Latest news with #BurgerKing
Mint
2 days ago
- Business
- Mint
Is Burger King's much-awaited turnaround finally here?
Burgers find many takers in India, but Burger King's stock has not had much luck. Restaurant Brands Asia Ltd, the master franchisee for Burger King in India, has eroded almost 50% of investors' wealth since its public market debut in December 2020. RBA managed to shrink its losses in recent years, but investors remained unimpressed. Until this fiscal year. Since March, new life has been breathed into the counter. The RBA stock has rallied by more than 35% in just about 4 months. Is this a sucker's rally or a much-awaited turnaround? Breakeven around the corner? Restaurant Brands Asia sets up and operates Burger King restaurants in India, which drive almost 80% of the company's revenue. The rest comes from its subsidiary in Indonesia. As pent-up demand released following the pandemic, RBA saw revenue growth accelerate by almost 50% in FY22. But growth moderated over the next few years as a K-shaped recovery and high inflation muted demand. In FY25, RBA clocked less than 5% growth in revenue. But the company's margin trajectory continued to improve. Ebitda margin improved from merely 2.5% in FY21 to almost 11% by FY25, and its loss margin shrunk from -27% to -10%. Store expansion driving India business India's quick service restaurant (QSR) space is perceived as a goldmine. Almost 75% of India's dining market comprises QSR and casual dining restaurants. As India's middle class expands and disposable incomes rise, the QSR industry attracted several local and global players, including Burger King and McDonald's. RBA, which has exclusive rights in India to Burger King, the second-largest global burger brand, is well-placed to capitalize on these industry tailwinds. The company's store footprint in India expanded from just about 200 in FY19 to more than 500 in FY25, with its menu customized to appeal to Indian consumers' tastebuds. While intensifying competition amid patchy demand has kept same-store sales growth (SSSG) in check, store expansion has supported revenue growth. In FY25, dine-in traffic expanded 9% year-on-year thanks to RBA's attractive in-store offers and menu innovations. Still, SSSG grew at only 1%. But thanks to store-expansion at 13%, revenue expanded by 12%. Sequentially, SSSG and revenue-growth have been looking up. Margins paint a promising picture as well. Typically, when store expansion rather than SSSG drives revenue expansion, margins tend to suffer. But in the case of RBA, despite raw-material inflation, supply-chain efficiencies and operating leverage have picked up the slack. Ebitda margin expanded from 13.5% in FY24 to 14.7% in FY25, resulting in 22% ebitda growth in FY25. RBA is working on further improving its delivery profitability by optimizing pricing, cutting back on utility costs, and improving its delivery offerings. Indonesia business a drag RBA has the exclusive master franchisee for Burger King and Popeyes restaurants in Indonesia. But with consumer preferences shifting away from US-based brands, its Indonesia business has been struggling. RBA had to shut seven Indonesian stores in FY25. Revenue declined 10% year-on-year in the fourth quarter of FY25, continuing the cash-guzzling trend witnessed in the region since FY24. The company's -8.4% ebitda margin and -24.5% net profit margin dragged its consolidated profit after tax (PAT) margin to -9.6%. While the full fiscal year saw revenue shrink by 14% owing to a 6% decline in SSSG, the fourth quarter of FY25 saw green shoots emerging. Same-store sales growth increased 2% and average daily sales 5% over the same period last year. Coupled with store rationalization and rent renegotiation, restaurant operating margin for the region improved sequentially. Loss shrank from ₹7 crore in Q3 to ₹2.7 crore in Q4. RBA has been cutting costs by shutting non-performing stores in the region. It has no plans to expand in Indonesia as the management prioritises profitability. While there's still quite some way to go before the business turns profitable, two consecutive quarters of sequential improvement raise hopes. Falling behind peers To be sure, competition amid muted demand has eroded margins across the Indian quick-service restaurant space. Jubilant FoodWorks Ltd, which is the master franchisee for Domino's Pizza, Popeyes, and Dunkin Donuts in India and a few neighboring countries, has the highest PAT margin in the industry. But even that is less than 3%. Other QSR operators have near-zero or negative PAT margins. Thanks to the struggling Indonesia business, however, RBA has the worst PAT margin—at almost -10%. RBA's sub-5% revenue growth is also at the lower end of the industry. Jubilant sports the highest revenue-growth, followed by Devyani International Ltd (known for Pizza Hut, KFC, and Costa Coffee) and Sapphire Foods India Ltd (a franchisee for Yum! Brands). That said, all