Restaurant Brands Asia Limited · NSE:RBA
Restaurant Brands Asia — Q1 FY23 Earnings Presentation
34 slides from Restaurant Brands Asia's earnings presentation, Aug 12, 2022
Slide 1: Exchange filing cover letter
August 12, 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 SY
Slide 2: Q1 FY23 Earnings Presentation
Restaurant Brands Asia Limited Q1 FY23 Earnings Presentation 12th August, 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 – Q1 FY23
India Business Summary – Q1 FY23 Revenue Revenue from operations at INR 3,369.5 Mn grew by 125% YoY and 25.4% QoQ Achieved SSSG of 66% over Q1 FY22 ADS and 21% over FY22 ADS Margins Gross profit margin improved by 120 basis points YoY to 66.4% in Q1 FY23 and 30 basis points QoQ despite inflati
Slide 5: India Business Summary – Q1 FY23
India Business Summary – Q1 FY23 Restaurant Growth 328 restaurant count as at 30th June 2022; 13 restaurants opened in Q1 FY23 19 restaurants under construction and 40 restaurants in pipeline as at today BK Café Encouraged by early response for BK Café, accelerated the pace of opening BK Café
Slide 6: Indonesia Business Summary – Q1 FY23
Indonesia Business Summary – Q1 FY23 Revenue Revenue from operations at INR 1,522.8 Mn grew by 16.2% QoQ 69% recovery over FY20 ADS; July’22 ADS recovery at 78% Strong Investments in marketing over next two quarters to achieve 100% recovery in ADS (pre – covid levels) Signed top celebrity of
Slide 7: Update on Indonesia POPEYES
Update on Indonesia POPEYES Executed exclusive master franchise and development rights for POPEYES Restaurants Expected to launch first restaurant by end of calendar year 2022 Plan to open 300 restaurants in the initial phase of 10 years Made initial investment of USD 5 million Mr. Sandeep
Slide 8: Q1 FY23 – India Business Update
Q1 FY23 – India Business Update
Slide 9: Store Opening Status
Store Opening Status Balanced QoQ growth Stores opened 5 4 20 22 13 Closed stores 391 390 315 328 294 265 270 274 250 Bk Café 260 200 187 165 129 88 86 49 35 12 18 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q4 FY23 E Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 202
Slide 10: ADS Trend & Sales Mix
ADS Trend & Sales Mix ADS Trend (in INR ‘000) 131 114 120 104 104 74 Sales Mix 47% 41% 42% 53% 49% 72% 53% 59% 58% 47% 51% 28% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Jul-22 Dine-in Sales Mix Delivery Sales Mix Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 9
Slide 11: Operating Metrics
Operating Metrics Revenue (in INR Million) Gross Profit% 66.4% 3,369.5 2,798.9 66.1% 66.1% 2,687.0 2,454.0 1,497.3 65.4% 65.2% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Restaurant EBITDA % (Pre Ind AS 116) Co. EBITDA % (Pre Ind AS 116) 7.9% 7.6% 2.5% 6.3% # 1.1%
Slide 12: Operating Performance
Operating Performance (A) (B) (A over B) (C) (A over C) Particulars (INR Million) % % % Q1 FY23 Q1 FY22 Change% Q4 FY22 Change% Revenue from operations 3,369.5 100.0% 1,497.3 100.0% 125.0% 2,687.0 100.0% 25.4% Cost of materials consumed 1,133.4 33.6% 521.5 34.8% 1.2% 911.0 33.9% 0.3% Gross Profit 2,
Slide 13: Q1 FY23 – Marketing Update
Q1 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 | Q1 FY23 | 12th Aug 2022 13
Slide 15: Stunner Value Menu
Stunner Value Menu That Offers Our Guests Taste and Variety Stunner AUV 1.5 Accessible Price Points – INR 50 & 70 Profitable Menu Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Range of Formats High Affinity amongst Value Consumers Range of Flavours Restaurant Brands As
Slide 16: Sustained Promotional Programs To Drive Awareness And Dine In Traffic Growth
Sustained Promotional Programs To Drive Awareness And Dine In Traffic Growth BK Pranks Hrithik 20% Sequential Growth in Dine in Traffic Hrithik’s Social HR stunned by Stunner Menu Media Leverage -31 Mn on Twitter - 43 Mn on Instagram 1.7 BILLION Page Views of Digital PR Apr-22 Jun-22 Restaurant Bran
Slide 17: Strong Premium Layer Led By Whopper; Relaunch of King's Collection
Strong Premium Layer Led By Whopper; Relaunch of King’s Collection Premium Product Portfolio to cater to a more Discerning Consumer 2.5X Volume growth in Premium Layer since launch Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 16
Slide 18: World's 1st 100% Veg, No Onion, No Garlic Menu
Worlds 1st 100% Veg, No Onion, No Garlic Menu Specially created to cater to local preferences • 2nd Most Visited Hindu Temple in India • Excellent location to capture captive audience • Build long term brand with presence • Pure veg food, no onion, no garlic • Serving expectations of devotee guests
