Q3 2026 Restaurant Brands Asia Ltd Earnings Call Transcript
Key Points
- Restaurant Brands Asia Ltd (BOM:543248) reported its 11th consecutive quarter of positive sales growth, with total revenues up 16.5% year-over-year.
- The company achieved a gross margin of 69.9%, nearing the 70% target, driven by supply chain improvements and reduced transportation costs.
- Digital orders now account for 92% of all orders, with a 47% increase in monthly active users, showcasing strong digital engagement.
- The company plans to expand its restaurant count to nearly 600 by the end of the quarter, indicating robust growth and market presence.
- Restaurant-level EBITDA increased by 25.7%, and company EBITDA reached INR40.6 crores, marking the highest ever reported, up 31.5% year-over-year.
- The sales environment remains challenging, with increased competition and aggressive pricing strategies from competitors like McDonald's.
- The Indonesia business faces challenges, particularly with the Popeyes brand, and has yet to achieve profitability despite some improvements.
- Employee costs have increased due to the opening of new restaurants and the need for additional training, impacting overall expenses.
- The company has reduced delivery discounts to improve margins, which may affect customer acquisition and retention if not managed carefully.
- Despite improvements, the Indonesia segment's gross margins remain significantly lower than the Indian operations, highlighting ongoing operational challenges.
Ladies and gentlemen, good morning, and welcome to the Restaurant Brands Asia Q3 FY26 earnings conference call hosted by Motilal Oswal Financial Services Limited.(Operator Instructions) Please note that this conference is being recorded. I will now hand the conference over to Mr. Naveen Trivedi from Motilal Oswal Financial Services Limited for opening remarks. Thank you, and over to you, Naveen.
Yeah. Thank you so much. Good morning, everyone. On behalf of Motilal Oswal, I'm Naveen Trivedi would like to welcome you all to the Restaurant Brand Asia 3Q FY26 earnings conference call. From the management today, we have Mr. Rajeev Varman, overtime Director and Group CEO; Mr. Sumit Zaveri, Group CFO and Chief Business Officer; Mr. Kapil Grover, Group CFO; Mr. Sandeep Dey, Brand President, Indonesia; and Mr. Gaurav Ajjan, Head of Corporate Development and IR.
I would now hand over the call to the management for the opening remarks. Over to you, Raj. Thank you.
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