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Call Overview • Date: August 2, 2024 • Participants: BSE Limited, National Stock Exchange of India, CEO Rajeev Varman, and other executives. • Moderator: Naveen Trivedi from Motilal Oswal Financial Limited. • Transcript available on the company's website, compliant with SEBI Listing Regulations.
Company Performance Highlights • 10-Year Anniversary: Celebrated growth to 456 restaurants across 107 cities in India since 2014. • Sales Growth: Positive same-store sales growth and profitability despite market slowdowns. • Expansion: Entered Indonesia with revamped menus for Burger King and Popeyes, facing geopolitical challenges.
Financial Performance • Quarterly Overview: • Revenue: INR 490 crores (16% year-on-year growth). • Store Count: One new store opened; target of 510 stores by financial year-end. • EBITDA: Company-level EBITDA grew to INR 17.5 crores (70% increase year-on-year). • Challenges: External factors like extreme heat and geopolitical issues affecting profitability.
Marketing and Digital Initiatives • Promotions: Successful value-driven promotions (e.g., "2 For" model, 99 meal deal). • Digital Growth: 92% of dine-in sales from digital channels; significant growth in BK APP installs and user engagement.
Strategic Focus Areas • Delivery vs. Dine-In: Shift towards delivery with a 19% increase, offsetting a 15% decline in dine-in sales. • Product Development: Plans to enhance chicken offerings, burger quality, and dessert innovations. • Profitability Goals: Aim for cash breakeven in Indonesia and continued growth in restaurant count.
Management Insights • Traffic Growth: Emphasis on maintaining traffic and sales growth across all channels. • Cost Efficiency: Ongoing efforts to improve cost efficiencies, with only 25-30% realized so far. • Future Outlook: Positive recovery expected in the second half of the year, with a focus on innovation and balanced value strategies.
Conclusion • Rajeev Varman expressed gratitude for the team's efforts and reaffirmed commitment to strong results amidst challenges.
Call Details • Date: May 17, 2024 • Participants: CEO Rajeev Varman, Group CFO Sumit Zaveri • Transcript Availability: On the company's website • Compliance: SEBI Listing Regulations
Company Performance Highlights • 10-Year Anniversary: Celebrated in India • Sales Growth: Achieved 2.9% same-store sales growth, outperforming industry average • Profitability Focus: Doubled EBITDA despite challenging sales environment • Expansion: Added 64 new restaurant locations
Strategic Initiatives • Traffic Growth: Increased customer visits through product leadership and digital experiences • Menu Relevance: Introduced localized menu items for the Indian market • Delivery Strategy: Enhanced delivery services and digital ordering systems
Regional Operations • Indonesia: • Faced geopolitical challenges affecting profitability • Closed 26 nonperforming restaurants to improve overall performance • Revenue recovery efforts ongoing
Financial Performance • Revenue Growth: 22% increase in revenue, totaling INR 1,760 crores in India • EBITDA Margin: Reported at 9.7%, with gross margins at 67% • Cash Loss Reduction: Decreased from INR 95 crores to INR 54-55 crores
Future Outlook • Expansion Goals: Aim to reach 700 restaurants by FY '27 • Cautious Approach: Focus on profitability and cash flow stability over aggressive expansion • Long-term Guidance: Preference for a 2-3 year outlook on sales growth
Management Insights • Operational Efficiency: P&L statements rationalized for better efficiency • Investor Engagement: Regular feedback from minority investors considered in decision-making • Leadership Changes: Introduction of Gaurav Ajjan as new Head of Strategy and Investor Relations
Conclusion • The management remains committed to enhancing customer experience, driving growth, and improving profitability while navigating challenges in both India and Indonesia.
