Bertrand Franchise 1Q26 Results: The King Delivers

Bertrand Franchise 2Q26 results showcased improved profitability driven by better-than-expected System-Wide-Sales (SWS) growth as the Group continues to benefit from activations and network-led growth within the Burger King France perimeter. A higher franchisee-operated mix and disciplined cost management also supported the sales development. Group SWS increased 3.8% y/y to €762m, while reported revenues declined 6.5% y/y to €221m, slightly missing our estimate of €224m. EBITDA of €75m was ahead of JPMe €72m, with the adjusted EBITDA margin expanding to 33.9% from 29.8% in 2Q25. Bertrand Casual Food SWS declined 0.9% y/y to €242m, reflecting active portfolio optimisation. The French QSR market remains characterised by headwinds including cautious consumers, food input inflation and dis-improving franchisee economics. At the current juncture we see the risk/return as balanced and retain a Neutral recommendation, supported by the resilience of the BKF business, stable net debt and availa