Aditya Soman, Senior Research Analyst at CLSA, believes the worst is now behind the quick service restaurant (QSR) sector. This comes after several quarters in which QSR chains have fallen out of favour and delivered weak numbers, including in the most recent quarter.

Soman noted that QSR chains are now beginning to benefit from GST reductions on input costs, which should eventually support better pricing. Many players have also repaired ties with food aggregators, and a few, such as Jubilant FoodWorks have strengthened their own delivery platforms.

Despite these positives, CLSA remains cautious on the space. The firm’s only outperform call is on Restaurant Brands Asia (Burger King India), as competition from aggregators is still intense and profitability growth across the sector rem

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