SAPPHIRE

** Shares of quick service restaurant (QSR) operators gain between 1% and 3.5%

** India announced GST cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand

** While the GST rate on QSR output remains same, lower tax on key inputs like cheese, other dairy products and chicken is down to 5% from 12%

** Jefferies says Jubilant Foodworks JUBI.NS, Devyani International DEVY.NS and Sapphire Foods SAPI.NS to benefit

** JUBI up 3.5%, while DEVY and SAPI rise 2.7% and 1.7%, respectively

** McDonald's India operator Westlife Foodworld WEST.NS climbs as much as 4.9%, last up 1.1%

** JUBI, SAPI, WEST rated "hold" on avg, DEVY rated "buy" - data compiled by LSEG

(Reporting by Manvi Pant in Bengaluru)

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By Praveen Paramasivam

Aug 26 (Reuters) - U.S. pizza chain Papa John's International PZZA.O plans to return to India by October, said a master franchisee executive, aiming to open 650 stores over the next decade in a market where fast-food chains have been struggling to sustain sales growth.

The world's third-largest pizza delivery company, which exited India in 2017 citing underperformance, follows U.S. rival Little Caesars, which opened in India earlier this year with a target of 100 stores by the decade-end.

Papa John's will open its first store in the southern city of Bengaluru, Vish Narain, managing partner at Pulsar Capital, told Reuters. The Indian investment house and UAE-based PJP Investments Group are Papa John's joint master franchisees in India.

The pizza chain had revealed plans in April 2023 to re-enter the "complex market".

Its return comes as fast-food chains grapple with weakening sales in the country, as cash-strapped urban consumers - the key customer base - cut back due to slow wage growth and as rising competition bites.

One of India's two Pizza Hut YUM.N franchisees, Devyani International DEVY.NS, has been closing underperforming stores, while the smaller operator, Sapphire Foods India SAPI.NS, has been cautious with its expansion plans.

The company will also face stiff competition from Domino's Pizza DPZ.O, which has more than 2,200 outlets in India, Pizza Hut with about 950 stores, and smaller upscale chains such as Pizza Bakery and PizzaExpress.

Pulsar Capital is betting on India's long-term potential, mirroring consumer-facing companies such as Dove soapmaker Hindustan Unilever HLL.NS and brewer Heineken HEIN.AS that are continuing to invest in the country with an eye on its population of 1.4 billion.

The fast-food "category is under-penetrated, so we are many years away from saturation," said Narain.

Papa John's plans to tailor its pizza to local palates while also offering its signature pies, joining fast-food rivals offering similar fare. KFC sells a paneer zinger burger, Domino's offers a chicken tikka pie, and Subway serves a potato-patty sandwich.

(Reporting by Praveen Paramasivam in Chennai; Editing by Dhanya Skariachan and Janane Venkatraman)

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** Macquarie cuts PTs on Indian fast food operators after weak Q1; says demand recovery only during Oct festive season

** Cuts PTs on Domino's franchisee Jubilant Foodworks JUBI.NS, McDonald's operator Westlife Foodworld WEST.NS, KFC franchisee Devyani International DEVY.NS and Pizza Hut operator Sapphire SAPI.NS

** Brokerage also lowers EPS estimates for all four with cautious near-term outlook

** Government's GST cut plans "enhances comfort" on demand recovery panning out in H2 FY26 - Macquarie

** Brokerage prefers DEVY followed by WEST; more confident on demand recovery for KFC and McDonald's operators

** On average, DEVY rated "buy", rest rated "hold", by analysts - data compiled by LSEG

** YTD, JUBI down 13%, DEVY falls 6%, WEST drops 11.3%, SAPI 1% down

(Reporting by Nandan Mandayam in Bengaluru)

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Adds details throughout

By Ananta Agarwal and Praveen Paramasivam

Aug 13 (Reuters) - Domino's India operator Jubilant Foodworks JUBI.NS beat first-quarter profit estimates by a wide margin on Wednesday as lower-priced menu items and free deliveries bolstered demand even as other fast-food franchisees struggled.

