RB (US:RBA)2025-07-31 13:00Financial Data and Key Metrics Changes - The total revenue for the company reached 552 crores, reflecting a growth of 12.6% year-over-year, driven by a same-store sales growth (SSSG) of 2.6% and the addition of 63 new restaurants [5][31] - Company EBITDA was reported at 22.5 crores, which is 28.6% higher than the same quarter last year, while restaurant EBITDA increased by 23% to 53.6 crores [6][5] - Gross profit margin has been maintained at around 67.6% despite inflationary pressures, with a target to reach 70% over the next three to four years [31][32] Business Line Data and Key Metrics Changes - The India business showed strong performance with a revenue growth of 12.6% and a net addition of 63 restaurants, while the Indonesia business is in a revitalization phase with a year-over-year growth of 5% in average daily sales (ADS) [5][21] - The company has focused on a "barbell strategy" with both value promotions and premium offerings, including the introduction of the King's collection of premium burgers and a Korean range [11][12][44] Market Data and Key Metrics Changes - In Indonesia, the company has seen a consistent increase in ADS, achieving 19.7 million in the latest reporting period, with a focus on improving dine-in traffic and menu offerings [21][36] - The company has rationalized its restaurant portfolio in Indonesia, closing four additional restaurants, and is working on reducing corporate overhead by 25% [25][26] Company Strategy and Development Direction - The company continues to focus on digital transformation, with 93% of restaurants equipped with self-ordering kiosks and 90% of sales coming from digital platforms [13][14] - The strategy includes enhancing customer experience through technology and maintaining a strong value proposition across all menu layers [17][58] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment remains tight, particularly in the premium segment, but the value segment continues to perform well [70][76] - The company is optimistic about future growth, especially with upcoming festive seasons expected to boost traffic [75][79] Other Important Information - The company has implemented cost-saving measures, particularly in utilities and IT, which have contributed to improved margins [18][33] - The introduction of new products and promotions, such as the Korean range and the BK Fusion with KitKat, has been well received by consumers [44][50] Q&A Session Summary Question: What were the one-off impacts on corporate overheads? - The CFO mentioned that one-off impacts included a valuation liability due to defect rate adjustments and some ESOP grants, with the actual valuation around one crore [65][66] Question: How is the overall demand environment perceived? - Management indicated that demand remains similar to previous quarters, with strong performance in the value segment but some softness in the premium layer [70][71] Question: Are transaction counts increasing despite demand softness? - Management confirmed that dine-in traffic continues to be strong, with a focus on value promotions driving customer loyalty [73][74] Question: What is the outlook for margin improvements? - Management highlighted that as the top line grows, margins will improve, with ongoing efforts to reduce rent and utility costs contributing to this [81][82]