Macquarie retains Outperform on Sapphire Foods after Q1 EBITDA beat
Macquarie kept its Outperform rating on KFC and Pizza Hut operator Sapphire Foods, citing Q1 EBITDA 4% above its and Street estimates. It set a ₹200 target price, while flagging soft demand, delivery weakness and wage and energy-cost pressures.
Macquarie retained its Outperform rating on Sapphire Foods India, citing better-than-expected first-quarter EBITDA, healthy KFC margins, improving Pizza Hut dine-in trends and Sri Lanka sales growth, while flagging soft demand and delivery, wage and energy-cost pressures.
Why this matters
Sapphire Foods' Q1 EBITDA beat follows its return to profit, driven by ₹99 meals that lifted KFC and Pizza Hut demand. Macquarie's retained Outperform contrasts with caution on soft demand, delivery weakness and rising wage and energy costs.
Retail-company signals are accelerating, up +402100% QoQ.