Daily Brief Indonesia: Fast Food Indonesia and more

• PT Fast Food Indonesia Tbk (FAST IJ) holds an entrenched leadership position in Indonesia’s quick-service restaurant (QSR) sector as the sole franchisee of KFC and Taco Bell, underpinned by strategic sponsorship from the Gelael family and the Salim Group.
• Financial performance exhibits early operational stabilization following severe margin erosion during 2023–2024 caused by raw material cost inflation and geopolitical consumer boycott headwinds, with annual revenue holding at IDR 4.88T in FY25 and Q1 2026 marking a brief inflection to positive net profitability.
• Balance sheet deleveraging, store network rationalization toward capital-efficient compact formats, and gross margin defense remain critical to restoring sustainable return on equity, as an elevated P/B multiple of 8.7x reflects a depleted equity base rather than premium fundamental earnings power.

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