PL First Cut - Restaurant Brands Asia 2Q24

PL First Cut – Restaurant Brands Asia 2Q24 – Amnish Aggarwal – Head of Research, Prabhudas Lilladher Pvt Ltd

Restaurant Brands Asia 2Q24 – Narrows losses, revenue inline

(CMP: Rs114|Accumulate)

India Business

> Revenues grew by 23.2% YoY to Rs4.5bn (PLe: Rs4.6bn)

> Gross margins expanded by 44bps YoY to 66.8% (Ple: 67%)

> EBITDA grew by 50.7% YoY to Rs634.2mn (PLe: Rs574.5mn); Margins expanded by 255bps YoY to 14% (PLe:12.6%)

> Adj PAT grew by 29.6% YoY to Rs-93.4mn (PLe: Rs-164mn)

> SSSG stood at 3.5%; ADS at Rs126k in 2Q24

> Added 8 stores in 2Q24, total store count at 404

> Added 11 BK Café in 2Q24, total BK Café count at 297

Indonesia Business

> Revenues grew by 9.4% YoY to Rs1.7bn

> Gross margins contracted by -318bps YoY to 57.3%

> EBITDA grew by 57.6% YoY to Rs-71.8mn (PLe: Rs-323mn); Margins expanded by 662bps YoY to -4.2% (PLe:-47.2%)

> Adj PAT grew by 1.2% YoY to Rs-413.1mn

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India business was largely in-line with our estimates and continues to see strong growth and benefits of operating leverage. The benefits of accelerated store expansion plan and rising throughput will boost profitability in coming years. We have a ACCUMULATE rating on the stock.