The company reported profit of 917.6 million rupees ($10.49 million) for the quarter ended June 30, compared to a year ago profit of 558 million rupees.

Analysts on average were expecting a profit of 645.6 million rupees, according to data compiled by LSEG.

Urban Indian consumers are cutting back on non-essentials amid high living costs, denting same-store sales at budget retailers like Trent TREN.NS and fast food chains including Pizza Hut operators Sapphire India SAPI.NS and Devyani International DEVY.NS.

Jubilant is an outlier in this environment, having reported double digit like-for-like sales growth for atleast three quarters.

In the reported quarter ended June, like for like sales at Domino's India restaurants grew 11.6%, led by 20.1% growth in delivery.

Sapphire's same store sales at Pizza Hut India fell 8% in the same period, while Devyani's fell 4.2%.

Jubilant has not raised prices on average in more than ten quarters, opting to cut costs to drive profitability.

In addition to providing value combinations and expanding store count, it has also waived delivery fees on app orders, while sharpening its focus on 20-minute deliveries in dense metros.

Rival Devyani, on Wednesday, said it is taking cues from Jubilant's success with its 20-minute delivery model, and strengthening its own food-delivery business.

"Jubilant is doing a far, far better job versus what we are doing..because it is a delivery first brand," a Devyani executive said on a post-earnings call with analysts.

Jubilant's efforts drove first quarter revenue higher by 17%to 22.61 billion rupees.

However, its consolidated core profit margin contracted to 19.4% from 19.8%, due to a higher mix of delivery and investments to power sales growth.

($1 = 87.4380 Indian rupees)

(Reporting by Ananta Agarwal in Bengaluru; Editing by Nivedita Bhattacharjee)

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Adds details throughout

July 31 (Reuters) - Indian Burger King operator Restaurant Brands Asia RESR.NS reported a narrower first-quarter loss on Thursday, as its discounted menu items continued to draw in budget-conscious diners.

The company reported a net loss of 419.4 million rupees ($4.79 million) for the three months ended June 30, compared to a 493.6 million rupee loss a year earlier.

Fast food chains in India have been grappling with the double whammy of stiff competition from local rivals and muted demand from urban consumers due to high living costs.

To lure in the price-conscious diner, Burger King extended its value deals in the quarter, offering two vegetarian burgers for 79 rupees and two chicken burgers for 99 rupees.

It has also been offering a range of 'Korean' flavored items to cash in on a growing fanbase for Korean dramas and music.

As a result, revenue from its India restaurants grew 12.6%.

Same-store sales, which refer to sales from stores open for at least 12 months, grew 2.6% in India, led by a growth in dine-in traffic.

Rival Westlife Foodworld WEST.NS, which operates the McDonald's restaurants in India, reported same store sales growth of 0.5% in the first quarter.

Overall revenue from operations for Restaurant Brands Asia grew 7.9% to 6.98 billion rupees, as a decline in sales in Indonesia - where it operates 139 restaurants - partly offset the growth in India.

Its India store count grew to 519 stores sequentially, with the company adding six stores in the quarter.

Westlife missed quarterly profit estimates and KFC operator Sapphire Food SAPI.NS swung to a loss in the first quarter due to higher costs.

($1 = 87.5800 Indian rupees)

(Reporting by Ananta Agarwal in Bengaluru; Editing by Harikrishnan Nair and Janane Venkatraman)

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** India's Westlife Foodworld WEST.NS down 3%, Sapphire Foods India SAPI.NS slips 2%

** Westlife, which runs McDonald's MCD.N outlets in west and south India, posted a 62% plunge in profit

** Sapphire, which runs KFC and Pizza Hut, swung to a net loss of 18 million rupees ($208,261)

** SAPI's Q1 core profit below our and street's estimates, we are concerned about cautious near-term growth outlook and dependence on recovery for margin expansion - Macquarie note

** WEST's margins "in-line" and no improvement in growth metrics, we remain watchful of demand getting better - Motilal Oswal

** On an avg SAPI rated "buy", WEST rated "hold" - data compiled by LSEG

** YTD, WEST down ~5% and SAPI up 2%

($1 = 86.3340 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru)

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July 23 (Reuters) - Sapphire Foods India SAPI.NS, which operates Pizza Hut and KFC restaurants in the country, reported a quarterly loss on Wednesday, as fast-food restaurant chains face stiff competition from local cafes and online kitchens.

