Q1 2027 Restaurant Brands Asia Ltd Earnings Call

August 3, 2026

Operator 2: Ladies and gentlemen, good day, and welcome to Restaurant Brands Asia Q1 FY27 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantee of future performance and involves risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to management. Thank you. Over to you.

Operator: Ladies and gentlemen, good day, and welcome to Restaurant Brands Asia Q1 FY 2027 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantee of future performance and involves risks and uncertainties that are difficult to predict.

Speaker #1: These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to management. Thank you. Over to you.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand over the conference to management. Thank you, and over to you.

Speaker #2: Thanks, Pariv. Good evening, everyone. Welcome to the conference call to discuss results for Q1 FY27. I am Gaurav Ajjan, the Head of Corporate Development and Investor Relations. As always, joining us today are Mr. Rajeev Varman, Whole-time Director and Group CEO; Mr. Sumit Zaveri, Group CFO and Chief Business Officer; Mr. Kapil Grover, Group Chief Marketing Officer; and Mr. Sandeep Dev, Brand President, Indonesia.

Gaurav Ajjan: Thanks, Pari. Good evening, everyone. Welcome to the conference call to discuss results for Q1 FY27. I am Gaurav Ajjan, the Head of Corporate Development and Investor Relations. As always, joining us today are Mr. Rajeev Varman, Full-time Director and Group CEO, Mr. Sumit Zaveri, Group CFO and Chief Business Officer, Mr. Kapil Grover, Group Chief Marketing Officer, and Mr. Sandeep Dey, Brand President, Indonesia. We will start the call with a presentation, after which we will open up the floor for questions and answers. With that, I will hand over to Raj for his opening comments and a business update.

Gaurav Ajjan: Thanks, Pari. Good evening, everyone. Welcome to the conference call to discuss results for Q1 FY 2027. I am Gaurav Ajjan, the Head of Corporate Development and Investor Relations. As always, joining us today are Mr. Rajeev Varman, Full-time Director and Group CEO, Mr. Sumit Zaveri, Group CFO and Chief Business Officer, Mr. Kapil Grover, Group Chief Marketing Officer, and Mr. Sandeep Dey, Brand President, Indonesia.

Speaker #2: We will start the call with a presentation, after which we’ll open the floor for questions and answers. With that, I’ll hand over to Raj for his opening comments and a business update.

Gaurav Ajjan: We will start the call with a presentation, after which we will open up the floor for questions and answers. With that, I will hand over to Raj for his opening comments and a business update.

Speaker #3: Thank you, Gaurav. Thank you, first of all, for your interest and for joining us this evening. I know it's 5:30—it’s probably time for you to get home, so thank you for joining the call.

Rajeev Varman: Thank you, Gaurav. Thank you, first of all, for your interest in joining, your time this evening. I know it is 5:30PM. It is probably time for you to get home. Thank you for joining the call. I will give you a very quick India overview, as well as Indonesia overview. I will hand it over to Sumit Zaveri, who will go through the numbers with you guys. Now, we have two businesses, of course, and in two different countries. We also have two brands that we operate. I will just give you a little perspective. Burger King India, we have 590 restaurants as of 30 June. Burger King Indonesia, we have 137 restaurants there, and Popeyes Indonesia, we have 25 stores.

Speaker #3: I will give you a very quick, you know, India overview as well as Indonesia overview. And then I'll hand it over to Sumit Zaveri, who will go through the numbers with you guys.

Speaker #3: Now, we have two businesses, of course, and in two different countries. And then we also have two brands that we operate. So, I'll just give you a little perspective: BURGER KING in India, we have 590 restaurants as of June.

Rajeev Varman: I will just give you a little perspective. Burger King India, we have 590 restaurants as of 30 June. Burger King Indonesia, we have 137 restaurants there, and Popeyes Indonesia, we have 25 stores.

Speaker #3: As of June 30th, Burger King Indonesia, we have 137 restaurants there, and Popeyes Indonesia, we have 25 stores. Now, if you look at the revenue perspective, we have 83% of our business is really Burger King in India.

Rajeev Varman: If you look at the revenue perspective, we have 83% of our business is really Burger King India, from revenue standpoint. 15% of our business is Burger King Indonesia, and then 2% of our business is Popeyes Indonesia. That's the makeup of the revenue of our business. Quickly on the India Q1 highlights. Q1's been a very exciting year, exciting quarter for us, and some very good results that we are proud of that we thank our entire team that has worked very hard to deliver those results. The top line for us is again, 590 stores, which is 71% year-over-year growth, +9 stores quarter-over-quarter growth which gets us to 590. Same-Store Sales Growth was 12.6%. This is the highest we have done in the last 15 quarters.

Speaker #3: From a revenue standpoint, 15% of our business is Burger King Indonesia, and then 2% of our business is Popeyes Indonesia. So that's the makeup of the revenue of our business.

Speaker #3: Now, quickly on the India Q1 highlights. Q1 has been a very, very exciting quarter for us, with some very good results that we are proud of. We want to thank our entire team that has worked very hard to deliver those results.

Speaker #3: So, the top line for us is, again, 590 stores, which is 71 year-over-year growth, plus 9 stores quarter-over-quarter growth, which gets us to 590.

Rajeev Varman: The top line for us is again, 590 stores, which is 71% year-over-year growth, +9 stores quarter-over-quarter growth which gets us to 590. Same-Store Sales Growth was 12.6%. This is the highest we have done in the last 15 quarters.

Speaker #3: Same-store sales growth was 12.6%. This is the highest we have done in the last 15 quarters—in fact, the highest that I can remember as far as we go back several years.

Rajeev Varman: In fact, highest that I can remember as far as we go back several years. Congratulations to the operations and marketing team for delivering such a high SSSG number. Our ADS Average Daily Sales for this quarter was INR 1.31 lakh as well. Revenue INR 682 crores which was 23.6% higher year-over-year same quarter. Gross margin 70.8%, which is 3.1% over year-over-year and 0.6% quarter-over-quarter. Very good improvement in gross margin as well. Restaurant level EBITDA, we delivered INR 90 crores, which is 68.1% over year-over-year. Our company EBITDA in India was INR 52.7 crores, and that is 133.6% year-over-year. Literally, I'm looking at a green page, SSSG 12.5%, 12.6%. Looking at the revenues up 23.6%, gross margin 70.8%, restaurant level EBITDA INR 90 crores, and company EBITDA INR 52.7 crores.

Speaker #3: So, congratulations to the operations and marketing team for delivering such a high SSSG number. Our ADS—average daily sales—for this quarter was ₹1,31,000 as well.

Speaker #3: Revenue was ₹682 crore, which was 23.6% higher year-over-year for the same quarter. Gross margin was 70.8%, which is 3.1% higher year-over-year and 0.6% higher quarter-over-quarter.

Speaker #3: So, very good improvement in gross margin as well. Restaurant-level EBITDA, we delivered ₹90 crores, which is 68.1% growth year-over-year. Our company EBITDA in India was ₹52.7 crores.

Rajeev Varman: Our company EBITDA in India was INR 52.7 crores, and that is 133.6% year-over-year. Literally, I'm looking at a green page, SSSG 12.5%, 12.6%. Looking at the revenues up 23.6%, gross margin 70.8%, restaurant level EBITDA INR 90 crores, and company EBITDA INR 52.7 crores.

Speaker #3: And that is 133.6% year over year. So literally, I'm looking at a green page—SSSG 12.5, 12.6—looking at the revenues up 23.6%, gross margin 70.8%, restaurant-level EBITDA ₹90 crore, and company EBITDA ₹52.7 crore.

Speaker #3: So, thanks to the entire team for an exciting quarter. Now, strategy-wise, you know, we haven't changed anything. We will stay steadfast on the strategy that we spoke about in the last several quarters.

Rajeev Varman: Thanks to the entire team for an exciting quarter. Strategy-wise, we haven't changed anything. We will stay steadfast on the strategy that we spoke about in the last several quarters. I'll reiterate, we continue to be a QSR that leads in value leadership here in India. No different, we continued our pursuit in being that value leader with the 2 for X strategy, as you've seen us grow from Stunner and Tasty Meals at INR 99, 2 for X. Whatever the strategy is, it will all be consistent with our value leadership in the country. We continued that. On menu strengthening, we spent a lot of time because we had built a lot of traffic over the last several years. We call this value study induction or introduction of new customers into our business.

Speaker #3: I'll reiterate—we continue to be a QSR that leads in value; our leadership here in India is no different. We continue our pursuit of being that value leader.

Speaker #3: With the 24x strategy, as you've seen us grow from Stunner and Tasty Meals at ₹99, 24x of whatever the strategy is, it will all be consistent with our value leadership in the country.

Rajeev Varman: Whatever the strategy is, it will all be consistent with our value leadership in the country. We continued that. On menu strengthening, we spent a lot of time because we had built a lot of traffic over the last several years. We call this value study induction or introduction of new customers into our business.

Speaker #3: So we continue that. On menu strengthening, we spent a lot of time because we had built a lot of traffic over the last several years.

Speaker #3: We call this value study 'induction' or the introduction of new customers into our business. And then we started, about last year, to start strengthening our core menu as well as our premium side, to be effective in terms of our product mix—which saw us achieve this 12.6% kind of growth number.

Rajeev Varman: We started about last year to start strengthening our core menu as well as our premium side to be effective in terms of our product mix, which saw this 12.6% kind of a growth number. We launched BK Café, as you know, in 2022. We continued to build those. Approximately, actually, most of our restaurants, if not all of them, have a café. Burger King Café continues to grow, and we have long-term strategy to make this a prominent part of our menu structure. This year and this last quarter, we also launched some co-branded desserts and shakes, which have started to grow and part of the 12.6% that you see over there. The burger portfolio we launched, as you know, premium range Korean, and now subsequently we have launched Peri-Peri, as you saw in July.

Speaker #3: So we launched BK Cafe, as you know, in 2022. We continue to build those. Now, approximately, actually most of our restaurants—all, if not all of them—have a cafe.

Speaker #3: So, and we have a long-term strategy to make this a prominent part of our menu structure. This year, and in this last quarter, we'll also launch some co-branded desserts and shakes, which have started to grow.

Rajeev Varman: This year and this last quarter, we also launched some co-branded desserts and shakes, which have started to grow and part of the 12.6% that you see over there. The burger portfolio we launched, as you know, premium range Korean, and now subsequently we have launched Peri-Peri, as you saw in July.

Speaker #3: And part of the 12.6% that you see over there, the burger portfolio we launched—as you know, the premium range, Korean, and now subsequently we have launched Peri Peri, as you saw in July—both those promotions have been really, really good for the company and have drawn a lot of traffic through those promotions.

Rajeev Varman: Both those promotions have been really, really good for the company and have drawn a lot of traffic through those promotions. One of the other pillars that we've been working on is digital, and as you already know that, SOK's self-ordering kiosk, BK app, 90% of our orders are digital. This is not only a good foundation for good management within the restaurant, but also you will see that in the future, this database that we are collecting through our digital means will become a foundation for the CRM program that we will be launching very soon. That digital efforts continue here, and I will speak in a minute about what that means in Indonesia as well. Profitability-wise, same focus, laser focus. First of all, our CapEx spending is very disciplined. When we open restaurants, there's a disciplined process of overlaying that CapEx.

Speaker #3: One of the other pillars that we've been working on is digital. And as you already know that, you know, SOKs self-ordering kiosks, BK app, 90%, 90% of our orders are digital.

Speaker #3: And this is not only a good foundation for solid management within the restaurant, but you will also see that, in the future, the database we are collecting through our digital means will become the foundation for the CRM program that we will be launching very soon.

Speaker #3: So that digital efforts continue here. And I'll speak in a minute about what that means in Indonesia as well. Profitability-wise, same focus—laser focus.

Rajeev Varman: That digital efforts continue here, and I will speak in a minute about what that means in Indonesia as well. Profitability-wise, same focus, laser focus. First of all, our CapEx spending is very disciplined. When we open restaurants, there's a disciplined process of overlaying that CapEx.

Speaker #3: First of all, you know, our CapEx spending is very disciplined. When we open restaurants, there's a disciplined process of outlaying that CapEx. So we open good, you know, sites and good restaurants.

Rajeev Varman: We open good sites and good restaurants so that we continue to grow profitably. The profitability focus was threefold, right? First of all, we continued to focus on menu, product mix, and gross margin. Gross margin is just not simply a result of increasing price. It's also about a proper shift in product mix and making sure that the product mix that we delivered continues to grow our gross margin. We continue to work with vendors, continue to bring in new vendors. That strategy continues. We continue to do that through our supply chain initiative, as you know that we continue to do a cluster approach every time we build a market. That supply chain efforts continue in this quarter as well. You've seen improvement on our gross margin as well quarter-over-quarter.