Announcement Details • Date of Announcement: February 1, 2024 • Event: Transcript availability from Investor/Analyst call • Date of Call: January 29, 2024 • Key Personnel: CEO Rajeev Varman, CFO Sumit Zaveri • Compliance: SEBI Listing Regulations • Notice Signed By: Madhulika Rawat, Company Secretary
Financial Performance Highlights • Q3 Performance: • Same-store Sales Growth: 2.6% increase • Sales Revenue: INR 445 crores (20% YoY growth) • EBITDA: INR 70 crores (48% YoY growth) • Restaurant Traffic: Increased by 6.5%-7% • New Openings: 452 restaurants opened
Regional Performance Insights • India: • Revenue: INR 445 crores (20% YoY growth) • Gross Margin: Improved to 67.1% • Restaurant EBITDA: 12.2% for the quarter • Indonesia: • Revenue: Stable at INR 158 crores • Focus on achieving break-even in EBITDA
Strategic Initiatives • Marketing and Customer Engagement: • Value-driven campaigns and product innovations • Enhancements in digital ordering and customer service • Burger King Strategy: • Strengthening chicken credibility and expanding dessert menu • Successful product launches driving volume growth
Challenges and Adaptations • Geopolitical Crisis Impact: • Dine-in sales declined by 30-32% • Adaptation through enhanced delivery channels (40% increase in delivery traffic) • Revised Same-store Sales Growth Guidance: Adjusted from 6% to 3%
Future Outlook • Long-term Growth Strategy: • Focus on value offerings and new product development • Commitment to store openings despite current demand challenges • Gross Margin Goals: Targeting 60% in Indonesia over the next few years
Management Insights • Traffic Growth: 6% growth attributed to strategic vendor expansion and price locking • Expense Management: Careful management of expenses despite new store openings • Market Confidence: Long-term confidence in the Indian market's potential
Q&A Highlights • Concerns on Average Daily Sales: Addressed by management with plans for aggressive promotions • Cost Rationalization: Ongoing efforts to improve expenses in Indonesia • Future Store Openings: No new Burger King stores expected in Indonesia for the next year, but Popeyes will continue to expand
Conclusion • Management remains optimistic about the long-term growth potential of the quick-service restaurant sector, despite current challenges and market conditions.
Overview • Date of Call: November 8, 2023 • Transcript Availability: On company website • Compliance: SEBI Listing Regulations
Performance Highlights • Burger King India: • 23% year-over-year revenue increase to Rs. 453 crores • Highest-ever EBITDA of Rs. 63.5 crores (51% increase) • Opened 10 new restaurants, net growth of 8 • Transitioning to digital ordering systems
• Burger King Indonesia: • 13% revenue growth to IDR 287 billion • Closed 17 underperforming restaurants • 6.5% same-store sales growth and 17% increase in dine-in traffic
Financial Metrics • Same-store sales target: Over 450 by end of current quarter • Revenue growth: Rs. 422 crores to Rs. 453 crores quarter-on-quarter • Record EBITDA: Rs. 24.3 crores • Consolidated revenue: Increased from Rs. 525 crores to Rs. 625 crores • Positive EBITDA shift: From loss of Rs. 15.6 crores to profit of Rs. 9.4 crores
Growth Strategy • Key Pillars for Burger King: • Value strategy to drive traffic • Innovation in core burger offerings • Enhancing digital experiences • Engaging with Gen Z and millennials
• Indonesian Market Focus: • Enhancing chicken offerings • Establishing burger leadership • Expanding dessert menu
Future Outlook • Revised same-store sales growth guidance: 6% for the year • Anticipation of strong performance during festive season • Confidence in traffic growth driven by dine-in promotions
Q&A Insights • Popeyes Brand Economics: • CAPEX of approximately $400,000 per store • Expansion funded by Indonesian balance sheet
• Same-Store Sales Growth (SSSG): • 0.5% growth in Indonesia • Projected overall SSSG of 6% for the full year
• Concerns Addressed: • Store closures in Indonesia affecting revenue • Impact of price cuts on margins • Timeline for breakeven in Indonesia: Expected by year-end
Conclusion • Management conveyed a cautious yet optimistic outlook for future performance, emphasizing ongoing efforts to enhance margins and sales. The call concluded with festive wishes and anticipation for Q3 results.
Call Details • Date: August 8, 2023 • Participants: • Rajeev Varman (Whole Time Director and Group CEO) • Sandeep Dey (Brand President Indonesia) • Sumit Zaveri (Group CFO) • Transcript Availability: On the company's website • Compliance: SEBI Listing Regulations
Strategic Progress • India: • Value-driven menu strategy implemented. • Introduction of INR99 menu and over 400 cafes. • Focus on increasing sales and expanding consumer base. • Indonesia: • Aim for break-even and improved sales through product rationalization. • Emphasis on digital initiatives for customer experience.
Financial Performance • India: • Revenue growth of 16% (from INR 365 crores to INR 422 crores). • Same-store transaction growth (SSSG) of 3.6% overall; over 10% for dine-in. • Average daily sales (ADS) increased from INR 108 to INR 120. • Store count goal: 450 by end of financial year, 700 by December 2026. • Indonesia: • Revenue increase to INR 189 crores; ADS growth from 17.6% to 19.4%. • EBITDA loss of INR 12.5 crores due to marketing investments. • Targeting profitability by end of FY '24. • Consolidated Revenue: INR 610 crores, up from INR 514 crores; marginal EBITDA loss of INR 2 crores.
Burger King Performance • Q1 Highlights: • 3.5% same-store sales growth; 25% increase in system sales. • 91 new store openings. • Successful INR 99 meals campaign boosted dine-in traffic. • Digital Enhancements: • Improved app, loyalty programs, and self-ordering kiosks.
