Restaurant Brands Asia (RBA) Q3 24/25 earnings summary

Executive summary

• Achieved 510 restaurants in India as of Dec 31, 2024, with 46 stores added in the quarter and 69 year-over-year, making it one of the fastest-growing QSR brands in the country.

• India operations delivered 11.2% YoY revenue growth in Q3 FY25, while Indonesia faced a 9.5% YoY revenue decline due to store rationalization and geopolitical headwinds.

• Consolidated revenue for Q3 FY25 was Rs. 6,390.57 million, up from Rs. 6,042.27 million in Q3 FY24.

• Dine-in traffic and sales in India showed strong growth, supported by value-driven strategies and digital transformation, with 90% of orders now digital.

• Indonesia operations saw early signs of recovery in dine-in traffic after geopolitical headwinds, but revenues and profitability remain under pressure.

Financial highlights

• India Q3 FY25 revenue: Rs. 4,954 million (+11.2% YoY, +0.7% QoQ); SSSG at -0.5% due to flat demand.

• India gross margin: 67.8% (+0.7% YoY); Restaurant EBITDA: Rs. 596 million (+9.7% YoY); Company EBITDA: Rs. 309 million (+2.0% YoY).

• Indonesia Q3 FY25 revenue: Rs. 1,437 million (-9.5% YoY); Company EBITDA: -Rs. 175 million.

• Consolidated Q3 FY25 Company EBITDA: Rs. 133 million (-22.6% YoY); Restaurant EBITDA: Rs. 526 million (-6.8% YoY).

• Consolidated net loss for Q3 FY25 was Rs. 547.10 million, compared to Rs. 399.37 million in Q3 FY24.

Outlook and guidance

• India store expansion to continue, with no slowdown planned; annual operating plan for next year to be finalized and shared in Q4.

• Indonesia to focus on cost control, marketing, and operational turnaround, with all options open if recovery does not materialize.

• India to focus on growing dine-in traffic, digital transformation, value leadership, and profitability through cost efficiencies.