The restaurant operator posted a net loss of 18 million rupees ($208,345.39) for the first quarter ended June 30, compared to a profit of 85.2 million rupees a year earlier, according to a regulatory filing.

($1 = 86.3950 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Ananta Agarwal in Bengaluru; Editing by Subhranshu Sahu)

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July 4 (Reuters) - Yum Brands YUM.N, the American owner of fast food restaurant chains KFC and Pizza Hut, is in talks to facilitate a merger of its Indian franchisees Devyani International DEVY.NS and Sapphire Foods SAPI.NS, the Economic Times reported on Friday, citing people aware of the development.

Reuters could not immediately verify the report.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Mrigank Dhaniwala)

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** Shares of Sapphire Foods SAPI.NS fall as much as 2.4% to 319.3 rupees apiece

** State tax authority dismisses appeal, confirms demand of 30.74 million rupees ($358,739) including tax, interest, and penalty

** SAPI, which is the India operator of KFC restaurants and Pizza Hut, says order will not have a material impact on its financial operations

** Adds it is in process of responding to demand order

** Shares down 0.7% in 2025 so far, underperforming the 5.4% rise in Nifty 500 index .NIFTY500

($1 = 85.6890 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru)

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May 7 (Reuters) - Sapphire Foods India SAPI.NS, which operates Pizza Hut and KFC restaurants in the country, reported a quarterly revenue that missed estimates on Wednesday, as demand failed to pick up despite discounts.

The restaurant operator posted revenue from operations of 7.11 billion rupees ($83.98 million) for the fourth-quarter ended March 31, compared to 6.32 billion rupees a year earlier, according to a regulatory filing.

Analysts had expected 7.14 billion rupees, according to data compiled by LSEG.

($1 = 84.6600 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Ananta Agarwal in Bengaluru)

(([email protected]; +91 867-525-3569;))

** Long-term view on Indian QSRs (Quick Service Restaurants)remains constructive and the ongoing prolonged growth slowdown is nearing its end, says Emkay Global

** Sees potential for return of mid-teen growth in FY26E for QSRs, beyond the muted Q4 - Emkay

** Emkay covers Jubilant Foodworks JUBI.NS, Westlife Foodworld WEST.NS and Devyani International DEVY.NS with "add", while Sapphire Foods SAPI.NS gets a "buy" rating.

** JUBI, DEVY and WEST up between 0.8%-4.2%, while SAPI is down close to 1%

** Average recommendation for JUBI, DEVY and SAPI is "buy," while WEST is a "hold", as per LSEG data

** Emkay remains in favor of JUBI and Sapphire, led by relatively better operating performance

** Maintains "add" on Westlife and upgrades Devyani to "add" from "reduce", due to price correction.

(Reporting by Shivani Tanna in Bengaluru)

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** Shares of Domino's Pizza DPZ.O franchise Jubilant Foodworks JUBI.NS fall 4.3% to 642.4 rupees

** Co said on Thursday it expects 200 bps growth in PAT margin over FY25-FY28, double digit rev compound growth by adding 1000 new stores

** Guidance of merely 200 bps PAT margin scale-up over next three years disappointing, said analysts at Nuvama Institutional Equities

** Emkay Research said growth strategy sound but margin pickup slow

** Factors including hike in delivery sales mix, high debt, interest cost, investments logistics will put pressure on margins, said Philip Capital analysts

** Avg rating on JUBI "buy", same as rivals Devyani International DEVY.NS and Sapphire Foods SAPI.NS - data compiled by LSEG

** Stock down ~7% so far this year vs a fall of 5% and 7% in DEVY and SAPI, respectively

(Reporting by Ashna Teresa Britto in Bengaluru)

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Feb 6 (Reuters) - Sapphire Foods India SAPI.NS, which operates Pizza Hut and KFC restaurants in the country, reported a better-than-expected quarterly profit on Thursday, as its cheaper food items helped boost demand from budget-conscious consumers.

