Q1 2025 Restaurant Brands Asia Ltd Earnings Call Transcript
Key Points
- Restaurant Brands Asia Ltd (BOM:543248) reported positive same-store sales growth for the ninth consecutive quarter.
- The company has expanded to 456 restaurants in 107 cities over the past 10 years.
- Gross margins have improved by 110 basis points year-over-year, now standing at 67.6%.
- The company has introduced innovative menu items and value strategies, such as the 2 for INR 79 and 2 for INR 99 promotions, which have driven traffic.
- Digital initiatives, including self-ordering kiosks and the BK app, have significantly enhanced customer experience and operational efficiency.
- The geopolitical crisis in Indonesia has negatively impacted sales, leading to a 5.4% negative same-store sales growth in the region.
- Despite efforts, the company reported an EBITDA loss of IDR 17.3 billion in Indonesia.
- Utility costs have increased due to extreme heat, impacting overall profitability.
- The delivery mix has slightly decreased from 45% to 42%, despite expectations for it to rise due to the heat wave.
- The company faces challenges in achieving cash breakeven in Indonesia, requiring further sales growth and operational adjustments.
Good morning, ladies and gentlemen. Good day, and welcome to Restaurant Brands Asia Limited Q1 FY25 Conference Call hosted by Motilal Oswal Financial Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Naveen Trivedi. Thank you, and over to you, sir.
Good morning, everyone. On behalf of Motilal Oswal, I would like to welcome you all to the Restaurant Brands Asia Q1 FY '25 earnings conference call. From the management today, we have Mr. Rajeev Varman, CEO, Whole-Time Director; Mr. Sandeep Dey, Brand President, Indonesia; Mr.
Sumit Zaveri, Group CFO and Chief Business Officer; Mr. Kapil Grover, Chief Marketing Officer; and Gaurav, the head Investor. Now I hand over the call to the management for the opening remarks.
Thank you. Good morning to everyone. This is Rajeev
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