Accumulate Restaurant Brands Asia; target of Rs 145: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Restaurant Brands Asia with a target price of Rs 145 in its research report dated November 08, 2023.

Broker Research

November 14, 2023 / 18:27 IST

Accumulate

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Restaurant Brands Asia

Restaurant Brands Asia (RBA) had shown broad based recovery in 2Q24 led by 3.5% SSG in India and margin beat lead by steady GM and lower increase in overheads. Indonesia business has reported strong 50% growth in chicken and 35% in burgers in a seasonally weak quarter. 2H24 outlook in India better with 1) seasonal uptick in 3Q resulting in improved store traffic 2) higher stores openings (46 in 2H) 3) sustained benefits from value meal and innovations and 4) strong growth in smaller towns. We believe margin expansion in India business will be slightly curtailed in 2H due to overheads associated with accelerated store openings. Indonesia operations is showing initial signs of recovery led by 1) relaunch/innovation in Whopper range 2) new range of chicken offerings 3) desserts scalability and 4) sustained traction with 30% higher ADS in Popeyes then BK.

Outlook

Given strong SSG guidance beyond FY24, we now expect India business to report FY26 PBT from operations of Rs276mn versus Rs165mn earlier. We value the company at Rs 145 (Rs142 earlier) on SOTP basis. Accumulate.

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