KFC momentum sustains; Pizza Hut, Sri Lanka drag

Delivered ₹891 Cr; stated ₹888 Cr at 14.7% YoY growth

₹75 Cr adjusted EBITDA, 37% growth delivered as stated

All three brands posted positive SSSG in Q1; claim precise

Stated as result of lower discounts, 2% price hike, dine-in mix

Positive inflection; but restaurant EBITDA turned negative 3.6%

5% SSSG from ~flat/negative. Consumer recruitment strategy (₹99 crisper, BOGO buckets) working. Dine-in mix improved 57%→59%.

EBITDA fell to −3.6% (from −2.5% QoQ). Energy cost pressure not offset by 2% price hike or 1% SSSG gain. Dine-in/takeaway still lagging delivery.

Acknowledged path to recovery 'at least a couple of quarters away.' Rupee depreciation, wage inflation, fuel costs from geopolitical crisis cited. Restaurant EBITDA 12% thin despite 9% SSSG.

Prior quarters blamed discounting. Now lower discounts (started Oct FY26) + 2% price hike delivering 160 bps (KFC) and 80 bps (Pizza Hut) gross margin expansion. Sustainable if SSSG ≥3%.

No material improvement; similar. Upside driven by our value strategy (₹99 crisper, BOGO). Pizza Hut dine-in+takeaway now positive due to omnichannel mix.

Yes, at least a couple of quarters away. Business resilient; focus on transaction growth; pricing/cost recovery to follow.

3–5% SSSG is neutral (covers inflation). Above 5% gains margin. Cost efficiencies this year helped us create leverage even at 3–5%.

No impact on our franchisee terms. New owner will have renewed focus; augers well for brand.

Not chasing 17–18% immediately. Focus is SSSG recovery first. New stores come at 80–85% ADS; 5–6% SSSG lifts ADS equally—net neutral. Current 16.9% margin is healthy.

Happy with 5% in tough macro. Started from negative SSSG. Two-pronged value (everyday + BOGO) finally working. External macro still weak.

Yes, 60–80 stores per year unchanged. Pizza Hut cautious (unfixed brand). Strike rates and ADS justify expansion.

Careful approach (1% in April, 0.5–1% in June). Selective on menu items. No major impact. Customers downgrade basket; APC flat.

ADS 20% lower but operating costs significantly lower. Profitability and payback similar. Stores opened performing reasonably.

Multi-decade opportunity. KFC = protein + rising per capita. Focus is 5-year doubling first. 4000–5000 eventually possible but foolish to plan near-term.

No new steps. Dine-in omnichannel focus. TN delivered double-digit delta SSSG and EBITDA. Blueprint ready; waiting for CCI approval to unify strategy with co-franchisee.

Don't disclose those numbers. SSSG positive for KFC and Pizza Hut. Dine-in/takeaway positive and ahead of delivery.

Haven't heard any heightened competition on our aggregators for last few quarters.

Happy with current hikes. Restrict to 50–60% of inflation; rest managed via efficiencies or EBITDA absorption. Wars/macro uncertain; may need adjustment.

Price hike 2–3%, discount reduction 50 bps–1%. Customer adjusts basket; APC flat. Price hikes are gross margin tool, not revenue tool.

Pizza Hut was premium vs. Domino's. 2021 decision to close value gap without deep discounts. Rolled day-wise discounts into everyday pricing. Gross margins still healthy. Real challenge is driving customer footfall, not pricing pass-through.

Last 3 quarters show it's not impossible if you deliver right value + marketing. Delivery had discount advantage; pricing normalised. Level playing field now. Dine-in/takeaway transactions recovering.

Prior year KFC grew 11% but had soft SSSG. Excluding that, KFC tracked aggregator 17–18%. Now back to 17% (SSSG returned). Aggregators show take-rate inflation. At 5–6% SSSG, KFC can match 15–20% growth.

Yes, moderated to 60–80. SSSG is a factor. Expansion based on strike rates (ADS at year-end vs. payback, % of stores hitting targets). Two ticks = expansion justified.

Quarter-on-quarter absolute numbers tough to give. Proxy: transactions growing >SSSG growth. Same-store transaction growth >sales growth—positive sign.

Guidance remains high single-digit. Won't react to one quarter of weak profitability when SSSG still good.

Strike rates and ADS metrics healthy. No change despite 2.5 years of soft SSSG. Pizza Hut cautious (unfixed brand); Sri Lanka high single-digit SSSG (8–10%).

KFC at 16.9% (healthy) but needs SSSG ≥3–5% to prevent further slip. Pizza Hut currently negative (−3.6%) recovery hinges on SSSG +, energy normalization, unified strategy post-CCI. Sri Lanka needs cost relief.

Restaurant EBITDA −3.6%; dine-in strategy not yet offsetting energy cost pressure. CCI approval for unified co-franchisee strategy is gating recovery.

Rupee depreciation, wage inflation, fuel costs from Middle East geopolitical crisis eroding profitability. Normalization pushed to 'at least a couple of quarters away'.

Management stated 'no material improvement in demand environment.' SSSG gains are from operational initiatives (value, marketing), not external tailwind. Sustainability risk if macro worsens.

Gas, LPG, fuel pressures cited. Management restricts price hikes to 50–60% of inflation; rest absorbed in EBITDA. Wars could escalate impact in Q2/Q3.

New stores come at 80–85% ADS of brand average. If SSSG falls below 3%, store margins erode and strike rates deteriorate, forcing expansion cutback.