United Foodbrands (BARBEQUE) Q1 25/26 earnings summary

Executive summary

• Operated through a soft dine-out cycle but maintained satisfactory performance due to a resilient business model and cost controls.

• Revenue from operations for Q1 FY26 was ₹2,970 million, down 2.8% year-over-year, mainly due to softer sales in the India segment.

• Added seven new restaurants, progressing toward a FY27 network target of 325 locations, with expansion pace expected to accelerate.

• Portfolio diversified across Barbeque Nation India, international, and premium CDR segments.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, and proposed a name change to "United Foodbrands Limited."

Financial highlights

• Consolidated revenues for the quarter were INR 2,970 million, down 2.8% year-over-year, mainly due to negative SSSG of 3.4%.

• Gross margin was 67.7%, down 40 bps from Q1 FY25; expected to remain around 68% annually.

• Consolidated reported EBITDA was INR 460 million (15.5% margin); adjusted operating EBITDA was INR 136 million (4.6% margin).

• Profit after tax was a loss of INR 167 million, compared to a loss of INR 43 million in Q1 FY25.

• Barbeque Nation India revenues declined 7% YoY to INR 2,290 million, with negative SSSG of 5.2%.

• International segment revenues grew 10% YoY to INR 363 million, with SSSG of 8.5%.

• Premium CDR revenues rose 19% YoY to INR 431 million.

Outlook and guidance

• On track to reach 300-325 restaurants by FY27, with 20-25 Barbeque Nation India openings annually.

• International expansion to add 4-6 new restaurants this year, focusing on Middle East and Southeast Asia.

• Premium CDR to expand by 30% network growth, targeting major metros.

• Margins expected to recover as SSSG improves and operational leverage increases.

• Board and management continue to focus on operational efficiency and strategic expansion, including recent acquisitions and proposed amalgamations.