Burger King's India operator posts narrower Q3 loss as sales jump

Sapphire Foods India

29/01/2024 12:07

BENGALURU, Jan 29 (Reuters) - Restaurant Brands Asia
 RESR.NS , which operates Burger King and Popeyes chains in
India and Indonesia, reported a narrower third-quarter loss on
Monday, boosted by strong sales in the festive season.
    The company's consolidated net loss narrowed to 361.8
million rupees ($4.4 million) in the three months ended  Dec.
31, from 504.2 million rupees a year earlier.
    Nonetheless, this is the company's seventeenth consecutive
quarterly loss, hurt this time around by a nearly 10% jump in
total expenses.
    The company, which runs quick service chains owned by
Restaurant Brands International  QSR.TO , said prices of
ingredients including chicken, cheese, tomatoes and onions rose
12.6%.
    However, revenue increased about 15% during the quarter,
helped by consumers stepping out during the Diwali festival in
India and the Christmas holiday period more broadly.
    Sales also got a boost in India, which accounts for about
74% of total sales, as some vegetarian-centric religious periods
fell in September this year, instead of October.
    During the October-December quarter, Restaurant Brands
Asia's same-store sales growth at Indian Burger King restaurants
slowed to 2.6% from 28% in the year-ago quarter.
    Rival fast food chain operators such as KFC-operator Devyani
International  DEVY.NS , Pizza Hut-operator Sapphire Foods
 SAPI.NS , McDonald's-operator Westlife Foodworld  WEST.NS  and
Domino's India-franchisee Jubilant FoodWorks  JUBI.NS  are yet
to report results.
    Restaurant Brands Asia's shares closed down at 2.9% ahead of
results on Monday.
 
 ($1 = 83.1300 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Sherry Jacob-Phillips and Savio D'Souza)
 ((AshnaTeresa.Britto@thomsonreuters.com;))