UFBLNSEFull Year FY2026May 27, 2026

United Foodbrands Limited

9,396words
85turns
10analyst exchanges
1executives
Management on call
Sharma. Bijay Sharma
Thank you. Welcome, everyone to United Foodbrands Limited Q4 and Full Year FY'26
Key numbers — 40 extracted
14.4%
mentally different from where we entered it. We delivered consolidated same-store sales growth of 14.4% in Q4 FY’26 on top of 8.2% we delivered in Q3. Consolidated dine-in volume grew approximately 43%
8.2%
e we entered it. We delivered consolidated same-store sales growth of 14.4% in Q4 FY’26 on top of 8.2% we delivered in Q3. Consolidated dine-in volume grew approximately 43% year-on-year with Barbeq
43%
.4% in Q4 FY’26 on top of 8.2% we delivered in Q3. Consolidated dine-in volume grew approximately 43% year-on-year with Barbeque Nation India dine-in volume growing 47%, international dine-in volume
47%
e-in volume grew approximately 43% year-on-year with Barbeque Nation India dine-in volume growing 47%, international dine-in volume growing 27% and premium CDR dine-in volume grew 28%. Our delivery r
27%
ear with Barbeque Nation India dine-in volume growing 47%, international dine-in volume growing 27% and premium CDR dine-in volume grew 28%. Our delivery revenue also grew by 32% year-on-year, led
28%
volume growing 47%, international dine-in volume growing 27% and premium CDR dine-in volume grew 28%. Our delivery revenue also grew by 32% year-on-year, led entirely by transaction growth. Every re
32%
n volume growing 27% and premium CDR dine-in volume grew 28%. Our delivery revenue also grew by 32% year-on-year, led entirely by transaction growth. Every reporting segment and every channel has d
rs,
3 conference calls has not only continued but also has accelerated in Q4. We believe these numbers, when considered together, reflect a few things about how shareholders should think about our Compa
90%
cquisitions are all on upward trends. Secondly, our demand is structurally captive. Approximately 90% of our dine-in transaction volumes are driven from our own captive channels, that are our own app
23%
me growth. International business grew at 27% with restaurant operating margins in the range of 23% to 24%. Premium CDR revenue grew by 23% with mature store margins above 18%. Each engine is indep
24%
owth. International business grew at 27% with restaurant operating margins in the range of 23% to 24%. Premium CDR revenue grew by 23% with mature store margins above 18%. Each engine is independentl
18%
ins in the range of 23% to 24%. Premium CDR revenue grew by 23% with mature store margins above 18%. Each engine is independently working and together they create a diversified growth platform that
Guidance — 20 items
Bijay Sharma
opening
“Welcome, everyone to United Foodbrands Limited Q4 and Full Year FY'26 Earnings Conference Call.”
Bijay Sharma
opening
“This will be followed by a detailed discussion on business by Mr.”
Kayum Dhanani
opening
“We believe these numbers, when considered together, reflect a few things about how shareholders should think about our Company going forward.”
Kayum Dhanani
opening
“As we enter into FY'27, United Foodbrands is in a fundamentally stronger position than we have been in several years.”
Rahul Agrawal
opening
“I will walk you through the operating performance for the quarter, the financial performance and our strategic priorities for FY'27.”
Rahul Agrawal
opening
“Q4 FY'26 has been the strongest operating quarter in our recent history.”
Rahul Agrawal
opening
“During FY'26, we added 4 new restaurants in the international business, the most we have added in any year, including entry into new geographies.”
Rahul Agrawal
opening
“This validates the multi-engine portfolio model and is the foundation we are carrying into FY'27.”
Rahul Agrawal
opening
“We closed FY'26 with 262 restaurants in our network, 14 new restaurants were added in Q4 and 35 new restaurants in the full year.”
Rahul Agrawal
opening
“To put this in context, the 32 net restaurant additions in FY'26 alone is more than 14 net restaurant additions during the previous 2 years.”