The restaurant operator posted a profit of 119.8 million rupees ($1.37 million) for the third quarter ended December 31, up from a profit of 101.4 million rupees a year earlier.

Analysts, on average, had expected a profit of 116.8 million rupees, according to data compiled by LSEG.

($1 = 87.5750 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Mrigank Dhaniwala)

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** Indian restaurant operator stocks jump between 3% and 10% after slew of demand-boosting measures in union budget

** Zomato ZOMT.NS and Swiggy SWIG.NS soar 6.5% and 7%, respectively

** Both were hit hard by cooling demand over last two months

** Among restaurant operators, Pizza Hut and KFC India franchisee Sapphire Foods SAPI.NS gains the most; Burger King's Indian operator Restaurant Brands Asia's RESR.NS up 3%, rising the least

** Domino's franchisee Jubilant Foodworks JUBI.NS gains 5%, Pizza Hut's other Indian operator Devyani Internatinal adds ~7%; McDonald's franchisee Westlife Foodworld WEST.NS advances 8.8%

** Finance Minister Nirmala Sitharaman says those earning up to 1.28 mln rupees ($14,791.53)/year won't have to pay any taxes

($1 = 86.5360 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

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** Macquarie Equity Research anticipates uptick in demand for KFC in India, expects a turnaround for Pizza Hut, and a value-based recovery for McDonald's chains

** Devyani International DEVY.NS and Sapphire Foods SAPI.NS operate KFC and Pizza Hut chains in India, while Westlife Foodworld WEST.NS operates McDonald's

** Macquarie initiates coverage on DEVY and SAPI with "outperform" while reiterating the same on WEST

** There is near-term risk for KFC's same-store sales growth, but focus on value, strong competitive position in chicken, favorable base are expected to drive steady recovery - Macquarie

** Adds, pace of KFC store additions likely to be slower in SAPI vs DEVY due to longer gestation for chicken adoption in SAPI's KFC geographies

** Expects healthy EBITDA growth for DEVY in KFC given competitive position in chicken category

** For WEST, expects continued growth in footfalls buoyed by focus on value and launch of McCrispy chicken platform

** DEVY up 4.5% currently, while WEST up 0.2%; SAPI down 0.5%

** SAPI gained 16% in 2024, while DEVY and WEST shed 6% and 3%, respectively

(Reporting by Ashna Teresa Britto in Bengaluru)

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** Shares of India's McDonalds's operator Westlife Foodworld WEST.NS rise as much as 5.2% to 837.4 rupees, its highest since Sept. 27

** Goldman Sachs reiterates street high PT of 1,045 rupees, maintains "buy" rating

** Says positive impact of co's menu interventions expected to drive growth in Q3

** Co says confident of delivering positive same-store sales growth in Q3, will be better than peers, during interaction with GS

** Guest count to see decent growth in Q3, aided by soft base in year-ago quarter- GS

** More than 252,000 shares change hands, 2.2x its 30-day avg

** Rivals Domino's operator Jubilant Foodworks JUBI.NS rated "hold", KFC franchisees Devyani International DEVY.NS and Sapphire Foods SAPI.NS rated "buy" and Burger King operator Restaurant Brands Asia RESR.NS also at "buy"

(Reporting by Ashna Teresa Britto in Bengaluru)

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By Praveen Paramasivam, Shivangi Acharya

CHENNAI/NEW DELHI, Nov 13 - India's city dwellers are cutting spending on everything from cookies to fast food as persistently high inflation squeezes middle class budgets, threatening the country's brisk economic growth.

