KFC India operator Sapphire beats profit view as cheaper menu drives demand

Sapphire Foods India, which operates Pizza Hut and KFC restaurants in the country, reported a better-than-expected quarterly profit on Thursday, as its cheaper food items helped boost demand from budget-conscious consumers.

The restaurant operator posted a profit of Rs 11.98 crore ($1.37 million) for the quarter ended December 31, up from a profit of Rs 10.14 crore a year earlier.

Analysts, on average, had expected a profit of Rs 11.68 crore, according to data compiled by LSEG.

Global fast-food chains, including McDonald's and Pizza Hut, have been launching more affordable options in India over the last few quarters to attract consumers stretched thin due to the high cost of living.