United Foodbrands (BARBEQUE) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered the strongest operating quarter in recent years, with consolidated revenue reaching ₹4,258.99 million, up 43.4% year-over-year, driven by SSSG of 28.7% and robust transaction growth across all segments and geographies.

• Dine-in transaction volumes surged 63.5% year-over-year, with over 65% of BBQ India dine-in transactions routed through digital channels.

• Growth was entirely volume-led, with no price increases during the quarter; average per capita spend reflected business segment and value-led initiatives.

• Consolidated net profit after tax for Q1 FY27 was ₹23.08 million, compared to a net loss of ₹150.70 million in Q1 FY26.

• Five new restaurants were added in Q1, expanding the network to 266 outlets, with plans to reach 300+ by FY27 and 400-425 by FY30.

Financial highlights

• Gross profit increased 39.4% year-over-year to ₹2,801 million, with gross margin at 65.8%.

• Pre-Ind AS adjusted operating EBITDA margin improved to 8.1%, a 152% year-over-year increase.

• Mature restaurant operating margins reached 16.2%, up 290 basis points year-over-year.

• Profit after tax turned positive at ₹23.08 million, compared to a loss of ₹150.70 million in Q1 FY26.

• Net debt increased marginally to ₹1,060 million due to CapEx investments.

Outlook and guidance

• Same-store sales growth is expected to moderate through FY27 due to a higher base, not weakening demand.

• On track to reach 300+ restaurants by FY27 and 400-425 by FY30, with 15 new outlets under construction.

• Focus remains on healthy volume growth, network expansion, and disciplined capital allocation.

• Margin improvement levers include gross margin recovery, matured portfolio margin expansion, new store cohort maturation, and backend cost leverage.

• The company continues to monitor regulatory changes, especially regarding new Labour Codes.