Restaurant Brands Asia
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Restaurant Brands Asia (RBA) is experiencing a significant turnaround in its India operations, with management reporting record-high same-store sales growth (SSSG) and notable margin expansion driven by menu innovation and operational efficiencies. The company's strategic focus on store-level profitability and an ambitious target of 80 new store openings for FY27 underpins a positive revenue outlook, aligning with Vista's expectations of stable revenue growth. However, the Indonesian segment remains a concern, as management shifts its focus to cost rationalization rather than growth, presenting execution risks that could impact overall profitability. The recent capital infusion from Inspira Global has strengthened RBA's balance sheet, providing a solid foundation for continued expansion. While the macro environment in India shows constructive growth indicators, rising operational costs pose challenges. Over the next 12-24 months, RBA's key opportunities lie in maintaining its expansion cadence and leveraging digital integration, while headwinds include competitive pressures and the need for successful execution in Indonesia. Overall, RBA's outlook is cautiously optimistic, contingent on sustained operational execution and effective capital allocation strategies
Why We Like This Stock
- Record-high same-store sales growth in India, indicating strong consumer demand
- Ambitious expansion plan with a target of 80 new store openings for FY27, supporting revenue growth
- Recent capital infusion enhances balance sheet strength, enabling further investment in core operations
Things To Watch Out For
- The Indonesian segment remains a laggard, with a focus on cost rationalization posing execution risks
- Rising operational costs, particularly in energy, threaten margin stability
- Competitive pressures in the QSR market could impact market share and profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,437 | 2,551 | 2,823 | 3,061 | 3,503 |
| Profit Before Tax (Cr.) | -237 | -233 | -202 | -114 | -140 |
| PBT Margin | -9.7% | -9.1% | -714.7% | -3.7% | -4.0% |
| Net Profit (Cr.) | -237 | -233 | -202 | -86 | -105 |
| Earnings Per Share | -3.1 | -3.0 | -2.6 | -1.2 | -1.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 90 | 05-Aug-2026 |
| Motilal Oswal | ▲ Buy | 125 | 05-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 93 | 04-Aug-2026 |
Company Overview
Show Company Profile
Restaurant Brands Asia Limited, together with its subsidiaries, operates quick service restaurant chains. It develops, establishes, operates, and franchises restaurants under the Burger King brand in India, as well as Burger King and POPEYES brands in Indonesia. The company was formerly known as Burger King India Limited and changed its name to Restaurant Brands Asia Limited in February 2022. Restaurant Brands Asia Limited was incorporated in 2013 and is based in Mumbai, India.