The quick service restaurant sector may see a slowdown in demand in the fourth quarter of fiscal 2025, but recovery is expected in the first half of fiscal 2026, according to Goldman Sachs.
Sapphire Foods India Ltd. and Devyani International Ltd.— both KFC franchisees — are among the brokerage's top picks due to long-term growth potential for KFC in India and limited competition in the fried chicken segment.
Goldman Sachs expects that most QSR companies will experience a slowdown in same-store sales growth in the fourth quarter of FY25.
The recently announced income tax cuts will benefit QSR companies by increasing disposable incomes and accelerating the recovery of the sector, according to Goldman Sachs.