Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by aggressive network expansion and operational improvements.
Basis of our Recommendation
UFBL is experiencing a strong turnaround with a volume-led strategy driving growth in H2 FY26. The company is aggressively expanding its restaurant network, targeting over 400 locations by FY30, which is expected to enhance customer engagement and profitability. While initial store openings may pressure margins, the long-term outlook remains positive due to operating leverage and a strong international segment, despite some challenges from external factors.
Why We Like This Stock
- Successful volume-led strategy driving strong same-store sales growth
- Aggressive expansion plan targeting 300+ restaurants by FY27 and 400-425 by FY30
- High-margin international segment contributing to overall profitability
Things To Watch Out For
- Initial margin pressure from new store openings
- Gross margin pressure in the international segment due to the West Asia crisis
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,255 | 1,233 | 1,339 | 1,340 | 1,387 |
| Profit Before Tax (Cr.) | -14 | -27 | -68 | -65 | -68 |
| PBT Margin | -1.1% | -2.2% | -5.1% | -4.9% | -4.9% |
| Net Profit (Cr.) | -17 | -29 | -69 | -49 | -51 |
| EPS | -4.9 | -7.6 | -16.9 | -12.5 | -13.1 |
Company Overview
Show Company Profile
United Foodbrands Limited owns and operates a chain of casual dining restaurants under the Barbeque Nation brand name. It owns and operates Italian restaurants under the Toscano brand name; and offers buffet packed in a box to cater to the delivery segment under the brand Barbeque in a Box. It operates in India, Sri Lanka, Saudi Arabia, the United Arab Emirates, Oman, Malaysia, and Bahrain. The company was formerly known as Barbeque-Nation Hospitality Limited and changed its name to United Foodbrands Limited in September 2025. The company was incorporated in 2006 and is based in Bengaluru, India.