Restaurant Brands Asia Q1 Results: Net Loss Narrows, Revenue Grows 7.9% Amid Store Expansion Plans

Restaurant Brands Asia's Q1 loss narrowed to ₹41.94 crore from ₹49.36 crore YoY, with revenue from operations up 7.9% to ₹698 crore. The company's shares rose 5% after the results, with analysts expecting robust store-led growth and margin recovery. Restaurant Brands Asia plans to open 60-80 new restaurants annually in India, targeting 800 outlets by FY29.

Restaurant Brands Asia (RBA) reported a significant improvement in its financial performance during the first quarter of FY26, with a narrowed net loss and a notable increase in revenue. The company's shares responded positively to the results, rising by 5% on the back of analyst optimism.

Financial Performance

RBA's net loss for the April-June quarter narrowed to ₹41.94 crore, down from ₹49.36 crore in the same period last year. This marked a substantial reduction of 15.2% in losses [1]. Revenue from operations grew by 7.9% to ₹698 crore, driven by a combination of store expansions and increased sales [2].

Operational Highlights

The company's operational efficiency improved significantly, with EBITDA margins expanding to 10.4% from 9.7% in the previous year. This was achieved through a combination of cost-reduction initiatives and the launch of new product offerings [3]. The addition of 63 new stores over the last year and the introduction of the Korean range of products played a crucial role in driving growth.

Future Outlook

Rajeev Varman, Whole-time Director and Group Chief Executive Officer, expressed confidence in the company's ability to navigate a dynamic environment through innovation and operational excellence. RBA plans to open 60-80 new restaurants annually in India, aiming to reach 800 outlets by FY29 [3].

Analyst Sentiment

Analysts remain bullish on the company, with a mean rating of "buy" and a median price target of ₹92.50 per share [1]. The expectation is that further cost reductions and recovery in dine-in services will boost the business, leading to robust store-led growth and margin recovery.

Conclusion

Restaurant Brands Asia's Q1 results demonstrate a significant turnaround in financial performance, driven by strategic initiatives and operational improvements. The company's future growth prospects appear promising, supported by a strong pipeline of new store openings and the successful launch of new product offerings.

References

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3TT057:0-india-s-restaurant-brands-asia-rises-after-q1-loss-narrows/
[2] https://www.business-standard.com/markets/capital-market-news/stock-alert-swiggy-restaurant-brands-asia-coal-india-eicher-motors-mankind-pharma-125080100142_1.html
[3] https://www.cnbctv18.com/market/stocks/restaurant-brands-asia-share-price-q1-results-narrows-loss-revenue-ebitda-margins-rise-new-offerings-store-additions-drive-growth-19646793.htm