SAPPHIRE

** 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)

(([email protected] ; ( +91 8078332441))

Adds background and revenue in paragraphs 4-6

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 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.

Global fast-food chains, including McDonald's MCD.N and Pizza Hut, have been launching more affordable options in India over the last few quarters to attract consumers stretched thin due to the high cost of living.

During the quarter, which sees a number of festivals, KFC promoted its "epic savers" deal starting at 99 rupees ($1.13), while Pizza Hut offered a 50% discount on everything from pizzas to desserts.

Sapphire's revenue climbed nearly 14% to 7.57 billion rupees in the quarter.

($1 = 87.5750 Indian rupees)

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

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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)

(([email protected]; Mobile: +91 9591011727;))

** 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)

(([email protected] ; ( +91 8078332441))

** 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)

(([email protected]))

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)

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

** 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)

(([email protected];))

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)

(([email protected];))

** 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)

(([email protected]; +918447554364;))

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

(([email protected];))

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];))

May 10 (Reuters) - Sapphire Foods India Ltd SAPI.NS:

• Q4 CONSOL NET PROFIT 23.9 MILLION RUPEES; LSEG IBES PROFIT EST. 44.5 MILLION RUPEES

• Q4 CONSOL REVENUE FROM OPERATIONS 6.32 BILLION RUPEES

• YEAR AGO Q4 CONSOL PROFIT 1.36 BILLION RUPEES, REVENUE 5.60 BILLION RUPEES

• APPROVED AMALGAMATION OF FRENCH RESTAURANTS WITH GAMMA PIZZAKRAFT LANKA

Source text for Eikon: [ID:]

Further company coverage: SAPI.NS

(([email protected];))

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 )

(([email protected]; +91 8805175330 ;))

** 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)

(([email protected] ; ( +91 8078332441))

** Premiumization and indulgence are reshaping India's food and beverage preferences analysts at UBS say

** Premium staples, carbonated and alcoholic drinks and Quick Service Restaurants (QSR) are outpacing traditional FMCG categories - UBS

** UBS begins covering United Breweries UBBW.NS, Devyani International DEVY.NS, Sapphire Foods India SAPI.NS with a "buy", while Tata Consumer Products TACN.NS and Varun Beverages VARB.NS get "neutral" rating

** Average recommendation for DEVY, TACN, VARB, and SAPI is "buy," while UBBW is a "hold" as per LSEG data

** Despite challenges like competition and inflation, QSR operators remain confident in long-term growth potential, shown by continued store expansion, UBS says

** Adds rising per capita income is driving discretionary spending, fuelling demand for premium offerings

** "Expanding distribution reach is crucial for near-term growth, especially for premium packaged staples and alcobevs"

** Expects UBBW to achieve a volume CAGR of ~9% from FY24-28; EBITDA margin expected to trend towards pre-COVID-19 levels, reaching ~15% by FY28

** DEVY, SAPI, and VARB up between 0.2%-2%, while UBBW and TACN are down between 0.4%-1.9%

(Reporting by Navamya Ganesh Acharya in Bengaluru)

(([email protected]; +91 8805175330 ;))

** Shares of Westlife Foodworld WEST.NS, the McDonald's MCD.N India operator, were down 4.6% at 764 rupees

** India's Maharashtra state to inspect restaurant operators to check if they use cheese alternatives in products while promoting them as real cheese after McDonald's crackdown, Reuters reports

** Shares of Domino's DPZ.N operator Jubilant Foodworks JUBI.NS down ~1% and KFC operator Devyani International DEVY.NS down ~4%

** DEVY was already down on the day on a block deal

** Sapphire Foods SAPI.NS and Restaurant Brands Asia, RESR.NS operators of Pizza Hut and Burger King's, respectively, rose

** WEST set for worst day since Oct. 27, the day after it reported a surprise Q2 profit drop

** All restaurant operators rated "buy" on avg, except for JUBI, which is rated "hold" - LSEG data

(Reporting by Varun Vyas in Bengaluru)

(([email protected]))

Adds background, details throughout

BENGALURU, Feb 9 (Reuters) - Sapphire Foods India SAPI.NS, the operator of KFC and Pizza Hut restaurants, on Friday reported its biggest quarterly decline in profit since listing in 2021, hurt by domestic competition and as inflation-weary consumers cut back spending on fast food.

The Yum Brands YUM.N franchisee's consolidated net profit fell nearly 69% to 101.4 million rupees ($1.22 million) for the quarter ended Dec. 31.

Analysts, on average, had expected a profit of 239.6 million rupees, according to LSEG data.

Inflation-hit consumers continued to cut back spending on discretionary items during the quarter. To counter this, fast-food outlets in India have been rolling out cheaper menu items and launching more marketing campaigns to bolster demand.

