Restaurant Brands Asia Limited (Burger King), formerly known as Burger King India Limited, has reported a robust performance for the first quarter, with revenue growth of 12.6% year-over-year to INR 552.00 crores. The company's growth was driven by same-store sales growth (SSSG) of 2.6% and the addition of 63 net new restaurants over the past year.

Financial Highlights

• Revenue increased by 12.6% to INR 552.00 crores
• Restaurant EBITDA increased by 23% to INR 53.60 crores
• Company EBITDA grew by 28.6% to INR 22.50 crores
• Gross profit margin maintained at 67.6%
• Restaurant EBITDA margins improved by 0.8% year-over-year to 9.7%

Operational Performance

The company's India business showed strong growth, particularly in dine-in traffic. Key drivers of this performance include:

• Value promotions such as '2 for 79' and '2 for 99' offerings
• Introduction of premium Korean burger range
• Expansion of cafe presence to 480 locations

Digital Transformation

Restaurant Brands Asia has made significant strides in its digital initiatives:

• 93% of restaurants now equipped with self-ordering kiosks
• 90% of sales processed digitally
• The company's app saw a 50% growth in installs and a 60% increase in orders quarter-on-quarter

Cafe Business

The company has rapidly expanded its cafe presence:

• Cafe ADS (Average Daily Sales) stands at INR 13,000 for the overall portfolio
• Older stores (first 200) have seen a cumulative 10% improvement in cafe sales since launch
• Recent introduction of INR 99 cafe promotion to drive trials

Menu Innovation

The company continues to innovate its menu offerings:

• Launched premium 'Kings Collection 2.0' with improved quality
• Introduced co-branded Kit Kat BK Fusion
• Rolled out new Whopper Deluxe range with prices ranging from INR 139 to INR 199

Indonesia Operations

The company's Burger King business in Indonesia is showing signs of improvement:

• Achieved positive restaurant-level EBITDA for the first time in several quarters
• ADS grew 5% year-over-year from November to July
• Closed 4 additional restaurants and reduced corporate overheads by 25% (INR 15.00 crores)

Future Outlook

Restaurant Brands Asia maintains its guidance of adding 60-80 restaurants annually to reach approximately 800 by FY29. The company is targeting a gross profit margin of 70% by FY29.

Rajeev Varman, Whole-Time Director and Group CEO, commented on the results: "The India business continues to get stronger. There's work to do. We need to grow the top line. We need to continue working on our middle layers, whether it's rent, utilities, margins. But we feel good about the business because our dine-in traffic continues to grow."

The company remains focused on driving traffic, offering great taste, clear differentiation, and exceptional value to guests, powered by its unique twin engines of burgers and chicken.

Restaurant Brands Asia Limited (RBA), formerly known as Burger King India Limited, has reported compliant utilization of its Qualified Institutions Placement (QIP) proceeds and a solid revenue growth for the first quarter.

QIP Fund Utilization

According to the monitoring agency report submitted for the quarter ended June 30, RBA has shown no deviation from the stated objectives of its INR 500 crore QIP issue. ICRA Limited, the appointed monitoring agency, confirmed that the utilization of funds is in line with the intended purposes.

During the quarter, the company utilized INR 186.67 crore of the QIP proceeds as follows:

The remaining INR 313.33 crore of unutilized funds have been deployed in fixed deposits and mutual funds, generating returns between 7.65% to 9.62%.

Q1 Financial Performance

RBA's financial results for Q1 showcase a strong performance:

• Consolidated revenue from operations increased by 7.9% year-over-year to INR 6,977.23 crore.
• India operations revenue grew by 12.6% to INR 5,522.92 crore.
• Indonesia operations revenue decreased by 6.9% to INR 1,454.31 crore.

India Operations Highlights

• Same-store sales growth of 2.6%
• Addition of 63 new stores over the last year, bringing the total to 519 stores
• Restaurant EBITDA (Pre-IND AS 116) increased by 23.0% year-over-year to INR 536 million
• Company EBITDA (Pre-IND AS 116) grew by 28.6% year-over-year to INR 225 million

Indonesia Operations

• Rationalized portfolio by closing 4 non-performing stores
• Average Daily Sales (ADS) showed improvement, increasing by IDR 1 million every month for the past 9 months

Operational Initiatives

RBA has been focusing on several key initiatives to drive growth:

1. Menu Innovation: Launched the Korean Spicy Fest to capitalize on the "Hallyu Wave" and introduced new premium offerings like the Whopper Deluxe and BK Fusion range.

2. Digital Transformation: Implemented self-ordering kiosks in 484 out of 519 restaurants and introduced table ordering and service in all stores excluding food courts.

3. Value Leadership: Continued the "2for79" promotion to drive incremental traffic and offered "Crazy App Deals" to increase the frequency of BK App usage.

4. Indonesia Strategy: Piloting a new fast-casual dining model to improve Average Daily Sales and focusing on strengthening the chicken menu offerings.

Rajeev Varman, Whole-time Director and Group CEO of RBA, commented, "Innovation along with operational excellence has helped us navigate a dynamic environment. Our new Korean range of products have been well received, with guests appreciating the use of premium ingredients and authentic flavours."

Looking ahead, RBA aims to open 60 to 80 new restaurants annually in India, targeting approximately 800 restaurants by FY2029. The company also expects to achieve a gross profit margin of around 70% by FY2029.

As RBA continues to execute its growth strategy and optimize its operations, the company remains focused on creating enduring value for all stakeholders in both the Indian and Indonesian markets.