The Quick Service Restaurant (QSR) sector has demonstrated a remarkable turnaround in Q1FY27, with earnings showing significant improvement after a prolonged weak phase. According to TheWrap reports, median sales growth improved from 7% in Q1FY26 to 16% in Q1FY27, while median operating profit growth rose to 24% from a 9% decline a year earlier. The most striking improvement was in net profit growth, which jumped to 74% from a 44% decline in Q1FY26. This recovery is being driven by better customer traffic and stronger demand for value offerings, with QSR chains focusing on affordable meals and promotions to bring customers back.
United Foodbrands delivered its strongest operating quarter in recent years with consolidated Same-Store Sales Growth (SSSG) of +28.7% in Q1FY27, marking a sharp recovery from negative SSSG of -3.4% in Q1FY26. The company operates 266 restaurants across its flagship Barbeque Nation, Toscano, and Dum Safar Biryani brands, with plans to expand to 300+ locations by FY27 and 400-425 by FY30. Consolidated operating revenue jumped 43.4% year-on-year to ₹425.9 crore, crossing the ₹400-crore threshold for the first time. Operating EBITDA rose 51.8% to ₹69.9 crore with margin expansion of 90 bps to 16.4%, while the company turned profitable with PAT of ₹2.3 crore versus a loss of ₹16.7 crore last year.
Restaurant Brands Asia achieved its 15-quarter peak with SSSG of 12.6% for Burger King India, driving standalone revenue up 23.6% year-on-year to ₹682.9 crore. The company operates 752 stores across India and Indonesia, with Burger King India accounting for 83% of revenue. Consolidated revenue surged 17.9% to ₹822.6 crore with EBITDA growing 43.5% to ₹108.4 crore and margin expansion of 240 bps to 13.2%. The turnaround is supported by value menus like Stunner Menu and Tasty Meal @ 99, with over 90% of orders now coming through digital channels in India.
Sapphire Foods India achieved its 11-quarter growth high with consolidated revenue of ₹888.2 crore, growing 15% year-on-year and marking the company's best revenue growth in 11 quarters. The omni-channel operator manages 1,074 restaurants across KFC, Pizza Hut, and Taco Bell brands, with SSSG turning positive across all key brands including KFC India (+5%), Pizza Hut India (+1%), and Sri Lanka Business (+9%). EBITDA rose 24% to ₹140.6 crore with margin expansion of 120 bps to 15.8%, turning profitable with ₹14 crore PAT versus a ₹2 crore loss in Q1FY26.
Spice Lounge Food Works announced the launch of its Food Emulsifier & Agro Division on September 1, 2026, targeting approximately ₹1,200 crore in revenue across food emulsifiers, agri-sourcing, and agro chemicals. The division focuses on backward integration for restaurant and QSR businesses while operating as an independent B2B supplier to hotels, QSR chains, and food processing units. The company is currently in advanced talks with global food emulsifier and agribusiness majors for strategic partnerships, with implementation activities including commissioning processing infrastructure and establishing farm-gate sourcing tie-ups.