Despite this, companies including Sapphire, which offers pizza's starting at 169 rupees, have also been facing stiff competition from local pizzerias that offer cheaper options, denting the profits of bigger quick service restaurants.

Its same-store sales, which measure the growth in revenue from stores that have been in operation for at least a year, declined 2% at KFC restaurants and fell 19% at Pizza Hut.

Total revenue rose 12% to 6.66 billion rupees, while expenses jumped nearly 16%. This led to its margins on earnings before interest, tax, depreciation and amortization (EBITDA) contracting to 18.4% from 19.6% an year ago.

Shares of Sapphire, which also operates Pizza Hut stores in Sri Lanka, however, rose 2% after the results. They fell 2% in the third quarter.

Domino's Pizza operator Jubilant Foodworks JUBI.NS reported a surprise fall in quarterly profit, while KFC India operator Devyani posted its slowest revenue growth since listing amid higher costs.

($1 = 82.9700 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sonia Cheema)

(([email protected];))

BENGALURU, Jan 29 (Reuters) - Restaurant Brands Asia RESR.NS, which operates Burger King and Popeyes chains in India and Indonesia, reported a narrower third-quarter loss on Monday, boosted by strong sales in the festive season.

The company's consolidated net loss narrowed to 361.8 million rupees ($4.4 million) in the three months ended Dec. 31, from 504.2 million rupees a year earlier.

Nonetheless, this is the company's seventeenth consecutive quarterly loss, hurt this time around by a nearly 10% jump in total expenses.

The company, which runs quick service chains owned by Restaurant Brands International QSR.TO, said prices of ingredients including chicken, cheese, tomatoes and onions rose 12.6%.

However, revenue increased about 15% during the quarter, helped by consumers stepping out during the Diwali festival in India and the Christmas holiday period more broadly.

Sales also got a boost in India, which accounts for about 74% of total sales, as some vegetarian-centric religious periods fell in September this year, instead of October.

During the October-December quarter, Restaurant Brands Asia's same-store sales growth at Indian Burger King restaurants slowed to 2.6% from 28% in the year-ago quarter.

Rival fast food chain operators such as KFC-operator Devyani International DEVY.NS, Pizza Hut-operator Sapphire Foods SAPI.NS, McDonald's-operator Westlife Foodworld WEST.NS and Domino's India-franchisee Jubilant FoodWorks JUBI.NS are yet to report results.

Restaurant Brands Asia's shares closed down at 2.9% ahead of results on Monday.

($1 = 83.1300 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D'Souza)

(([email protected];))

** Kotak Institutional Equities picks Sapphire Foods SAPI.NS as its preferred stock in quick service restaurants (QSR) space

** SAPI, which rose 6.3% in 2023, marginally down at 1,446 rupees; has avg "buy" rating- LSEG data

** SAPI, a franchise of Yum Brands YUM.N, offers good growth at reasonable valuations with weaker sales trend in industry - Kotak

** Brokerage says demand weakness that hit QSR industry in November 2022 has continued due to broader slowdown in discretionary consumption

** Adds same-store sales growth remained subdued in Q3 despite a weak base, late festive season and Cricket World Cup

** Combination of aggressive store additions and demand

weakness has weighed on profitability of QSR cos in FY24- Kotak

** Cuts FY2024-26 EBITDA estimates across cos like Jubilant Industries JUBL.NS, Westlife Foodworld WEST.NS, Sapphire, Devyani International DEVY.NS, Restaurant Brands Asia RESR.NS by 5-11%

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

** Shares of India-based Restaurant Brands Asia RESR.NS up 2.5% at 116.30 rupees, trimming earlier gains of 5%

** Over 1.5 mln shares of Burger King India franchisee traded in one block deal at 112.45 rupees apiece - LSEG data

** Over 8.2 mln shares traded, highest since mid-September and 3.7x the 30-day avg

** The mean rating of 10 analysts tracking RESR equivalent to "buy"; median PT is 126 rupees - LSEG data

** Among rivals, Sapphire Foods India SAPI.NS, Devyani International DEVY.NS and Westlife Foodworld WEST.NS are rated close to equivalent of "buy", while Jubilant FoodWorks JUBI.NS is rated "hold" - LSEG

** In Dec-qtr, RESR, SAPI, DEVY, WEST fell 10.3%, 2.2%, 9.6%, 12.6%, respectively, while JUBI rose 6%

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

Dec 6 (Reuters) -

• PROMOTER ARINJAYA (MAURITIUS) LTD CUTS STAKE IN SAPPHIRE FOODS INDIA BY 4.24% TO 3.75% - FILING

Source text for Eikon: ID:nBSE154JFL

Further company coverage: SAPI.NS

(([email protected];))

BENGALURU, Nov 8 (Reuters) - Restaurant Brands Asia RESR.NS, the franchisee of Burger King India, reported a narrower quarterly loss on Wednesday as it added more outlets in the country and expanded its menu.

