United Foodbrands (BARBEQUE) Q3 24/25 earnings summary

Executive summary

• Revenue for Q3 FY25 was INR 3,289 million, nearly flat year-over-year, with a marginal decline of 0.6% and SSSG at -2%.

• Delivery business grew 9% YoY, while dine-in declined 2%, shifting the mix to 84% dine-in and 16% delivery.

• Operating EBITDA margin was 18.7%, with adjusted operating EBITDA margin at 10.3%.

• Profit after tax for Q3 FY25 was INR 51 million, up 4.6% YoY, maintaining a 1.5% margin.

• Strategic investment in Willow Gourmet to strengthen the delivery portfolio and add a new growth vector.

Financial highlights

• Gross margin improved by 30 bps YoY to 68.2%.

• Adjusted operating EBITDA was INR 33.9 crores (INR 339 million), margin 10.3%.

• Cash profit for the quarter was INR 30 crores (INR 301 million).

• Net debt stood at INR 17 crores as of December 2024.

• Profit before tax declined 36.7% YoY to INR 47 million.

Outlook and guidance

• Network expansion in India targeted at 8%-10% annually, with a store target of 325 by FY27.

• Premium CDR segment to grow store count by 30% YoY for the next few years.

• International business to add 4-6 restaurants annually, funded by its own cash flows.

• Focus on culinary innovation, cost controls, and upgrading older restaurants to drive margins.

• Expectation of discretionary demand improvement due to government budgetary measures.