QSR Sector Shows Recovery Signs, But Dine-in Demand Remains Weak: Elara Capital

• India's QSR sector is exhibiting early recovery, driven by improved SSSG, lower input costs, and industry consolidation.
• Elara Capital's Karan Taurani highlights positive SSSG in January as a key trigger, following several weak quarters.
• Delivery channels contribute significantly (45% of revenue for some QSRs) with 5-6% SSSG, while dine-in demand lags.
• Jubilant FoodWorks is well-positioned due to over 70% delivery contribution, while others face weaker SSSG and margins.
• Devyani International and Sapphire Foods merger is expected to yield 60-70 bps gross margin improvement through cost synergies.