Restaurant Brands Asia, the franchisee of Burger King India, saw a positive turn in its quarterly financials on Wednesday. The strategic addition of more outlets and an expanded menu played a key role in narrowing the consolidated net loss to INR 460.3 million ($5.5 million) for the three months ending September 30. This marks a notable improvement from the INR 499.5 million loss reported in the same period last year.
Analysts noted that Burger King India broadened its menu in the quarter by introducing a variety of chicken items and running promotions on specific meals. This strategic move not only boosted customer traffic at its restaurants but also led to higher average bill values.
During the period, Restaurant Brands, with the incorporation of 10 new Burger King outlets, experienced additional advantages from the increased footfall in malls. Analysts highlighted that the company enjoys a larger presence in malls compared to other fast-food chains, contributing to its overall success.
The revenue from operations experienced a 16% growth, reaching INR 6.25 billion.
However, the same-store sales growth, a measure of customer retention, at Burger King restaurants in India decelerated to 3.5%, down from the 27% recorded a year earlier.
Expenditures for the company increased by 15%, primarily driven by a more than 20% surge in ingredient costs.
To reduce expenses in the quarter, numerous fast-food chains, Burger King included, opted to remove items like tomatoes and cheese from their menus.
Rival fast-food chain operators, such as KFC’s operator Devyani International, Pizza Hut’s operator Sapphire Foods India, McDonald’s operator Westlife Foodworld, and Domino’s India franchisee Jubilant FoodWorks, all reported a decline in quarterly profit.
Shares of Restaurant Brands fell as much as 2.1 per cent after the results, before reversing course to rise as much as 3.3 per cent.
They have risen 6.5 per cent so far this year. Devyani and Westlife have each risen 2 per cent and 3 per cent this year, while Sapphire and Jubilant have fallen 4 per cent and 0.5 per cent, respectively.