Risks & concerns — 15 flagged
In Q4 FY'25, the new store cohort dragged 120 basis points of mature ROM, in Q4 FY'26, the drag is 180 basis points, entirely because Q4 was our heaviest new store opening quarter in the history.
— Rahul Agrawal
As they mature, the drag from these new restaurants will naturally narrow.
— Rahul Agrawal
New store drag will stabilize at 1.5% to 1.8% as our FY'26 cohort matures.
— Rahul Agrawal
Net impact of these 3 levers would support us to achieve a pre-Ind AS adjusted operating EBITDA margin of 9% to 10%.
— Rahul Agrawal
International will focus on scaling Southeast Asia and follow a cautious approach in Middle East.
— Rahul Agrawal
We would have a drag of new store opening to the tune of around 1.5%.
— Rahul Agrawal
And we saw the continuous impact of these in our gross margin, which actually bottomed out in the month of February.
— Rahul Agrawal
And what's your expectation given that the Middle East part is still a bit uncertain.
— Devanshu Bansal
Obviously, this is a tough time in that market, but we have been very cautious and trying to ensure that we keep getting the daily volumes that we do in the past.
— Rahul Agrawal
We are very cautious about signing any new store in that market.
— Rahul Agrawal
December is when we don't plan to launch any new restaurants because it gets very difficult operationally to also manage the demand in the stores.
— Rahul Agrawal
And some of the new stores that we opened in Q4 also had impact of onetime initial setup cost, onetime liquor costs, all sort of baked into the Q4 financials.
— Rahul Agrawal
It's not the first time that we saw stress in any of our business segments.
— Rahul Agrawal
I think 40 is something which is comfortably doable and it's not putting stress in the entire system.
— Rahul Agrawal
The new store margin drag is a function of new store sites that we open up.
— Rahul Agrawal
Q&A — 10 exchanges
Q
First of all, congratulations to the entire team. I think you guys have done a fabulous job in a tough environment. My first question is, Rahul, in the opening statement, you mentioned that the momentum of high growth continues even in this quarter. As you had mentioned that last year was a year of two halves. The first half is anyways on a low base. Assuming that we continue such strong SSSG in the first half and then in the second statement, you mentioned we'll do like high single-digit SSSG. That means you don't expect very high growth in the second half. Like those two statements are sligh
Rahul Agrawal
Thank you, Viraj. The momentum in our performance between Q3 and Q4 has been clearly visible. Some of the initiatives that we have taken have built the momentum in Q4. We are seeing this continuing in Q1 of FY’27 and we also expect this to continue in Q2 FY’27. As we enter into the second half of the year, my expectation is that some of these benefits of momentum that we are seeing in the latter half of the cumulative year should continue in Q3 and Q4. And we strive to achieve that. I would believe that we would be able to comfortably deliver an early double-digit same-store sales growth. It i
Q
Many congratulations for a very strong quarter. Rahul, I wanted to check on this SSSG trends improving in Q4 versus Q3. Basically, our formats are getting very strong traction. For next two quarters before the higher base sort of laps up, should this improving trajectory continue for us, right? So, is this the right way to look at it or there are some 9 | United Foodbrands Limited United Foodbrands Limited Earnings Call Transcript Q4 and Full Year FY2026 4, 2021 macro-related headwinds that you foresee where the Q4 trends are more like which we should bake in for the first half?
Rahul Agrawal
First half FY’27, I expect the Q4 level numbers to continue. And if the momentum that has built up in Q2 versus Q3, there may be some improvement also in Q1. Is that what you're asking? Also asking about H2 of next year? Yes, I got your comments related to H2. I was just checking, how H1 should pan out. You're saying that there can be some improvement in Q1 before the base sort of starts catching up, right? Yes. Depending on the momentum that we saw between Q3 and Q4, I think all the initiatives that we took plus the campaigns and the marketing investment that we did definitely helped us to ca
Q
Rahul, congratulations on a great set of numbers. It's been a fantastic performance. Just one question on the premium CDR segment. In Q4, we added 4 stores in the CDR segment, but our margins have literally collapsed versus Q3, especially considering the fact that more than 1 year old stores have delivered 7% SSSG. What explains this margin collapse?
