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    Restaurant Brands Asia Q1 FY27 earnings call

    RBA
    Consumer Services·3 Aug 2026
    Management Summary

    Restaurant Brands Asia Limited reported a strong Q1 FY27, driven by exceptional performance in India with 12.6% same-store sales growth and a 23.6% increase in revenue to INR 682 crores. India's restaurant-level EBITDA surged by 68.1% to INR 90 crores, and company EBITDA more than doubled to INR 52.7 crores. While Indonesia's Burger King business showed profitability at the restaurant level, the Popeyes segment continued to incur losses, contributing to a consolidated loss after tax of INR 33 crores, partly due to a significant exchange loss.

    Highlights

    8

    • India SSSG at 12.6%, highest in 15 quarters.

    • India Revenue at INR 682 crores, up 23.6% YoY.

    • India Restaurant Level EBITDA at INR 90 crores, up 68.1% YoY.

    • India Company EBITDA at INR 52.7 crores, up 133.6% YoY.

    • Consolidated Revenue grew by 18% to INR 823 crores.

    • Consolidated Restaurant EBITDA grew by 73.5% to INR 93.3 crores.

    • Consolidated Company EBITDA grew over 3x to INR 43.5 crores.

    • Gross margin improved to 70.8%.

    Concerns

    3

    • Popeyes Indonesia reported a loss of INR 3 crores.

    • Consolidated loss after tax of INR 33 crores.

    • Exchange loss of INR 12 crores impacted PAT.

    Key financials

    Single quarter

    05 metrics
    1. 01Consolidated Revenue₹823 Cr+18%YoY
    2. 02Consolidated Restaurant EBITDA₹93.3 Cr+73.5%YoY
    3. 03Consolidated Company EBITDA₹43.5 Cr
    4. 04Consolidated PAT₹-33 Cr
    5. 05Consolidated Store Count752 stores

    Segment breakdown

    • India₹682 Cr83.0%
    • Indonesia Burger King₹124 Cr15.1%
    • Indonesia Popeyes₹15.7 Cr1.9%
    Donut· Share of Revenue

    Guidance & targets

    3
    CategoryTargetPriority
    Store Count
    New Store Additions (India)
    80
    		High
    Margin
    Gross Margin (India)
    72%
    		High
    Investment
    Marketing Investment (Indonesia)
    9 million
    		High

    What to watch in Q2 FY27

    4

    Popeyes Indonesia Strategic Decision

    Next few quarters
    CurrentOperating at a loss, under review with new promoters
    TargetClear strategic path (e.g., divestment, turnaround plan)

    Why it matters

    Resolution of a loss-making segment is crucial for overall profitability and capital efficiency.

    Popeyes, like I told you, we are now in very deep conversations with the new promoters. It is a tough business, and it is something that we will not exclude any strategic decisions on that, and we will inform you as we kind of arrive at a path that is visible to us.

    Risks & concerns

    2
    RiskSeverity

    Popeyes Indonesia Losses

    The Popeyes business in Indonesia reported a loss of INR 3 crores for the quarter. — Management acknowledged

    medium

    Exchange Loss Impact on PAT

    An exchange loss of INR 12 crores contributed to the consolidated loss after tax. — Management acknowledged

    low

    Q&A highlights

    8

    “Look, our total sales, whether it's delivery sales or dine-in sales is driven at the back of traffic increase. We didn't take any -- and you could probably reflect on our restaurant pricing as well. We haven't taken any significant pricing to have reached that 12.6%. It's driven by traffic that we have generated. ... The second question, which was on marketing, yes, we you always see in Q1 that we have a higher marketing expense. This time, it was 6.9% -- 6.6%, sorry. And usually, this kind of gets amortized over the year.”

    Clarifies that India's strong SSSG was traffic-driven, not price-driven, and explains the impact of Q1 marketing spend on EBITDA.

    asked by Aditya from CLSA

    2 min read6 chapters

    Detailed Narrative

    01

    Strong India Performance Driven by Traffic

    India operations delivered a 12.6% same-store sales growth (SSSG), the highest in 15 quarters, primarily driven by increased traffic rather than price hikes. Revenue for Burger King India reached INR 682 crores, a 23.6% year-over-year increase. This strong top-line growth translated into a 68.1% rise in restaurant-level EBITDA to INR 90 crores and a 133.6% surge in company EBITDA to INR 52.7 crores.

    02

    Gross Margin Expansion and Operational Efficiencies

    The company achieved a gross margin of 70.8% in India, an improvement of 3.1% year-over-year and 0.6% quarter-over-quarter. This was attributed to a favorable product mix, vendor management, and supply chain initiatives. Additionally, efforts in utility efficiency, including new broiler installations and solar farm initiatives, contributed to improved profitability, with a target to reach 72% gross margin over the next three years.

    03

    Digital Adoption and Menu Strengthening

    Digital channels, including self-ordering kiosks (SOKs) and the BK app, now account for 90% of orders, providing a strong foundation for future CRM programs. The company continued to strengthen its core menu and premium offerings, with the launch of BK Cafe in 2022 and recent successful promotions like Korean and Peri-Peri burgers contributing to the SSSG. The strategy remains focused on value leadership in India.

    04

    Indonesia Turnaround Efforts for Burger King

    In Indonesia, Burger King's 137 restaurants generated INR 124 crores in revenue with a restaurant-level EBITDA of INR 6.4 crores, indicating profitability at the store level. The company is testing a new value strategy and has installed self-ordering kiosks to improve average per check by 4-5%. The franchisor, RBI, has committed USD 9 million over the next three years for marketing support in Indonesia, with RBA focusing on operational efficiencies rather than new store capex.

    05

    Popeyes Indonesia Remains a Concern

    The Popeyes business in Indonesia, with 25 stores, reported revenues of INR 15.7 crores but incurred a loss of INR 3 crores. Management is in 'very deep conversations' with new promoters regarding strategic options for Popeyes, indicating a potential for significant changes to address its unprofitability. The company aims to minimize losses and improve efficiency in this segment.

    06

    Consolidated Financial Overview and Capital Allocation Outlook

    On a consolidated basis, Restaurant Brands Asia reported an 18% increase in revenue to INR 823 crores and a 73.5% growth in restaurant EBITDA to INR 93.3 crores. Company EBITDA grew over three times to INR 43.5 crores. However, the company recorded a consolidated loss after tax of INR 33 crores, partly due to an INR 12 crore exchange loss related to Indonesian investments. The company is formulating a comprehensive capital allocation strategy with new promoters for the next 3-5 years, with generated cash to be reinvested for business growth.

    This is an AI-generated summary of a publicly available earnings call transcript.