Rs 99 meals fuel growth at Restaurant Brands Asia

Restaurant Brands Asia (RBA) India (formerly Burger King India Pvt Ltd) had an excellent year-on-year revenue growth of 23 per cent in the second quarter of FY 2023-24 (Q2 FY24), according to an ICICI Securities report.

The quick service restaurant (QSR) chain also saw a 4 per cent increase in same store sales growth (SSSG). The SSSG growth was driven by offering tasty meals starting at Rs 99, which attracted more customers to dine in at its restaurants, says the report.

RBA has expanded its retail presence and added eight new stores, with plans to open even more in the second half of FY24. It has also improved its operating margins, thanks to better cost management, which has helped it break even in terms of profit before tax in India, and at the restaurant level in Indonesia. RBA will continue to offer value-for-money meals at the INR 99 price point to maintain the momentum in store sales growth.

In Indonesia, RBA made some adjustments by closing underperforming Burger King stores to reduce operating losses, but Popeyes, another brand it operates, continues to perform well, says the report. 

Read the ICICI Securities report here.