Slowing urban spending over the past three to four months has not only hurt the earnings of largest consumer goods firms, it has raised questions about the structural nature of India's long-term economic success.

Since the end of the pandemic, India's economic growth has been driven in large part by urban consumption, however, that now seems to be changing.

"There is a top end – the people with money are spending like that is going out of style," Nestle India Chairman Suresh Narayanan said.

"There used to be a middle segment, which used to be the segment that most of us fast moving consumer goods (FMCG) firms used to operate in, which is the middle class of the country, that seems to be shrinking."

Nestle India, which makes Kit Kats and other well-known goods, reported its first quarterly revenue drop since the COVID-hit June quarter in 2020.

While there is no officially defined income bracket for Indian middle class households, they are broadly estimated to account for a third of India's 1.4 billion people.

They are considered a key demographic both economically and politically, with middle class frustration seen as a significant factor behind Prime Minister Narendra Modi's weaker election performance this year.

Asia's third-largest economy is expected to expand 7.2% in the financial year ending March 2025, the fastest among its major peers.

Belying those rosy projections, however, are signs of a sharp slowdown in the household sector.

Indian urban consumption hit a two-year low this month, according to an index published by Citibank that captures indicators such as airline bookings, fuel sales and wages.

"While some of the fall could be temporary, the key macro drivers remain unfavourable," Citi's chief India economist Samiran Chakraborty said.

Growth in inflation-adjusted wage costs for listed Indian firms - a proxy for earnings of urban Indians - has remained below 2% for all the three quarters of 2024, well below the 10-year average of 4.4%, data from Citi showed.

Chakraborty cites this as a key factor impacting urban consumption, along with declining savings and tighter rules for personal loans.

Headline inflation has averaged 5% over the past 12 months, but food inflation has held above 8% as weather shocks elevated prices of vegetables, cereals and other essential foods. In October, retail inflation hit a 14-month high of 6.2% while food prices jumped to 10.9%.

Anecdotal data suggests retail sales rose close to 15% year-on-year during the 2024 festive season, which runs from August to November, Nomura said in a note last week, about half last year's pace.

"During this festival season, we have not spent at all," said Rajwanti Dahiya, 60, who survives on her husband's monthly pension of 30,000 Indian rupees ($356.76).

"Savings are low, barely there."

A 'SHRINKING' MIDDLE

India's central bank expects 7.2% GDP growth for the fiscal year ending March 2025 on the back of improved rural demand and a strong services sector.

Higher government investment could also support demand, said Rahul Bajoria, head of India and ASEAN economic research at Bank of America.

"If government spending kicks in, that probably does have some multiplier effects on private consumption spending as well," said Bajoria, who expects GDP growth at 6.8% in the current financial year.

Some are less optimistic with Citi and IDFC First Bank economists expecting GDP growth in the July-September quarter to miss the central bank's projected 7%, weighed by slower urban consumption.

That pessimism has hit consumer stocks with the Nifty FMCG index .NIFTYFMCG declining 13% since Oct. 1, compared with a 7.4% drop in the benchmark Nifty 50 .NSEI.

Of the FMCG index's 15 constituent firms, only one reported a pickup in sales volume growth in the September quarter.

Consumers in large cities are swapping branded items from hair oil to tea for cheaper unbranded alternatives, reflected in the first sales volume decline in 11 quarters for the foods and refreshment group at Hindustan Unilever.

"We see the growth in big city standing down, although in smaller cities and in rural the growth continues to be good," Hindustan Unilever chief executive Rohit Jawa said last month, after reporting lower than expected earnings.

Consumers are also cutting back on dining out.

Fast-food chains such as McDonald's, Burger King, Pizza Hut and KFC posted same-store sales declines, earnings showed.

