Burger King's India operator posts smaller loss as cheaper menus draw more diners
May 19 (Reuters) - Restaurant Brands Asia (RESR.NS), opens new tab, the India franchisee of Burger King, reported a narrower fourth-quarter loss on Monday, as its affordable menu appealed to cost-conscious customers.
The company reported a net loss of 562.8 million rupees ($6.6 million) for the three months ended March 31, compared with a loss of 852.60 million rupees a year earlier.
Indian operators of U.S. chains such as Pizza Hut, KFC, McDonald's (MCD.N), opens new tab and Burger King (QSR.TO), opens new tab face a double blow, as they grapple not only with stiff competition from local rivals but also shrinking consumer spending due to high living costs and slow wage growth.
To counter this, they have relied on cheaper menu options to draw in diners.
In the last quarter, Restaurant Brands Asia introduced deals such as a bundle of two vegetarian burgers at 79 rupees and two chicken burgers at 99 rupees.
Such efforts helped its overall revenue climb nearly 6% to 6.33 billion rupees. Same-store sales at Burger King restaurants across India increased 5.1%, led by a growth in dine-in traffic.
Cheaper menu items also helped McDonald's franchisee Westlife Foodworld (WEST.NS), opens new tab double its profit last quarter, although KFC and Pizza Hut franchisee Sapphire Food India (SAPI.NS), opens new tab flagged a longer road to recovery, pressured by competition from delivery-focused Domino's, operated by Jubilant FoodWorks (JUBI.NS), opens new tab.
Restaurant Brands Asia, however, has slowed its new store openings. It added just three new stores last quarter, out of a total of 58 for the April-March fiscal year.
It continues to focus on keeping diners through such efforts as last month's limited-time "Korean Spicy Fest" menu, which included burgers, chicken wings and fries, to cash in on the buzz around K-culture.
($1 = 85.3820 Indian rupees)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
34 minutes ago
- Reuters
Bank of Korea chief says excessive rate cuts could cause price upswing in property markets
SEOUL, June 12 (Reuters) - South Korea's central bank governor said on Thursday "excessive" policy interest rate cuts could cause another round of price upswings in the property market and increase volatility in currency markets, although the domestic economy remains sluggish. "If we rely too much on economic stimulus policies out of urgency, there may be greater side effects later on. For example, if we cut the base interest rate excessively, there is a high risk that it will lead to a rise in real estate prices," Governor Rhee Chang-yong said in a speech prepared for the bank's 75th anniversary. His comments come after the bank flagged more rate cuts to come on the day it trimmed borrowing costs by a quarter percentage point to 2.5% on May 29, to reflect the impact of the U.S. trade tariffs and tepid domestic consumption. The widely expected rate cut, the fourth in the current easing cycle, came as the newly elected President Lee Jae-myung geared up for major stimulus measures including this year's second extra budget to boost growth. Rhee's concerns about excessively cutting interest rates also stemmed from recent currency market volatility. "The gap between domestic and foreign interest rates may widen further as the U.S. Federal Reserve adjusts the pace of its interest rate cuts, and uncertainty surrounding the results of trade negotiations with major countries may increase, leading to increased volatility in the foreign exchange market," Rhee said in the speech.
Auto Blog
38 minutes ago
- Auto Blog
Tesla's Top Rival BYD Ignites EV Pricing War in China
BYD's newest price cuts in China may cause the country's average EV discount to reach a record high for the second month in a row. BYD set to move larger volumes with newest price cuts BYD has reignited China's electric vehicle (EV) price war after lowering the price of 22 all-electric and plug-in hybrid vehicles by up to 34% through the end of June. Subsequently, shares of many Chinese EV makers, including BYD, tumbled. The Seal hybrid sedan saw the most significant price cut in BYD's lineup at 34%, lowering its starting cost to $15,000 or 102,800 yuan. 0:03 / 0:09 Nissan's revolutionary self-driving tech hits Japan's streets Watch More However, BYD's price changes don't impact its luxury inventory, which includes the Denza FangChengBao and Yangwang lines. China's IM Motors, Leapmotor, and Geely's Galaxy have also announced price cuts in response to BYD's move. Other key players, like XPeng, Nio, and Li Auto, haven't yet slashed any price tags. European automakers like Volkswagen, BMW, and Mercedes-Benz will likely see further EV sales declines in China after BYD's bold move, given their reluctance to enter the country's new energy vehicle (NEV) price war. Tesla China registrations have also lagged in Q2. BYD Seal — Source: BYD Why BYD is one of the EV price war's largest players BYD has been considered a leader in China's EV price war with its in-house battery production and ability to get volume discounts from suppliers. The automaker is one of China's three profitable EV makers among the country's 50 or so electric car manufacturers. According to Investor's Business Daily, BYD introduced its latest price cuts in response to rising dealer inventories, causing some to wonder whether China's NEV push is losing steam. Chinese officials have also been investigating the possibility of zero-mileage car sales, where automakers pad their delivery numbers by reporting vehicles as sold that are being distributed to finance companies and used auto dealers, Clean Technica reports. In other words, Chinese automakers might be recording zero-mileage cars as sold when end users haven't purchased them. A slowdown in NEV sales would be a significant concern among Chinese officials regarding the country's economic goals and environmental sustainability. New price cuts from BYD also stem from the automaker's desire to reach 5.5 million sales this year, representing a 1.5 million increase from 2024. BYD's U.S. stocks declined 9.75% on Tuesday after the company's pricing announcement, while XPeng, Nio, and Li Auto's U.S. shares fell 3.8%, 4.1%, and 2.6%, respectively, according to Investor's Business Daily. Close to half of all China's new car sales are all-electric and PHEV, Electrek reports. By comparison, less than 10% of U.S. new vehicle sales are NEVs. Victor Sun, senior equity analyst at Morningstar, said he expects BYD to: 'Offset the impact [of its discounts] via larger sales scale and [its] battery cost staying low,' according to CNBC. