Burger King reports net loss of ₹29 cr, shares decline

Burger King India reported a net loss of ₹29.02 crore for the quarter ended December as against a net loss of ₹21.72 crore in the year-ago quarter.

The company’s net revenue dropped 28.4% to ₹163.19 crore in Q3 FY21 from ₹227.92 crore reported in Q3 FY20. The result was announced after market hours on Tuesday, 9 February 2021. The company said it saw a strong business recovery, despite COVID-19 pandemic and tough macroeconomic environment.

The company opened 9 new stores in Q3 FY21 while the total store count as of 31 December 2020 stood at 270 stores and it is aiming to grow its store count to 470 by the end of 2023-24.

Store sales growth (SSG) stood at (34.8%) in Q3 FY21 as against (0.2)% in Q3 FY20. SSG refers to the year-over-year growth in sales for restaurants opened before the previous financial year. Burger King said it expects Store sales growth (SSG) at 5-7% FY22 onwards.

Restaurant EBITDA tumbled 26.1% to ₹14.37 crore in Q3 FY21 from ₹194.5 in Q3 FY20. Restaurant EBITDA margin stood at 8.8% in Q3 FY21 as compared to 8.5% in Q3 FY20.

Burger King’s operating profit in the quarter declined 94.8 per cent year-on-year to ₹25 lakh. The company’s operating margin stood at 0.2 per cent at the end of the quarter as against 2.1 per cent a year ago.

Shares of Burger King were listed on the stock exchanges on 14 December 2020 at ₹115.35, a premium of 92.25% to the initial public offer (IPO) price of ₹60. The IPO of Burger King India was subscribed 156.65 times