme. The company, which operates Burger King restaurants in India, approved the allotment of 2,96,835 new equity shares on December 24, 2025.

Latest ESOP Allotment Details

The Nomination and Remuneration Committee of the Board of Directors approved the allotment through circulation at 11:27 a.m. (IST) on December 24, 2025. The details of the allotment are as follows:

Impact on Share Capital Structure

The allotment has resulted in an increase in the company's issued and paid-up equity share capital. The updated capital structure shows:

Strategic Implications

This ESOP allotment represents Restaurant Brands Asia's continued commitment to employee engagement and retention strategies. The newly allotted shares will rank pari-passu with existing equity shares, providing equal rights including voting and dividend entitlements.

The allotment under the BK Employee Stock Option Scheme 2015 demonstrates the company's focus on aligning employee interests with shareholder value creation. As the quick service restaurant sector remains competitive, such employee-centric initiatives help retain talent and foster ownership culture within the organization.

The company has duly informed both BSE Limited and National Stock Exchange of India Limited about this allotment in compliance with SEBI Listing Regulations, ensuring transparency in corporate governance practices.

Restaurant Brand Asia (Burger King) , formerly known as Burger King India, has reported a strong performance for the second quarter, with revenue growth of 15.6% year-over-year. The company's strategic focus on driving traffic and improving profitability has yielded positive results across key metrics.

Financial Highlights

RBA delivered revenue of Rs. 568.00 crores in Q2, marking a 15.6% growth compared to the same period last year. This growth was driven by a combination of same-store sales growth (SSSG) of 2.8% and new restaurant additions. The company's Average Daily Sales (ADS) stood at Rs. 120,000, maintaining its position within the Rs. 115,000 to Rs. 120,000 range observed in recent quarters.

Profitability Improvements

The company reported significant improvements in its gross margins, which expanded by 60 basis points to reach 68.3%. This enhancement was attributed to supply chain efficiencies and improvements in delivery profitability. Restaurant EBITDA stood at Rs. 59.00 crores, representing a 10.4% margin, while company EBITDA reached Rs. 28.40 crores, translating to a 5% margin.

Operational Highlights

RBA added 14 new restaurants during the quarter, bringing its total restaurant count to 533. The company expects to reach 580 locations by the end of the fiscal year, in line with its target of opening 60-80 new stores annually.

Digital transactions now account for 91% of all transactions, underscoring the company's successful digital-first approach. The management highlighted the potential of its Customer Relationship Management (CRM) initiatives to drive frequency among existing customers in the coming quarters.

Strategic Initiatives

The company has implemented several strategic initiatives to drive growth and improve profitability:

1. Menu Innovation: RBA introduced the Whopper Deluxe, expanding its core menu offerings at a price point of around Rs. 140-150. This move aims to bridge the gap between value and premium offerings.

2. Value Proposition: The company continues to focus on its successful value offerings, including the 'two for Rs. 79' and 'two for Rs. 99' deals, which have been instrumental in driving traffic growth.

3. Operational Efficiency: RBA is implementing various cost-saving measures, including the rollout of new energy-efficient broilers expected to reduce utility costs by approximately 1 percentage point.

4. Digital Focus: The company is leveraging its digital platforms to enhance customer engagement, with plans to further develop its CRM capabilities to increase visit frequency.

Indonesia Operations

In Indonesia, RBA reported mixed results. The Burger King business showed signs of recovery with positive traffic growth and improved Average Daily Sales. However, the Popeyes business continues to face challenges. The management is exploring strategic options for the Indonesia operations while focusing on cost reduction initiatives.

Outlook

Despite challenging market conditions, RBA remains optimistic about its growth prospects. The company reported strong performance in October and anticipates a positive third quarter. Management expects the recent GST reduction on certain items to have a positive impact on consumer sentiment and sales in the coming months.

RBA's focus on balancing growth with profitability, coupled with its strategic initiatives in menu innovation and operational efficiency, positions the company well for future growth. As consumer sentiment improves and the market cycle turns favorable, RBA aims to leverage its strengthened operational foundation to drive higher profitability and market share.

The company's consistent performance in driving traffic growth, particularly in the dine-in segment, for ten consecutive quarters demonstrates the effectiveness of its strategy in a competitive market environment. As RBA continues to execute its long-term plans, investors and industry observers will be watching closely to see how these efforts translate into sustained financial performance and market leadership.