United Foodbrands Limited (UFBL), formerly known as Barbeque-Nation Hospitality Limited, has received an update on its credit ratings from ICRA Limited. The credit rating agency has reaffirmed the company's ratings while revising the outlook to negative from stable, signaling potential challenges ahead for the food and hospitality firm.

Credit Rating Details

ICRA has provided the following ratings for UFBL's credit facilities:

Key Points

• The long-term fund-based term loan facility has increased from Rs. 45.50 crore to Rs. 70.50 crore.
• Despite the increase in the term loan amount, ICRA has maintained the [ICRA] A rating, indicating adequate credit quality.
• The outlook revision to 'Negative' from 'Stable' suggests that ICRA perceives potential headwinds for UFBL in the near to medium term.
• Short-term ratings for both fund-based and non-fund-based facilities remain unchanged at [ICRA] A2+, indicating a strong degree of safety regarding timely payment of financial obligations.

Implications

The reaffirmation of ratings, coupled with an enhanced credit facility, may indicate that United Foodbrands is maintaining its financial position while potentially expanding its operations. However, the revised negative outlook suggests that ICRA sees some challenges that could affect the company's credit profile in the future.

Investors and stakeholders should note that while the short-term ratings remain strong, the negative outlook on the long-term rating warrants attention to the company's future financial performance and market conditions in the food and hospitality sector.

United Foodbrands Limited has informed the stock exchanges of this credit rating update, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Barbeque Nation Hospitality Limited , a leading player in India's casual dining restaurant (CDR) sector, has reported a mixed set of results for the fiscal year 2025. The company saw a slight decline in revenue but managed to improve its margins amid challenging market conditions.

Financial Performance

Barbeque-Nation reported consolidated revenue of ₹12,330.00 million in FY2025, marking a 1.70% year-on-year decline. The company attributed this decrease to negative same-store sales growth (SSSG) of -3.80% and slower store expansion. Despite the revenue drop, Barbeque-Nation demonstrated resilience by improving its gross margin to 68.20%, up 160 basis points from the previous year. The restaurant operating margin also saw an improvement, reaching 13.90%, up 30 basis points.

Segment Performance

The company's performance varied across its different business segments:

1. Barbeque Nation India: This core segment, contributing 79% of consolidated revenues, experienced a -4.40% SSSG. However, it managed to improve its restaurant operating margin by 70 basis points to 12.00%.

2. Barbeque Nation International: The international business grew by 8.00% with a positive SSSG of 0.80%, contributing 8% to the consolidated revenues.

3. Premium CDR: This segment, which includes brands like Toscano and Salt, achieved strong 30.00% revenue growth driven by network expansion. It now accounts for 13% of the company's consolidated revenues.

Expansion and Network

As of FY2025, Barbeque-Nation operates a total of 230 restaurants across 86 cities in 5 countries. The company added 13 new outlets during the year, with a significant focus on its Premium CDR segment. Notably, the Premium CDR segment entered three new markets - Hyderabad, Delhi, and Mumbai.

Future Outlook

Barbeque-Nation has set an ambitious target of reaching 300-325 restaurants by FY2027. The company's strategic focus areas include:

1. Establishing Barbeque Nation as a preferred celebration destination
2. Growing the international business
3. Aggressively expanding the premium CDR presence
4. Growing delivery brands
5. Maintaining best-in-category guest experience to drive dine-in growth

Corporate Recognition

In a notable achievement, Barbeque-Nation Hospitality Limited has been ranked 14th in India's Best Companies to Work For, 2025. This recognition underscores the company's commitment to employee satisfaction and workplace culture.

Conclusion

While Barbeque-Nation faced challenges in FY2025, particularly in terms of same-store sales growth, the company's ability to improve margins and its continued expansion plans demonstrate resilience. The strong performance of its Premium CDR segment and international business provides diversification and growth opportunities. As the company moves forward with its expansion plans and strategic initiatives, it will be crucial to monitor how it navigates the evolving casual dining landscape in India and abroad.