While people are still coming, they are choosing cheaper meals, Rajeev Varman, CEO at Burger King operator Restaurant Brands Asia RESR.NS said after posting a 3% drop in quarterly same-store sales.

"We prefer budget-friendly stores that give good deals and discounts to manage our monthly expenditure," said 37-year old Avinash Crasto, a Mumbai marketing and sales executive who has a family of four and identifies as middle class.

($1 = 84.0640 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Shivangi Acharya in New Delhi; Editing by Sam Holmes)

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** Shares of Sapphire Foods India SAPI.NS drop 6.6% to 320 rupees

** Operator of Pizza Hut and KFC restaurants posted surprise quarterly loss

NO NEAR-TERM DEMAND PICK-UP

** Goldman Sachs ("buy", cuts PT to 400 rupees from 420 rupees) says KFC same store sales growth unlikely to recover sharply in the Dec-qtr

** Motilal Oswal ("buy", raises TP to 415 rupees from 370 rupees) does not foresee any near-term respite in profitability but expect gradual stability in growth in second half of FY

** Emkay Research ("add", raises PT to 375 rupees from 340 rupees) though, expects a turnaround in FY26; says sluggish trends in-line with broader slowdown

** Centrum ("sell", trims PT to 310 rupees from 326 rupees) also foresees "short-term challenges" from quick service restaurants (QSR) peers

(Reporting by Hritam Mukherjee in Bengaluru)

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Oct 28 (Reuters) - Sapphire Foods India Ltd SAPI.NS:

• Q2 CONSOL NET LOSS 30.4 MILLION RUPEES; IBES PROFIT EST. 9.5 MILLION RUPEES

• Q2 CONSOL REVENUE FROM OPERATIONS 6.96 BILLION RUPEES; IBES EST. 7.02 BILLION RUPEES

• APPROVAL FOR EXPLORING PROSPECTS IN RELATION TO GAMMA ISLAND FOODS

Source text: ID:nBSEb8W9FS

Further company coverage: SAPI.NS

(([email protected];;))

** Shares of Sapphire Foods India SAPI.NS rise as much as 13.8% to a record high of 401 rupees

** More than 800,000 shares traded in block deals in the price range of 355.10-361.05 rupees/shr - a premium to stock's last closing price of 352.5 rupees, LSEG data shows

** Stock set to gain for a sixth straight session

** More than 8.6 mln shares traded, compared to 30-day avg of 860,000

** Avg rating of 19 analysts close to equivalent of "buy"; median PT is 360 rupees - LSEG data

** Including session's gains, stock has risen ~34% YTD

(Reporting by Yagnoseni Das in Bengaluru)

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** Bernstein starts coverage of supermarkets operator Dmart AVEU.NS, fashion retailer Trent TREN.NS, Jubilant FoodWorks JUBI.NS, Devyani International DEVY.NS with "Outperform"

** Says Dmart has "clear value positioning"; Trent benefiting from private label portfolio

** Dominos India franchisee Jubilant and KFC India operator Devyani to see boost from revival in fast food demand, menu innovation, expansion

** Consumers beyond the top 10% of income pyramid and outside the top 40 cities to boost retail, restaurant sectors: Bernstein

** Brokerage however rates fashion retailer Aditya Birla Fashion & Retail ADIA.NS and McDonald's operator Westlife Foodworld WEST.NS "Underperform"

** Rigid cost structure to weigh on WEST profitability; debt overhang and weak growth in legacy brands to hurt ADIA - brokerage

** Starts Pizza Hut operator Sapphire Foods SAPI.NS with "Marketperform", citing high valuations

** FMCG index .NIFTYFMCG is up 10.14% in 2024, underperforming the 15.3% rise in Nifty 50 .NSEI

** TREN up 6%, DEVY up 1.2% while AVEU is trading 0.2% lower; ADIA, JUBI, WEST, SAPI down 0.3%-1.6% - Exchange data

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

** Shares of Jubilant FoodWorks JUBI.NS up 8.3% to 648.6 rupees, their highest since Feb. 2022

** The Domino's India franchisee reported near two-fold jump in Q1 profit on Friday

** Stock eyes busiest trading session since November 2022, volumes 6x the 30-day avg

** Analysts' avg rating on stock is "Hold", in line with rating on peer Westlife Foodworld WEST.NS while Restaurant Brands Asia RESR.NS, Sapphire Foods SAPI.NS are rated "Buy", per LSEG data

