Buy Restaurant Brands Asia; target of Rs 117: Sharekhan

Sharekhan is bullish on Restaurant Brands Asia has recommended buy rating on the stock with a target price of Rs 117 in its research report dated October 29, 2024.

Broker Research

October 31, 2024 / 12:30 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on Restaurant Brands Asia

Restaurant Brand Asia’s (RBA’s) Q2FY2025 performance was affected by negative SSSG in the India business and sustained weakness in Indonesia; EBITDA margins rose y-o-y aided by better profitability of the India delivery business and multiple initiatives in Indonesia. For India business, focus continues to be on increasing dine-in traffic, making delivery business profitable and digital transformation. It is eyeing 69% gross margins from the India biz by FY2027. Despite a weak H1, RBA expects Indonesia business to break even at country level by FY2025-end aided by initiatives such as product launches with a marketing support and lower corporate general & administration expenses.

Outlook

Stock trades at 21x/15x/11x its FY25E/FY26E/FY27E EV/EBIDTA, respectively. We maintain a Buy with a revised price target (PT) of Rs. 117.

For all recommendations report, click here