Any current/future new fundraising through debt or equity?

There is no specific mention of any current or planned fundraising through debt or equity in the provided transcript. The discussion primarily focuses on operational performance, store additions, margin improvements, marketing strategies, and profitability. There is mention of ongoing CAPEX primarily for new store openings and digital investments (Rs. 10-15 crores), but no reference to raising capital. The company appears focused on optimizing existing investments and improving profitability rather than raising new funds. No forward-looking statements about fundraising or capital raising plans

Any current/future capex/capital investment/strategic investment?

Current average CAPEX per new store in India is around Rs. 2.7 crores, including cafes and self-order kiosks. With 60 to 80 new stores planned annually, total CAPEX including deposits is roughly Rs. 3+ crores per store. Incremental initiative-led CAPEX cycles (cafes and digital investments) have largely completed. Additional incremental CAPEX for digital/IT and refurbishment is estimated between Rs. 10 to 15 crores. No significant CAPEX beyond new store investment and minor refurbishments expected in the coming financial year. Focus will shift towards optimizing returns on prior CAPEX and digi

Future growth expectations in earnings/operating earnings/profits/EPS?

The company targets continuing gross margin improvement to reach close to 69%-70% by FY '29 with annual increases of 0.5%-0.7%. Restaurant-level EBITDA grew 21.2% YoY to Rs. 206 crores; company-level EBITDA rose 32% YoY to Rs. 99.4 crores, showing strong profitability momentum. SSSG (Same Store Sales Growth) improved to 1.1% for the full year and 5.1% in Q4, indicating gradual traffic recovery. Plans to open 60-80 new restaurants annually, aiming for ~800 total by FY '29, supporting revenue growth. Delivery business to grow profitably alongside dine-in, with strong app-based CRM effort

IN US

Restaurant Brands Asia LtdQ1 FY26Leisure Services

Restaurant Brands Asia Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹90.2Market Cap: ₹6.2K CrSector: Leisure Services

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

- The company plans to open 60 to 80 new restaurants annually over the next four years, aiming for approximately 800 restaurants by FY '29 (Page 9). - Revenues grew by 11.8% year-over-year in FY '25, with continued focus on driving traffic into restaurants and profitable delivery growth supporting future revenue expansion (Page 21 and 20). - Same store sales growth (SSSG) was positive at 1.1% for the full year and 5.1% in Q4 FY '25, with management expecting positive momentum to continue (Page 14). - The company is targeting moderate annual gross margin improvement of 0.5% to 0.7% to reach around 70% by FY '29, which will support improved profitability alongside sales growth (Page 9 and 17). - Continued focus on increasing dine-in traffic (e.g., 9% dine-in traffic growth) and profitable digital sales channels indicates expected volume and sales expansion (Page 3 and 20). Overall, a steady growth trajectory in sales and volumes is anticipated through restaurant expansion, traffic growth, and margin improvements.

Margin guidance

Category 2

→The company targets continuing gross margin improvement to reach close to 69%-70% by FY '29 with annual increases of 0.5%-0.7%.
→Restaurant-level EBITDA grew 21.2% YoY to Rs. 206 crores; company-level EBITDA rose 32% YoY to Rs. 99.4 crores, showing strong profitability momentum.
→SSSG (Same Store Sales Growth) improved to 1.1% for the full year and 5.1% in Q4, indicating gradual traffic recovery.
→Plans to open 60-80 new restaurants annually, aiming for ~800 total by FY '29, supporting revenue growth.
→Delivery business to grow profitably alongside dine-in, with strong app-based CRM efforts driving traffic.
→Cost efficiencies via optimized store operations, rationalizing underperforming stores, and overhead reductions will enhance margins further.
→The focus on profitable sales and traffic growth across channels points to steady earnings improvement without large one-time impacts.

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Fundraise plans

→There is no specific mention of any current or planned fundraising through debt or equity in the provided transcript.
→The discussion primarily focuses on operational performance, store additions, margin improvements, marketing strategies, and profitability.
→There is mention of ongoing CAPEX primarily for new store openings and digital investments (Rs. 10-15 crores), but no reference to raising capital.
→The company appears focused on optimizing existing investments and improving profitability rather than raising new funds.
→No forward-looking statements about fundraising or capital raising plans were made during the call.

Order book

The transcript does not explicitly mention the current or expected orderbook or pending orders for Restaurant Brands Asia Limited. However, relevant forward-looking information related to store expansions and business outlook includes: - India store addition guidance revised to 60-80 new restaurants annually for next four years, targeting about 800 restaurants by FY '29. - Previous guidance for 700 restaurants by December 2026 amended due to COVID and agreement changes with franchisor. - Focus on improving sales and traffic through marketing, digital initiatives, and value campaigns. - Continued growth in gross margin and EBITDA indicating positive operational momentum. - No specific mention of orderbook or pending orders related to supply or vendor contracts during the call. Hence, no direct details on orderbook or pending orders are available in the provided transcript.

Capex plans

Yes

→Current average CAPEX per new store in India is around Rs. 2.7 crores, including cafes and self-order kiosks.
→With 60 to 80 new stores planned annually, total CAPEX including deposits is roughly Rs. 3+ crores per store.
→Incremental initiative-led CAPEX cycles (cafes and digital investments) have largely completed.
→Additional incremental CAPEX for digital/IT and refurbishment is estimated between Rs. 10 to 15 crores.
→No significant CAPEX beyond new store investment and minor refurbishments expected in the coming financial year.
→Focus will shift towards optimizing returns on prior CAPEX and digital investments rather than large new expenditures.
→Future CAPEX cost optimization initiatives are in progress to further reduce store setup costs.
→Strategy to evolve product and digital offerings over the next few quarters without substantial capital outlays.

How does Restaurant Brands Asia Ltd rank vs peers in Leisure Services?

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1Restaurant Brands Asia Ltd

Rev 3Mar 2

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