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. BYD Seagull — Source: Getty Final thoughts Market reactions to BYD's discounts reflect how investors are nervous about an escalating EV price war in China and increased scrutiny from the country's regulators regarding sales numbers. In April, China's EV discounts reached a record high of 16.8%, and it appears this figure will climb higher in May. BYD, Seres, and Li Auto are the only three Chinese EV makers currently profitable, and an intensifying price war is setting the stage for an industry shakeout where smaller competitors will likely go under or get bought out by competitors. About the Author Cody Carlson View Profile
Auto Blog
an hour ago
- Auto Blog
Xiaomi SU7 Ultra Shattered Rimac's Nurburgring Lap Record
The Chinese come out on top Chinese electric cars have been on the lips of Western automaking rivals for quite some time. The rise of companies like BYD, Zeekr, and NIO has put the auto market on watch in recent years for their low-priced cars loaded with extensive tech and luxury features. However, one company that stood out as the odd one was consumer electronics giant Xiaomi. The company, known for its smartphones and wearables, launched its first car in March 2024—a $30,000 supercar-styled electric sports sedan called the SU7. Throughout 2024, the SU7 became one of China's hot-selling vehicles, delivering more than 135,000 units last year, including one used by Ford CEO Jim Farley, who admitted he 'couldn't give it up' during an October 2024 podcast appearance. The success of the SU7 has led the tech giant to go all-in on a high-performance version called the Ultra. Last October, the company published a video showing a stripped-down, race-ready SU7 Ultra prototype lapping the Nürburgring in just 6 minutes and 46.8 seconds, faster than more expensive EVs like the Porsche Taycan Turbo GT and even the multi-million dollar Rimac Nevera. This Xiaomi beats Porsches and Rimacs Although Xiaomi recorded 3,680 pre-orders in just 10 minutes when the website opened on October 29 last year, unfortunately, the SU7 Ultra that consumers got was far less racecar-like than the prototype that lapped the Ring. It featured Alcantara-trimmed seats and far less aggressive aerodynamics, including a prominent rear wing, a functional front splitter, and enlarged air intakes for the car's upgraded cooling package. However, in a new video released by Xiaomi on its social media channels, the consumer-grade, production version of the SU7 Ultra shattered Nurburgring lap records by securing the title of fastest production EV to lap the Green Hell, posting a verified lap time of 7:04.957. Xiaomi SU7 Ultra — Source: Getty Images Although the production SU7 Ultra's lap time is approximately 18 seconds slower than the stripped-down, race-ready prototype, it still outperformed some more prestigious and expensive rivals. The $74,000 SU7 Ultra's flying lap not only surpassed the $231,100 Porsche Taycan Turbo GT, which recorded a time of 7:07.55, but it also beat the multi-million dollar Rimac Nevera, which previously held the production car lap record with a time of 7:05.298. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. According to Xiaomi, the SU7 Ultra is powered by a trio of electric motors producing 1,526 horsepower. The automaker claims that the SU7 Ultra can go from 0 to 60 in just 1.98 seconds and has a top speed of 217 miles per hour. In the video of the record lap, the SU7 is shown reaching 345 km/h, or 214 mph, on the long straight before the final corner of the Nordschleife. Xiaomi SU7 Ultra — Source: Xiaomi In a translated post on Weibo, Xiaomi founder, chairman, and CEO Lei Jun noted that the car used in the video was piloted by Vincent Radermecker and used the optional 'professional track package.' According to the Xiaomi website, the optional package includes a smattering of racing-grade goodies from a lion's den of aftermarket suppliers, including Bilstein EVO R coilover shock absorbers specially developed for the Ultra, ENDLESS high-performance brake pads, Pirelli P ZERO fifth-generation high-performance tires, an additional set of Pirelli P ZERO TROFEO RS semi-slick tires, as well as 21-inch U-shaped forged wheel hubs, carbon fiber rear wheel arches, and a carbon fiber roof. In his post on Chinese social media, the Xiaomi figurehead noted that this won't be the last time the SU7 Ultra will post a Ring time. 'I believe that this record will be broken in the near future,' Jun said, translated from Chinese. 'We will stay in the Nürburgring for a long time, and make progress together with the world's top peers in the pinnacle of the global automotive industry!' Xiaomi SU7 Ultra — Source: Xiaomi Final thoughts Although Xiaomi's time is a far cry from the Mercedes-AMG One's record for the fastest production vehicle of 6 minutes and 29 seconds, it really shows that a country that has been written off as making low-quality, disposable things in general has the capability to disrupt, and as what we seen so far, they are doing more than just knocking down doors and walls; they're building a new house on the old lot. It will be very interesting to see if a rebuttal in the form of a potentially faster car will emerge from any of the Western 'old guard.' Tesla, Porsche, Rimac, the ball is in your court. About the Author James Ochoa View Profile
