Hold Restaurant Brands Asia; target of Rs 76: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Restaurant Brands Asia with a target price of Rs 76 in its research report dated January 29, 2025.

Broker Research

January 30, 2025 / 14:29 IST

Hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Restaurant Brands Asia

Restaurant Brands Asia (RBA) posted -0.5% SSG in a subdued demand environment with ADS of 114 and Adj loss at Rs186mn. Indonesia business reported 9.5% decline in sales, green shoots in demand recovery with stabilizing geopolitical scenario and closure of non-performing stores. RBA’s India strategy is centered around 1) Value focus with combos (2 veg Burgers at Rs79, Chicken at Rs99) and value meals at Rs99 to drive in store traffic 2) digital driven ordering 3) cost reduction in delivery business and 4) control over overheads. Indonesia strategy is focusing on 1) zero store openings 2) lowering of overheads (35% cut already achieved) 3) menu innovations in chicken and driving efficiencies in procurement by leveraging size of Indian operations.

Outlook

Near term outlook looks hazy impending clarity on FY26 expansion in India, tepid demand scenario and sustained pressure in Indonesia business. We cut our SOTP based target price from Rs100 to Rs76. We retain Hold but avoid further entry till a clear turnaround is visible in Indian operations.

For all recommendations report, click here