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Key Points

Barbeque Nation experienced a challenging quarter with a significant increase in net losses compared to the previous fiscal year. The company's revenue declined both sequentially and year-on-year, primarily attributed to weakness in the Indian business segment. Despite the financial challenges, Barbeque Nation maintained its expansion strategy by adding 18 new restaurants during the fiscal year. The stock market response was negative, with shares closing lower following the earnings announcement.

Key Points: Barbeque Nation Q4 Loss Widens Despite Steady Restaurant Expansion

  • Net loss jumps to Rs 20.61 crore from minimal loss in previous year
  • Revenue drops 2% year-on-year to Rs 292.7 crore
  • Company adds 18 new restaurants in FY25
  • EBITDA margin remains steady at 18.4%
2 min read

Barbeque Nation slips into wider net loss in Q4, revenue drops

Barbeque Nation reports substantial Q4 net loss, declining revenues, and challenges in India business while continuing restaurant network growth

"Performance marked a clear reversal from previous quarter's profitability - Barbeque Nation Financial Report"

Mumbai, May 22

Barbeque Nation on Thursday saw its net loss widening sharply in the fourth quarter (Q4) of FY25 -- slipping to Rs 20.61 crore, compared to a net loss of Rs 3.7 lakh in the same quarter last fiscal (Q4 FY24).

The performance marked a clear reversal from the previous quarter, when the company had posted a profit of Rs 5.05 crore.

The revenue from operations during the quarter stood at Rs 292.7 crore, down from Rs 328.89 crore in Q3 -- a sequential decline of 11.01 per cent.

On a year-on-year (YoY) basis, revenue also dipped by 2 per cent, from Rs 299 crore in Q4 FY24.

The management attributed the decline in revenue primarily to weakness in the India business.

Total income for the March quarter came in at Rs 296.1 crore, representing an 11.45 per cent fall from Rs 334.4 crore in the previous quarter (Q3).

Despite the weak topline, the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) remained steady at Rs 54 crore, marginally down from Rs 55 crore in the year-ago period.

The EBITDA margin was nearly unchanged at 18.4 per cent, compared to 18.5 per cent in Q4 FY24.

Same store sales, a key operational metric, declined by 2 per cent during the quarter, following a 1.4 per cent growth in the same quarter last financial year.

For the full financial year, the company narrowed its decline in same store sales to 3.8 per cent, an improvement over the 6.5 per cent fall reported in FY24.

Barbeque Nation added 18 new restaurants during FY25 as part of its expansion drive, according to its stock exchange filing.

As of March quarter, promoters held a 33 per cent stake in the company. Domestic mutual funds owned 17 per cent, while the Massachusetts Institute of Technology (MIT) held a 4.05 per cent stake.

Jubilant Foodworks also figured among the company’s key shareholders, with a holding of over 9 per cent.

Following the earnings announcement, shares of Barbeque Nation closed the intra-day session at Rs 317.95, down by Rs 12.15 or Rs 3.68 per cent on the National Stock Exchange (NSE).

- IANS

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Reader Comments

R
Rahul K.
Very disappointing numbers from Barbeque Nation. I've noticed their quality has gone down in recent visits - smaller portions, fewer options. Maybe that's why people aren't going as much. They need to focus on customer experience rather than just expanding outlets. 🍗
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Priya M.
The dining out market is getting very competitive with so many new options. Barbeque Nation was the pioneer but now needs to innovate. Their fixed price model worked when they were unique, but now people want variety. Still love their desserts though! 😋
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Amit S.
Interesting that they're expanding (18 new restaurants) while revenues are falling. Maybe they're betting on long-term growth? But with same store sales declining, this seems risky. Hope they've done proper market research before this expansion spree.
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Neha T.
The management needs to look beyond just expansion. In my city, their service has become very slow and the staff seems overworked. Maybe they should invest more in training and retaining good employees rather than just opening new outlets. Quality over quantity!
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Vikram J.
The EBITDA margin holding steady is the only silver lining here. Shows they have some cost control despite falling revenues. But with dining out becoming more expensive overall, they need to justify their pricing better to customers.
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Sanjay P.
Maybe it's time for Barbeque Nation to revisit their menu. The same old dishes for years now while competitors keep introducing new concepts. Indian customers today want novelty and Instagram-worthy experiences, not just unlimited food.

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