Indonesian Market Update • Strategic Growth Pillars: • Enhance chicken offerings, establish burger leadership, expand dessert menu. • Successful product launches led to a 25% increase in chicken sales. • Plans for 25 new Popeyes store openings.
Management Insights • Gross Margin Performance: • Maintained despite INR99 value offer; growth in higher-margin cafe business. • Consumer Behavior: • Value strategy established for years; confidence in continued growth. • Traffic Growth: • Dine-in traffic growth exceeding 10% in Q1; no specific quantitative data provided.
Future Outlook • SSSG Guidance: • Current figure at 3.5%; expected stronger second half due to events like the Cricket World Cup. • Store-Level EBITDA Margins: • Currently around 8%; potential for growth linked to average daily sales. • Chicken Sales Strategy: • Goal to balance chicken and beef sales in Indonesia; recent campaigns showed a 25% increase in chicken sales.
Conclusion • Management expressed confidence in growth trajectory and future profitability, with a focus on strategic initiatives and market expansion.
Overview • Date of Call: May 18, 2023 • Participants: Key management including Mr. Rajeev Varman (Whole-Time Director & Group CEO) • Compliance: Transcript shared in accordance with SEBI Listing Regulations
Financial Performance
India
• Revenue Growth: 52.6% increase to Rs. 14,397 million • Same-Store Sales Growth (SSSG): 43.1% • New Openings: 88 new restaurants, net increase of 76 • BK Café Initiative: App revenues up by 327%
Indonesia
• Revenue Growth: 9.5% increase to IDR 1,153 billion • Expansion Plans: Popeye's to grow from 10 to 25-30 stores by year-end • Focus Areas: Enhancing burger and chicken offerings, expanding dessert menu
Strategic Initiatives • Media Investments: Starting in June to improve restaurant communication and emphasize value • Dine-In Traffic: Initiatives like the "stunner campaign" for affordable meals • Menu Innovations: Introduction of premium items and a 100% vegetarian menu in specific areas
Growth Targets • Store Expansion: Aim for 450 stores by FY2024 and 700 by December 2026 • Same-Store Sales Growth: Targeting 10% for FY2024 • Gross Profit Margin Goal: 67% for FY2024
Challenges and Responses • Competition: Concerns about increasing competition from McDonald's and local players • Average Daily Sales (ADS): Strategies to drive growth through promotions and new menu items • Cost Management: Focus on reducing corporate overhead to 5% of revenue
Operational Insights • EBITDA Management: Targeting breakeven in Indonesia with cautious growth strategies • Rental Costs: Significant concern, particularly in India (13.5% of revenue) • BK Café Performance: Average sales of 15,000 with an additional 7,000 in incremental sales
Conclusion • Positive Outlook: Management expressed confidence in achieving growth targets despite economic challenges • Gratitude: Acknowledgment of consumer support for the company's performance in India
Call Details • Date: February 8, 2023 • Participants: CEO Rajeev Varman, CFO Sumit Zaveri, CMO Kapil Grover • Transcript Availability: On the company's website • Signed by: Madhulika Rawat, Company Secretary and Compliance Officer
Financial Performance • India: • Same-store sales growth: 28.1% • Revenue increase: 59.2% year-over-year (Rs. 1,074 crores) • Q3 revenue: Flat at Rs. 370 crores • Gross profit margins: Stable at 66.4% • New restaurants opened in Q3: 45 (Total: 379)
• Indonesia: • Q3 revenue: IDR 296 billion • Loss reported: IDR 34 billion (due to Popeyes launch) • Four-pillar growth strategy outlined • Successful Popeyes launch with plans for 30 more locations by March 2024
Operational Updates • Store Openings: • Total stores: Nearly 380, on track for 390 annual target • 12 closures noted
• Financial Metrics: • Stable revenue in India despite a 5% reduction in average daily sales (ADS) • Increase in store EBITDA from 8.2% to 10.4% • Focus on cost management and staffing efficiency
Marketing and Growth Strategies • Marketing Initiatives: • Successful launch of Boss Whopper • Rapid expansion of BK Cafe (now 252 locations) • Commitment to 470 new stores next year with 25% same-store growth
• Indonesia Focus: • Current ADS: 96,000 to 98,000 INR, with plans for improvement • Menu innovation aimed at increasing chicken segment contribution from 30% to 60%
Future Outlook • Long-term Strategies: • Aim for double-digit EBITDA margin by 2025 • Focus on improving Burger King and expanding Popeyes in Indonesia • Expectation of EBITDA breakeven in 2024 for Popeyes
• Corporate Updates: • Increase in corporate SG&A due to ESOP grants and salary adjustments • Minimal price increases in Q4, focus on long-term traffic growth
Company Independence • Rajeev Varman emphasized the company's autonomy from investors and promoters, focusing on sustainable growth and local marketing efforts. The call concluded with an invitation for further questions via email.