Barbeque-Nation Hospitality Q2 Results Review

Barbeque Nation Hospitality Ltd. has reported below-expected result for Q2 FY23. Revenue growth at 14% four-year compound annual growth rate is decent driven by recovery in dine-in business while delivery business growth momentum impacted due to product mix.

Revenue from dine-in (87% revenue contribution) grew 11% four-year CAGR while from delivery declined 23%YoY due to fall in average order value driven by higher offtake in A la carte (lower from BBQ Box).

Menu innovation (launch of combos) should help in reviving the delivery business (to reach Rs 220 crore run rate in FY24E).

Positively; Barbeque Nation launched biryani brand Dumsafar across 26 restaurants and is likely to scale-up to all India by FY23E. There is no change in near-term guidance.