Burger King and Popeyes operator reports Q3 loss reduction

Burger King's Q3 progress: The entity overseeing the operations of Burger King and Popeyes in India and Indonesia, revealed a reduction in its third-quarter losses, buoyed by sales during the festive season.

For the three months ending December 31, the company reported a consolidated net loss of Rs 361.8 million ($4.4 million), a notable improvement from the Rs 504.2 million recorded during the same period the previous year. Despite this positive development, it marked the seventeenth consecutive quarterly loss for the company, primarily attributed to a nearly 10 per cent surge in total expenses.

The increased expenses were fuelled, in part, by a 12.6 per cent rise in the prices of key ingredients, including chicken, cheese, tomatoes, and onions. However, the company experienced a 15 per cent growth in revenue during the quarter, driven by heightened consumer activity during both the Diwali festival in India and the broader Christmas holiday period.

India, accounting for approximately 74 per cent of total sales, played a significant role in the revenue boost. The shift of some vegetarian-centric religious periods to September instead of October contributed to the sales uptick.

Despite the overall positive performance, same-store sales growth at Indian Burger King restaurants slowed to 2.6 per cent during the October-December quarter, a notable decline from the 28 per cent reported in the same quarter the previous year.

Rival fast-food chain operators, including Devyani International (KFC), Sapphire Foods (Pizza Hut), Westlife Foodworld (McDonald's), and Jubilant FoodWorks (Domino's India), are yet to release their financial results.

In the stock market, Restaurant Brands Asia's shares experienced a 2.9 per cent decline ahead of the results announcement on Monday.

(With Reuters Inputs)