The share price of Barbeque-Nation Hospitality Ltd. has increased by 95.91% in last three months, while the benchmark index S&P BSE Sensex has increased by 10.88%.
The stock has been rallying since the company announced its financial results for the quarter ended June 30, 2021 on Tuesday.
During the quarter ended June 2021, the company’s revenue from operations increased 939% year on year (YoY) to Rs 102 crore (Q1FY22). It reported a 960% growth in same-store sales.
Delivery revenue increased 1,251% year on year to Rs 56 crore in Q1FY21. According to the company, consolidated sales recovered by 48% in Q1FY22 compared to the same period in FY20.
It reported an EBITDA loss of Rs 10 crore, owing primarily to the second wave of pandemic lockdowns and resulting restrictions.
In July 2021, the company reported a strong recovery in sales of 86% when compared to the same month the previous year.
Last year, the company’s operations were hampered by pandemic-caused lockdowns. To overcome the challenges, the company has implemented a number of initiatives, including cost optimization, a focus on delivery business, and an update to their BBQ App.
Despite the second wave of the pandemic and the resulting lockdowns and restrictions on dine-in businesses, management stated that the company delivered a strong performance in Q1FY22. While this quarter was similar to Q1FY21, the company was better prepared, and the diversification strategy helped to mitigate the revenue decline. The company has transformed Barbeque Nation from a casual dining restaurant chain to a diversified food services company by focusing on developing digital assets and building a strong delivery business.
The company has resumed its focus on network expansion, opening two Barbeque Nation restaurants in the first quarter and having a strong pipeline of restaurants under construction. In July, the company launched four extension kitchens as part of its strategy to expand the delivery segment, increasing points of sale and catering to a larger customer base.
Barbeque Nation, which was founded in 2006, is one of India’s leading food service companies. It currently owns and operates 166 stores in India and three other countries. In Indian restaurants, the Company pioneered the format of ‘over the table barbeque.’
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