players except Jubilant reported a contraction in SSSG during FY25. Their valuations are largely in line with their growth, with faster-growing businesses valued higher. The only exception is Westlife Foodworld Ltd (master franchisee for McDonalds in West and South India), which appears overvalued. It trades at almost 5 times its sales despite growing at less than 6% per year with a meagre 0.4% PAT margin. RBA trades at less than 2 times its sales. Long way to go Store expansion and unit profitability are key factors to monitor. RBA plans to take its store footprint to 800 by FY29, expanding through new café-style stores in fast-growing tier 2 and tier 3 cities. As stores mature and cost efficiencies take effect, the management expects a recovery in margins. It has to be seen whether this plays out despite a focus on value products catering to price-sensitive customers. Intensifying competition can further complicate matters. Also, given that each new store opened in India takes up ₹2.7 crore, RBA's expansion plans can add on debt. With debt-funded expansion and persistent losses, the company's cash balance dwindled from ₹277 crore in FY22 to ₹33 crore in FY24, and its debt-to-equity expanded from 0.8x to 2.3x during the period. RBA had raised ₹500 crore through a qualified institutional placement of shares in March, which helped fill up its coffers and enthuse investors. But with promoter's stake in the business dropping to 11.3% over the years, further scope for equity dilution is limited. A lot hinges on whether growth comes at the cost of lower margins, or if volumes manage to make up for rising interest costs. A turnaround in the Indonesia business will be key. RBA's management indicated that profitability continued to improve in the first couple of months in Q1 FY26. It expects to save ₹45 crore in general and administrative expenses in its Indonesia business in FY26. If the company manages to keep its topline at current levels, its loss margin would shrink from -25% to -17%. If these pieces fall into place, there is scope for a rerating. RBA's Q1 FY26 numbers are due to be announced on 8 August. Brokers had pegged the stock's target price at ₹135 per share, reflecting an upside of 65% over current levels. RBA shares were trading at ₹81.23 apiece on Tuesday morning (28 July) on NSE, 0.58% down. Ananya Roy is the founder of Credibull Capital, a Sebi-registered investment adviser. X: @ananyaroycfa Disclosure: The author holds shares of some of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
Daily Mirror
3 days ago
- Automotive
- Daily Mirror
American in UK visits impressive service station that's 'like a theme park'
An American woman has said she's finally come to understand why Brits have a favourite service station after visiting a Welcome Break in the UK she compared to a theme park UK service stations are typically quite basic, offering a couple of eateries, a shop and toilets for travellers in need of a rest on the motorway. However, one Welcome Break UK services is drawing visitors from far and wide. An American woman was left astounded after her recent visit at the Yorkshire service station, describing it as "exquisite". Situated of the M1J33 near Rotherham, the service station boasts an array of popular chains such as Starbucks, Pret A Manger, Burger King, Chopstix, The Good Breakfast, KFC, Waitrose, and WHSmith. Not only does it offer top-notch facilities and a variety of dining options, but the service area - which opened its doors in January this year - also provides 458 parking spaces for various types of vehicles. Plus, it has resulted in the creation of around 230 new jobs. Iniki, an American woman who relocated from Florida - a state known for its large 'petrol stations' - hailed the Rotherham Welcome Break as "the nicest UK service station." In a recent TikTok post, Iniki said: "I think I finally understand when Brits say they have a favourite service station because this service station was exquisite. This is a brand new Welcome Break in Rotherham and I was thoroughly impressed." The woman, who is married to a British man, likened it to "kind of looks like a little town" and said it reminded her of Universal Studios. She described her experience as akin to "a walk in the park." The American was also impressed by the variety of dining choices, gaming section and children's play area. "So yeah, I never understood the hype about service stations until now," she added. One person remarked: "As someone who was born in Rotherham, it's strange hearing an American say it haha. Driven past this service station many times but never been in. Looks nice!". One declared it's "probably the best thing" in Rotherham. "Nicest place in Rotherham," chimed in another. "Wow, it's really nice," noted someone else. A further user commented: "I love a good service station. It's kind of like you're going on holiday, slight airport vibes without the planes or security."
