KFC India operator Sapphire beats profit view as cheaper menu drives demand (updated)

Sapphire Foods India

06/02/2025 08:20

(Adds background and revenue in paragraphs 4-6)
       Feb 6 (Reuters) - Sapphire Foods India  SAPI.NS , which
operates Pizza Hut and KFC restaurants in the country, reported
a better-than-expected quarterly profit on Thursday, as its
cheaper food items helped boost demand from budget-conscious
consumers.
    The restaurant operator posted a profit of 119.8 million
rupees ($1.37 million) for the quarter ended December 31, up
from a profit of 101.4 million rupees a year earlier.
    Analysts, on average, had expected a profit of 116.8 million
rupees, according to data compiled by LSEG.
    Global fast-food chains, including McDonald's  MCD.N  and
Pizza Hut, have been launching more affordable options in India
over the last few quarters to attract consumers stretched thin
due to the high cost of living.
        During the quarter, which sees a number of festivals,
KFC promoted its "epic savers" deal starting at 99 rupees
($1.13), while Pizza Hut offered a 50% discount on everything
from pizzas to desserts.
  
        Sapphire's revenue climbed nearly 14% to 7.57 billion
rupees in the quarter.
  

($1 = 87.5750 Indian rupees)

 (Reporting by Praveen Paramasivam in Chennai; Editing by
Mrigank Dhaniwala and Eileen Soreng)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))