Sharekhan's research report on Restaurant Brands Asia
Restaurant Brand Asia (RBA) posted mixed performance in Q1FY24 with revenues growing by 25% y-o-y to Rs. 610.8 crore, while EBIDTA margins expanded by 193 bps y-o-y to 7.3% (lower than our expectation 10.1%); Loss stood at Rs. 54 crore in Q1FY2024. Management has maintained guidance of 10% SSSG for FY2024 and 8% SSSG for FY2025; it targets 67% gross margins in FY2024 for the India business. Indonesia business to break-even in FY2024; Popeyes to lead the growth in medium term along with consistent improvement in the burger business in the Indonesian market.
Outlook
The stock currently trades at 26x/19x its FY2024E/FY2025E EV/EBIDTA. With favourable risk-reward, we maintain Buy rating on the stock with an unchanged price target (PT) of Rs. 150.
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Restaurant Brands Asia (Burger King India) - 09 -08 - 2023 - khan
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