Accumulate Restaurant Brands Asia; target of Rs 82: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Restaurant Brands Asia with a target price of Rs 82 in its research report dated February 04, 2026.

Broker Research

February 05, 2026 / 13:03 IST

Accumulate

Prabhudas Lilladher's research report on Restaurant Brands Asia

RBA delivered a healthy all-round performance, reporting SSSG of 4.5%, driven by sustained focus on strengthening its value proposition and in store traffic growth. ADS stood at Rs117k, with sales/store up 2.3%, reflecting improving store economics. Adjusted loss narrowed to Rs48mn, aided by healthy GMs of ~70% (achieved well ahead of the FY29 target), though corporate overheads remain elevated. The Indonesia business continues to be a drag, with sales declining 4.4% YoY as Burger King brand is seeing recovery while Popeyes continues to face intense competition from regional players. We believe the entry of Inspira Global as a promoter will strengthen balance by infusion of Rs15bn as fresh capital. RBA’s India strategy is on track given 1) Value focus with combos (2 veg Burgers at Rs79, Chicken at Rs99, and Café at Rs99) 2) renewed mix focus with whooper Deluxe and Kings collection 3) cost reduction in delivery business and 4) gradual increase in ADS of Café business.

Outlook

We believe benefits of operating leverage, cost control and higher income (Rs797/1539mn in FY27/28 led by Capital infusion) will enable RBA to turn PAT positive from India operations by FY27. Exit from Indonesia business will be a key trigger for the stock, in our view. Retain Accumulate with SOTP based target price of Rs82 (Rs81 earlier).

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