Burger King's India operator posts bigger loss as costs rise

Sapphire Foods India

17/05/2023 13:22

BENGALURU/CHENNAI, May 17 (Reuters) - Restaurant Brands
Asia Ltd  RESR.NS , earlier known as Burger King India, reported
a wider fourth-quarter loss on Wednesday, as it spent more on
ingredients at a time when it is also expanding in India and
Indonesia.
    Restaurants in India have been feeling the pinch from rising
costs of essentials such as cheese and milk, with expenses
rising in recent quarters even as prices of vegetables have
eased off their highs.
    They are also wrestling with a slowdown in demand from
inflation-weary consumers.
    Earlier in the day, Domino's franchisee Jubilant Foodworks
 JUBI.NS  and KFC-operator Devyani International  DEVY.NS  also
reported downbeat results, in line with the performances of
McDonald's-operator Westlife FoodWorld  WEST.NS  and Yum Brands
franchisee Sapphire Foods  SAPI.NS .
    Restaurant Brands Asia's consolidated net loss widened to
733.7 million rupees (nearly $9 million) in the quarter ended
March 31, from 670.7 million rupees a year earlier.
    Its revenue from operations increased nearly 29% to 5.14
billion rupees as it opened tens of new restaurants over the
past year to enter new cities and fend off competition.
    However, total expenses also rose roughly 29%, taking the
shine off the topline growth of the company, which also operates
Restaurant Brands International's  QSR.TO  Popeyes restaurants
in India and Indonesia.
    Restaurant Brands Asia's shares closed marginally lower on
Wednesday before it reported results. They have fallen 4% so far
this year.
 
 ($1 = 81.7800 Indian rupees)

 (Reporting by Navamya Ganesh Acharya in Bengaluru and Praveen
Paramasivam in Chennai; Editing by Savio D'Souza)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))