Sharekhan's research report on Restaurant Brands Asia
Restaurant Brand Asia’s (RBA’s) Q4FY2024 operating performance beat expectations, mainly led by higher-than-expected consolidated EBIDTA margins of 11.6% versus expectations of 9.6%; consolidated revenues grew by 16%. India business’ SSSG grew by 3% in FY24 (in line with guidance); expects consistent improvement in SSSG through higher footfalls. Gross margins to improve by ~200 bps to 69% by FY2027. Indonesia business to break even on cash basis by FY2025-end. Improvement in menu and digital capabilities will help store performance in Indonesia to improve in the coming years.
Outlook
Stock trades at 16x/12x it FY2025E/FY2026E EV/EBIDTA. We maintain a Buy with an unchanged price target (PT) of Rs. 150.
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