Restaurant Brands Asia Limited · NSE:RBA
Restaurant Brands Asia — Q3 FY24 Earnings Presentation
28 slides from Restaurant Brands Asia's earnings presentation, Jan 29, 2024
Slide 1: Filing cover letter to BSE and NSE
January 29, 2024 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 S
Slide 2: Restaurant Brands Asia Limited Investor Presentation
Restaurant Brands Asia Limited Investor Presentation January 29, 2024
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 Key Highlights: Q3FY24
India Key Highlights : Q3FY24 Revenue from operations Q3 FY24 INR 4,454 mn; grew by 20% YOY; grew by 23% in 9M YOY Q3 FY24 SSSG 2.6% led by traffic growth Profitability Highest ever Co. EBITDA (Post Ind AS 116) of INR 708 mn in Q3 FY24; 48% increase YoY Highest ever Co. EBITDA (Pre Ind AS 11
Slide 5: Indonesia Key Highlights: Q3FY24
Indonesia Key Highlights : Q3FY24 Burger King Revenue Industry impacted due to geopolitical headwinds Q3 FY24 ADS at IDR 17.8 mn decreased from IDR 18 mn (Q3 FY23); down by 1% YoY Strong focus on delivery business; QoQ ADT grew by 34% Popeyes Revenue ADS at IDR 23.3 mn Revenue at IDR 35 bn
Slide 6: Q3 FY24 – Financial Performance
Q3 FY24 – Financial Performance
Slide 7: India Business Summary: Q3 FY24
India Business Summary : Q3 FY24 Delivery ADS (₹ ‘000) Revenue (₹ Million) Mix% Restaurant Count SSSG% 8.6% 8.3% 3.6% 3.5% 2.6% 42% 43% 39% 43% 44% Restaurant Count BK Café 441 452 120 126 120 119 391 396 404 108 4,535 4,454 379 4,221 3,698 3,649 334 345 286 297 275 252 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY
Slide 8: India Operating Performance
India Operating Performance Q3 Q3 Q2 9M 9M Particulars (INR Million) % % % % % FY24 FY23 FY24 FY24 FY23 Revenue from operations 4,454 100.0% 3,698 100.0% 4,535 100.0% 13,210 100.0% 10,747 100.0% YoY Growth% 20% 23% Cost of materials consumed 1,464 32.9% 1,243 33.6% 1,504 33.2% 4,383 33.2% 3,614 33.6
Slide 9: Indonesia Operating Performance
Indonesia Operating Performance Q3 Q3 Q2 9M 9M Particulars (INR Million) % % % % % FY24 FY23 FY24 FY24 FY23 Revenue from operations 1,588 100% 1,566 100% 1,714 100% 5,189 100% 4,656 100% YoY Growth% 1% 11% Cost of materials consumed 688 43.3% 670 42.8% 732 42.7% 2,201 42.4% 1,901 40.8% Gross Profit
Slide 10: Consolidated Operating Performance
Consolidated Operating Performance Q3 Q3 Q2 9M 9M Particulars (INR Million) % % % % % FY24 FY23 FY24 FY24 FY23 Revenue from operations 6,042 100.0% 5,263 100.0% 6,249 100.0% 18,399 100.0% 15,403 100.0% YoY Growth% 15% 19% Cost of materials consumed 2,152 35.6% 1,914 36.4% 2,237 35.8% 6,584 35.8% 5,5
Slide 11: Q3 FY24 India Update
rha restaurant brands asia Q3 FY24 India Update (2
Slide 12: Key Business Priorities
Key Business Priorities Value Proposition to Innovation Digital First Brand Strength drive traffic 99 Meals strategy to Continue to Build King’s Journey Engaging brand drive traffic Whopper Franchise - Self ordering kiosks - Table ordering - Brand for me VFM across layers Innovation on C
Slide 13: Strengthen VFM with launch of Tasty Meals starting at INR 99
Strengthen VFM with launch of Tasty Meals starting at INR 99 Offer N Burger King Meals Price 1 Crispy Veg Burger Meal 99 2 Makhani Veg Burger Meal 109 3 Veg Taco Meal 119 4 Crispy Chicken Burger Meal 149 5 Makhani Chicken Burger Meal 159 6 Chicken Taco Meal 169 • Continued Value for Money focus with
Slide 14: Launched Whopper Swaad Aisa India Jaisa Campaign
Launched “Whopper Swaad Aisa India Jaisa” Campaign with Limited Time Trial Offer • Drive Indian ness and Indian taste of Whopper and building a deeper regional connect with our guests • Multi-lingual edit in 6 languages with local insights, actors and treatment • Establish Whopper’s much loved taste
Slide 15: Continue to drive Innovation to generate new trials and menu excitement
Continue to drive Innovation to generate new trials and menu excitement Strengthened Chicken Launched Premium Launched New Favourites Wraps Improved Muffins • Launched everyone’s favourite Crunchy Chicken Nuggets. The USP is the extra crunchiness of the nugget • Renovated BK Chicken patty Strengthen
