Burger King's Indonesia Woes Weigh on Surging India Biz

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.

Looking ahead, RBA expects the India business to benefit from menu innovation and the upcoming winter holiday season. The management remains committed to its store expansion plans, aiming to add 60-80 stores annually. However, the company's consolidated profitability is not expected to break even until FY28, as the Indonesia business continues to struggle in a tough geopolitical and competitive landscape.