Buy Restaurant Brands Asia; target of Rs 93: Sharekhan

Sharekhan's research report on Restaurant Brands Asia

Restaurant Brand Asia (RBA) saw SSSG improve sequentially in Q3FY25, with the India business’ SSSG falling 0.5% (versus a 3% decline in Q2FY25) and the Indonesia business’ SSSG declining 4.1% (versus 15% decline in Q2FY25). Consolidated revenue grew by 5.8% y-o-y to Rs. 639 crore, EBITDA margin fell by 43 bps y-o-y to 10.9% and loss widened to Rs. 55 crore versus Rs. 40 crore in Q3FY24. India business continues to focus on increasing dine-in traffic, making delivery business profitable and digital transformation. In Indonesia, focus is on increasing dine-in sales and improving profitability.

Outlook

Stock trades at 15x/11x/9x its FY25E/FY26E/FY27E EV/EBIDTA, respectively. We maintain a Buy with a revised price target (PT) of Rs. 93.

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