Hype Malaysia
4 days ago
- Entertainment
- Hype Malaysia
From Kenny Rogers ROASTERS To Domino's: 7 Scrumptious New F&B Launches & Promos
If you're a foodie and always on a lookout for something new, this week brings a fresh lineup of exciting new promos from some of our favourite chains and F&B brands! Whether you're craving something sweet for dessert or looking for a savoury meal idea for lunch, these new menus are worth checking out: Burger King Get ready for an epic taste adventure as Burger King Malaysia teams up with Naruto for a limited-time promotion that's packed with action and collectibles! From 21st July to 31st August 2025, fans across Malaysia can experience this exclusive crossover at participating outlets. Order any King Jr. Meal and score 1 of 8 exclusive Naruto toys — only available with this promo! Collect them all before they vanish into the Hidden Leaf Village! But, wait! The mission isn't over yet! Power up your meal with a Sate Burger and unlock a limited-edition Naruto T-shirt for just RM25.90. Choose between the Sate Burger XL Beef or the Sate Tendercrisp and grab your exclusive tee in either sleek black or the ultra-rare white version. Supplies are limited — once they're gone, they're gone! Kenny Rogers ROASTERS Whether you enjoy immersing yourself in K-dramas, listening to K-pop hits, or embracing the K-lifestyle, Kenny Rogers ROASTERS Malaysia invites you to indulge in the Seoul Daebak Kraze — a specially curated Korean-inspired meal series designed to satisfy your cravings. Check out the Seoul Sedap Ramyun Meal, the Seoul Sedap Chikin and the Seoul Sedap Ramyun Chikin Combo (paired with refreshing Seoul Lemon Pop) – each crafted with bold, exciting flavours, from sweet and spicy to soy garlic, promising a deliciously satisfying experience in every bite. All dishes are now available at all Kenny Rogers ROASTERS outlets in Peninsular Malaysia. Häagen-Dazs Häagen-Dazs has just launched its new Cities Collection in Malaysia, transforming iconic European desserts into extraordinary flavor journeys that transport you to Paris, Rome, and Madrid without the need for passports, flights, or travel planning! The collection features four meticulously crafted flavours, each capturing the spirit of a European capital: Macaron Double Chocolate Ganache, inspired by Paris Macaron Strawberry & Raspberry, inspired by Paris Tiramisu Coffee & Mascarpone, inspired by Rome Churros Cinnamon & Dulce de Leche, inspired by Madrid The Häagen-Dazs Cities collection is now available at Jaya Grocer, Lotus's, and Aeon for RM38.50 per pint. Starbucks Summer might be winding down, but there's still time to soak in the sunshine – and Starbucks Malaysia has just the thing to help you savour the season! This new launch features a new menu of drinks and treats, including the Starbucks Golden Caramel Churro Latte, the Starbucks Muscat Grape Cream Frappuccino® Blended Beverage with Jelly and Starbucks® Muscat Grape Cold Brew with Jelly. Whether you're catching up with friends, enjoying a solo escape, or simply treating yourself, Starbucks' newest collection is all about capturing those golden-hour vibes! The new collection is available at all Starbucks locations across Malaysia from 22nd July 2025 onwards, while stocks last. Haidilao Haidilao Malaysia celebrates the release of Jackson Wang's new album with an exclusive hotpot set – curated by the MAGIC MAN himself! From 22nd July to 31st August, try Jackson's favourite combo and discover exclusive surprises at selected Haidilao outlets. Calling all hotpot AND Jackson Wang fans: this one's for YOU! Each set comes with two hotpot bases (tomato and chicken), two types of meat (Haidilao beef and/or black pork), wavy layered crispy squid platter, assorted vegetable platter, crispy pork strips, egg fried rice and 2 sets of tropical banana and guava shaved ice tea. Receive exclusive MAGIC MAN 2 merch when you order MAGIC MAN 2 Set Meal Deal! Domino's Breaking all the rules of what a pizza should be, Domino's has done it again! This time by turning your favourite pasta into a unique pizza experience. Introducing the Mac & Cheesy Pizza, an indulgent twist that fuses the creamy comfort of mac and cheese with the familiar joy of pizza, all in one unforgettable bite. Starting from 22 July 2025 onwards, customers can enjoy the Mac & Cheesy Pizza, available in three distinct flavours: The Original Mac & Cheesy, the Mushroom Mac & Cheesy and the Spicy Beef Mac & Cheesy. Customers can also add on the Ultimate Sausage Crust for a satisfying meaty bite that's as fun to eat as it is to share. McDonald's McDonald's Malaysia is bringing back the classic price for a classic meal! From now until 13th August, every Monday to Friday, enjoy a lunch time set of the iconic McChicken for a delicious price of only RM5.95! Each meal is default with Medium Fries and Medium Coke for a more satisfying value for your wallet. Also making a long-awaited comeback is the Spicy McChicken. Enjoy the classic burger you love, with a spicy kick! Both the Spicy McChicken and the RM5.95 McChicken deal are now available all McDonald's outlet across Malaysia. *RM5.95 McChicken deal only applicable for Dine-In & Drive Thru, not valid for McDelivery & other delivery services.
Time of India
4 days ago
- Entertainment
- Time of India
Burger King's menu changed, new coffee and lemonade drinks added - is it to compete with Starbucks and McDonald's?
