Buy Restaurant Brands Asia; target of Rs 120: Motilal Oswal

Motilal Oswal's research report on Restaurant Brands Asia

Restaurant Brands Asia (RBA) posted revenue growth of 16% YoY for its Indian business (in line), led by a 15% YoY rise in store additions. Same-store sales rose 2.8%, led by healthy traction across both the channels and value offerings. RBA witnessed a strong performance in October following the GST rate reduction and a healthy festive season. Management remains confident of a robust 3QFY26 performance.

Outlook

We reiterate BUY with a TP of INR120. We value India at 25x Sep’27E EV/EBITDA (pre-IND AS) and Indonesia EV at INR5b (~0.7x EV/sales Sep’27E).