Speaker #3: So that we continue to grow profitably. So the profitability focus was threefold, right? First of all, we continue to focus on the menu and product mix.

Speaker #3: And gross margin—so gross margin is not just about price. It's also about a proper shift in product mix and making sure that the product mix that we deliver continues to grow our gross margin.

Speaker #3: We continue to work with vendors and continue to bring in new vendors. That strategy continues, and we continue to do that through our supply chain initiative. As you know, we continue to use a cluster approach every time we build a market.

Rajeev Varman: That strategy continues. We continue to do that through our supply chain initiative, as you know that we continue to do a cluster approach every time we build a market. That supply chain efforts continue in this quarter as well. You've seen improvement on our gross margin as well quarter-over-quarter.

Speaker #3: So, those supply chain efforts continue in this quarter as well. And you've seen an improvement in our gross margin, quarter over quarter.

Speaker #3: The initiative that Sumit Zaveri will speak about next started a few quarters ago. It was on the utilities front, and he worked very diligently with our teams here.

Rajeev Varman: Initiative that Sumit Zaveri will speak next started a few quarters ago, was on the utilities front. He worked very diligently with our teams here, and we continue to drive efficiencies through utilities, whether it is the installing of new equipment. We installed a new boiler that consumes half the energy of the old boiler. We also started the solar farm initiative, which several of our restaurants now are covered under that, and we continue to grow that as well. We continue with that profitability focus. It's not about just building the top line, but it's a continuous effort to bring efficiency within the top line and the bottom line, which the team continues to deliver on. Quick word on Indonesia.

Speaker #3: And we were able to, and we continue to, drive efficiencies through utilities. Whether it is the installing of new equipment—we installed a new broiler.

Speaker #3: That consumes half the energy of the old broiler. But we also started the solar farm initiative, which several of our restaurants now are covered under.

Speaker #3: And we continue to grow that as well, so we continue with that profitability focus. It's not about just, you know, building the top line.

Rajeev Varman: We continue with that profitability focus. It's not about just building the top line, but it's a continuous effort to bring efficiency within the top line and the bottom line, which the team continues to deliver on. Quick word on Indonesia.

Speaker #3: But it's a continuous effort to, you know, bring efficiency within the top line and the bottom line, which the team continues to deliver on.

Speaker #3: Quick word on Indonesia. So the Indonesia 137 BURGER KING restaurants delivered an AUV of 102. And I'm putting these in INR so that people here can understand.

Rajeev Varman: The Indonesia 137 Burger King restaurants delivered ADS of INR 102,000, and I'm putting these in INR so that people here can understand. INR 102,000 ADS. Revenues of total INR 124 crores, and restaurant level EBITDA was INR 6.4 crores. These Burger King restaurants, they're profitable at the restaurant level, and they delivered a +EBITDA. We are testing a lot of things, and I'll talk to you in a minute on where we are going with the Burger King business. The Popeyes business was exactly where it was when I spoke to you last time. The 25 restaurants still continue to operate there with an ADS of INR 69,000. Revenues over there were INR 15.7 crores, and we actually had a loss of INR 3 crores over there. Combined losses in restaurant level EBITDA in Indonesia was INR 3.3 crores.

Speaker #3: So, 1 lakh 2,000 ADS, revenues of ₹124 crores in total, and restaurant-level EBITDA was ₹6.4 crores. So, these Burger King restaurants are profitable at the restaurant level.

Speaker #3: And they delivered a positive EBITDA. We are testing a lot of things, and I'll talk to you in a minute about where we are going with the Burger King business.

Speaker #3: The Popeyes business is exactly where it was when I spoke to you last time. The 25 restaurants continue to operate there, with an ADS of 69,000.

Rajeev Varman: The Popeyes business was exactly where it was when I spoke to you last time. The 25 restaurants still continue to operate there with an ADS of INR 69,000. Revenues over there were INR 15.7 crores, and we actually had a loss of INR 3 crores over there. Combined losses in restaurant level EBITDA in Indonesia was INR 3.3 crores.

Speaker #3: Revenues over there were ₹50.7 crores, and we actually had a loss of ₹3 crores over there. Combined losses in EBITDA—restaurant-level EBITDA in Indonesia was ₹3.3 crores.

Speaker #3: Significant reductions that you've seen are all because of our strategy, which I'll discuss with you. Now, the value focus. We had a 25,000 King Deal program that we were running in Indonesia for the longest time, which was driving some traffic but didn't get us the kind of leverage we required in terms of volume. So, we are now testing, and probably by the end of September should be in good shape to launch a new value strategy over there.

Rajeev Varman: Significant reductions that you've seen, all because of all our strategy that I'll discuss with you. The value focus. We had an IDR 25,000 King Deal program that we were running in Indonesia for the longest time, which was driving some traffic but didn't get us the kind of leverage we required in terms of volume. We are now testing, and probably by the end of September, should be in good shape to launch a new value strategy over there. I think that's very important for the Burger King business over there, and I'm talking with the Burger King business now. That strategy, once we put that in place, it was one of the missing links that we needed to put in Indonesia.

Speaker #3: And I think that's very important for the Burger King business over there. And I'm talking with the Burger King business now. That strategy, once we put that in place, was one of the missing links that we needed to put in Indonesia.

Rajeev Varman: I think that's very important for the Burger King business over there, and I'm talking with the Burger King business now. That strategy, once we put that in place, it was one of the missing links that we needed to put in Indonesia.

Speaker #3: Now, when you look at the menu strategy, it's—you know—we kind of went backwards in Indonesia compared to India, where we built a very strong premium and core menu.

Rajeev Varman: When you look at the menu strategy, we kind of went backwards in Indonesia, compared to India, where we built a very strong premium and core menu ahead of the value strategy. That menu is doing very well. I think we had a few limited time options that we put out, and they were all doing well in Indonesia. We also had spent a lot of time in the last 3 years building a very strong chicken line. When I say chicken, it's bone-in chicken line, which has climbed from what it used to be, 30% of sales to about 50% of the sales in the Burger King business. We continue to stay true to that. We continue to provide different options on that by dunking the BK, and it becomes a good limited time offering to the businesses.

Speaker #3: Ahead of the value strategy. And that menu is doing very well. I think we had a few limited-time options that we put out.

Speaker #3: And they were all doing well in Indonesia. We also had spent a lot of time in the last three years building a very strong chicken line. When I say chicken, it's bone-in chicken line.

Rajeev Varman: When I say chicken, it's bone-in chicken line, which has climbed from what it used to be, 30% of sales to about 50% of the sales in the Burger King business. We continue to stay true to that. We continue to provide different options on that by dunking the BK, and it becomes a good limited time offering to the businesses.

Speaker #3: Which is, you know, climbed from what it used to be—30% of sales—to about 50% of sales in the Burger King business. We continue to, you know, stay true to that.

Speaker #3: We continue to provide different options on that, by dunking the BIC, and it becomes a good limited time offering to the businesses. But what we started to do—and I'm saying just two quarters ago, and more prominently last quarter—is to focus on our burger line.

Rajeev Varman: What we started to do, and I'm saying just 2 quarters ago and more prominently last quarter, is to focus on our burger line. The reason we're doing that is our U&A study that we did with the consumers in Indonesia gave us a clear lead on Burger King as a burger brand. Burgers, when you ask consumers over there, their first choice is Burger King. We started to promote, and our value strategy will include our efforts in bringing burgers into the value platform and driving that business. We also installed a self-ordering kiosk for the first time in Indonesia, which has actually pushed our APC, average per check, up by about 4% to 5%.

Speaker #3: The reason we're doing that is our UNHR study that we did with the consumers in Indonesia gave us a clear lead on BURGER KING as a burger brand.

Speaker #3: So, burgers—when you ask consumers over there, their first choice is Burger King. So, we started to promote, and our value strategy will include our efforts in bringing burgers into the value platform and driving that business.

Speaker #3: We also installed self-ordering kiosks for the first time in Indonesia, which actually pushed our APC—average per check—up by about 4 or 5%.

Rajeev Varman: We also installed a self-ordering kiosk for the first time in Indonesia, which has actually pushed our APC, average per check, up by about 4% to 5%.

Speaker #3: And it is just, we just installed them. So we should see some progress on that as well as we move forward to unlock all the stuff that we have done here in India.

Rajeev Varman: We just installed them, we should see some progress on that as well as we move forward to unlock all the stuff that we have done here in India, but also to set the benchmark for CRM in future. Our profitability focus in Indonesia continues in the same lines. Corporate overheads, as you know, we continue to reduce them, and we have brought them down by 25%. We have done a very good job. I think we have kind of reached a point where we have optimized that. We continued to optimize our portfolio there. We closed some restaurants that were non-profitable. In the last couple of years, we have reduced that portfolio by 42 to the 137 that we have. Delivery profitability is something that we started a few quarters ago.

Speaker #3: But also to set the benchmark for CRM in the future. Our profitability focus in Indonesia continues along the same lines. Corporate overheads, as you know, we continue to reduce them, and we have brought them down by 25%.

Speaker #3: So, we have done a very good job. I think we have kind of reached a point where we have optimized that. We continue to optimize our portfolio there.

Rajeev Varman: We continued to optimize our portfolio there. We closed some restaurants that were non-profitable. In the last couple of years, we have reduced that portfolio by 42 to the 137 that we have. Delivery profitability is something that we started a few quarters ago.

Speaker #3: We closed some restaurants that were non-profitable. So, in all, in the last couple of years, we have reduced that portfolio by 42, to the 137 that we have.

Speaker #3: And then, delivery profitability is something that we started a few quarters ago. And now we are doing almost the same sales we were doing before.

Rajeev Varman: Now we are doing almost the same sales we were doing before, but significantly more profitable in our Indonesia Burger King business. We continue to stay focused on that. Corporate overheads, portfolio optimization, delivery profitability. Now what we are doing is carrying these learnings from India when it comes to the equipment, utility bills, and the portfolio that can go on to solar farms, where we can reduce our utility bills. All those will be transferred by our team from here to Indonesia, and I think that will give us a very strong P&L at the current ADS. Not that we are looking at bringing in more EBITDA at higher ADSs, which we are working through the value strategy. At current ADS, we want to bring some efficiencies into the P&L as well.

Speaker #3: But significantly more profitable in our Indonesia Burger King business. So we continue to stay focused on that—corporate overheads, portfolio optimization, delivery profitability. And now what we are doing is carrying the learnings from India when it comes to, you know, the equipment, utility bills, and the portfolio that can go on to solar farms, where we can reduce our utility bills.

Speaker #3: So all those will be transferred by our team from here to Indonesia, and I think that will give us a very strong P&L at the current ADS.

Rajeev Varman: All those will be transferred by our team from here to Indonesia, and I think that will give us a very strong P&L at the current ADS. Not that we are looking at bringing in more EBITDA at higher ADSs, which we are working through the value strategy. At current ADS, we want to bring some efficiencies into the P&L as well.

Speaker #3: Not that we are looking at, you know, bringing in more EBITDA at higher ADSs, which we are working through the value strategy. But at current ADS, we want to bring some efficiencies into the P&L as well.

Speaker #3: So, this is basically the top-line strategy, and now Sumit will take you through the numbers in detail. So, over to you, Sumit.

Rajeev Varman: This is basically the top-line strategy, now Sumit will carry you through the numbers in detail. Over to you, Sumit.

Speaker #2: Thank you, Raj. So Raj has already covered the individual quarterly performance for India and Indonesia. So I'll start with slide 17, and then we'll go into the details of how the quarter-on-quarter performances have moved.

Sumit Zaveri: Thank you, Raj. Raj has already covered the individual quarterly performance for India and Indonesia. I'll start with slide 17, then we'll go into the details how the quarter-on-quarter performances have moved. We can see on slide 17, on a consolidated basis, our store count between India and Indonesia stands at 752, up by 69 restaurants. The entire growth is led by India growth. Continuing with our overall revenue trajectory growth. On a consolidated basis, as we've seen in standalone as well, our overall revenue grew by 18% to INR 823 crores for the quarter ended Q1 FY27, as compared to INR 698 crores that we had last year. Similarly, restaurant EBITDA showed a robust growth of 73.5%, a total of INR 93.3 crores. This had a INR 3.3 crores of Indonesia as well.

Speaker #2: As we can see on slide 17, on a consolidated basis, our store count between India and Indonesia stands at 752, up by 69 restaurants.

Speaker #2: The entire growth is led by India growth. Continuing with our overall revenue trajectory growth, on a consolidated basis, as we've seen in standalone as well, our overall revenue grew by 18% to ₹823 crore.

