Mumbai, January 29, 2025 – Restaurant Brands Asia Limited (RBA), formerly known as Burger King India Limited, has reported strong revenue growth of 5.8% YoY in the third quarter of FY25, supported by store expansion and digital transformation. Despite the revenue growth, the company continues to grapple with profitability challenges in its Indonesia operations.
Key Financial Highlights (Q3 FY25 vs Q3 FY24)
- Consolidated Revenue from Operations: ₹6,391 million, up from ₹6,042 million (+5.8%)
- India Revenue: ₹4,954 million, up from ₹4,454 million (+11.2%)
- Indonesia Revenue: IDR 269 billion (-9.5% YoY)
- Gross Profit Margin: 67.8%, an improvement of 70 basis points YoY
- Restaurant EBITDA (Pre-Ind AS 116): ₹596 million (+9.7% YoY)
- Company EBITDA (Pre-Ind AS 116): ₹309 million (+2.0% YoY)
- Net Loss: ₹647.1 million (Q3 FY24: ₹399.37 million)
Operational Performance
India Business
- Store Count: 510 stores (+69 YoY, +46 QoQ)
- Dine-in Sales Growth: Flat demand resulted in -0.5% SSSG
- Digital Transformation: 90% of dine-in orders are now processed through digital channels
- Burger King App Growth: 30% YoY increase in app installs
- Menu Expansion: Launched BK Chicken Pizza Puff to build snacking occasions
Indonesia Business
- Total Stores: 147 (-15 YoY) due to store rationalization
- Burger King Indonesia Revenue: IDR 17.6 million ADS (-4.1% SSSG)
- Popeyes Indonesia Revenue: IDR 14.0 million ADS
- Co-EBITDA: IDR (39.5) billion, reflecting operational losses amid macroeconomic headwinds
Strategic Initiatives & Outlook
- Profitability Focus: Enhanced delivery profitability by 70 basis points
- Cost Optimization: Measures taken to reduce utility, rental, and other fixed costs
- Store Expansion Strategy: Continued investment in high-performing locations while rationalizing underperforming stores
- Menu & Marketing Expansion: Introduction of value-driven meal combos and snack innovations
Future Growth Prospects
Managing Director Rajeev Varman expressed confidence in the company’s growth trajectory, stating that continued digital adoption and strategic cost reductions will help drive long-term profitability. He also emphasized RBA’s commitment to innovative menu offerings and expansion of the BK Café concept to boost footfall.With 510 stores in India and 147 in Indonesia, RBA remains focused on expanding its market presence while improving unit economics, positioning itself for sustained growth in the competitive QSR segment.