Barbeque-Nation Hospitality reports loss of Rs 8 crore in Q1; Margin down over 900 bps 

Food-chain operator Barbeque-Nation Hospitality, on Monday, reported a loss of over Rs 8 crore in Q1 as compared to a profit of Rs 11.4 crore in the same quarter last year. The company reported exceptional items worth Rs 3.1 crore in this quarter, which lead to a drop in its profit in this quarter.

However, the Bangalore-headquartered company’s revenue increased by 0.6 per cent to Rs 277.3 crore as compared to Rs 275.7 crore in the same quarter last year. 

Barbeque-Nation Hospitality’s earnings before interest, taxes, depreciation and ammortisation (EBITDA) plummeted nearly 43 per cent to Rs 33.1 crore as compared to Rs 58 crore in the same quarter last year. Furthermore, the company saw a massive drop in its margin, which came in at 11.9 per cent as opposed to 21 per cent in the same quarter last year.

During the quarter, the company also added 4 new restaurants, taking the total number of restaurants to 212. Total restaurants
included 15 Toscano restaurants, 7 Barbeque-Nation international restaurants and remaining 190 were Barbeque-Nation India network.

Last week, the company also unveiled a new outlet in Uppal, Hyderabad. In June, Barbeque-Nation Hospitality incorporated its Step Down Subsidiary (SDS), Barbeque Nation Bahrain W.L.L, in the Kingdom of Bahrain. The company further announced that it has received the approval by the Regulatory Authorities in Bahrain for the incorporation of its SDS.

In May, the food chain operator opened its 2nd outlet in Dehradun and its 5th outlet in Dubai. During the same period, the company launched its Smile Loyalty Club, which lets customers earn loyalty points on every meal and redeem them for rewards.

Background

Set up in 2006 by Sajid Dhanani, Barbeque-Nation Hospitality is an Indian food service company. It owns and operates 138 Barbeque-Nation brand of casual dining restaurants that offer over-the-table barbeque live grills for diners in 73 cities across India. Barbeque Nation has raised a total of $49.3M in funding over 5 rounds. 

The company competes with the likes of Dineout, Eazydiner, Magicpin in this segment. 

The stock of Barbeque-Nation Hospitality settled at Rs 677 apiece, down over 6 per cent, when the market closed today, August 07, 2023.