Sumit Zaveri: Continuing with our overall revenue trajectory growth. On a consolidated basis, as we've seen in standalone as well, our overall revenue grew by 18% to INR 823 crores for the quarter ended Q1 FY27, as compared to INR 698 crores that we had last year. Similarly, restaurant EBITDA showed a robust growth of 73.5%, a total of INR 93.3 crores. This had a INR 3.3 crores of Indonesia as well.

Speaker #2: For the quarter ended Q1 FY27, as compared to ₹698 crore that we had last year. Similarly, restaurant EBITDA showed a robust growth of 73.5%.

Speaker #2: Our total was ₹93.3 crores, and this included ₹3.3 crores from Indonesia as well. If you compare this to last year, you would realize that we were at a break-even level in terms of restaurant EBITDA.

Sumit Zaveri: If you do compare to last year, you would realize that we were at a breakeven level in terms of restaurant EBITDA. From there we have moved to 3.3%. We will go into brand-wise as well. You will know which brand has performed well for us in Indonesia, in addition to India also performing very strongly. Far as company EBITDA is concerned, we moved from INR 12 crores last year to INR 43.5 or INR 44 crores. It's almost over 3x growth in terms of company EBITDA that we've seen as compared to last year. We are not only on the standalone basis, but even on consolidated basis, we've had very strong performance. Going on to slide 18, we will go into the nuances of the India performance, then Indonesia performance.

Speaker #2: From there, we have moved to 3.3%. We will go into brand-wise as well—which brand has performed well for us in Indonesia, in addition to India also performing very, very strongly.

Speaker #2: As far as company EBITDA is concerned, we moved from Rs 12 crore last year to Rs 44.35 crore, or Rs 44 crore. So it's almost over 3x growth.

Sumit Zaveri: It's almost over 3x growth in terms of company EBITDA that we've seen as compared to last year. We are not only on the standalone basis, but even on consolidated basis, we've had very strong performance. Going on to slide 18, we will go into the nuances of the India performance, then Indonesia performance.

Speaker #2: In terms of company EBITDA that we've seen as compared to last year, we are not only looking at it on a standalone basis, but also on a consolidated basis.

Speaker #2: We've had a very strong performance. Now, going on to slide 18, we will go into the nuances of the India performance and then the Indonesia performance.

Speaker #2: We've already seen a constant focus on adding restaurants in India. And to grow the brand in India, we ended the quarter with 590 restaurants. As we've always been stating, we would continue to grow at a pace of around 80 restaurants on an annual basis.

Sumit Zaveri: We've already seen a constant focus on adding restaurants in India and to grow the brand in India. We ended the quarter at 590 restaurants. As we've always been stating that we would continue to grow at a pace of around 80 restaurants in an annual basis, that still continues to be our goal going forward as well. As far as ADS is concerned, you could very clearly see that there is a step change led by very strong SSG growth that we've seen in Q1. At the portfolio level, we stand at an ADS of INR 1,31,000 with SSG growth of 12.6%. As far as revenue is concerned, INR 683 crores, 23% to 24% growth over last year.

Speaker #2: And that still continues to be our goal going forward as well. As far as ADS is concerned, you could very clearly see that there is a step change led by very strong FCSG growth that we've seen in Q1.

Speaker #2: At a portfolio level, we stand at an ADS of 131,000, with FCSG growth of 12.6%. As far as revenue is concerned, it is ₹683 crore, which is a 23-24% growth over last year.

Sumit Zaveri: At the portfolio level, we stand at an ADS of INR 1,31,000 with SSG growth of 12.6%. As far as revenue is concerned, INR 683 crores, 23% to 24% growth over last year.

Speaker #2: And delivery mix continues to be in a very similar tight range, at 44%, which is 2% higher than what we had seen in Q1 last year.

Sumit Zaveri: Delivery mix continues to be in a very similar tight range, at 44%, so it is 2% higher than what we had seen in Q1 last year, which is more a comparable quarter from seasonality perspective. Gross profit margin, you've always seen us improving on a quarter-on-quarter basis. That trend continues. We ended the quarter at 70.8%. We believe that this is a trajectory at which we should continue to grow our gross profit margin going forward as well. With restaurant EBITDA standing at 13.2% at INR 90 crores, which if we look at it from a seasonality perspective, it is up from 9.7% in Q1 last year to 13.2% in current quarter. Translation of the restaurant EBITDA improvement is also reflected in company EBITDA numbers moving from 4.1% or INR 22.5 crores to INR 23 crores to INR 53 crores for the quarter at 7.7%.

Speaker #2: Which is the more comparable quarter from a seasonality perspective? For gross profit margin, you've always seen us improving on a quarter-on-quarter basis, and that trend continues.

Speaker #2: And we ended the quarter at 70.8%. We believe that this is a trajectory at which we should continue to grow our gross profit margin going forward as well.

Speaker #2: Restaurant EBITDA stands at 13.2%, at ₹90 crore. If we look at it from a seasonality perspective, it is up from 9.7% in Q1 last year to 13.2% in the current quarter.

Sumit Zaveri: With restaurant EBITDA standing at 13.2% at INR 90 crores, which if we look at it from a seasonality perspective, it is up from 9.7% in Q1 last year to 13.2% in current quarter. Translation of the restaurant EBITDA improvement is also reflected in company EBITDA numbers moving from 4.1% or INR 22.5 crores to INR 23 crores to INR 53 crores for the quarter at 7.7%.

Speaker #2: And then, the translation of the restaurant EBITDA improvement is also reflected in the company EBITDA numbers—moving from 4.1%, or ₹22.5 crores to ₹23 crores, to ₹53 crores for the quarter.

Speaker #2: At 7.7%. If we quickly look at the Indonesia summary—and I'm looking at slide 20 there—as far as Indonesia is concerned, ADS-wise, we've remained fairly flat.

Sumit Zaveri: If we quickly look at the Indonesia summary, I'm looking at slide 20. There, as far as Indonesia is concerned, ADS-wise, we've remained fairly flat. All the efforts that we've taken to improve the overall restaurant EBITDA on the Burger King side by building efficiencies into the P&L, what Raj spoke about, including delivery profitability or looking at cost initiatives. We have been able to move the needle to a store EBITDA of 5.2% as far as Burger King is concerned. Popeyes is something which continues to remain at a stable ADS of around INR 69,000 to INR 70,000 in terms of INR, that is an area which we continue to work towards.

Speaker #2: But all the efforts that we've taken to improve the overall restaurant EBITDA on the Burger King side, by building efficiencies into the P&L—what Raj spoke about, including delivery profitability or looking at cost initiatives—we have been able to move the needle to a store EBITDA of 5.2%, as far as Burger King is concerned.

Sumit Zaveri: Popeyes is something which continues to remain at a stable ADS of around INR 69,000 to INR 70,000 in terms of INR, that is an area which we continue to work towards.

Speaker #2: Popeyes is something which continues to remain at a stable ADS of around ₹69,000 to ₹70,000 in terms of Indian rupees, and that is an area which we continue to work towards.

Speaker #2: But what is important is that, at a consolidated level between the two brands, we have been able to move the needle to a positive EBITDA.

Sumit Zaveri: What is important is that at a consolidated level between the two brands, we have been able to move the needle to a +EBITDA for Q1 at INR +3.2 crores or INR +3.3 crores for the quarter. There is a positive directional change that we are seeing in Indonesia as well. As we saw in India, obviously India shift is substantial at the back of 12.6% SSG that we've seen. If we look at, I would kind of take a moment to take you to slide 33, which talks about India performance on a post-Ind AS basis as well. You could see that on a post-Ind AS basis as well on India, we've made a substantial shift.

Speaker #2: For quarter one, it was at 3.2 or 3.3 crores for the quarter. So there is a positive directional change that we are seeing in Indonesia as well.

Speaker #2: As we saw in India, obviously the India shift is substantial at the back of 12.6%—12.6% FCSG that we've seen. If we look at, and I would kind of take a moment to take you to slide 23, which talks about India performance on a post-Ind AS basis as well.

Sumit Zaveri: If we look at, I would kind of take a moment to take you to slide 33, which talks about India performance on a post-Ind AS basis as well. You could see that on a post-Ind AS basis as well on India, we've made a substantial shift.

Speaker #2: You could see that on a post-India basis as well, in India, we've made a substantial shift. We reported a marginal profit, out of a tax loss of ₹3.2 crore.

Sumit Zaveri: We reported a marginal profit after tax loss of INR 3.2 crores. There is an exchange loss that really caused the profit after tax to be -INR 12 crore, which is pertaining to the investments that we have in Indonesia. Otherwise, subject to that, directionally, we've also started to move towards making the company not only generate good cash, but at the same time also to directionally move towards positive after-tax numbers as well, as we kind of see as far as standalone performance is concerned. Similarly, on consolidated performance which is by 25. The profit after tax on a consolidated basis, we had a loss of INR 45 crores, which is also reduced by 27% to INR 33 crores. We believe that there is an all-in improvement in India as well as directionally, we started to move on the positive side on Indonesia.

Speaker #2: But there is an exchange loss that really caused the profit after tax to be negative, of ₹12 crores, which is pertaining to the investments that we have in Indonesia.

Speaker #2: Otherwise, subject to that, directionally we've also started to move towards making the company not only generate good cash, but at the same time also to directionally move towards positive after-tax numbers as well.

Speaker #2: As we can see, as far as standalone performance is concerned. Similarly, on consolidated performance—which is on slide 25—the profit after tax on a consolidated basis: we had a loss of ₹45 crores, which has also reduced by 27% to ₹33 crores.

Sumit Zaveri: Similarly, on consolidated performance which is by 25. The profit after tax on a consolidated basis, we had a loss of INR 45 crores, which is also reduced by 27% to INR 33 crores. We believe that there is an all-in improvement in India as well as directionally, we started to move on the positive side on Indonesia.

Speaker #2: So we kind of believe that there is an all-in improvement in India, and directionally, we have started to move on the positive side.

Speaker #2: On Indonesia, we feel that on the journey side, we are moving directionally; we are moving in the right direction, and we will kind of take this forward.

Sumit Zaveri: We feel that on the journey side, we are moving directionally, we are moving in the right direction. We will take this forward. With that, we would open it up for Q&A. Happy to take the answers, happy to take the questions that you all would have.

Speaker #2: So with that, we would open it up for Q&A. Happy to take the answer happy to take the questions that you all would have.

Speaker #1: Operator, we can proceed with the questions if they're lined up. Thank you.

Rajeev Varman: Operator, we can proceed with the questions if they're lined up. Thank you.

Speaker #3: Thank you very much. Vivin Rao, please begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while a question queue assembles. The first question is from the line of Aditya from CLSA. Please proceed.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while a question queue assembles. The first question is from the line of Aditya from CLSA. Please proceed.

Speaker #3: If you wish to remove yourself from the question queue, you may press 'star' and 'two.' Participants are requested to use handsets while asking a question.

Speaker #3: Ladies and gentlemen, we will wait for a moment while a question queue assembles. The first question is from the line of Aditya from CLSA.

Speaker #3: Please proceed.

Speaker #4: Yeah, hi. Good evening. Thanks for the opportunity. So, two questions. Firstly, we've seen a significant escalation in FCSG. Could you maybe break that down into pricing, mix, and volume?

[Analyst] (CLSA): Hi, good evening. Thanks for the opportunity. Two questions. Firstly, we've seen a significant escalation in SSG. Could you maybe break that down into sort of pricing, mix, and volume? How that was in the quarter and how you expect that to play out for the rest of the year? Secondly, when we look at the sort of restaurant EBITDA in the context of the very strong SSG, we find that maybe the improvement isn't that strong. Would that entail that there has been a higher marketing spend or something else? Thanks.

[Analyst 1]: Hi, good evening. Thanks for the opportunity. Two questions. Firstly, we've seen a significant escalation in SSG. Could you maybe break that down into sort of pricing, mix, and volume? How that was in the quarter and how you expect that to play out for the rest of the year? Secondly, when we look at the sort of restaurant EBITDA in the context of the very strong SSG, we find that maybe the improvement isn't that strong. Would that entail that there has been a higher marketing spend or something else? Thanks.

Speaker #4: What how that would how that was in the quarter, and how you expect that to play out for the rest of the for the rest of the year?

Speaker #4: And then secondly, when we look at the sort of restaurant EBITDA in the context of the very strong FCSG, we find that maybe the improvement isn't as strong.

Speaker #4: Would that entail that there has been a higher marketing spend, or is that something else? Thanks. That's it.

Speaker #1: Thank you for your question. Look, our total sales, whether it's delivery sales or dining sales, are driven by an increase in traffic. We didn't take any, and you could probably reflect on our restaurant pricing as well.

