Q2 2025 Restaurant Brands Asia Ltd Earnings Call Transcript
Key Points
- Restaurant Brands Asia Ltd (BOM:543248) reported a 0.3% increase in sales quarter-over-quarter and an 8.5% increase over the same quarter last year, indicating steady growth.
- The company achieved a gross margin of 67.5%, which is 0.7% better than the same quarter last year, showcasing improved cost management.
- Restaurant level EBITDA pre-IND AS 116 was 19.8%, marking a significant improvement over the previous quarter, highlighting enhanced operational efficiency.
- The company has successfully implemented digital transformation in over 60% of its restaurants, aiming for 100% by the end of the fiscal year, enhancing customer experience and operational efficiency.
- In India, dine-in traffic continues to increase every month, driven by strategic promotions and value offerings, indicating strong customer engagement.
- Restaurant Brands Asia Ltd (BOM:543248) reported a negative same-store sales growth (SSSG) of -3% for the first time in eight to nine quarters, reflecting challenges in maintaining sales momentum.
- The geopolitical climate in Indonesia has negatively impacted sales, with a reported 11% year-on-year drop in ADS and a 22% decline in dine-in sales.
- The company has not seen a reversal in negative traffic in Indonesia, and no new stores are planned until the business stabilizes, indicating ongoing challenges in this market.
- Despite efforts, the Indonesia business continues to face cash losses, and the company is focusing on cost containment and efficiency improvements to mitigate these losses.
- The overall economic environment in Indonesia remains challenging, with deflation and increased unemployment affecting consumer spending and impacting the QSR industry.
Ladies and gentlemen, good day and welcome to Restaurant Brands Asia Limited Q2 FY25 earnings conference call hosted by Motilal Oswal Financial Service Limited.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr Naveen Trivedi from Motilal Oswal Financial Service Limited. Thank you and over to you, sir.
Good morning, everyone. On behalf of Motilal Oswal, I'm Naveen Trivedi, would like to welcome you all to the Restaurant Brands Asia's 2Q FY25 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. Sandeep Dey, Brand President, Indonesia; Mr. Kapil Grover, Group CMO; and Mr. Gaurav Ajjan, Head of Strategy and IR.
I will now hand over the call to the management for the opening remarks. Over to you, sir.
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