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.

Barbeque Nation Hospitality Limited , a leading casual dining restaurant chain, reported a 2.8% year-on-year decline in consolidated revenues for the quarter, amidst ongoing challenges in same-store sales growth (SSSG). The company's financial results, discussed in a recent earnings call, highlight both the headwinds faced by its core business and the growth potential in its diversified segments.

Revenue and SSSG Performance

The company's consolidated revenues stood at Rs. 297.00 crores for the quarter, down from the previous year primarily due to negative SSSG of 3.4%. Barbeque Nation India, the core business segment, faced significant headwinds with revenues declining 7% to Rs. 229.00 crores and SSSG falling 5.2%.

Segment-wise Performance

Barbeque Nation India

• Revenue: Rs. 229.00 crores (down 7% year-on-year)
• SSSG: -5.2%
• Challenges: Softer dine-out cycles, competitive pricing pressure, reduced corporate demand

International Operations

• Revenue: Rs. 26.30 crores (up 10% year-on-year)
• SSSG: +8.5%
• Performance: Strong growth and profitability

Premium CDR (Casual Dining Restaurant) Segment

• Revenue: Rs. 43.10 crores (up 19% year-on-year)
• Growth: Rapid expansion with new restaurants added in Mumbai and Bangalore

Expansion and Strategic Initiatives

Despite the challenges, Barbeque Nation continues to focus on network expansion:

• Added 7 new restaurants during the quarter
• Current portfolio: 236 restaurants across three segments
• Expansion target: 300-325 restaurants by FY27

The company is implementing several strategic initiatives to address the SSSG challenges:

1. Redesigning restaurant prototypes to be 20-25% smaller, reducing capital expenditure
2. Increasing marketing spend by 1% of sales to drive volume recovery
3. Launching new culinary offerings and value-driven promotions
4. Strengthening the operations team, including hiring a new Chief Operating Officer for the Barbeque Nation India business

Financial Highlights

Management Commentary

Kayum Dhanani, Managing Director, stated, "We operated through a softer dine-out cycle, yet our resilient business model allowed us to maintain satisfactory performance. We remain firmly on track to achieve our network target of 300-325 restaurants by FY27."

Rahul Agrawal, CEO and Whole Time Director, added, "We are continuing to focus on our guest experience. We are coming up with new food festivals and giving the guest offering variety in the stores and also coming up with value offers like Sizzling 7@777."

Outlook

While facing challenges in its core Barbeque Nation India segment, the company remains optimistic about its growth prospects in the International and Premium CDR segments. Management emphasized their commitment to operational rigor, consistent guest engagement, and strategic expansion to drive future growth and margin resilience.

Investors and analysts will be closely watching Barbeque Nation's efforts to revive same-store sales growth in its core business while capitalizing on the growth opportunities in its other segments.