Restaurant Brands Q3 Results Review - Weak Consumer Sentiments Ruling Value For Money Demand: Centrum Broking

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.Restaurant Brands Asia Ltd.'s Q3 FY24 print was below our expectations; standalone revenue/Ebitda grew by 20.5%/47.9% while profit profit after tax loss cut to Rs 64 million. With 441 stores same-store sales growth of 2.6% indicates continued weakness in consumer sentiments.With 334 Burger King cafe covering 76% store its average daily sales stood flat at Rs 119000 (-5.5% QoQ). Management alluded sharp focus on building traffic using value for money layer through menu innovation (Rs 99/- meal) yielding good results. Restaurant Brands Asia said it is building price leadership and value credentials for Gen-Z and Millennials remains key priority.Geopolitical issues impacted Indonesia revenues to Rs 1.6 billion with average daily sales at Rs 17.8 million (-1%) YoY, though Restaurant Brands Asia aims to strengthen operation with 163 Burger King and 25 Popeyes stores establishing relevant chicken menu and leadership in Burgers.Gross margin inched up to 67.1% (plus 76 basis points), yet higher employee/other expenses at plus 10.4%/+17.8% resulting in post-IND AS Ebitda margins at 15.9% (plus 294 bp).Restaurant Brands Asia cuts SSSG guidance to 3% with ~67% gross margin in FY24. We tweak margin assumptions and maintain Reduce rating with a revised discounted cash flow -based target price Rs 112 (implying enterprise value/Ebitda of 14.1 times average FY25E/FY26E). .Click on the attachment to read the full report:.Restaurant Brands Asia Q2 Results Review - Earnings Recovery On Track In India, Indonesia: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Restaurant Brands Q3 Results Review - Weak Consumer Sentiments Ruling Value For Money Demand: Centrum Broking

Building consumer traffic through price leadership yielding same-store sales growth at 3.5%.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Restaurant Brands Q3 Results Review - Weak Consumer Sentiments Ruling Value For Money Demand: Centrum Broking

Building consumer traffic through price leadership yielding same-store sales growth at 3.5%.

Choose a plan

Follow Us

DOWNLOAD THE APP