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.

Restaurant Brand Asia (Burger King) Limited (RBA) has reported no material deviation in the utilization of proceeds from its Qualified Institutions Placement (QIP) for the second quarter of fiscal year 2026, according to the monitoring agency report submitted to the stock exchanges.

QIP Proceeds and Utilization

ICRA Limited, the appointed monitoring agency, confirmed that the company's use of funds aligns with the stated objectives of the INR 500 crore QIP issue conducted in March 2025. The key details of the fund utilization are as follows:

The net proceeds were INR 1.09 crore higher than initially estimated due to lower issue-related expenses.

Deployment of Unutilized Proceeds

As of September 30, 2025, RBA has deployed the unutilized proceeds of INR 284.97 crore in various financial instruments:

Implementation Timeline

The company has reported that all implementation timelines remain on schedule, with completion targeted for the fiscal year 2026-2027.

Financial Performance

In addition to the QIP fund utilization report, RBA also released its financial results for Q2 FY2026:

• Revenue from operations (standalone) increased by 15.6% year-on-year to INR 5,687 million.
• Gross margin improved to 68.3%, up by 80 basis points from the same quarter last year.
• Standalone EBITDA grew by 16.3% year-on-year to INR 813 million.
• The company added 14 new Burger King stores during the quarter, bringing the total restaurant count to 533.

Management Commentary

Rajeev Varman, Whole-time Director and Group CEO of RBA, commented on the performance: "Our same-store sales for Burger King in India was up by 2.8% this quarter along with a healthy increase in gross margins. We witnessed a positive traffic growth in both the dine-in and delivery channels. This is an outcome of our relentless focus on exceeding guest expectations through compelling value offerings, menu innovations and technology investments."

Varman also noted that the recent GST reforms introduced by the government, coupled with a benign inflation outlook, are expected to boost consumer sentiment.

The company remains confident in its growth trajectory for the second half of the fiscal year, supported by its strategic initiatives and positive market conditions.

Restaurant Brands Asia continues to focus on expanding its restaurant network, enhancing its menu offerings, and leveraging technology to improve customer experience, positioning itself for sustained growth in the competitive quick-service restaurant sector.