Rajeev Varman: Thank you for your question. Look, our total sales, whether it's delivery sales or dine-in sales, is driven at the back of traffic increase. We didn't take any, and you could probably reflect on our restaurant pricing as well. We haven't taken any significant pricing to have reached that 12.6. It's driven by traffic that we have generated. We believe that that's what we have been doing for the last 3 years. We continue to stay in line with doing that. As long as we continue building traffic, you will continue to see that SSSG number in a persistently going forward. We have had a very good start with Q2 as well. I can say that some of the things we have put in place is driving more people into our restaurants.

Speaker #1: We haven't taken any significant pricing to have reached that 12.6. It's driven by the traffic that we have generated, and we believe that's what we have been doing for the last three years.

Speaker #1: We continue to stay in line with doing that. So, as long as we continue building traffic, we will continue to see that FCSG number persistently going forward.

Rajeev Varman: As long as we continue building traffic, you will continue to see that SSSG number in a persistently going forward. We have had a very good start with Q2 as well. I can say that some of the things we have put in place is driving more people into our restaurants.

Speaker #1: And we have had a very good start with Q2 as well. So I can say that some of the things we have put in place are driving more people into our restaurants.

Speaker #1: The second question, which was on marketing—yes, you always see in Q1 that we have a higher marketing expense. This time, it was 6.9%.

Sumit Zaveri: Marketing

Rajeev Varman: Marketing. Yes. You always see in Q1 that we have a higher marketing expense. This time it was 6.9%. 6.6%, sorry. Usually, this kind of gets amortized over the year. Usually, we have a lot of spends initially, which we tie up for the year. That's highest. If you bring that down to 5%, 5.5%, 5%, then yes, the EBITDA at the restaurant level will go up by that much amount.

Speaker #1: 6.6%, sorry. And usually this kind of gets amortized over the year. Usually, we have a lot of spend initially, which we kind of tie up for the year.

Speaker #1: So that's higher. If you bring that down to 5.5, 5%, then yes, the growth in EBITDA at the restaurant level will go up by that much amount.

Speaker #4: Thanks, that's very clear. And again, congrats on a very impressive performance.

[Analyst] (CLSA): Thanks. That's very clear. Again, congrats on a very impressive performance.

[Analyst 1]: Thanks. That's very clear. Again, congrats on a very impressive performance.

Speaker #1: Thanks Aditya.

Rajeev Varman: Thanks, Aditya.

Speaker #3: Thank you. The next question is from the line of Mohit from InvestEd. Please proceed.

Operator 2: Thank you. The next question is on the line of Mohnish from Investec. Please proceed.

Operator: Thank you. The next question is on the line of Mohnish from Investec. Please proceed.

Speaker #4: Yeah, hi. I have a question on the 12.6 FCSG achieved this quarter. So what percent of revenue was allocated towards advertising and promotion activities in India?

[Company Representative] (Pabrai Investment Funds): Hi. I have a question on given the 12.6% SSG achieved this quarter, what percent of revenue was allocated towards advertising and promotion activities in India? Do you expect ad intensity to remain at current levels and considering the season, which is typically strong for Burger King coming, will it increase? Another question is on future synergy with the Mexicase position. Are there some plans to integrate any options, or is there any plan? Because we have not heard post the Mexicase acquisition, any synergies and what is going to happen. What do you think about since Burger King is the sole focus is on increasing efficiency, sourcing, and everything. Also, we have fresh capital infusion coming in.

Operator: Hi. I have a question on given the 12.6% SSG achieved this quarter, what percent of revenue was allocated towards advertising and promotion activities in India? Do you expect ad intensity to remain at current levels and considering the season, which is typically strong for Burger King coming, will it increase? Another question is on future synergy with the Mexicase position. Are there some plans to integrate any options, or is there any plan?

Speaker #4: Do you expect ad intensity to remain at current levels? And considering the season, which is typically strong for broadcasting, coming up, will it increase? And another question is on the future synergy with the FCSG acquisition.

Speaker #4: So, how does Anything plan to integrate many options? Is there any plan? Because we have not heard—post FCSG acquisition—any synergies, and what is going to happen?

Operator: Because we have not heard post the Mexicase acquisition, any synergies and what is going to happen. What do you think about since Burger King is the sole focus is on increasing efficiency, sourcing, and everything. Also, we have fresh capital infusion coming in.

Speaker #4: So, what do you think about things like broadcasting solely focusing on increasing efficiency, sourcing, and everything? Also, we have fresh capital infusion coming in.

Speaker #4: So, based on that, is there any strategic alignment with the global ecosystem, or are there any concrete costs in procurement, or co-located stores, or anything happening in this direction?

[Company Representative] (Pabrai Investment Funds): Based on that, any strategic alignment with Inspira Global or the Mexicase ecosystem or are there any concrete costs and procurement or co-locating stores or anything happening in such direction?

Operator: Based on that, any strategic alignment with Inspira Global or the Mexicase ecosystem or are there any concrete costs and procurement or co-locating stores or anything happening in such direction?

Speaker #1: Yeah, so first of all, on the question that you had—the first question, which was on the customer trend and FCSG—I think I answered that earlier, but I'll re-emphasize that we have actually developed more and more customer base through our value strategy.

Rajeev Varman: First of all, on the question that you had, the first question, which is on the customer trend and the SSSG. I answered that earlier, but I will reemphasize that we have actually developed more and more customer base through our value strategy. Now with our premium strategy, which has become very popular with our Kimchi Korean promotion. Recently now you've seen what we have put out with the Peri-Peri promotion. Both of those were a big success for our company. As we move forward, synergies you spoke about. Both the businesses, and you're talking about Inspira's business, are operated independently. They will continue to operate independently. We do have a lot of learnings from the promoters because, as you know, Aayush Agrawal has actually set up the entire Inspiras Foods business, which is Chinese Wok, from scratch.

Speaker #1: And now with a premium strategy, which has become very popular with our kimchi Korean promotion, and then recently, you've seen what we have put out with the peri-peri promotion.

Speaker #1: Both of those were big successes for our company. Now, as we move forward, the synergies you spoke about—look, both the businesses, and you're talking about Inspira's business—are operated independently.

Rajeev Varman: As we move forward, synergies you spoke about. Both the businesses, and you're talking about Inspira's business, are operated independently. They will continue to operate independently. We do have a lot of learnings from the promoters because, as you know, Aayush Agrawal has actually set up the entire Inspiras Foods business, which is Chinese Wok, from scratch.

Speaker #1: And they will continue to operate independently. We do have a lot of learnings from the promoters because, as you know, Ayush Agarwal has actually set up the entire Inspira's food business, which is Chinese Wok.

Speaker #1: From scratch. So while we are running a brand, a global brand, and building a business, he's actually got a lot of experience in building a brand—not just building businesses.

Rajeev Varman: While we are here running a brand, a global brand, and building a business, he's actually got a lot of experience in building a brand, not just building businesses. Those energies from there will definitely be transferable to our RBA business. Most people ask, what are they going to benefit from that? This is what RBA is going to benefit from. We are excited about it. A lot of good things, feedback. In the last few days, we have had a lot of meetings with them, and a lot of questions on efficiencies and so forth, which have been very useful for us to understand. We will continue to have that kind of discussions, and whatever we can transfer into our business here in RBA, we will continue to move forward and do this.

Speaker #1: So I think those energies from there will definitely be transferable to our RBA business. Most people ask, what are they going to benefit from that?

Speaker #1: This is what RBA is going to benefit from. So I think that's why we are excited about it. And a lot of good feedback in the last few days—we have had a lot of meetings with them, and a lot of questions on efficiencies and so forth—which have been very, very useful for us to understand.

Rajeev Varman: In the last few days, we have had a lot of meetings with them, and a lot of questions on efficiencies and so forth, which have been very useful for us to understand. We will continue to have that kind of discussions, and whatever we can transfer into our business here in RBA, we will continue to move forward and do this.

Speaker #1: We'll continue to have those kinds of discussions, and whatever we can transfer into our business here in RBA, we will continue to move forward with that.

Speaker #4: Okay, okay. So, there are no plans for any co-located store expansion strategy as of now? Is it a continuous operation as a dependent?

[Company Representative] (Pabrai Investment Funds): There is no plans for any co-located store expansion strategy as of now. Is it to continue to operate as independent?

Rajeev Varman: There is no plans for any co-located store expansion strategy as of now. Is it to continue to operate as independent?

Rajeev Varman: They are two very different businesses. They operate very independently. They have their own teams and their own CEO who operates that business, and we operate our own.

Speaker #1: Yes, there are two very different businesses. They operate very independently. They have their own teams and their own CEO who operates that business.

Speaker #1: And we operate our own.

Speaker #4: Okay. Okay. Thank you very much.

[Company Representative] (Pabrai Investment Funds): Okay. Thank you very much.

Rajeev Varman: Okay. Thank you very much.

Speaker #3: Thank you. The next call, question is from the line of Doneel Desai from Total Capital. Please proceed.

Operator 2: Thank you. The next question is from the line of Devang Desai from Total Capital. Please proceed.

Operator: Thank you. The next question is from the line of Devang Desai from Total Capital. Please proceed.

Devang Desai: Hi, good evening, everyone, and congratulations for extremely strong set of numbers. My first question is, I think if we look at last four quarters, every quarter progressively we have increased the SSSG. Generally, what I understood is that QSR is a momentum business. Once the momentum picks up, it continues to carry on as you enroll more customers, they come to stores, spend more. Given this, how do you look at next four, five, six quarters? Should we be able to grow at double-digit SSSG on a longer-term basis? Earlier we were guiding for 5% to 7% SSSG, and we have far exceeded that number this quarter.

Operator: Hi, good evening, everyone, and congratulations for extremely strong set of numbers. My first question is, I think if we look at last four quarters, every quarter progressively we have increased the SSSG. Generally, what I understood is that QSR is a momentum business. Once the momentum picks up, it continues to carry on as you enroll more customers, they come to stores, spend more. Given this, how do you look at next four, five, six quarters?

Speaker #4: Hi, good evening everyone, and congratulations on an extremely strong set of numbers. So, my first question is: I think if we look at the last four quarters, every quarter progressively, we have increased the FCSG.

Speaker #4: And generally, what I understood is that QFR is a momentum business. Once the momentum picks up, it continues to carry on—as you have enrolled more customers, they come to stores and spend more.

Speaker #4: So given this, how do you look at the next four, five, or six quarters? Should we be able to kind of grow at double-digit FCSG on a longer-term basis?

Operator: Should we be able to grow at double-digit SSSG on a longer-term basis? Earlier we were guiding for 5% to 7% SSSG, and we have far exceeded that number this quarter.

Speaker #4: Because earlier, we were guiding for 5% to 7% FCSG and we have far exceeded that number this quarter. So,

Speaker #1: Very good question. Look, I think you spoke about the last four quarters, but I would say even the last maybe six to eight quarters, you generally got on calls and listened to very muted sales in the industry, right?

Rajeev Varman: Very good question. Look, I think you spoke about the last four quarters, I would say even the last maybe six to eight quarters, you generally got on calls and listened to very muted sales in the industry, right. You've seen some negative sales, and you've seen very muted sales for a very long time. This quarter, you've heard nothing but positive from the industry. It should tell you where the industry at large, the food business in the country is going. We are very blessed and everyone's benefiting from it, and so are we, right.

Speaker #1: You've seen some negative sales, and you've seen very muted sales for a very long time. And this quarter, you've heard nothing but positive from the industry.

Speaker #1: So it should tell you where the industry at large, the food business in the country, is going. So we are very blessed, and everyone is benefiting from it.

Speaker #1: And so are we, right? Now, if you have this kind of environment and you have the right promotions in place and the right strategies in place, which we have had for a long time, then the benefit is in ample amount. Then things turn positive, and the wind is behind your back instead of in your face.

Rajeev Varman: If you have this kind of environment and you have the right promotions in place and the right strategies in place, which we have had for a long time, then they benefit in ample amount when things turn positive and the wind's behind your back instead of in your face. I think those are the things. We don't make forward-looking statements, but I'll submit to you that we have started this quarter very well, Q2, and we feel very good about the market.

Speaker #1: So, I think those are the things. We don't make forward-looking statements, but I'll submit to you that we have started this quarter very well.

Speaker #1: Q2. And we feel very good about the market.

Speaker #4: Okay. Second question is, a lot of capital will get infused into the company, and as a shareholder, that is something we want to understand.

Devang Desai: Got it. Second question is, a lot of capital will get infused into the company. As a shareholder, that is something we want to understand, how this capital will get utilized because our profitability is increasing, cash flows will make sure that even 70, 80 stores eventually will be quite sustained, maybe not now, maybe four, six quarters later. What is the plan on the capital that we will have in the company? How do we deal with it? Will you again not get into that mode of acquisition and then investment again and then waiting for next two, three years? How do you want to kind of your thoughts on that?

