United Foodbrands (BARBEQUE) Q1 25/26 earnings summary

Executive summary

• Revenue from operations for Q1 FY26 was ₹2,970 million, down 2.8% year-over-year, mainly due to softer sales in the India segment, while international and premium CDR segments showed growth.

• The restaurant network expanded to 236 outlets, with 7 new openings and 1 closure during the quarter; 11 more sites are under construction.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, and proposed a name change to "United Foodbrands Limited."

• Focused on guest experience, network growth, scalable brands, and maintaining strong margins and cash flow.

• Re-appointment of CEO, appointment of new COO and Secretarial Auditor, and completed acquisition of 51% stake in Willow Gourmet Private Limited.

Financial highlights

• Consolidated revenues for the quarter were INR 2,970 million, down 2.8% year-over-year, with negative SSSG of 3.4%.

• Gross margin was 67.7%, down 40 bps from Q1 FY25; expected to remain around 68% annually.

• Pre-Ind AS restaurant operating margins were 11.5%, impacted by higher marketing spend and new restaurant ramp-up; mature restaurants at 13.3%.

• Consolidated reported EBITDA was INR 479.73 million, with margin declining year-over-year; adjusted operating EBITDA was INR 136 million (4.6% margin).

• Net loss after tax widened to ₹166.75 million from ₹43.44 million in Q1 FY25, reflecting margin pressures and higher depreciation.

Outlook and guidance

• On track to reach 300–325 restaurants by FY27, with 20–25 Barbeque Nation India openings annually and 8–10% annual network expansion.

• International expansion to add 4–6 new restaurants this year, focusing on Middle East and Southeast Asia.

• Premium CDR to expand by 30% network growth, targeting major metros.

• Margins expected to recover as SSSG improves and operational leverage increases.

• Board and management continue to focus on operational efficiency and strategic expansion, including recent acquisitions and proposed amalgamations.