BENGALURU/CHENNAI: Sapphire Meals India, a home operator of Pizza Hut eating places, on Thursday reported a bigger-than-expected fall in quarterly revenue on sluggish demand for pizzas and stated it’s “cautious” about opening extra retailers.
The Yum Manufacturersfranchisee’s web revenue fell 43% to 153.4 million rupees ($1.84 million) for the quarter ended September 30.Analysts, on common, have been anticipating 181.9 million rupees, in response to LSEG knowledge.
Demand for pizzas has been sluggish over the previous few quarters, with main corporations pushing up costs in keeping with greater cheese and vegetable prices and as folks have been shunning pizzas for fried rooster and burgers.
Sapphire stated same-store gross sales at its Pizza Hut India eating places declined by 20% for the second quarter, blaming “robust macro circumstances and particularly excessive aggressive depth within the pizza class.”
Pizza Hut India contributes to roughly 1 / 4 of Sapphire’s total income.
The sharp decline has additionally compelled Sapphire to rethink its plans to open further Pizza Hut eating places.
“Within the medium time period, we shall be cautious with our restaurant growth plans whereas persevering with to work on enhancing model salience and product innovation,” Sapphire stated.
Similar-store gross sales at Sapphire-operated KFC eating places in India stayed flat as folks consumed much less meat throughout sure festivals, the corporate stated.
Income from operations, nonetheless, rose 14% to six.43 billion rupees as the corporate opened 36 new eating places throughout the quarter.
Globally, KFC and Pizza Hut-parent Yum Manufacturers is coping with slowing client footfall at a time when excessive inflation is sapping shoppers’ shopping for energy.
Shares of Sapphire, which additionally operates in Sri Lanka, fell as a lot as 8.8% after the outcomes versus a 1% rise within the Nifty Smallcap 100.
Final month, Domino’s India franchisee Jubilant FoodWorks reported a smaller-than-expected fall in quarterly earnings, primarily helped by its transfer to chop prices whilst analysts flagged demand issues.
The Yum Manufacturersfranchisee’s web revenue fell 43% to 153.4 million rupees ($1.84 million) for the quarter ended September 30.Analysts, on common, have been anticipating 181.9 million rupees, in response to LSEG knowledge.
Demand for pizzas has been sluggish over the previous few quarters, with main corporations pushing up costs in keeping with greater cheese and vegetable prices and as folks have been shunning pizzas for fried rooster and burgers.
Sapphire stated same-store gross sales at its Pizza Hut India eating places declined by 20% for the second quarter, blaming “robust macro circumstances and particularly excessive aggressive depth within the pizza class.”
Pizza Hut India contributes to roughly 1 / 4 of Sapphire’s total income.
The sharp decline has additionally compelled Sapphire to rethink its plans to open further Pizza Hut eating places.
“Within the medium time period, we shall be cautious with our restaurant growth plans whereas persevering with to work on enhancing model salience and product innovation,” Sapphire stated.
Similar-store gross sales at Sapphire-operated KFC eating places in India stayed flat as folks consumed much less meat throughout sure festivals, the corporate stated.
Income from operations, nonetheless, rose 14% to six.43 billion rupees as the corporate opened 36 new eating places throughout the quarter.
Globally, KFC and Pizza Hut-parent Yum Manufacturers is coping with slowing client footfall at a time when excessive inflation is sapping shoppers’ shopping for energy.
Shares of Sapphire, which additionally operates in Sri Lanka, fell as a lot as 8.8% after the outcomes versus a 1% rise within the Nifty Smallcap 100.
Final month, Domino’s India franchisee Jubilant FoodWorks reported a smaller-than-expected fall in quarterly earnings, primarily helped by its transfer to chop prices whilst analysts flagged demand issues.