Rajeev Varman: Got it. Second question is, a lot of capital will get infused into the company. As a shareholder, that is something we want to understand, how this capital will get utilized because our profitability is increasing, cash flows will make sure that even 70, 80 stores eventually will be quite sustained, maybe not now, maybe four, six quarters later. What is the plan on the capital that we will have in the company? How do we deal with it?

Speaker #4: How will this capital get utilized? Because our profitability is increasing, cash flows will make sure that even 70 or 80 stores eventually will be self-sustained—maybe not now, but maybe four to six quarters later.

Speaker #4: So, what is the plan for the capital that we will have in the company? How do we deal with it? Will we again get into that mode of acquisition and then investment again?

Rajeev Varman: Will you again not get into that mode of acquisition and then investment again and then waiting for next two, three years? How do you want to kind of your thoughts on that?

Speaker #4: And then waiting for the next two, three years? So how do you want to, kind of, share your thoughts on that?

Speaker #1: Yeah, we are in the process. So, you can appreciate that this is the first call with the new promoters, and we just closed the deal a few weeks ago.

Rajeev Varman: Yeah. We are in the process. You can appreciate that this is the first call with the new promoters. We just closed the deal just a few weeks ago. You would appreciate that we would like to have some time to put together a strategy moving forward for the next three to five years. We are working with them on a strategy to move forward, how we are going to do capital allocation, what is going to be the growth rate, what is going to be the different efficiencies we can bring in, what is the back of the house integration. A lot of conversation is happening. Once we have a steady plan put together that we are all fully energized and behind, then we will be in a position to share those plans.

Speaker #1: So, you would appreciate that we would like to have some time to put together a strategy for moving forward over the next three to five years.

Speaker #1: We are working with them on a strategy to move forward, how we are going to do capital allocation, what is going to be the growth rate, what is going to be the different efficiencies we can bring in, what is the back of the house integration.

Rajeev Varman: We are working with them on a strategy to move forward, how we are going to do capital allocation, what is going to be the growth rate, what is going to be the different efficiencies we can bring in, what is the back of the house integration. A lot of conversation is happening. Once we have a steady plan put together that we are all fully energized and behind, then we will be in a position to share those plans.

Speaker #1: So, a lot of conversations are happening. Once we have a steady plan put together that we are all fully energized and behind, then we will be in a position to share those plans.

Speaker #4: Okay. And last question for now, and I'll come back in a few. On the Indonesia side, I think earlier we were working on two board screens.

Devang Desai: Okay. Last question, sir, and I'll come back in the queue. Sir, on the Indonesia side, I think earlier we were working on two broad streams. One is, of course, making the business go to the profitable part, but the alternative stream was again to kind of sell off the business or hive off. Are we still on the same line? I think last call you indicated that at least on the Popeyes side, you are working on a very urgent basis to do something about it. Any updates on that? Any change in thought process? If you can update on that, sir.

Rajeev Varman: Okay. Last question, sir, and I'll come back in the queue. Sir, on the Indonesia side, I think earlier we were working on two broad streams. One is, of course, making the business go to the profitable part, but the alternative stream was again to kind of sell off the business or hive off. Are we still on the same line? I think last call you indicated that at least on the Popeyes side, you are working on a very urgent basis to do something about it. Any updates on that? Any change in thought process? If you can update on that, sir.

Speaker #4: One is, of course, making the business go to the profitable part, but the alternative stream was, again, to kind of sell off the business or hive it off.

Speaker #4: So are we still on the same line? And I think last call, you indicated that at least on the POPI side, you are working on a very urgent basis to do something about it.

Speaker #4: So, any updates on that? Any change in thought process, if you can update on that?

Speaker #1: Yeah, no, thank you for your question. Very aligned with what we spoke about last time. Look, the Burger King business is improving there very well, right?

Rajeev Varman: Yeah. No, thank you for your question. Very aligned on what we spoke last time. Look, the Burger King business is improving there very well. You get a feel of it. Even though you don't see it in numbers immediately, you get a feel from the market that what you're doing is right. We have that focus over there in terms of our value platform that we are launching. We already see that the restaurants have started to generate a positive amount of EBITDA. We see that there is a lot of inefficiencies that we have brought in India, the efficiencies that we have brought here that we can transfer to Indonesia very quickly. We are now working on those. We feel the Burger King business is stronger than it was a few quarters ago.

Speaker #1: You get a feel for it. Even though you don't see it in numbers immediately, you get a sense from the market whether what you're doing is right.

Speaker #1: So, we have that focus over there in terms of our value platform that we are launching. But we already see that the restaurants have started to generate a positive amount of EBITDA.

Speaker #1: And we see that there are a lot of inefficiencies that we have brought in India, the efficiencies that we have brought here that we can transfer to Indonesia.

Rajeev Varman: We see that there is a lot of inefficiencies that we have brought in India, the efficiencies that we have brought here that we can transfer to Indonesia very quickly. We are now working on those. We feel the Burger King business is stronger than it was a few quarters ago.

Speaker #1: Very quickly, so we are now working on those. We feel the Burger King business is stronger than it was a few quarters ago, and I think we want to continue to put a focus on that and make sure that we strengthen all those things that we have done in India.

Rajeev Varman: I think we want to continue to put a focus on that and make sure that we strengthen all those things that we have done in India. We kind of parallel those off into Indonesia. The value strategy being a big one, the utilities and the middle of the P&L refinement, that's another one. The delivery strategy where we have an opportunity, we have already done some progress by making it more profitable. I think we have still some work over there. We'll complete all those things and stay focused on that. Popeyes, like I told you, we are now in very deep conversations with the new promoters. It is a tough business and it is something that we will not exclude any strategic decisions on that, and we will inform you as we kind of arrive at a path that is visible to us.

Speaker #1: We kind of paralleled those off into Indonesia. The value strategy being a big one. The utilities and the middle of the P&L refinement, that's another one.

Speaker #1: The delivery strategy is where we have an opportunity. We have already made some progress by making it more profitable. I think there is still some work to be done over there.

Speaker #1: So, we'll complete all those things and stay focused on that. POPI is, like I told you, we are now in very deep conversations with the new promoters.

Rajeev Varman: Popeyes, like I told you, we are now in very deep conversations with the new promoters. It is a tough business and it is something that we will not exclude any strategic decisions on that, and we will inform you as we kind of arrive at a path that is visible to us.

Speaker #1: It is a tough business, and it is something that we will not exclude any strategic decisions on. We will inform you as we arrive at a path that is visible to us.

Speaker #1: But either way, if you appreciate it, whatever we do with both those businesses—bringing efficiency into both those businesses, making sure those businesses are moving towards profitability—is important in the near term anyway.

Rajeev Varman: Either way, if you appreciate it, whatever we do with both those businesses, bringing efficiency into both those businesses, making sure those businesses are moving towards profitability is important in the near term anyway. We haven't left our eyeball from that, and we continue to look at some strategic options on Popeyes as well.

Speaker #1: So, we haven't taken our eyes off that, and we continue to look at some strategic options on POPIs as well.

Speaker #4: Okay, thank you. And wish you all the best.

Sumit Zaveri: Okay. Thank you and wish you all the best.

Rajeev Varman: Okay. Thank you and wish you all the best.

Speaker #1: Thank you.

Rajeev Varman: Thank you.

Speaker #2: Thank you. The next question is from the line of Devanshu Bansal from MK Global. Please proceed.

Operator 2: Thank you. The next question is from the line of Devanshu Bansal from Emkay Global. Please proceed.

Operator: Thank you. The next question is from the line of Devanshu Bansal from Emkay Global. Please proceed.

Speaker #4: Hi Raj, just continuing on the discussion, right? So firstly, congratulations on a very strong performance in Q1. We sort of answered this from an acquisition perspective, right?

Devanshu Bansal: Hi, Raj. Just continuing on the discussion. Firstly, congratulations for a very strong performance in Q1. You sort of answered to this from an acquisition perspective, that you are currently freezing on the strategy. I also wanted to sort of get some clarity, because promoters may have taken some debt to consummate this stake acquisition. Do we have, as a company, any plans to share dividend going ahead to sort of maybe service that debt taken by the promoters? If you could also sort of maybe provide clarity down the lane on that front, it would be helpful. Secondly, I wanted to check that your delivery channel performance has been pretty different from that reported by peers this quarter. Your mix has actually increased. Checking if you are also benefiting from relatively lower competitive intensity on that channel. If you could throw some light there.

Speaker #4: I mean, you are currently focusing on the strategy. I also wanted to sort of get some clarity because promoters may have taken some debt to consume the stake acquisition, right?

Speaker #4: So, do we as a company have any plans to share dividends going ahead, to maybe service the debt taken by the promoters?

Speaker #4: So, if you could also maybe provide some clarity down the line on that front, it would be helpful. Secondly, I wanted to check—your delivery channel performance has been pretty different from that reported by peers this quarter, right?

Devanshu Bansal: If you could also sort of maybe provide clarity down the lane on that front, it would be helpful. Secondly, I wanted to check that your delivery channel performance has been pretty different from that reported by peers this quarter. Your mix has actually increased. Checking if you are also benefiting from relatively lower competitive intensity on that channel. If you could throw some light there.

Speaker #4: So your mix has actually increased. Checking if you are also benefiting from relatively lower competitive intensity on that channel—if you could throw some light there.

Speaker #1: Yeah. Look, just let me answer the second question first, and then I'll turn it over to Sumit on the PAT and the dividends. Look, our strategy on delivery has been very consistent, right?

Rajeev Varman: Yeah. Look, just let me answer the second question first, and then I'll turn it over to Sumit on the PAT and the dividends. Look, our strategy on delivery has been very consistent. We continue to focus on driving traffic. Profitable traffic. Not just traffic, but profitable traffic. We started doing that a while ago. We have been reporting positive delivery sales flow through for a while now. We haven't stopped improving on it. We continue to improve on it. When we do delivery sales, we actually do that more profitably than we have done it in the past. That journey continues in those lines, and we're not shying away from it.

Speaker #1: We continue to focus on driving traffic, right? And profitable traffic—not just traffic, but profitable traffic. We started doing that a while ago, and we have been reporting positive delivery sales flow-through for a while now.

Speaker #1: And we haven't stopped improving on it. We continue to improve on it. So when we do delivery sales, we actually do that more profitably than we have done in the past.

Rajeev Varman: We haven't stopped improving on it. We continue to improve on it. When we do delivery sales, we actually do that more profitably than we have done it in the past. That journey continues in those lines, and we're not shying away from it.

Speaker #1: So that journey continues along those lines, and we're not shying away from it. You saw a kind of shift in some of those delivery numbers because in certain markets we had some good delivery business due to certain events in those areas, whatever those may be.

Rajeev Varman: You saw a kind of shift in some of those delivery numbers because there were certain markets we had some good delivery businesses because of certain events in those areas, whatever those may be. We will take all sales, whether it is delivery or dine-in, as long as it is coming in profitably. That is how it came in, so that is why you see those numbers in EBITDA as well as on revenues, which is up 23.6% on revenues, SSG up 2.6%, and EBITDA restaurant level and company EBITDA both up 168%, the other 133%. All this is because those things kind of lined up well. As far as-

Speaker #1: But we will take all sales, whether it's delivery or dine-in, as long as it's coming in profitably. And that's how it came in. So that's why you see those numbers in EBITDA as well as on revenues, which are up 23.6% on revenues, SSSG up 2.6%, and EBITDA—restaurant level and company EBITDA—both up 168%.

Rajeev Varman: That is how it came in, so that is why you see those numbers in EBITDA as well as on revenues, which is up 23.6% on revenues, SSG up 2.6%, and EBITDA restaurant level and company EBITDA both up 168%, the other 133%. All this is because those things kind of lined up well. As far as-

Speaker #1: The other 133%. All of this is because those things kind of lined up well, as far as...

Speaker #3: Yeah. So, Devanshu, I'll just take the first question. As far as the business is concerned, we are very clear that the cash that the business generates will be used for the growth of our businesses.

Sumit Zaveri: Yeah. Devanshu, I will just take the first question. As far as the business is concerned, we are very clear that the cash that the business generates will be utilized for the purpose of growth of our businesses. That is something which is very clearly kind of agreed as a part of our long-term plan. We are very clear. We continue to kind of use the cash for the purpose of growth of our businesses, the current businesses that we have.

Speaker #3: And that's something which is very clearly kind of agreed as a part of our long-term plan. So we're very clear. We continue to kind of use the cash for the purpose of growth of our businesses—the current businesses that we have.

