 "Burger King")
Total expenses increased over 21 per cent to Rs 672 crore, with cost of materials consumed climbing 26 per cent due to rising costs of ingredients including cheese and vegetables
Restaurant Brands Asia on Monday reported a steeper first-quarter loss, as Burger King’s India operator incurred higher raw material expenses while also spending heavily on more stores.
The restaurant chain’s consolidated net loss widened to Rs 50.48 crore ($6.1 million) for the quarter ended June 30, from Rs 47.5 crore a year ago, according to an exchange filing.
Total expenses increased over 21 per cent to Rs 672 crore, with cost of materials consumed climbing 26 per cent due to rising costs of ingredients including cheese and vegetables.
Rising costs have pressured bottom lines at its rivals as well, including KFC franchisees Sapphire Foods India and Devyani International as well as Domino’s Pizza operator Jubilant FoodWorks.
Earlier this year, Restaurant Brands Asia launched new meals starting at Rs 99 ($1.20), at a time when global chains in India doubled down on cheaper offerings to attract consumers cutting back discretionary spending due to high inflation.
Revenue from operations rose 25 per cent to Rs 611 crore, helped by the new launch and the company’s move to open tens of new restaurants in both India and Indonesia, where it holds master franchisee rights, in the previous 12 months.
Shares of Restaurant Brands Asia, which also operates Restaurant Brands International’s Popeyes stores in Indonesia, were up nearly 2 per cent after the results. For the June quarter, they were up nearly 20 per cent.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 07 2023 | 12:46 PM IST