Devyani International Narrows Losses in Q4 Amid Strong KFC Sales Growth
Devyani International Q4 result: Loss narrows to ₹10 cr on strong KFC sales
Business Standard
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Devyani International, operator of KFC and Pizza Hut in India, reported a consolidated net loss of ₹10.04 crore ($1.05 million) for the quarter ending March 31, down from ₹14.74 crore a year ago. Strong same-store sales growth at KFC, driven by value-led offerings, helped offset higher costs amid challenges in the quick-service restaurant sector.
- 01Devyani International's total store count reached 2,256 after adding 217 new stores in the financial year.
- 02KFC India achieved a 4.9% same-store sales growth, marking its strongest performance in 14 quarters.
- 03Revenue from operations increased by 18.5% to ₹1,437 crore ($173 million) for the reported quarter.
- 04Pizza Hut India experienced a 3.5% decline in revenue year-on-year, indicating ongoing challenges in discretionary spending.
- 05Elara Capital noted that a recovery in dine-in demand could significantly enhance earnings for QSR operators.
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Devyani International, which operates KFC and Pizza Hut in India, reported a consolidated net loss of ₹10.04 crore ($1.05 million) for the quarter ending March 31, a decrease from ₹14.74 crore in the same period last year. The improvement was largely due to strong same-store sales growth at KFC, which saw a 4.9% increase, its best performance in 14 quarters. The company's revenue from operations rose 18.5% to ₹1,437 crore ($173 million), driven by effective customer engagement strategies and value-led offerings. Despite challenges in the quick-service restaurant (QSR) sector, including weak urban demand and rising costs, KFC's performance helped mitigate losses. However, Pizza Hut India faced a 3.5% decline in revenue year-on-year, reflecting pressures on discretionary spending. The company added 217 new stores during the financial year, bringing its total to 2,256. Analysts at Elara Capital suggested that a sustained recovery in dine-in demand could positively impact earnings for QSR operators like Devyani International.
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The narrowing of losses and growth in KFC sales may indicate a potential stabilization in the quick-service restaurant sector, which could lead to more job opportunities and improved dining experiences for consumers.
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