Consolidated net loss narrowed to 460.3 million rupees ($5.5 million) in the three months to Sept. 30, from a loss of 499.5 million rupees a year earlier.

Burger King India expanded its menu during the quarter to include more chicken items and also offered promotions on certain meals, helping increase footfall at its restaurants and accrue higher average bill values, analysts said.

Restaurant Brands, which added 10 Burger King outlets during the period, also benefitted from more people visiting malls, where it has a bigger presence than other fast food chains, they added.

Its revenue from operations rose 16% to 6.25 billion rupees.

Even so, same-store sales growth, a barometer of customer retention, at Indian Burger King restaurants slowed to 3.5% from 27% a year earlier.

The company's expenses rose 15%, led by an over 20% spike in the cost of ingredients.

Several fast food chains, including Burger King, removed ingredients such as tomatoes and cheese from their menus to cut back spending during the quarter.

Rival fast food chain operators such as KFC operator Devyani International DEVY.NS, Pizza Hut operator Sapphire Foods India SAPI.NS, McDonald's operator Westlife Foodworld WEST.NS, and Domino's India franchisee Jubilant FoodWorks JUBI.NS all reported a decline in quarterly profit.

Shares of Restaurant Brands fell as much as 2.1% after the results, before reversing course to rise as much as 3.3%.

They have risen 6.5% so far this year. Devyani and Westlife have each risen 2% and 3% this year, while Sapphire and Jubilant have fallen 4% and 0.5%, respectively.

($1 = 83.2560 Indian rupees)

(Reporting by Varun Vyas in Bengaluru; Editing by Sonia Cheema)

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BENGALURU, Nov 7 (Reuters) - India's Devyani International DEVY.NS reported a 43.2% fall in quarterly profit on Tuesday as a rise in raw material costs at the KFC and Pizza Hut operator overshadowed a bump in promotions-led demand at its fast-food chains.

Consolidated net profit fell to 333.5 million rupees ($4.01 million) for the second quarter ended September 30, from 587.6 million rupees a year ago.

"High inflation across industries and categories from a macro-economic perspective has led to a short-term impact on consumer sentiment and depressed consumer spending in the last few quarters," Chairman Ravi Kant Jaipuria said in a statement.

However, Devyani's revenue from operations rose 9.6% to 8.19 billion rupees, driven in part by its "Wednesday offers" at KFC and a one-plus-one deal at Pizza Hut.

The September quarter saw prices of several ingredients, including cheese and vegetables, rising, prompting many restaurants to even take tomatoes off the table.

Devyani, which is also the Indian franchisee for the Costa Coffee chain, said its total expenses jumped nearly 16.3% from a year earlier.

Indian food companies have also been battling slowing customer footfall as high inflation keeps consumers from discretionary spending. Retail inflation during the second quarter was between 5.02%-7.44%, driven by high vegetable prices.

Rival Sapphire Foods India SAPI.NS, which also operates Pizza Hut in India, reported a 20% fall in quarterly same-store sales last week, saying it was "cautious" about opening more outlets.

McDonald's operator Westlife Foodworld WEST.NS also posted a drop in profit in late October, blaming a slowdown in consumer spending and demand.

Shares of Devyani were up 2.3% at 194 rupees at 12:45 p.m. IST.

($1 = 83.2575 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Nivedita Bhattacharjee)

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Nov 2 (Reuters) - Sapphire Foods India Ltd SAPI.NS:

• SAPPHIRE FOODS INDIA Q2 CONSOL NET PROFIT 153.4 MILLION RUPEES; REFINITIV IBEST PROFIT EST. 181.9 MILLION RUPEES

• SAPPHIRE FOODS INDIA Q2 CONSOL REVENUE FROM OPERATIONS 6.43 BILLION RUPEES

• SAPPHIRE FOODS INDIA YEAR AGO Q2 CONSOL PROFIT 268.9 MILLION RUPEES, REVENUE 5.63 BILLION RUPEES

Source text for Eikon: ID:nBSE7zKQpV

Further company coverage: SAPI.NS

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Aug 2 (Reuters) - Sapphire Foods India Ltd SAPI.NS:

• SAPPHIRE FOODS INDIA JUNE-QUARTER CONSOL NET PROFIT 249.4 MILLION RUPEES VERSUS 382.7 MILLION RUPEES

• SAPPHIRE FOODS INDIA JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 6.54 BILLION RUPEES VERSUS 5.46 BILLION RUPEES

Source text for Eikon: [ID:]

Further company coverage: SAPI.NS

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