The share price of this restaurant firm has zoomed 46% in just 6 days

Shares of Barbeque Nation Hospitality surged 9 per cent to Rs 1,782.55 on the BSE in the intra-day trade on Monday, and has gained a solid 46 per cent in just six trading days, after the firm reported strong September quarter earnings.

The stock was trading at its highest level since its market debut on April 7, 2021. With the past six days' rally, the stock has zoomed 257 per cent from its issue price of Rs 500 per share. In comparison, the S&P BSE Sensex was down 0.16 per cent at 59,970 points at 10:43 am in trade today.

Barbeque Nation is one of India’s leading food services company. It currently owns and operates 169 outlets across India and 3 other countries. The company pioneered the format of ‘over the table barbeque’ concept in Indian restaurants. With an expansive network and brand recognition, Barbeque Nation continues to be a staple in most metro and tier-1 and 2 cities. The company has a majority stake in ‘Red Apple Kitchen’, which operates 10 Italian cuisine restaurants under the popular brand “Toscano”

In July-September quarter (Q2FY22), Barbeque Nation reported a strong 190 per cent year-on-year (YoY) growth in revenue from operations of Rs 221 crore, as strong recovery in dine-in business with easing of restrictions and gradual reopening. Same store sales growth during the quarter was up 184 per cent, while delivery revenue increased by 219 per cent over Q2FY21.

The company’s reported earnings before interest, tax, depreciation and amortization (ebitda) jumped 568 per cent YoY at Rs 49.80 crore. It had posted loss of Rs 10.4 crore in June quarter. Ebitda margins improved to 22.6 per cent from 9.8 per cent in a year ago quarter. The company reported profit after tax (PAT) of Rs 3.3 crore against loss of Rs 36.5 crore in Q2FY21 and loss of Rs 43.9 crore in Q1FY22.

The management said with COVID cases receding and increasing vaccinated population in the country, the mobility has been improving post the second wave. There has been a gradual easing of COVID related restrictions which augurs well for the growth of the company’s dine-in business and this has led to a strong recovery during the quarter.

“Our diversification strategy continues to reap benefits with both delivery and dine-in businesses growing over the previous year. We continue to remain focused on our core business through our investments in network expansion and in our digital platform covering reservations, delivery and loyalty,” the management said.