Speaker #4: Got it, Sumit. Sumit, just one more clarification. You did mention there is some forex-related loss, right? So your pre-India head office cost is somewhere around ₹37.6 crore.

Devanshu Bansal: Got it, Sumit. Sumit, just one more clarification. You did mention there is some Forex related loss. Your pre-Ind AS head office cost is somewhere around INR 37.6 crores, your post-Ind AS head office cost comes out to be around INR 50 odd crores, right? What is this exact difference and whether this is expected to continue in the coming quarters?

Speaker #4: But your post-India head office cost comes out to be around ₹50-odd crores, right? So what exactly is this difference, and is it expected to continue in the coming quarters?

Speaker #3: So, one is Devanshu's exchange loss that I mentioned to you. It's sitting below the EBITDA line as a part of finance cost, so that does not impact the EBITDA line.

Sumit Zaveri: One is, the actual exchange loss that I mentioned to you is sitting below the EBITDA line as a part of finance cost. That does not impact the EBITDA line. As far as G&A is concerned, our G&A for India business stands at INR 37 crores for the quarter. That is the number. The exchange loss number that I spoke to you is not forming part of the G&A or the EBITDA, whether it is pre-Ind AS or post-Ind AS,

Speaker #3: As far as the GNA is concerned, our GNA for the India business stands at ₹37 crore for the quarter. So that is the number. And the exchange loss number that I spoke to you about is not forming part of the GNA or the EBITDA, whether it is pre-Ind AS or post-Ind AS EBITDA numbers.

Devanshu Bansal: Okay, got it. There might be some mistake at my end. I'll correct that. Got it, sir. Thanks for taking the question.

Speaker #4: Okay, got it. Then there might be some mistake at my end. I'll correct that. Got it, sir. Thanks for taking the question.

Rajeev Varman: Thanks. Thanks, Devanshu.

Sumit Zaveri: Thanks.

Speaker #3: Thanks.

Speaker #1: Thanks, Devanshu.

Rajeev Varman: Thanks, Devanshu.

Speaker #2: Thank you. The next question is from the line of Aditya from Complete Circle Capital. Please proceed.

Operator 2: Thank you. The next question is from the line of Aditya from Complete Circle Capital. Please proceed.

Operator: Thank you. The next question is from the line of Aditya from Complete Circle Capital. Please proceed.

Speaker #4: Yes, all my questions have been answered. Thank you.

[Analyst] (Complete Circle Capital): Yeah. All my questions are answered. Thank you.

[Analyst 1]: Yeah. All my questions are answered. Thank you.

Speaker #1: Thank you. Thank you.

Rajeev Varman: Thank you all. Thank you.

Speaker #2: Thank you. The next question is from the line of Manoj from Geometric. Please proceed.

Operator 2: Thank you. The next question is from the line of Manoj from Geometric. Please proceed.

Operator: Thank you. The next question is from the line of Manoj from Geometric. Please proceed.

Manoj: Am I audible?

[Analyst 6]: Am I audible?

Speaker #4: I'm Aditan.

Speaker #1: Yes, Manoj, please go on.

Rajeev Varman: Yes, Manoj. Please go on.

Operator 2: Please go on.

Operator: Please go on.

Manoj: Okay. Congratulations on super metrics in all areas. I understand that you will take time for the capital which will come from the equity dilution. Can you give some sense what you will not do? What you will do, you have a time like, I understand when multiple permutation, combination that looks like that capital will go into the investment phase in some form of sense. Like last time, there was a promoter, Chintan, we bought Burger King Indonesia. It is like that we can buy something in Chinese Wok. Is there any guideline what we won't do? What we will do, we will come to know.

[Analyst 6]: Okay. Congratulations on super metrics in all areas. I understand that you will take time for the capital which will come from the equity dilution. Can you give some sense what you will not do? What you will do, you have a time like, I understand when multiple permutation, combination that looks like that capital will go into the investment phase in some form of sense.

Speaker #4: Okay. Okay. Congratulations on Supermetrics and all areas. I understand that you will take time for the capital, which will come from the equity dilution.

Speaker #4: But can you give some sense of what you will not do? What will your timeline be like? I understand there are multiple permutations and combinations, and it looks like that capital will go into the investment phase in some form or sense.

Speaker #4: But like last time, there was a promoter change and we bought Burger King Indonesia. Can we, is it like that, can we buy something in Chinese Walk?

[Analyst 6]: Like last time, there was a promoter, Chintan, we bought Burger King Indonesia. It is like that we can buy something in Chinese Wok. Is there any guideline what we won't do? What we will do, we will come to know.

Speaker #4: Is there any guideline on what we won’t do? What we will do, we will come to know.

Speaker #1: Manoj, please give us some time. We are in discussions on an outlay and plan. We will come back. We will have a plan. There are a lot of options which include backward integration, bringing in some efficiencies by investing in, for example, solar farms. It's a good way to kind of spend the money long term.

Rajeev Varman: Manoj, please give us some time. We are in discussions on outlay on plan. We will come back. We will have a plan. There are a lot of options which include backward integration, bringing some efficiencies by investing in, for example, solar farms. It's a good way to kind of spend the money long term. Backward integration, there's a lot that is on our plate that we are sorting out. Given the very small timeframe that we have had since the deal was closed till now, I think we should do this honestly, and we should come back with definitive answers more than speculative answers. Please give us some time.

Speaker #1: But with backward integration, there are growth initiatives that are beginning. There's a lot that is on our plate that we are sorting out. Given the very short time frame that we have had since the deal was closed until now, I think we should do this honestly, and we should come back with definite answers rather than speculative answers.

Rajeev Varman: Given the very small timeframe that we have had since the deal was closed till now, I think we should do this honestly, and we should come back with definitive answers more than speculative answers. Please give us some time.

Speaker #1: So, please give us some time.

Speaker #4: Okay, understood. Looks like we were by the commentary of Indonesia Burger King. It looks like, more or less, we are continuing with Burger King. It looks like a very positive commentary.

Manoj: Okay, understood. Looks like you were my commentary of Burger King Indonesia. It looks like that more or less we are continuing with Burger King. It looks like a very positive commentary. How much capital, if we continue with Burger King Indonesia, would be needed more? Any idea on that?

[Analyst 6]: Okay, understood. Looks like you were my commentary of Burger King Indonesia. It looks like that more or less we are continuing with Burger King. It looks like a very positive commentary. How much capital, if we continue with Burger King Indonesia, would be needed more? Any idea on that?

Speaker #4: How much capital would be needed if we continue with Burger King Indonesia? Do you have any idea about that?

Speaker #1: Yes. So, first of all, let me clarify that Burger King Indonesia is doing much better. We have a good feel that the business is kind of on track towards a strong positive EBITDA line at the restaurant level.

Rajeev Varman: Yes. First of all, let me clarify that Burger King Indonesia is doing much better. We have a good feel that that business is kind of on track towards a strong positive EBITDA line at the restaurant level. We continue to kind of work around that. We have identified the gaps that were there. It took us a little while, but given the rough market that was there because of the boycott and because of COVID and then the second boycott, all these things happened in Indonesia. It was a fantastic business when we bought it. Pre-COVID, it generated very strong EBITDA margins, and it was in a market where we had very high out-of-home consumption.

Speaker #1: So we continue to kind of work around that. We have identified the gaps that were there. It took us a little while, but given the rough market that was there because of the boycott and, before that, COVID, and then the second boycott—all these things happened in Indonesia.

Speaker #1: It was a fantastic business when we bought it. Pre-COVID, it generated very strong EBITDA margins, and it was in a market where we had very high out-of-home consumption.

Rajeev Varman: It was a fantastic business when we bought it. Pre-COVID, it generated very strong EBITDA margins, and it was in a market where we had very high out-of-home consumption.

Speaker #1: And it was a very, very, very strong business that we bought, but it kind of fell through because of all that string of events that happened because of the war in Palestine and the boycott subsequent to that.

Rajeev Varman: It was a very strong business that we bought but kind of fell through because of all the string of events that happened because of the war in Palestine and the boycott subsequent to that. Let's leave that alone. We made a good decision that kind of turned out to be tough on us. We have found some solutions with Burger King. We are moving forward with those solutions. Like I said, whether we have a strategic output from this effort, we still need to be, as a company, reducing losses, finding efficiencies, building a strong business as long as we own it. We're continuing to do that, right? Popeyes, we think in the near future that we will make some strategic decisions. We still need to continue to improve that and minimize the losses.

Speaker #1: So let's leave that alone. We made a good decision that kind of turned out to be tough on us. We have found some solutions with Burger King.

Speaker #1: We are moving forward with those solutions. Like I said, whether we have a strategic output from this effort or not, we still need to, as a company, reduce losses, find efficiencies, and build a strong business as long as we own it.

Rajeev Varman: Like I said, whether we have a strategic output from this effort, we still need to be, as a company, reducing losses, finding efficiencies, building a strong business as long as we own it. We're continuing to do that, right? Popeyes, we think in the near future that we will make some strategic decisions. We still need to continue to improve that and minimize the losses.

Speaker #1: So we are continuing to do that, right? Popeyes—we think in the near future that we will make some strategic decisions. We still need to continue to improve that and minimize the losses.

Speaker #1: So, we are working on both those fronts, and that's the real plan that we shared with you prior to the new promoters coming in.

Rajeev Varman: We are working on both those fronts, and that's the real plan that we shared with you prior to the new promoters coming in. It's no different now. Promoters and we are aligned on how we are moving forward with that. Just kind of stay put to hear a little more from us. Yeah.

Speaker #1: It's no different now. Promoters and we are aligned on how we are moving forward with that, so just kind of stay put to hear a little more from us.

Speaker #3: Yeah, I just want to add to what Raj mentioned. There was an initial question as well with respect to the way both the business—our business—and the promoters' business will be run.

Manoj: Okay.

[Analyst 6]: Okay.

Sumit Zaveri: I just want to add to what Raj mentioned. There was an initial question as well with respect to the way both the business, our business and promoter's business will be run. I think he's already clarified that those businesses will continue to operate individually, and that is something which is how we will continue to operate both the businesses. There are absolutely no plans to consolidate those businesses, as far as we are concerned. We're very clear and focused to run these businesses as individual businesses, including the allocation of capital, which will go towards the growth of the business that we are currently operating.

Speaker #3: I think he’s already clarified that those businesses will continue to operate individually, and that is something which is how we will continue to operate both the businesses there.

Speaker #3: There are absolutely no plans to consolidate those businesses there, as far as we are concerned. We're very clear and focused to run these businesses as individual businesses, including the allocation of capital, which will go towards the growth of the business that we are currently operating.

Sumit Zaveri: We're very clear and focused to run these businesses as individual businesses, including the allocation of capital, which will go towards the growth of the business that we are currently operating.

Speaker #3: So congratulations and

Manoj: Nice. Congratulations and hopeful for a very good journey with the new promoter and transparent and very better to the shareholder. Thank you.

[Analyst 6]: Nice. Congratulations and hopeful for a very good journey with the new promoter and transparent and very better to the shareholder. Thank you.

Speaker #4: I'm hopeful for a very good journey with the new promoter, and that things will be transparent and much better for the shareholders. Thank you.

Speaker #1: Appreciate it, Manoj. Thank you, Manoj.

Rajeev Varman: Appreciate it, Manoj. Thank you, Manoj.

Speaker #2: Thank you. The next question is from the line of Rahul from Athleco Analytics Service LLP. Please proceed.

Operator 2: Thank you. The next question is from the line of Rahul from Atlaco Analytic Service LLP. Please proceed.

Operator: Thank you. The next question is from the line of Rahul from Atlaco Analytic Service LLP. Please proceed.

Speaker #5: Yeah.

[Company Representative] (Athletico Analytic Services): Yeah. Hi. As part of the acquisition, the promoters have pledged 14%. Is there any chance that that 14% could go further up?

[Analyst 6]: Yeah. Hi. As part of the acquisition, the promoters have pledged 14%. Is there any chance that that 14% could go further up?

Speaker #4: So, as part of the acquisition, the promoters have pledged 14%. Is there a chance that the 14% could go further up?

Sumit Zaveri: Rahul, that is obviously completely the plan that the promoters have with respect to funding the acquisitions. Honestly, that's a question that, rather we would kind of stay away from.

Speaker #3: Rahul, that is honestly completely the plan, and that the promoters have expected to fund the acquisitions, honestly. So that's a question that, rather, we would kind of stay away from.

Rajeev Varman: As far as we are concerned.

Sumit Zaveri: As far as we are concerned.

Speaker #4: Sure. And is it possible or likely that, in the next on-call, the promoters would be open to staying on the call? I think many shareholders would appreciate that, if it's possible.