Move over, Starbucks. Burger King has just entered the iced coffee chat—and no, they are not playing it safe. The fast-food chain has rolled out four Iced Coffee Cold Foam options, including Vanilla, Mocha, Black, and a limited-edition Plain (which is only available at select spots, so basically: good luck). Gen Z caffeine lovers, brace yourselves. Burger King menu changed This big swing is part of BK's latest mission to level up its drinks game and, let's be real, snatch a bit of that coffee cash from its rivals. But the tea, or should we say lemonade, does not stop there. Burger King has also dropped two Real Juice Lemonades: Strawberry Lemonade made with real fruit juice, and a Mango Peach Lemonade that sounds like it came straight out of a summer picnic fantasy. The drinks are priced at a recommended $2.49 (small), $2.79 (medium), and $3.29 (large), though prices may vary depending on your zip code and the universe's mood that day. According to BK's team, the goal was to serve something 'delicious and refreshing' that feels less like fast food and more like a mini escape. Not just sips, Burger King also stacking the whopper drama These drinks are not the only spicy new thing on the menu. BK recently launched the BBQ Brisket Whopper, the first fan-created item from its 'Whopper by You' platform. Yep, now customers are co-designing burgers like it is Build-A-Burger Workshop out here. The meaty new Whopper includes slow-cooked brisket, crispy onions, American cheese, sweet barbecue sauce, lettuce, tomato, creamy mayo, and a flame-grilled patty. Oh, and there is a Whopper Jr. version for the minimalists. Burger King's fighting for fast-food survival Industry insiders say this entire menu glow-up is not just for vibes. Financial experts believe Burger King is fighting to win back customers who stopped dining out during inflation struggles. BK's drinks revamp is a calculated move to lure Starbucks stans, McDonald's loyalists, and Dutch Bros drive-thru regulars into the kingdom. It is a beverage battlefield out there, and BK just brewed its boldest comeback yet.
Time of India
4 days ago
- Business
- Time of India
Burger King menu change adds 4 cold foam coffees and 2 real juice sips; see flavors and calorie counts
Burger King menu change this summer includes the nationwide rollout of six new beverages, as the fast-food giant aims to expand its offerings beyond traditional meals and take on competitors like McDonald's and Starbucks. On Friday, July 25, Burger King confirmed to Newsweek that it has launched four new Iced Coffee with Cold Foam options and two Real Juice Lemonades at participating locations across the US These additions mark a strategic move to attract customers throughout the day, especially during non-meal hours. Explore courses from Top Institutes in Please select course: Select a Course Category Others Design Thinking Public Policy PGDM Product Management Artificial Intelligence Management MBA Data Science MCA healthcare CXO Data Science Technology Cybersecurity Data Analytics Operations Management Project Management Degree Healthcare Digital Marketing others Leadership Finance Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details The iced coffee line features four variations: Vanilla, Mocha, Plain, and Black, offering a range from sweet and creamy to bold and simple. Meanwhile, the fruit-based refreshers include Strawberry Lemonade, made with real fruit juice, and Mango Peach Lemonade, a mix of lemonade with mango and peach purée. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like PCP Claims Surging – File Yours Before Saturday UK PCP Claims Learn More Undo According to Fast Food Post, prices for the new drinks start at $2.99, though they may vary depending on the market. The beverages are available now at select US locations as part of the broader seasonal menu revamp. This Burger King menu change follows the brand's larger effort under its 'Reclaim the Flame' program to innovate and stay competitive in the fast-evolving QSR beverage space. Live Events Drink details Each Iced Coffee Cold Foam drink starts with brewed iced coffee: Vanilla Cold Foam: with cream and vanilla-flavored syrup Mocha Cold Foam: with cream and mocha syrup Plain Cold Foam: cream only, available in select locations Black Cold Foam: without cream or flavoring, topped with cold foam The lemonade options are made with real fruit juice blends: Strawberry Lemonade: lemonade mixed with strawberry puree Mango Peach Lemonade: a mix of lemonade with peach and mango puree Depending on size and location, prices range from $2.99 to $3.39. Calorie count Nutritionally, the new drinks vary significantly. For example, the Vanilla Cold Foam coffee has 270 calories, while the Strawberry Lemonade contains about 300 calories and 73 grams of sugar. The Mango Peach Lemonade has similar stats. Despite their calorie count, these beverages offer substantial profit potential. According to restaurant service provider Toast, while average restaurant margins are about 3–5 per cent, drinks like these can yield margins as high as 90 per cent. A menu overhaul The new beverages follow the recent debut of the BBQ Brisket Whopper , which was developed through Burger King's 'Whopper by You' campaign. This initiative allows customers to submit sandwich ideas on the brand's website. The BBQ Brisket Whopper includes slow-cooked brisket, crispy onions, American cheese, BBQ sauce, lettuce, tomato, mayo, and a flame-grilled patty. It is also available in a Jr. version for a limited time.