Slide 19: BK Café – Expanded footprint with 86 Cafés
BK Café – Expanded footprint with 86 Cafés • Opened 51 BK Cafés in Q1 FY23 • High Visibility Inputs in Café Trade Areas • ~7% uplift in ADS in Restaurants with BK Café • Scale Up Phase • Continue to push awareness and trials in BK Café • Driving breakfast daypart Restaurant Brands Asia Ltd | Q1 FY23
Slide 20: Leveraging Café to Drive Incremental Daypart
Leveraging Café to Drive Incremental Daypart, Testing in Cafe stores Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 19
Slide 21: Continue to Grow Delivery; Build BK Delivery as an alternative channel
Continue to Grow Delivery > 50% over Pre-covid; Build BK Delivery as an alternative channel for loyalists Overall Delivery Growth 65% 69% 60% BK App Performance 57% 55% 50% 13% QoQ growth in App Revenue Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Jul-22 Customer Penetration App Users Installs (in mn)
Slide 22: Strengthening Brand Equity
Strengthening Brand Equity Slice of Life Contemporary Quirk & Humour • Cornerstones • Topical & • Youthful tone basis TG Contextual for higher insights Content engagements Meme Premier League • NFTs for weekly winners • 152 Mn Reach • 51 Mn Engagement • 35% Engagement Rate (Highest Ever) • 4,500+ Us
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 | Q1 FY23 | 12th Aug 2022 22
Slide 24: Q1 FY23 – Indonesia Business Update
Q1 FY23 – Indonesia Business Update
Slide 25: Burger King Indonesia Update
Burger King Indonesia Update ADS Trend QoQ Pre-Covid Level: 135 ADS 120 105 100 94 96 96 83 80 71 60 40 20 0 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Jul-22 ADS (Rs'000s) Pre-covid Level Store 173 174 177 177 175 175 count Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 24
Slide 26: Operating Performance
Operating Performance (A) (B) (A over B) Particulars (INR Million) % % Q1 FY23 Q4 FY22 Change% Revenue from operations 1,522.8 100.0% 1,310.9 100.0% 16.2% Cost of materials consumed 610.9 40.1% 543.9 41.5% 1.4% Gross Profit 911.9 59.9% 767.0 58.5% 1.4% Employee Related Expenses 218.4 14.3% 217.6 16.
Slide 27: Burger King Indonesia Go Forward Strategy
Burger King Indonesia Go Forward Strategy Best Burger Restaurant Chain Menu & Value CRM Innovation Win across Day-parts Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 26 26
Slide 28: Whopper Revamp: Establish Best Burger superiority, Build Brand Equity
Whopper Revamp: Establish Best Burger superiority, Build Brand Equity Revamp, Relaunch & Establish Whopper equity: Dec 2022 Best Burger – Craveable, Differentiated Taste Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 Go forward: Establish LTOs under Whopper 27 27
Slide 29: King Deals: First endorsement with 360 media
King Deals: First endorsement with 360 media OOH & Mall Branding RAFFI AHMAD aka SULTAN (King) TV presenter, Producer, Singer, Actor, YouTuber, Football team owner, Entertainment house founder 63M 24M 13M Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 28 28
Slide 30: Branded Value Layer 2.0: Relaunch in Q3 FY'23
Branded Value Layer 2.0: Relaunch in Q3 FY’23 CURRENT • Burgers Plus Sides (Beverages, Desserts, Fries) • Multiple price points • Drives Traffic and Incidence Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 29 29
Slide 31: Win across Day Parts: New Menu & Sales Layers
Win across Day Parts: New Menu & Sales Layers Development underway. Staggered Launch in coming quarters Restaurant Brands Asia Ltd | Q1 FY23 | 12th Aug 2022 30 30
Slide 32: CRM: Nurturing loyalty by growing BK Rewards Members
CRM: Nurturing loyalty by growing the number of BK Rewards Members +26% vs Dec 21 CRM Total Member 6,470,951 1,749,799 4,721,152 Pre-Reg Reg 176.551 3% Last trx 384.972 6% Last trx 651.001 10% Last trx People in 2-3 in 4-6 in 1mo. % Total People % of Total People % of Total Member mo. Member mo. Mem
Slide 33: Consolidated Q1 FY23 (Post Ind AS 116)
Consolidated Q1 FY23 (Post Ind AS 116) Particulars (INR million) India Indonesia Total Revenue from operations 3,369.5 1,522.7 4,892.2 Cost of materials consumed 1,133.4 610.9 1,744.3 Gross Profit 2,236.1 911.8 3,147.9 Gross Profit % 66.4% 59.9% 64.3% Employee benefit expenses 513.0 305.6 818.6 Othe
Slide 34: 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 — Q1 FY23 Earnings Presentation on 6ix