[Company Representative] (Athletico Analytic Services): Sure. Is it possible or likely that in the next con call, the promoters would be open to being on the call? I think many shareholders would appreciate that, if it's possible.

[Analyst 6]: Sure. Is it possible or likely that in the next con call, the promoters would be open to being on the call? I think many shareholders would appreciate that, if it's possible.

Speaker #1: Look here, I mean, I'll definitely have a chat with Ayush on that. But I think it makes more sense for us to finish a business plan, set that out, and then kind of share that with the wider community, and then kind of have that call.

Rajeev Varman: Look here. I'll definitely have a chat with Aayush on that, I think it makes more sense for us to finish a business plan, set that out.

Rajeev Varman: Share that with the wider community and kind of have that call. We'll discuss and get back for sure. It's a good question from you, and we'll get back to you on that. Yeah?

Speaker #1: So we'll discuss and get back for sure. I mean, it's a good question from you, and we'll get back to you on that. Yeah?

Speaker #4: Right. Great. Thank you. That's all. Yeah.

[Company Representative] (Athletico Analytic Services): Great. Thank you. That's all. Yeah.

[Analyst 6]: Great. Thank you. That's all. Yeah.

Speaker #1: All right. Thank you.

Rajeev Varman: All right. Thank you.

Speaker #2: Thank you. The next question is from the line of Rohit from iThought PMS. Please proceed.

Operator 2: Thank you. The next question is from the line of Rohit from iThought PMS. Please proceed.

Operator: Thank you. The next question is from the line of Rohit from iThought PMS. Please proceed.

[Company Representative] (iThought): Good evening and congratulations on solid performance. My question is in Indonesia, while you sort of hinted that maybe you may look at things at Popeyes also, just on Burger King Indonesia, what kind of capital outlay do you see? Given that you are seemingly very confident about the things improving notwithstanding the numbers yet. What kind of external capital, from the parent you would see that they will need to sort of invest. I saw that we have invested close to INR 50 crores in the Indonesian subsidiary. Assuming that the business improves from here on, is there sort of a limit you're thinking that this is the kind of capital that we would sort of give out to Indonesia, Burger King Indonesia in the next.

[Analyst 6]: Good evening and congratulations on solid performance. My question is in Indonesia, while you sort of hinted that maybe you may look at things at Popeyes also, just on Burger King Indonesia, what kind of capital outlay do you see? Given that you are seemingly very confident about the things improving notwithstanding the numbers yet. What kind of external capital, from the parent you would see that they will need to sort of invest.

Speaker #4: Good evening, and congratulations on a solid performance. My question was about Indonesia. You sort of hinted that maybe we may look at things at Popeyes there, but just on Burger King Indonesia, what kind of capital outlay do you see?

Speaker #4: And given that you are—I mean, you seem to be very confident about things improving, notwithstanding the numbers yet—so what kind of external capital, I mean from the parent, do you see that they will probably, that we need to sort of invest?

Speaker #4: I saw that we have invested close to ₹50 crore. But assuming that the business improves from here on, is there a sort of limit you're thinking of? That is, this is the kind of capital that we would give out to Burger King Indonesia in the next—?

[Analyst 6]: I saw that we have invested close to INR 50 crores in the Indonesian subsidiary. Assuming that the business improves from here on, is there sort of a limit you're thinking that this is the kind of capital that we would sort of give out to Indonesia, Burger King Indonesia in the next.

Speaker #1: Yeah. Yeah. Rohit, that's a very good question. First of all, let me reiterate to you that the franchisor, which is RBI, Restaurant Brands International, has already invested or has committed to invest $9 million over the next three years in the Indonesian market.

Rajeev Varman: Yeah. Rohit, that's a very good question. First of all, let me reiterate to you that the franchisor, which is RBI, Restaurant Brands International, has invested already or plans to, has committed to invest $9 million over the next three years in the Indonesian market. That's the capital that they are outlaying in terms of marketing support to spruce up our marketing program over the next three years. We thank them for that. That's their belief that this is a strong market, and this is a market that they would like to build, if anything. That's one thing. We haven't got a plan in place right now to build any new restaurants there. There's nothing in this year's plan to build any new restaurant. We are optimizing, reducing rent in existing restaurants. We are looking at the solar farm.

Speaker #1: So that's the capital that they are outlaying in terms of marketing support to spruce up our marketing program over the next three years. So we thank them for that.

Speaker #1: That's their belief—that this is a strong market, and this is a market that they would like to build, if anything, right? So that's one thing.

Rajeev Varman: That's one thing. We haven't got a plan in place right now to build any new restaurants there. There's nothing in this year's plan to build any new restaurant. We are optimizing, reducing rent in existing restaurants. We are looking at the solar farm.

Speaker #1: Now, we haven't got a plan in place right now to build any new restaurants there, right? There's nothing in this year's plan to build any new restaurant.

Speaker #1: We are optimizing, reducing rent in existing restaurants. We are looking at the solar farm, we are looking at the new broiler. We might end up buying the new broiler.

Rajeev Varman: We are looking at the new broiler. We might end up buying the new broiler, which will actually bring efficiencies that last time when we told you about this plan for India, the payback was about a year and a few months. That kind of paid off real quickly over here in India. We are looking at those, and we will add that into our plan as we kind of move forward on that. A lot of efficiencies will come out without any CapEx outlay. A lot of this will come out. Marketing support is there from RBI that they have invested into this business. These are the initiatives. We are not looking at putting in CapEx to grow restaurants, but we'll find ways to bring in efficiencies at current ADSs.

Speaker #1: Which will actually bring efficiencies. The last time we told you about this plan for India, the payback was about a year and a few months.

Speaker #1: So that kind of paid off real quickly over here in India. And we are looking at those, and we will have that into our plan as we move forward on that.

Speaker #1: But a lot of efficiencies will come out without any capex outlay, right? A lot of this will come out. Marketing support is there from RBI, that they have invested into this business.

Rajeev Varman: A lot of this will come out. Marketing support is there from RBI that they have invested into this business. These are the initiatives. We are not looking at putting in CapEx to grow restaurants, but we'll find ways to bring in efficiencies at current ADSs.

Speaker #1: So these are the initiatives. We are not looking at putting in capex to grow restaurants, but we'll find ways to bring in efficiencies at current ADSs. And then, of course, the value strategy that we are going to roll out will help us kind of improve the top line.

Rajeev Varman: Then, of course, the value strategy that we are going to roll out will help us kind of improve the top line. We have seen in the industry over there, at the other players that are there, that they have slowly started to move their top lines as well. Generally the industry, and when I say the industry, I'm talking about Western QSRs in Indonesia, are now creeping up and improving on their ADSs and their sales and P&L and so forth. It's not just that we are hoping to do that. We are seeing the entire market doing that.

Speaker #1: We have seen in the industry, over there with the other players, that they have slowly started to move their top lines as well.

Speaker #1: And so, generally, the industry—and when I say the industry, I'm talking about Western QSRs in Indonesia—are now creeping up and improving on their ADSs, their sales, their P&L, and so forth.

Speaker #1: So it's not just that we are hoping to do that; we are seeing the entire market doing that.

Speaker #4: Right. Is this too small question on this follow-up? So I think when we had acquired, I think I remember maybe you had articulated that while the gross margins there are lower than India at the restaurant level or at the unit level, probably because of lower rents and lower delivery commissions, etc., the margins actually are slightly ahead of India.

[Company Representative] (iThought): Just two small questions on this follow-up. When we had acquired, I remember maybe you had articulated that while the gross margins there are lower than they are at a restaurant level or at a unit level, probably because of lower rents and lower delivery commissions, et cetera, the margins actually are slightly ahead of India. Of course, a lot has happened since then in terms of the macro environment. Assuming that you work through these efficiencies and you get some bit of market tailwinds in terms of ADS, does that still hold or that argument has probably not played out. If you can share some comments. Secondly-

[Analyst 6]: Just two small questions on this follow-up. When we had acquired, I remember maybe you had articulated that while the gross margins there are lower than they are at a restaurant level or at a unit level, probably because of lower rents and lower delivery commissions, et cetera, the margins actually are slightly ahead of India. Of course, a lot has happened since then in terms of the macro environment.

Speaker #4: So, of course, a lot has happened since then in terms of the macro environment. But assuming that you work through these efficiencies, and you get some bit of market tailwind in terms of ADS, does that still hold? Or, I mean, that argument has probably not played out—if you can share some comments.

[Analyst 6]: Assuming that you work through these efficiencies and you get some bit of market tailwinds in terms of ADS, does that still hold or that argument has probably not played out. If you can share some comments. Secondly-

Speaker #4: And secondly, sorry.

Rajeev Varman: Yeah.

[Company Representative] (iThought): Sorry.

[Analyst 6]: Sorry.

Speaker #1: Go ahead.

Rajeev Varman: Go ahead.

Speaker #4: Yeah. Go ahead.

[Company Representative] (iThought): Yeah.

[Analyst 6]: Yeah.

Rajeev Varman: Go ahead.

Speaker #1: Sorry.

[Company Representative] (iThought): Sorry. One more question on this was that when we had acquired this fleet, we were very over on the chicken part, and you mentioned that we've gone from 30% to 50%. Concomitantly, we were talking about a gross margin improvement there as well because of this mix changing when we had acquired. Can you maybe also talk a bit about that? What kind of potential improvement in gross margin out of this have we already achieved, and what can happen going forward in Indonesia specifically? Yeah. Thank you.

[Analyst 6]: Sorry. One more question on this was that when we had acquired this fleet, we were very over on the chicken part, and you mentioned that we've gone from 30% to 50%. Concomitantly, we were talking about a gross margin improvement there as well because of this mix changing when we had acquired. Can you maybe also talk a bit about that? What kind of potential improvement in gross margin out of this have we already achieved, and what can happen going forward in Indonesia specifically? Yeah. Thank you.

Speaker #4: Sorry, this one. Sorry. One more question on this was that I think when we had acquired this piece, I think we were very good on the chicken part.

Speaker #4: And I think you mentioned that you've gone from 30% to 50%. And, concomitantly, I think we were talking about a gross margin improvement there as well, because of this mix changing when we had acquired.

Speaker #4: So, can you maybe also talk a bit about that? What kind of potential improvement in gross margin because of this have we already achieved, and what can happen going forward in Indonesia specifically?

Speaker #4: Yeah. Thank you.

Speaker #1: Very good question, Rohit. Excellent question, actually. Look, the dynamics of that P&L haven't changed, right? We have an advantage over there in rent. While we were kind of at 12% over here when we bought that business, we're sitting at 8% because of volumes, right?

Rajeev Varman: Very good question, Rohit. Excellent question, actually. Look, the dynamics of that P&L haven't changed, right? We have an advantage over there in rent. While we kind of 12% over year when we bought that business, it was sitting at a 8%, because of volumes. The volumes were there sitting at a 8% rent. We hope to get there very quickly as we do this value strategy, and we roll this out. Many of those benefits that were there in those P&Ls still exist, right? For example, delivery is a lower percentage there. The commissions on delivery are lower. There are a lot of intrinsic advantages that we have in that business that haven't changed. As we grow the volume back in there, those things will be still firm and available to us. Right? Now, you spoke about the chicken.

Speaker #1: The volumes were there, sitting at an 8% rent. We hope to get there very quickly as we kind of do this value strategy and we kind of roll this out.

Speaker #1: Many of those benefits that were there in those P&Ls still exist, right? For example, delivery is a lower percentage there, and the commissions on delivery are lower.

Rajeev Varman: Many of those benefits that were there in those P&Ls still exist, right? For example, delivery is a lower percentage there. The commissions on delivery are lower. There are a lot of intrinsic advantages that we have in that business that haven't changed. As we grow the volume back in there, those things will be still firm and available to us. Right? Now, you spoke about the chicken.

Speaker #1: There are a lot of intrinsic advantages that we have in that business that haven't changed. So as we grow the volume back in there, those things will be still firm and available to us, right?

Speaker #1: Now, you spoke about the chicken. Yes, we moved the volumes of chicken, which, of course, you saw—a gross margin in the BK business has improved significantly.

Rajeev Varman: Yes, we moved the volumes of chicken, which of course, you saw gross margin in the BK business has improved significantly, and that gross margin will continue to improve, and that will roll down to our EBITDA line. What I think we learned from the study that we did is that Burger King is very strong and known for burgers over there. People that visit QSR and if they visit for a burger, they would like to visit a Burger King. What we are doing now with the value strategy is including burger options into our value induction menu. Those will be rolled out. In fact, they are in test as we speak. In fact, the test started on the first. We are already in test in three markets.

