Fast food gets a lot slower: Downgrades to bite quick-service restaurants

On their Q3 menu: They weren't able to absorb demand slowdown, cost pressures

After a muted performance in the October-December quarter (third quarter, or Q3) of 2022-23 (FY23), quick-service restaurants (QSR) are expected to have a bumpy ride in the near term, given softening demand outlook and margin headwinds. Most brokerages have revised their operating profit and earnings estimates for FY23 through 2024-25 (FY25) by up to 20 per cent.

The near-term overhang for the sector is on account of lower-than-expected operating metrics in Q3FY23.

The like-for-like (LFL) or same-store sales growth for the country’s largest listed QSR company, Jubilant FoodWorks (Jubilant), holding the master franchise rights for Domino’s Pizza, Dunkin’ Donuts, and