** Median PT on JUBI is 567 rupees - a 5.3% discount on last close

** Stock up 15% YTD vs 13% gains in SAPI, 4% fall in RESR and ~3% loss in WEST

(Reporting by Manvi Pant in Bengaluru)

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BENGALURU, July 30(Reuters) - Sapphire Foods India SAPI.NS, which operates the Pizza Hut and KFC chains of restaurants, reported a larger-than-expected decline in first-quarter profit on Tuesday, as it struggled to entice budget-conscious customers.

The Yum Brands YUM.N franchisee's consolidated net profit fell to 85.2 million rupees ($1.02 million) for the quarter ended June 30, from 249.4 million rupees a year ago.

Analysts, on average, had expected a profit of 173.9 million rupees, according to LSEG data.

($1 = 83.7350 Indian rupees)

(Reporting by Ashna Teresa Britto; Editing by Mrigank Dhaniwala)

(([email protected];))

** Shares of Sapphire Foods India SAPI.NS rise as much as 7.2% to 1,671 rupees, highest since March 22

** SAPI, a franchise of Yum Brands YUM.N, on Wednesday approved sub-division of shares in the ratio 1:5

** Stock on track for a third consecutive session of gain, if trend holds

** Stock is witnessing its most active trading session since March 20 with more than 791,000 shares changing hands, 7x of 30-day avg

** Avg rating of 18 analysts close to equivalent of "buy"; median PT is 1,658 rupees - LSEG data

** Stock up 12.5% YTD

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

June 19 (Reuters) - Sapphire Foods India Ltd SAPI.NS:

• APPROVED SUB-DIVISION/SPLIT OF SHARES IN 1:5 RATIO

Further company coverage: SAPI.NS

(([email protected];))

June 3 (Reuters) - Sapphire Foods India Ltd SAPI.NS:

• TO CONSIDER STOCK SPLIT OF EQUITY SHARES

Source text for Eikon: ID:nBSE9dc9yX

Further company coverage: SAPI.NS

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BENGALURU, May 14 (Reuters) - KFC India operator Devyani International DEVY.NS reported on Tuesday an 89% slump in fourth-quarter profit before a one-time expense, as inflation-weary consumers cut back on dining out and ordering in despite discounted prices amid surging costs.

Its consolidated profit before exceptional items and tax fell to 43.9 million rupees ($525,836.7) for the quarter ended March 31, compared with a profit of 412.3 million rupees an year ago.

During the quarter, the company - which operates KFC and Pizza Hut chains - accrued an exceptional item worth 423.7 million rupees, after its unit acquired 283 KFC restaurants in Thailand, the company said.

India's quick-service restaurant's have struggled to lure customers in the face of sticky inflation.

Promotional offers and value-based meals helped Devyani's revenue from operations rise nearly 39% to 10.47 billion rupees during the quarter, beating analysts average estimate of 8.79 billion rupees, as per LSEG data.

However, this led to a near 46% surge in its total expenses.

Shares of the company, which were up 0.3% ahead of results, fell 3.3% after the results. The stock fell 22% in the March quarter.

Last week, Sapphire Foods India SAPI.NS, which also operates Pizza Hut and KFC chains but has fewer stores than Devyani, posted its biggest profit drop since listing on slow demand and piling costs, whereas McDonald's India franchisee Westlife's WEST.NS profit was nearly wiped out on frail demand.

