Restaurant Brands Asia Limited

Rajeev Varman

WHOLE-TIME DIRECTOR AND

Sumit Zaveri

GROUP CHIEF FINANCIAL

Kapil Grover

GROUP CHIEF MARKETING

Sandeep Dey

BRAND PRESIDENT, INDONESIA – RESTAURANT BRANDS ASIA LIMITED

Gaurav Ajjan

HEAD OF CORPORATE

Naveen Trivedi

MOTILAL OSWAL FINANCIAL SERVICES LTD

rs,

ly in the dine-in business. We continue to drive more and more traffic. In fact, in the last 3 years, we have grown traffic in our dine-in business by 18%. And this is becoming the cornerstone of how

18%

and more traffic. In fact, in the last 3 years, we have grown traffic in our dine-in business by 18%. And this is becoming the cornerstone of how we are going to move forward into the next few years

6.3%

side of our restaurants. So if you look at our fourth quarter, we ended the fourth quarter with a 6.3% SSSG growth, which is the highest that we have achieved in the last 12 quarters, and that momentu

91%

digital platform. I think everyone is aware that the entire industry is moving to that direction. 91% of all our orders are now digital, which gives us a significant control on not only the cash elem

51%

our business but also the consumer element of our business. Both those continue to strengthen. 51% growth in monthly active users over the previous year when it comes to our CRM program. So this i

2%

s. So that is continuing to make the delivery business profitable. In fact, over the last year, a 2% increase in that by lowering discounts and affecting our basically product mix that we sell on th

2.5%

-- almost doubled the restaurant counts from where it was in FY22. Our revenues have grown almost 2.5% -- 2x, 2.5x the revenues we saw in FY22. Our gross margins have improved significantly, 3.2% gros

2x

t doubled the restaurant counts from where it was in FY22. Our revenues have grown almost 2.5% -- 2x, 2.5x the revenues we saw in FY22. Our gross margins have improved significantly, 3.2% gross marg

2.5x

ubled the restaurant counts from where it was in FY22. Our revenues have grown almost 2.5% -- 2x, 2.5x the revenues we saw in FY22. Our gross margins have improved significantly, 3.2% gross margin imp

3.2%

most 2.5% -- 2x, 2.5x the revenues we saw in FY22. Our gross margins have improved significantly, 3.2% gross margin improvement from where it used to be at 65%. EBITDAs have grown, restaurant level EB

65%

ss margins have improved significantly, 3.2% gross margin improvement from where it used to be at 65%. EBITDAs have grown, restaurant level EBITDA has grown, company level EBITDA has grown, both pe

69%

And that will continue to kind of grow going forward. We ended the year with a gross margin at 69%. And happy to share that for the quarter, we were at 70%, which is the exit that we have as far a

“I would like to welcome you all to the Restaurant Brand Asia's 4Q FY26 Earnings Conference Call.”

“And that will continue to kind of grow going forward.”

“And happy to share that for the quarter, we were at 70%, which is the exit that we have as far as gross margin is concerned, we've been able to kind of move the target to get to 70% almost by a year from what we've spoken with you all earlier.”

“We did report positive store-level EBITDA of IDR8 billion for the full year in FY26, even quarter 4 was positive.”

“This year, we've opened a net of 68 stores, which is within our guidance range of opening 60 to 80 restaurants every year.”

“In fact, we have achieved our FY29 guidance of 70% this year itself as we end the year at 70.2% in Q4.”

“On top of the 3.2% GP improvement, we have added another 3.2% in the 5-year block to restaurant EBITDA margins, taking us to 11.6% for FY26.”

“And we hope to share good numbers in the future.”

“And like I said, our target is to get to about INR25,000 per restaurant per day ADS.”

“So we believe that we are on track to be able to get to free cash flow over the next 4 to 6 quarters.”