Rahul Agrawal
It's entirely new restaurants. If you're comparing this with Q3 versus Q4, Q3 is perennially a very good quarter. The December months generally do extremely well, and there's a disproportionate benefit from operating leverage that you command. And you will see this impact across all our business segments. Q3 and Q4 is not entirely comparable even when you look at 4 stores added in Q3 as opposed to added in Q4. The second impact also is that in Q3, the stores pretty much came around November. December is when we don't plan to launch any new restaurants because it gets very difficult operational
Q
Sir, I just have one question since a lot of people have asked everything. My question is a clarification. The margin bridge that you are building up with reference to the H2 number, is that correct. So, what you are saying there are two halves, H2 is a number which has to be looked at and then the margin bridge has to be built in. Is that the way and that margin bridge which you are building is for the full year and not as an exit for FY’27? So, when you're referring to 9% or 10% pre-Ind AS margin, is a number for full year and not an exit number?
Rahul Agrawal
Yes. Because then what happens is the margin expansion is from the base year of FY’26 is about 400 basis points. You are at pre-Ind AS 5% in full year and because there were two halves, which are different. So that number is a substantially bigger number. Is that correct? H1 was approximately 3%, H2 was approximately 8% and next year, we wish to continue on our momentum of H2 and expect it to be 9% to 10%. Okay. If you could tell us in this 400-bps expansion. And when you look at your Q4 margin bridge, so you have a Q4 margin bridge, which you have put in the presentation, which talks about 60
Q
First of all, congratulations for the great set of results. My question is towards the AOV, especially for Barbeque India segment. So how is the Average Order Value or the Average Per Person cost for the Barbeque India customer has trended over the years?
Rahul Agrawal
We don't call out specific numbers. But as you can see the overall dine-in or overall dine- in growth versus overall dine-in transaction growth, there's a difference, which led to an overall Company level AOV decline of around 14% - 15%. This obviously is a mix of changes in business mix. Like I said, we have higher covers done in Barbeque India, which is at a lower APC than what we command in international business or premium CDR business. The second impact is we have built our weaker dayparts, which by design is at lower APC. So, our average realization is actually largely a change in the mi
Q
Congratulations for very good repositioning and very good numbers. First question, once we have changed a large part of our growth is led by volumes. And we have always maintained that per restaurant revenue of INR6 crores to INR7 crores with certain kind of cover fees and certain volume. Now when the volume goes up significantly and because of the changes that you have made in the daypart side of it, is that number changing? And will there be a limit on that SSSG growth because of the number of table turns that we can do in this fashion. So how should we think about it beyond FY’27 with this
Rahul Agrawal
Look, we have to appreciate the power of value-driving offers in this country. A lot of other models we have seen also working extremely well when volume-driven strategy works for those businesses. We have seen this accelerating between Q1 and Q4. We're also seeing the momentum continuing in Q1 of this financial year. I think our role is to keep executing, keep focusing on providing the guest experience and engagement that we are doing. And more importantly, while we spoke a lot about value offers, we also appreciate that a lot of work has gone towards building guest engagements, be it through
Q
First, a clarification and then 2 questions. On the Salt and Toscano side, how what is the store addition we are planning for FY’27 and FY’28?
Rahul Agrawal
FY’27, our internal aim is around 5 restaurants. I think FY’28, this can be anywhere between 5 to 12. I think the first focus, like I said, is stabilizing the existing new store portfolio. We have almost tripled our store count from 14 to 42 now. This year, we'll add 5. And maybe after 2 - 3 quarters, we will be able to further crystallize on FY’28, but my current range is around 5 to 10. And the peak revenue per store, like you explained for Barbeque is, say, roughly INR8 - INR9 crores. What should we assume the number for these stores, Salt and Toscano individually? The peak restaurant in Sa
Q
No, my question was answered. Congrats, Rahul, congrats Amit, great set of numbers.