Slide 16: Expanded BK Café footprint
Expended BK Café footprint Total Café 334 286 297 275 252 180 86 35 18 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 • 334 BK Café in restaurant portfolio • ~INR 14k Total Café ADS for Q3 FY24 • BK Café helps increase guest consumption frequency • BK Café helps burger + beverage pai
Slide 17: Building Brand Love with Gen Z and Millennials
Building Brand Love with Gen Z and Millennials VFM Indian International Moment UGCs & Focus Festivals Occasions Marketing Giveaways Restaurant Brands Asia Limited | 29th January 2024 | Q3 FY24 16
Slide 18: King's Journey: Self Ordering Kiosk, App dine-in & Table Service
Kings Journey : Enhancing user experience via Self Ordering Kiosk, App dine-in adoption & Table Service Self Ordering Kiosk App Dine-in Ordering Table Service • App exclusive dine-in deals. • 244 stores enabled on table • 68 stores, contributing 32% service across all formats orders for all Kings Jo
Slide 19: Q3 FY24 Indonesia Update
rha restaurant brands asia Q3 FY24 Indonesia Update (2
Slide 20: Challenging Q3: crises impacted sales growth momentum
Challenging Q3: crises impacted sales growth momentum Burger King Indonesia performance Average Daily Sales In IDR mn • 24% drop in ADS. Slow build back, still trailing by 7% 20,1 19,4 19,1 19,8 18,0 16,9 17,8 18,4 17,6 16,6 16,9 15,1 Decisive pivots to drive Q1 Q2 Oct Nov Dec Q3 sales through Deliv
Slide 21: Burger King Indonesia: Build back a Profitable Company
Burger King Indonesia: Build back a Profitable Company Strategic Growth Pillars Build Relevance Establish Dessert & Credibility of Leadership in Innovation to Chicken Menu Burgers Gain Share Back to Basics - strengthened foundation Ongoing focus: Strong value proposition across menu layers & channel
Slide 22: Build Relevance & Credibility of Chicken Menu
Build Relevance & Credibility of Chicken Menu • Winning Taste in Crispy Chicken, Spicy Chicken: most relevant & familiar product in Indonesia • Permanent value layer: Price leadership in Meal for 1 @ IDR 25K price, to gain share from chicken QSRs • Sustained results: 1.5X AUVs, +21% Incidence Restau
Slide 23: Establish Leadership in Burgers: Value, Innovation, Premium
Establish Leadership in Burgers: Value, Innovation, Premium Value offering across burger layers to drive transactions and build APC • Convert high Brand Consideration into strong Trial • Limited edition Whoppers Entry Value promo @ IDR 17.8K Consumer preference: Cheese favorite, Branded collaboratio
Slide 24: Dessert innovation to gain share: King Fusion
Dessert innovation to gain share: King Fusion • Branded dessert flavours & Local favourites KitKat, Nastar (Ramadan special), Blueberry, Milo, Nutella (Dec) • Building dessert layer Indulgent desserts innovation every 2-3 months Promotions to drive incidence via add-ons upsell & incremental occasion
Slide 25: Delivery sales: significant growth driven via entry value promo & visibility
Delivery sales: significant growth driven via aggressive entry value promo & visibility • Low price promo: • Attractive low price promo drives highest incrementality • Strongest result when accompanied by vouchers & visibility • 65% delivery sales from 24K promotion. BIC & Cheese Whopper Jr top sell
Slide 26: Popeyes Marketing Priorities
Popeyes Marketing Priorities New Store Openings Build Iconic Status - Chicken Destination Digital-first experience Now 25 Restaurants in Indonesia Building Product Awareness Digital Touchpoints FSDT-led growth Driving Trial via Value Promotions Driving Kiosk Sales, Guest centricity Kiosk, DT menu, V
Slide 27: Outlook
Outlook Store Count - India FY24 : 450+ FY27 : 700 SSSG Growth- India FY24 : ~ 3% FY25 onwards : ~ 8% Gross Profit- India FY24 : 67% FY25-27 : Improvement of ~2% Indonesia FY25 : Cash breakeven FY27: ~ 325 stores Restaurant Brands Asia Limited | 29th January 2024 | Q3 FY24 26
Slide 28: For additional Information
For additional Information: Mr. Prashant Desai, Head of Strategy and Investor Relations Email: prashant.desai@rbrandsasia.com
Restaurant Brands Asia — Q3 FY24 Earnings Presentation on 6ix