Rajeev Varman

12

Moderator

7

Sumit Zaveri

5

Devanshu Bansal

4

Rushabh Sharedalal

4

Kaushal

3

Anuj

2

Naveen Trivedi

1

Kapil Grover

1

Gaurav Ajjan

1

Naveen Trivedi

Yes. Thank you so much, Michelle. Good morning, everyone. On behalf of Motilal Oswal, I'm Naveen Trivedi. I would like to welcome you all to the Restaurant Brand Asia's 4Q FY26 Earnings Conference Call. From the management today, we have Mr. Rajeev Varman, Whole-Time Director and Group CEO; Mr. Sumit Zaveri, Group CFO and Chief Business Officer; Mr. Kapil Grover, Group CMO; Mr. Sandeep Dey; Brand President, Indonesia; and Mr. Gaurav Ajjan, Head of Corporate Development and IR. I will now hand over the call to the management for the opening remarks. Over to you, Raj. Thank you so much.

Rajeev Varman

Thank you. Thank you very much, and thank you for joining the call again. Really appreciate your time. One of the things that we want to announce that are in our numbers is that we were certified as a company directly. If you guys can go on mute, please, there is some disturbance, so be on mute. We were certified as a great place to work, which is a prestigious global credit that we received over to the entire team. Congratulations to the entire RBA team here in India that we were able to achieve that. Now coming down to the business. See, we continue to build volumes which is what I've been talking to you about for many quarters now. Building volume specifically in the dine-in business. We continue to drive more and more traffic. In fact, in the last 3 years, we have grown traffic in our dine-in business by 18%. And this is becoming the cornerstone of how we are going to move forward into the next few years with this kind of volume that we are creating inside of our restaurants. So if

Sumit Zaveri

Thank you, Raj, and good morning to everybody. What we want to do today when we talk about our performance is not only really share what we have achieved for the quarter as well as for the year, but take you a little bit past into the journey over the last 2 to 3 years that we've achieved because that's something which I feel is relevant for all to also look back as we start seeing the results of that entire journey to be reflected in our financial performance for the year as well as for the quarter. Raj mentioned clearly that for us, getting more people into our restaurants is the key. Value has always been the mainstay of our strategy, continues to be part of our strategy. Currently we are leading value with a very strong proposition of 2 for X. And you will see that, that will continue. That will remain one of the mainstays of our strategy. Value will remain as one of our mainstay of our strategies as we go along because that's something which will help us continue to drive traffic

Kapil Grover

Yes. Thanks. Thanks, Sumit. Good morning, everyone. So we've spoken about our journey on the burger innovation. We continue to strengthen our core menu on the premium side, which kind of helps us balance our menu. On one hand, we have the value proposition of 2for79 and 99, which has held us in very good stead over the last 3 years that has built dine-in traffic. On the other end of menu is the King's Collection, which is our premium burgers with Brioche buns and fabulous recipes, and then we've done this limited time offerings driven by culturally relevant flavors like Korean, very popular in India. It gave us fabulous response, great feedback on the product. We've also tried to build the middle of the menu with new launch of the paneer, the fried chicken and the molten cheese patties on the Whopper build, which helps us offer consumers new options on taste and proteins in the Whopper layer. On the desert side, co-branding with Nestle KitKat to offer consumers an elevated experience i

Gaurav Ajjan

Thanks, Kapil. I will skip ahead to Slide number 25 for the summary of our 5-year journey as well as progress against the outlook we have given at the start of the year. Our restaurant count is higher by more than 80% since FY22. This year, we've opened a net of 68 stores, which is within our guidance range of opening 60 to 80 restaurants every year. Revenues from FY22 are 2.4x in FY26. This has come on the back of the increased number of stores as well as positive SSSG in each of the 5 years. Gross profit margins are also up 3.2% for the 5-year period, an average increase of 80 basis points every year. In fact, we have achieved our FY29 guidance of 70% this year itself as we end the year at 70.2% in Q4. On top of the 3.2% GP improvement, we have added another 3.2% in the 5-year block to restaurant EBITDA margins, taking us to 11.6% for FY26. Now as a result to the growth in top line and the more than doubling of restaurant EBITDA margins. Our absolute restaurant EBITDA number is more