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Burger King's Indonesia Woes Weigh on Surging India Biz
16 Nov
Summary
- Burger King's Indonesia business a persistent drag, with losses over ₹40 crore
- India business growing, but delivery channel drags profitability
- Consolidated losses above ₹60 crore, breakeven not expected until FY28
As of November 16, 2025, Burger King's parent company, Restaurant Brands Asia (RBA), is facing a conundrum. While the company's Burger King chain in India has been rapidly expanding, with plans to reach 800 stores by FY29, the stock price has been stuck in a deep freeze, correcting by over 40% since September 2024.
The primary reason for this disconnect is the persistent drag from RBA's Indonesia business. In the latest reported quarter, the Indonesia segment reported a loss of ₹43 crore, with the overall consolidated loss standing above ₹60 crore. This is despite the company's efforts to rationalize underperforming stores in the region.
On the positive side, the India business has been performing well, with revenue growing 16% year-on-year in the September quarter, driven by store expansion. However, the delivery channel has been a drag on profitability, with delivery revenues growing 16% while profits grew by just 1%. The company is working to improve delivery efficiency and push for higher dine-in traffic through value offers.
