$DEVYANI

Devyani International, the operator of KFC and Pizza Hut outlets in India, reported a nearly four-fold increase in its first-quarter profit on July 29, driven by stronger demand across its quick-service restaurant (QSR) chains. Following the earnings announcement, the company's shares surged 7% to Rs 121.6 apiece, their highest level in more than a month. The Yum Brands franchisee posted a consolidated net profit of Rs 14.6 crore for the quarter, up from Rs 3.7 crore in the same period last year. Revenue rose 16.5% year-on-year to Rs 1,581 crore, while total expenses increased 15.3%. To attract value-conscious consumers amid intensifying competition, major restaurant chains such as KFC and McDonald's have rolled out lower-priced menu offerings and promotional discounts. They are also facing growing competition from emerging food brands including California Burrito, Wow! Momo, and Blue Tokai Coffee. Meanwhile, standalone restaurants continue to struggle with rising cooking gas costs linked to geopolitical tensions involving the U.S., Israel, and Iran. In contrast, larger QSR operators have remained relatively insulated from these cost pressures, as they rely more extensively on electric kitchen equipment.