Restaurant Brands Asia zooms 16% as loss narrows in Q1. More gains ahead?

MOFSL reiterated its 'Buy' rating on Restaurant Brands Asia with a target price of 125, signalling a 75 per cent upside from the last close.

Restaurant Brands Asia share price: Shares of Burger King India's parent Restaurant Brands Asia (RBA) rallied 16 per cent intraday on Tuesday, August 4, after the company posted narrower losses in the first quarter (April-June) of the financial year 2026-27 (FY27), led by tighter cost controls and pricing optimisation along with healthy revenue growth.

 

On the National Stock Exchange (NSE), Restaurant Brands Asia's share price hit the day's high of ₹82, up 15.88 per cent over its last close of ₹70.76. The quick-service restaurant (QSR) stock has gained 28 per cent so far this year. 

 

Today's rally brings the small-cap stock closer to its 52-week high of ₹87.65, scaled in September last year. Meanwhile, its 52-week low stands at ₹57.15.

 

 

Restaurant Brands Asia Q1 results

For the quarter ended June 2026, the company posted a consolidated net loss of ₹28.3 crore as against ₹48 crore in the same period a year ago. The management said it remains focused on improving profitability through pricing optimisation, menu innovation and tighter control over fixed costs, including utilities. 

 

Meanwhile, the company's revenue saw an 18 per cent year-on-year (Y-o-Y) growth to ₹822.6 crore during the quarter under review, led by strong performance in the India business, while Indonesia continued to weigh on overall growth. READ MORE

 

The company maintained industry-leading same-store sales growth (SSSG) at 13 per cent, well supported by healthy traction across both dine-in and delivery channels, aided by value offerings. 

 

It added nine stores in Q1 and reiterated its plan to open 80 stores in FY27. In Indonesia, its turnaround strategy is in progress, and RBA focuses on reducing losses through tighter cost controls and operational improvements. 

 

Restaurant Brands Asia: Time to buy?

Domestic brokerage Motilal Oswal Financial Services (MOFSL) remains bullish on the counter as it revised the earnings before interest, tax, depreciation and amortisation (Ebitda) estimates by 5 per cent for FY27 and 8 per cent for FY28, considering the better delivery of margins.

 

MOFSL said that as more stores mature, improving the contribution of new outlets across the network, they are expected to support margin recovery. It expects the Indonesian business to witness  a gradual recovery as the company has rationalized its portfolio by closing non-performing stores. That said, it does expect near-term challenges in Indonesia to persist.

 

The brokerage reiterated its 'Buy' rating with a target price of 125, signalling 75 per cent upside from last close. 

 

Meanwhile, on the technical charts, the stock continues to trade within a broad range, with 60 acting as a strong support level, while 88 -90 remains a key resistance zone, said Harish Jujarey, AVP, head - technical equity research, Prithvi Finmart.

 

He believes that the current momentum has the potential to drive the stock towards the 88-90 resistance band. "A decisive breakout above ₹90 would confirm a fresh leg of the uptrend and signal further upside potential. Hence, existing investors are advised to continue holding their positions and consider booking profits or reviewing the position near the 88-90 zone," he recommended.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.