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Restaurant Brands Asia Q1 Review - Should Deliver Better Operating Margin Performance Going Ahead: Nirmal Bang

Restaurant Brands Asia Q1 Review - Should Deliver Better Operating Margin Performance Going Ahead: Nirmal Bang

<div class="paragraphs"><p>A Burger King outlet. (Photo: Ismail Hadine/Unsplash)</p></div>
A Burger King outlet. (Photo: Ismail Hadine/Unsplash)

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Nirmal Bang Report

Restaurant Brands Asia Ltd.’s (formerly Burger King India) Q1 FY23 standalone revenue grew ahead of our expectation at 125% YoY even while same store sales growth of 66% YoY was in line with our expectation.

For the India business, average daily sales has now improved to ~Rs 120,000 in Q1 FY23, higher than Rs 114,000 reported in Q3 FY22 with July 2022 ADS looking even better at ~Rs 131,000. Restaurant Brands Asia's gross margin expanded to 66.4% (up 120 basis points YoY/up 30 bps QoQ).

Restaurant Ebitda margin came in at 14.8% in Q1 FY23; 6.1% on a pre-IND AS 116 basis.

There was a ~220 bps impact on Ebitda margin due to incremental marketing spends done in Q1 FY23 (over normal levels), which will normalise over the full year.

Click on the attachment to read the full report:

Nirmal Bang Restaurant Brands Asia- Q1FY23 Result Update -14 August 2022.pdf

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