Speaker #1: And that gross margin will continue to improve, and that will roll down to our EBITDA line. What I think we learned from the study that we did is that Burger King is very strong and known for burgers over there.

Speaker #1: And people that visit QSR—and if they visit for a burger, they would like to visit a Burger King. And so what we're doing now with the value strategy is including burger options into our value induction menu.

Rajeev Varman: What we are doing now with the value strategy is including burger options into our value induction menu. Those will be rolled out. In fact, they are in test as we speak. In fact, the test started on the first. We are already in test in three markets.

Speaker #1: And those will be rolled out. In fact, they are in test as we speak. In fact, the test started on the 1st. So, we are already in test in three markets.

Speaker #1: We will see how this test runs. And as we kind of learn which of those tests and which of those strategies are best, then we will implement those to drive the top line over there.

Rajeev Varman: We will see how those tests run, and as we kind of learn which of those strategies are best, then we will implement those to drive the top line over there. Did I answer all pieces of your question there, Rohit?

Speaker #1: Did I answer all pieces of your question there? Go ahead.

Speaker #4: Yes, sir. I think this was very helpful. And just—sorry if I can squeeze one more in. I did mention that we tried some value strategy in Indonesia, but it sort of did not work out when we were moving to another strategy.

[Company Representative] (iThought): Yes, Rajeev, I think this was very helpful. Just, sorry, if I can squeeze one more in. I think you mentioned that we tried some value strategy in Indonesia, but it sort of did not work out and we're moving to another strategy. Anything you can share what didn't probably work out?

[Analyst 6]: Yes, Rajeev, I think this was very helpful. Just, sorry, if I can squeeze one more in. I think you mentioned that we tried some value strategy in Indonesia, but it sort of did not work out and we're moving to another strategy. Anything you can share what didn't probably work out?

Speaker #4: So, is there anything you can share about what probably didn't work out?

Speaker #1: Yeah. Rohit, see, when we put a value strategy, we have a 2, 4 in India, right? 2, 4, 7, 9. That's a value strategy, right?

Rajeev Varman: Yeah. Rohit, see, when we put a value strategy, like we have a 2 for in India. 2 for INR 79. That is a value strategy, right? We have a gross margin percentage that is lower, but because of the traffic we drive, the gross margin dollars or rupees in India, those are substantial. Right? That is what helps us in driving EBITDA and top-line sales. Every company has some kind of a lead offer that they use to generate trial and bring people into the business. It is called the induction menu. Now, we had that strategy in place in Indonesia for a while. It did give us some kind of initial jump, but did not go to the traffic numbers that we had speculated. One, because maybe there was a better offer there and a better strategy in place that we did not put.

Speaker #1: We have a gross margin percentage that's lower, but because of the traffic we drive, the gross margin dollars—or rupees, in India—those are substantial, right?

Speaker #1: And that's what helps us in driving EBITDA and top-line sales, right? Every company has some kind of lead offer that they use to generate trial and bring—it's called the induction menu.

Speaker #1: People brought into the business. Now, we had that strategy in place in Indonesia for a while. It did give us some kind of initial jump.

Rajeev Varman: Now, we had that strategy in place in Indonesia for a while. It did give us some kind of initial jump, but did not go to the traffic numbers that we had speculated. One, because maybe there was a better offer there and a better strategy in place that we did not put.

Speaker #1: But did not go to the traffic numbers that we had speculated. One, because maybe there was a better offer and a better strategy in place that we did not put.

Speaker #1: And secondly, the marketing spends were muted because of the muted sales that we had. Now, both those things we are trying to solve.

Rajeev Varman: Secondly, the marketing spends around that were muted because of the muted sales that we had. Both those things we are trying to solve. One is we have got additional marketing rupees that have come in, or rupiah in Indonesia, that have come through our franchisor who has graciously partnered in that business. Secondly, we are also testing what different strategies would work better than what we currently have. Once we have those pieces put together, I think we're going to come out a little ahead than maybe where when we started this journey.

Speaker #1: One is, we have got additional marketing rupees that have come in, or rupiah in Indonesia, that have come through our franchiser, who has graciously partnered in that business.

Speaker #1: And secondly, we are also testing which different strategies would work better than what we currently have. So once we have those pieces put together, I think we're going to come out a little ahead of where we were when we started this journey.

[Company Representative] (iThought): Cool. Thank you very much and all the very best for the remaining year. Thanks a lot.

[Analyst 6]: Cool. Thank you very much and all the very best for the remaining year. Thanks a lot.

Speaker #4: Thank you very much, and all the very best for the learning in India. Thanks a lot.

Rajeev Varman: Thanks, Rohit. Really appreciate it. Thank you.

Speaker #1: Thanks, Rohit. Really, really appreciate it. Thank you.

Speaker #2: Thank you. The last question is from the line of Vignesh Iyer from Sequin Investments. Please proceed.

Operator 2: Thank you. The last question is from the line of Vignesh Iyer from Sequent Investments. Please proceed.

Operator: Thank you. The last question is from the line of Vignesh Iyer from Sequent Investments. Please proceed.

Speaker #5: Hello, sir. Yeah, my question—hello, my question is on the gross margin part for our Indian business, in which we have seen sequential improvement for every quarter now.

Vignesh Iyer: Hello, sir. Hello. My question is on the gross margin part for our Indian business, in which we have seen a sequential improvement for every quarter we have. Even in this quarter, we have seen improvement, if I have to say, on a quarter-on-quarter basis. Wanted to understand what is the target or anything in mind, or is this the steady state number that we should model in for the future quarter? Considering the fact that we have been hearing from other peers in QSR industry that there has been impact of raw material inflation on the gross margin part, we have still seen a good improvement in our gross margin on quarter-on-quarter basis.

Speaker #5: So, and even in this quarter, we have seen improvement, if I have to say, on a quarter-on-quarter basis. So, I wanted to understand what is the target or anything in mind, or is this the steady-state number that we should model in for the future quarters?

Speaker #5: Considering the fact that we have been hearing from other players in the QSR industry that there has been an impact of raw material inflation on their gross margin part.

Vignesh Iyer: Considering the fact that we have been hearing from other peers in QSR industry that there has been impact of raw material inflation on the gross margin part, we have still seen a good improvement in our gross margin on quarter-on-quarter basis.

Speaker #5: But we have still seen good improvement in our gross margin on a quarter-on-quarter basis.

Speaker #1: Yeah, thanks, Vignesh, for your question. First of all, with our strategy, we are slightly ahead of where we thought we would be in terms of gross margin.

Rajeev Varman: Yeah. Thanks, Vignesh, for your question. First of all, our strategy, we are slightly ahead of where we thought we would be in terms of gross margin. We have already outlaid that. Our goal is, as we have outlined in the last call, is to get to 72 over the next three years. Now, given we are at 70.8, that tells you that we are kind of a little bit ahead on our strategy. It's all coming through which is I've been sharing this now for the last three years. We are continuing to fill up markets which have DCs with more restaurants. We amortize the secondary transportation in those restaurants, sorry, the primary transportation over more restaurants in that region. Automatically, we see efficiencies coming in. Again, it's the cluster approach. You build a DC, there's some fixed cost to the DC.

Speaker #1: We have already outlined that. Our goal is, as we have outlined in the last call, to get to 72 over the next three years.

Speaker #1: Now, given we are at 70.8, that tells you that we are a little bit ahead on our strategy. But it's all coming through our— which I’ve been sharing now for the last three years.

Speaker #1: We are continuing to fill up markets which have DCs with more restaurants, so we amortize the secondary transportation in those restaurants—and, sorry—the primary transportation over more restaurants in that region.

Rajeev Varman: We are continuing to fill up markets which have DCs with more restaurants. We amortize the secondary transportation in those restaurants, sorry, the primary transportation over more restaurants in that region. Automatically, we see efficiencies coming in. Again, it's the cluster approach. You build a DC, there's some fixed cost to the DC.

Speaker #1: So automatically, we see efficiencies coming in. Again, it's the cluster approach. You build a DC, there's some fixed cost to the DC. When you put enough restaurants around it, not only does it absorb the fixed cost, but in the future, it brings down the total cost.

Rajeev Varman: When you put enough restaurants around it not only absorbs the fixed cost, in future, it brings down the total cost. This cluster approach that we have been doing is helping bring down the total cost of distribution, also buying and bringing in as I say, bringing food close to the restaurant. That's another strategy that we put in place a couple of years ago, and I think as we keep working on that strategy, we'll find that the fruits of that will continue coming in. Our plan is to get to 72 in the next two to three years. We'll stay on that plan, and if we meet that ahead, kudos to the team. That's the plan.

Speaker #1: So this cluster approach that we have been doing is helping bring down the total cost of distribution. But also, buying and bringing in—multiple, bringing as I say—bringing food close to the restaurant.

Speaker #1: That's another strategy that we put in place a couple of years ago. And I think as we keep working on that strategy, you will find that the fruits of that will continue coming in.

Rajeev Varman: That's another strategy that we put in place a couple of years ago, and I think as we keep working on that strategy, we'll find that the fruits of that will continue coming in. Our plan is to get to 72 in the next two to three years. We'll stay on that plan, and if we meet that ahead, kudos to the team. That's the plan.

Speaker #1: Our plan is to get to 72 in the next two to three years. So we'll stay on that plan, and if we meet that ahead, kudos to the team.

Speaker #1: But that's the plan.

Speaker #5: Right, right. So would it be fair to say that, on a quarter-on-quarter basis, this entire improvement is due to the structure that you have set up—that you have a cluster-based approach?

Vignesh Iyer: Right. Would it be fair to say that on a quarter-on-quarter basis, this entire improvement is due to the structure that you have set up, that your cluster we approach, and there is no aspect of price increase that you have taken in this specific quarter?

Speaker #5: And there is no faster price increase that you have taken in this specific quarter?

Speaker #1: Yeah. Look, we haven't taken any strategic price increase at all. We take a few prices here or a few rupees here and there. We haven't had a price increase for a while now.

Rajeev Varman: Yeah. Look, we haven't taken any strategic price increase at all. We take a few prices here or a few rupees here and there. We haven't had a price increase for a while now. We have stayed true to that. We have taken some in delivery, some here and there, nothing that we haven't done in the past. We haven't really gone out of the way to take a price increase. We won't do that. I think we continue to stay true to our strategy of continuing to drive traffic into our business. I think that strategy kind of keeps us honest and keeps us clean.

Speaker #1: And we have stayed true to that. We have taken some in delivery, some here and there, but nothing that we haven't done in the past.

Speaker #1: We haven't really gone out of our way to take a price increase. We won't do that. I think we continue to stay true to our strategy of continuing to drive traffic into our business.

Speaker #1: And I think that strategy kind of keeps us honest and keeps us clean.

Speaker #5: Right, got it. That's all from us.

Vignesh Iyer: Right. I got it, sir. That's all from my side.

Speaker #1: All right. Thank you so much. Really appreciate it, guys. Again, thank you for your interest in our business. It's one of those quarters that we are actually, as a team, proud of.

Rajeev Varman: All right. Thank you so much. Really appreciate it, guys. Again, thank you for your interest in our business. It's one of those quarters that we are actually, as a team, proud of. 12.6% SSSG, INR 682 crores in total revenues in India, 70.8 gross margin, INR 90 crores in restaurant level EBITDA, INR 52.7 crores in company EBITDA year in India. Indonesia Burger King business getting strong. We are looking at all options on Popeyes, we are going to be putting a structurally sound plan in the next several weeks and months to kind of take this company forward. Thank you for your support. You guys have been good. Please go and buy Burger King. Go buy Whopper. We'll appreciate that. Thank you very much. Over to you, operator.

Speaker #1: 12.6% SSSG, ₹682 crore in total revenues in India, 70.8% gross margin, ₹90 crore in restaurant-level EBITDA, and ₹52.7 crore in company EBITDA here in India.

Speaker #1: Indonesia, Burger King business getting strong. We are looking at all options on Popeyes. And we are going to be putting a structurally sound plan in the next several weeks and months.

Rajeev Varman: We are looking at all options on Popeyes, we are going to be putting a structurally sound plan in the next several weeks and months to kind of take this company forward. Thank you for your support. You guys have been good. Please go and buy Burger King. Go buy Whopper. We'll appreciate that. Thank you very much. Over to you, operator.

Speaker #1: To kind of take this company forward. And thank you for your support. You guys have been good. Please go and buy Burger King. Go buy Whoppers.

Speaker #1: We'll appreciate that. Thank you very much. Over to you, operator.

Operator 2: Thank you. Ladies and gentlemen, that was the last question from the participants. Thank you for joining us. You may now disconnect your lines.

Operator: Thank you. Ladies and gentlemen, that was the last question from the participants. Thank you for joining us. You may now disconnect your lines.