(Reuters) – Sapphire Foods India, which operates Pizza Hut and KFC restaurants in the country, reported a better-than-expected quarterly profit on Thursday, as its cheaper food items helped boost demand from budget-conscious consumers.
The restaurant operator posted a profit of 119.8 million rupees ($1.37 million) for the quarter ended December 31, up from a profit of 101.4 million rupees a year earlier.
Analysts, on average, had expected a profit of 116.8 million rupees, according to data compiled by LSEG.
Global fast-food chains, including McDonald’s and Pizza Hut, have been launching more affordable options in India over the last few quarters to attract consumers stretched thin due to the high cost of living.
During the quarter, which sees a number of festivals, KFC promoted its “epic savers” deal starting at 99 rupees ($1.13), while Pizza Hut offered a 50% discount on everything from pizzas to desserts.
Sapphire’s revenue climbed nearly 14% to 7.57 billion rupees in the quarter.
($1 = 87.5750 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Mrigank Dhaniwala and Eileen Soreng)
