United Foodbrands (BARBEQUE) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 3,766 million in Q3 FY26, up 14.5% year-over-year, driven by record dine-in walk-ins, strong brand engagement, and network expansion.

• Same-store sales growth (SSSG) of 8.2% year-over-year, marking a turnaround after several quarters of negative growth.

• Dine-in and delivery transactions grew 25% and 29% year-over-year, respectively, reflecting robust consumer demand.

• Opened 8 new restaurants in Q3, bringing the total network to 249 outlets, with 18 more under construction.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Financial highlights

• Operating revenue for Q3 FY26 was INR 3,765.68 million, up 14.5% year-over-year and 23.6% sequentially.

• Gross profit rose 11.4% year-over-year to INR 2,499 million, with a margin of 66.4%.

• Reported operating EBITDA was INR 682 million (18.1% margin); Pre-Ind AS adjusted operating EBITDA was INR 361 million, up 6.5% year-over-year.

• Q3 FY26 reported a net loss of INR 76.64 million, compared to a profit of INR 50.58 million in Q3 FY25, impacted by a one-time non-cash provision of INR 134 million for the new Labour Code.

• Cash profit for Q3 FY26 was INR 307 million, up 2% year-over-year.

Outlook and guidance

• Gross margin guidance remains at 67%-68%, with current marketing spend (3% of sales) seen as the new steady state.

• Plans to add 9-12 restaurants per quarter, targeting over 400 stores by FY30.

• Targeting double-digit Pre-Ind AS corporate EBITDA margin, with mature restaurant margins expected to move from 15% to 17%.

• The company continues to monitor regulatory changes, including the implementation of new Labour Codes, and will adjust financial reporting as needed.

• Restaurant count expected to close FY26 at around 265, with a clear pipeline to surpass 300 by end of next financial year.