Restaurant Brands Asia Limited · NSE:RBA
Restaurant Brands Asia — Q2 FY23 Earnings Presentation
32 slides from Restaurant Brands Asia's earnings presentation, Nov 11, 2022
Slide 1: Cover letter to stock exchanges for investor presentation
November 11, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relations Department Listing Department Phiroze Jeejeeboy Towers Exchange Plaza, 5th Floor, Plot no. C/1, Dalal Street, Fort, G Block, Bandra Kurla Complex, Bandra (E) Mumbai- 400 001 Mumbai- 400 051 Scrip Code: 543248
Slide 2: Q2 FY23 Earnings Presentation
Restaurant Brands Asia Limited Q2 FY23 Earnings Presentation 11th November, 2022 CONFIDENTIAL AND PROPRIETARY INFORMATION 1
Slide 3: Disclaimer
Disclaimer Certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such expectation
Slide 4: India Business Summary – Q2 FY23
India Business Summary – Q2 FY23 Revenue Revenue from operations Q2 FY23 INR 3,680 Mn against Q1 FY23 INR 3,370 Mn, grew by 9% H1 FY23 INR 7,050 Mn against H1 FY22 INR 3,951 Mn, grew by 78.4% SSSG of 27% in Q2 FY23 and 32% in H1 FY23 over FY22 ADS Gross profit margin Maintained 66.4% in Q2
Slide 5: India Business Summary – Q2 FY23
India Business Summary – Q2 FY23 Restaurant Growth 334 restaurant count as at 30th September 2022; opened 18 restaurants and net additions of 6 in Q2 FY23 6 restaurants opened in October’22; 33 restaurants under construction and 60 restaurants in pipeline as at today BK Café Doubled café count
Slide 6: Indonesia Business Summary – Q2 FY23
Indonesia Business Summary – Q2 FY23 Revenue Revenue from operations Q2 FY23 INR 1,567 Mn against Q1 FY23 INR 1,523 Mn, grew by 2.9% Value led promotion initiated to drive traffic and ADS Product Redefined menu laddering for the entire offering; product development and execution in FY23 Co
Slide 7: Q2 FY23 – India Business Update
Q2 FY23 – India Business Update
Slide 8: Store Opening Status
Store Opening Status Balanced Growth Stores opened 5 4 20 22 13 18 Closed stores 12 390 328 334 315 294 265 270 274 260 250 BK Café 187 180 129 88 86 49 35 18 12 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q4 FY23 E Restaurant Brands Asia Ltd | Q2 FY23 | 11th N
Slide 9: Store Portfolio: Average Life
Store Portfolio: Average Life Total Portfolio Average Life : 3.5 years 38% 60 34% 36 6% 23% 18 6 Store Portfolio % Average Life (months) Greater than 48 months 38% 60 24-48 months 34% 36 12-24 months 6% 18 0-12 months 23% 6 Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 8
Slide 10: ADS Trend & Sales Mix
ADS Trend & Sales Mix ADS (‘000) ADS 120 127 114 104 104 74 41% 43% 47% 49% 53% 72% 59% 57% 53% 51% 47% 28% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Dine IN Delivery Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 9
Slide 11: Operating Metrics
Operating Metrics Revenue (in INR million) Gross Profit% 3,680 66.4% 66.4% 3,369 66.1% 66.1% 2,799 2,687 2,454 65.4% 1,497 65.2% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Store EBITDA % Pre Ind AS 116 Co. EBITDA % Pre Ind AS 116 8.2% 2.5% 3.2% 7.
