Q2 2026 Restaurant Brands Asia Ltd Earnings Call Transcript
Key Points
- Restaurant Brands Asia Ltd (BOM:543248) reported 10 consecutive quarters of positive traffic growth in its dine-in segment, indicating a successful strategy.
- The company has implemented a barbell strategy, offering both value and premium products, which has been effective in driving traffic.
- Digital transactions account for 91% of restaurant transactions, showcasing a strong digital-first approach.
- Significant efforts in cost reduction, such as utility savings through new equipment, are expected to improve profitability.
- The company is on track to open 60 to 80 new stores annually, aiming for a total of 800 stores by FY29, indicating strong growth plans.
- The Popeyes business in Indonesia is facing challenges, with efforts needed to bring it to a neutral financial position.
- Despite improvements, the store EBITDA in Indonesia remains negative, partly due to increased marketing expenses.
- The company's pre-Ind AS EBITDA margins remain in the mid-single digits, with a need for further improvement.
- Employee costs have increased due to additional staffing for new initiatives, impacting short-term margins.
- The Average Daily Sales (ADS) has been stagnant in the range of INR115,000 to INR120,000, indicating a need for further growth.
Ladies and gentlemen, good day, and welcome to Restaurant Brands Asia Q2 and H1 FY26 earnings conference call hosted by Motilal Oswal Financial Services Limited. (Operator Instructions) Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call.
I now hand the conference over to Mr. Naveen Trivedi from Motilal Oswal Financial Services Limited. Thank you, and over to you, sir.
Yes. Hi, and good morning, everyone. On behalf of Motilal Oswal, I'm Naveen Trivedi. I would like to welcome you all to the Restaurant Brands Asia's 2Q FY26 earnings conference call. From the management today, we have Mr. Rajeev Varman, Whole-Time Director and Group CEO; Mr. Sumit Zaveri, Group CFO and Chief Business Officer; Mr. Kapil Grover, Group CMO; Mr. Sandeep Dey, Brand President, Indonesia; and Mr. Gaurav Ajjan, Head, Corporate Development and IR.
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