Sapphire Foods CEO Sanjay Purohit said the company has observed a health recovery in dine-in sales owing to ease in covid-related restrictions, as delivery sales continued to accelerate.
KFC franchise operator in India, Sapphire Foods said on Wednesday that it expects to turn PAT positive in the third quarter and double its store count in the next three-four years. The company's CEO in a press statement to mark the 500th store opening said the company has seen a healthy recovery in dine-in sales alongside a continued acceleration in delivery sales.
He informed that the positive metrics translated into positive same-store sales growth in both October and November compared to the pre-covid calendar. The CEO added that its store expansion ambitions too have gathered pace. "This has resulted in robust SSSG (same-store sales growth) in Oct’21 & Nov’21 over the corresponding period in both FY21 and FY20 (pre-covid period). Allied with our increased pace of store expansion (13 Stores in Q1’FY22, 32 stores in Q2’FY22 and estimated 60 stores in Q3’FY22), system sales growth in Oct’21 & Nov’21 combined is 40%+ over FY 20 (pre covid period)," the company stated.
The company's stock closed 1.12 per cent higher at Rs 1,031 on the BSE and 1.19 per cent higher at Rs 1,032.50 on the NSE.
The KFC and Pizza Hut franchise operator in India debuted on bourses on November 18. It opened at a premium of 15.3 per cent on the BSE at Rs 1,360.75. On the NSE, it opened at Rs 1,368. The issue price set by the company stood at Rs 1,180.
Its IPO was entirely at an offer for sale (OFS) of approx 1.76 crore equity shares by promoters and existing shareholders. Its draft red herring prospectus (DRHP) informed Sapphire Foods Mauritius Ltd planned to disinvest 55.69 lakh equity shares, Amethyst 39.62 lakh equity shares, and QSR Management Trust plans to offload 8.50 lakh equity shares.
The company was set up in 2015 by acquiring about 250 KFC and Pizza Hut Stores in India and Sri Lanka by a group of private equity firms. Quoting an independent report, Sapphire mentions that it operates 204 KFC restaurants in India and Maldives, 231 Pizza Hut restaurants in India, Sri Lanka and the Maldives, 2 Taco Bell restaurants in Sri Lanka. It claims to be North American fast food company YUM's largest franchise operator in the Indian subcontinent in terms of revenue in FY2020 and 2021, quoting the same report.