Slide 12: Operating Performance
Operating Performance (A) (B) (A over B) (C) (A over C) (D) (E) (D over E) Particulars (INR Million) % % % % % Q2 FY23 Q1 FY23 Change% Q2 FY22 Change% H1 FY23 H1 FY22 Change% Revenue from operations 3,680 100.0% 3,369 100.0% 9.2% 2,454 100.0% 50.0% 7,050 100.0% 3,951 100.0% 78.4% Cost of materials c
Slide 13: Q2 FY23 – Marketing Update
Q2 FY23 – Marketing Update
Slide 14: Growth Levers
Growth Levers Differentiated Incremental Digital Strong Value and Relevant Occasions And Delivery Proposition Menu Dayparts Ecosystem Strengthening Brand Equity Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 13
Slide 15: Stunner Value Menu That Offers Our Guests Taste and Variety
Stunner Value Menu That Offers Our Guests Taste and Variety Stunner AUV 1.5x Accessible Price Points – INR 50 & 70 Profitable Menu Sep-22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Range of Formats High Affinity amongst Value Consumers Range of Flavours Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 14
Slide 16: Viral 360 Campaign with strong In Market Executions
Viral 360 Campaign with strong In Market Executions Prank 1: Prank 2: Film 3: Breaking News BK pranks HR Fantastic! You are the man, sir! HR Stunned TV Malls Papps OOH News HR UGC Social Audio Digital Impact Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 15
Slide 17: Premium layer led by Whopper
Premium layer led by Whopper • Whopper inspired by middle eastern flavours in • Whopper inspired by local Indian flavours and line with market trends consumer preferences Continue to build whopper equity through limited time offering Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 16
Slide 18: Building Brand Love & Whopper Community
Building Brand Love & Whopper Community Q1 FY23 Q2 FY23 • UGC contests of #Masaledar Jodi garnered high guest engagement • Multiples topicals including Brahmastra launch, Pride Day, Social Media Day, Independence Day and more • Trust in Taste driven by Whopper Restaurant Brands Asia Ltd | Q2 FY23 |
Slide 19: BK Café – Doubled Café footprint
BK Café – Doubled Café footprint • Opened 94 BK Cafés in Q2 FY23; 180 BK Café as at September’22 • All restaurants opened during the year have BK Café • ~7% uplift in ADS in Restaurants with BK Café • Scale Up Phase • Continue to push awareness and trials in BK Café • Driving breakfast daypart Resta
Slide 20: Leveraging Social Media & Activation to drive BK Café Awareness
Leveraging Social Media & Activation to drive BK Café Awareness • Supported by Social Media & Activations • International Coffee Day Celebrations • BK Café Photo Booth • Social Media UGC Contest • Free Cappuccino trials Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 19
Slide 21: Building customer loyalty with BK APP
Building customer loyalty with BK APP • 33% QoQ growth in orders • 4.7 Mn Cumulative Installs in Q2 FY23 • 0.9 Mn MAU in Q2 FY23 • Growth in DAU by ~30% Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 20
Slide 22: Industry recognition across categories
Industry recognition across categories Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 21
Slide 23: Outlook
Outlook Number of Stores FY 23: 390 FY 24: 470 SSSG Growth FY23: 25% SSSG Growth FY24 & onwards: 7%-10% SSSG Growth Gross Profit FY 23: 67.0% FY 24: 68.0% BK Café Stores FY 23: ~250 FY 24: ~350 Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 22
Slide 24: Q2 FY23 – Indonesia Business Update
Q2 FY23 – Indonesia Business Update
Slide 25: Burger King Indonesia Update
Burger King Indonesia Update ADS Trend QoQ Pre-Covid Level: 135 ADS 96 96 98 94 83 71 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 ADS (Rs'000s) Pre-covid Level Store count 176 177 178 177 175 179 Opened 2 2 1 5 Closed 1 1 2 1 Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 24
Slide 26: Operating Performance
Operating Performance (A) (B) (A over B) Particulars (INR Million) % % Q2 FY23 Q1 FY23 Change% Revenue from operations 1,567 100.0% 1,523 100.0% 2.9% Restaurant EBITDA 1 0.0% 90 5.9% -5.9% Reported Company EBITDA -169 -10.8% -40 -2.6% -8.2% Restaurant EBITDA (Pre Ind AS 116) -102 -6.5% -5 -0.3% -6.2
Slide 27: Burger King Indonesia Go Forward Strategy
Burger King Indonesia Go Forward Strategy Best Burger Restaurant Chain Menu & Value Digital Innovation Win across Day-parts Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 26 26
Slide 28: Menu & Innovation
Menu & Innovation Branded Classics Core Premium Sides Breakfast Value Layer Value+ Whopper/Jr Gourmet & Late Night Drive Traffic Increase Frequency Establish Best, New Day-part Build Check Increase occasions Entry Price Value VFM Classics Innovative Burger occasions Burger Superiority Signature Add-
Slide 29: Gokil– Offering value and variety, without compromising taste
Gokil– Offering value and variety, without compromising taste 1. Accessible Price Points –Alacarte starting at IDR 15k 2. Variety of products and protein 3. Chicken to fulfil market demand, and balances profitability 4. Range of offers format –alacarte, fries meal, chicken box meal Restaurant Brands
Slide 30: Loyalty Member Base
Loyalty Member Base Total Loyalty Customer Base: 6.7 mn (6.5% growth QoQ) Revenue from known customers: 16% in Q2 FY23 Higher Average spend per visit of loyal customer by 13% Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 29 29
Slide 31: Consolidated Q2 FY23
Consolidated Q2 FY23 Particulars (INR million) Q2FY23 (A) Q1FY23 (B) (A)-(B) Revenue from operations 5,248 4,892 355 Company EBITDA (Post Ind AS 116) 251 292 -41 Company EBITDA % 4.8% 6.0% -1.2% Loss after tax -551 -509 -42 Restaurant Brands Asia Ltd | Q2 FY23 | 11th Nov 2022 30
Slide 32: Restaurant Brands Asia Ltd
Restaurant Brands Asia Ltd For additional Information: Mr. Prashant Desai, Head of Strategy and Investor Relations Email: pdesai@burgerking.in
Restaurant Brands Asia — Q2 FY23 Earnings Presentation on 6ix