The key factor is the execution on critical aspects – portfolio, price-value equation, omni-channel presence and unit economics. In this report, we highlight Sapphire’s improved performance on key metrics over larger time frame (FY19-23), rather than looking at quarterly picture. In PH, while it doesn’t have rights for delivery stores, the CAGR for store count and SSSG/ADS CAGR is not materially different vs Devyani. Another key highlight is the delivery on profitability which has been much better, visible from substantial reduction in gap in restaurant operating margins (ROM) vs Devyani over last five years for both the formats. In fact in FY23, despite inflation, Sapphire has seen expansion in adj ROM for both KFC/PH vs compression in Devyani.

Source: The Hindu June 27, 2023 02:42 UTC