Management
Q
Congrats, sir, for the great numbers. I have one quick question or rather 2. Basically, I was just analyzing the presentation that you have given on the Investor website, and I was checking the Barbeque International and premium CDR SSSG numbers. They are 18 | United Foodbrands Limited United Foodbrands Limited Earnings Call Transcript Q4 and Full Year FY2026 4, 2021 comparatively low to our Barbeque chain. So, can you give some steps, which we are taking to increase it? And what this number can be during FY'27? And second question is in our last conference call, you were saying that we are lo
Rahul Agrawal
On SSSG in the other 2 platforms, I think the international business is also operating in a slightly difficult macro environment. And despite that, the Company is delivering mid- single-digit numbers, it's very commendable. I think the team there is doing a great job, and they have also sustained SSSG over a longer period of time. Over a period of last 5 years, the SSSG has been compounding. And the average revenue per store is approximately INR12 to INR13 crores, which is a very good number. I think we'll strive to maintain this balance and be at around mid-single-digit number. That is our in
Q
Thank you, everyone, for joining us on the call today. We are MUFG Intime, Investor Relations Advisors to United Foodbrands Limited. In case of any queries, please feel free to reach out to us. Thank you.
Management
Speaking time
Rahul Agrawal
33
Moderator
12
Viraj
7
Devanshu Bansal
7
Pritesh Chheda
5
Rushabh Sharedalal
4
Aman Vij
4
Jatin
4
Dhwanil Desai
3
Keshav Parwal
2
Opening remarks
Bijay Sharma
Thank you. Welcome, everyone to United Foodbrands Limited Q4 and Full Year FY'26 Earnings Conference Call. For today's call, I have with me Mr. Kayum Dhanani, Managing Director; Mr. Rahul Agrawal, CEO and Whole-Time Director; and Mr. Amit Betala, CFO. Before we begin the call, I would like to remind that some of the statements made in today's conference call may be forward-looking in nature and may involve risks and uncertainties. Kindly refer to our earnings presentation for a detailed disclaimer. We'll start the call with Mr. Dhanani sharing his perspective on overall demand and key highlights for the quarter. This will be followed by a detailed discussion on business by Mr. Rahul Agrawal. Post that, we'll open the forum for a Q&A session. I will now hand over the conference to Mr. Kayum Dhanani. Thank you, and over to you, sir.
Kayum Dhanani
Thank you. Good morning ladies and gentlemen, and thank you for joining us on our Q4 and full year FY’26 earnings conference call. FY’26 has been a defining year for United Foodbrands. After several quarters of working through a demanding consumption environment, we are closing the financial year with two consecutive quarters of strong broad-based growth. The trajectory with which we exited the financial year is fundamentally different from where we entered it. We delivered consolidated same-store sales growth of 14.4% in Q4 FY’26 on top of 8.2% we delivered in Q3. Consolidated dine-in volume grew approximately 43% year-on-year with Barbeque Nation India dine-in volume growing 47%, international dine-in volume growing 27% and premium CDR dine-in volume grew 28%. Our delivery revenue also grew by 32% year-on-year, led entirely by transaction growth. Every reporting segment and every channel has delivered strong double-digit growth in Q4. The structural shift that we spoke about in Q3 co
Rahul Agrawal
Thank you, Kayum. Good morning, everyone, and thank you for joining us today. I will walk you through the operating performance for the quarter, the financial performance and our strategic priorities for FY'27. Let me begin with the operating performance. Q4 FY'26 has been the strongest operating quarter in our recent history. Consolidated revenue stood at INR360 crores, growing 23.1% year-on-year. Same-Store Sales Growth (SSSG) came in at 14.4% on top of 8.2% we delivered in Q3, making this our second consecutive quarter of strong broad-based SSSG and the strongest two-quarter SSSG performance the Company has delivered in many years. The most encouraging aspect of the quarter was the quality of growth. The growth was entirely volume-led with no price increase undertaken during Q4. Consolidated dine-in transaction volumes grew approximately 43% year-on-year. Delivery business grew approximately 32% year-on- year, reflecting healthy growth across both channels. Barbeque Nation India has
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