($1 = 83.4860 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Rashmi Aich)

(([email protected];))

Corrects paragraph 2 to say profit is for quarter ended March 31, not Dec. 31

BENGALURU, May 10 (Reuters) - KFC, Pizza Hut operator Sapphire Foods India SAPI.NS posted a bigger-than-expected fall in fourth-quarter profit on Friday, its fourth straight quarterly profit fall, as inflation-weary customers continued to cut back on dining out and ordering in.

The Yum Brands YUM.N franchisee's consolidated net profit fell 98% to 23.9 million Indian rupees ($286,271.4) for the quarter ended March 31, from 1.36 billion rupees a year ago.

Analysts, on average, had expected a profit of 44.5 million rupees, according to LSEG data.

($1 = 83.4872 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Janane Venkatraman)

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By Navamya Ganesh Acharya and Praveen Paramasivam

BENGALURU/CHENNAI, April 24 (Reuters) - Top fast-food franchisees in India are likely to report a slump in quarterly earnings as cash-strapped consumers continued to cut back on dining out and ordering in, analysts said, spurning the hundreds of new restaurants that operators opened in 2023.

Pizza franchisees such as Jubilant Foodworks JUBI.NS, Devyani International DEVY.NS and Sapphire Foods India SAPI.NS struggled throughout 2023 due to heightened competition, with burger chains also joining the struggle later in the year due to inflation.

Even new affordable menu items, such as Burger King's 99-rupee combination of burger, beverage, and fries, introduced last year, failed to lure customers as India's monthly inflation rate remained above the target rate so far this year.

"Earlier you might be visiting (fast-food chains) three or four times monthly. Now everyone is restricting to once or twice," said Kranthi Bathini, equity strategist at WealthMills Securities.

Analysts polled by LSEG estimate net income slumping between 54% and 97% in the March quarter for Devyani and Sapphire, which run the Pizza Hut chain of restaurants, and McDonald's operator Westlife Foodworld WEST.NS.

They expect a net loss at Burger King operator Restaurant Brands Asia RESR.NS to widen sequentially, also marking at least a 12th consecutive quarterly loss.

Same-store sales are also likely to fall across the board, analysts say, with the decline expected to be more pronounced at Pizza Hut stores at more than 10%.

However, this has not deterred franchisees - including Sapphire and Devyani, which also run KFC stores, - from opening new restaurants nationwide, from Kalimpong hill town in West Bengal to Shoolagiri village in Tamil Nadu.

While restaurant operators and analysts expect the aggressive store opening plans to drive long-term growth, it has not immediately translated to earnings growth, also squeezed by stiff competition from local rivals.

Local pizzerias such as La Pino'z are mounting pressure on international counterparts, while Restaurant Brands and Westlife face competition from regional players such as Jumboking and Biggies Burger.

Westlife kicks off restaurant earnings on May 8 in India, while others are expected to report in the following days.

Like consumer goods analysts, restaurant experts also expect a rebound in demand in the second half of the financial year - roughly from October onwards - on rising expectations of the cost of living easing.

(Reporting by Navamya Ganesh Acharya in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman )

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** Shares of Westlife Foodworld WEST.NS, McDonald's MCD.N India operator, up 0.4%; rose as much as 2.5% to session high of 829.90 rupees

** Investec Equities says demand stabilized in Q4 - expects same store sales growth (SSSG) to improve sequentially in quarter

** Gross margins to expand by 22bps Q/Q, aided by benign commodity costs - Investec

** Co's SSSG declined to 9% from 20% Y/Y in Q3, EBITDA margins fell to 16% from 18%

** Investec keeps "buy", PT of 923 rupees

** Stock set for fourth consecutive session of gains; eyes third straight week of gains

** WEST down 0.74% YTD; peers Jubilant FoodWorks JUBI.NS and Devyani International DEVY.NS have fallen 18.8% and 19.2%, respectively, while Sapphire Foods SAPI.NS is up 7.7%

(Reporting by Ashna Teresa Britto and Navamya Ganesh Acharya in Bengaluru)

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