Barbeque-Nation Hospitality, which runs a popular all-you-can-eat restaurant chain of the same name, did something seemingly innocuous last week. 

Its shares started trading under a new moniker, United Foodbrands. Sure, Barbeque Nation is still its flagship brand, but the company has two other dine-in chains and three delivery brands, so it’s understandable why it chose a new avatar. 

But there was possibly another reason. Frustrated by its poor showing for a while now, investors have been beating down United Foodbrands. 

In five of the eight quarters up to June, its revenue fell from the previous year. In the other three, growth was anaemic. The company, worth almost Rs 6,400 crore ($728 million) months after its listing in 2021, now has a market value of Rs 830 crore. This year alone, the stock has tanked 50% and hit new lows last week. 

The source of investors’ ire is also the company’s claim to fame. Barbeque Nation—which allows customers to grill mostly cooked appetisers at their table, in addition to a buffet—hasn’t been able to catch a break lately. Its same-store sales in India in the June quarter of 2024 were down 9% year-on-year. In the three months to June this year, sales fell another 5%.

Investors and analysts didn’t pull their punches on the earnings call in August. One called the decline “alarming”. Another wondered if the business model was sustainable. A third asked if there was a problem with Barbeque Nation’s product-market fit.

The gloominess is warranted, for Barbeque Nation’s India business was responsible for 80% of its Rs 1,230 crore top line in FY25. It’s true that for much of the past couple of years, most companies counting on customers’ discretionary spending have struggled, and fast-food majors such as Domino’s franchisee Jubilant Foodworks weren’t spared, either. 

But, as an analyst pointed out on the earnings call, fast-food chains started showing signs of stress later than United Foodbrands, and they have since rebounded. However, Barbeque Nation’s woes continue to pile up. 

A quarter of its over 190 restaurants are in south India, and the company has said stores dependent on information-technology companies—which are grappling with the impact of artificial intelligence on their footfall—are affected.