Last updated: Sep 15, 2023 1:17 PM IST
Shares of Restaurant Brands Asia (formerly Burger King India) rose 13 percent on the NSE to hit a 52-week high of Rs 135.40 in Friday’s intraday trade after over 25 percent of its total share capital floated on the stock exchange changed hands. The stock surpassed the previous high of Rs 134 on October 4, 2022.
CNBC-TV18 reported, citing sources, that Everstone, the company’s promoter, was likely the seller in this transaction.
As of the June quarter, Everstone had a 25 percent stake in the company.
The company’s net loss had widened to Rs 50.5 crore in the June quarter, compared to Rs 47.5 crore in the same period last year, driven by rising raw material costs for Burger King’s Indian operations and high expenditure on more shops.
However, revenue rose 25 percent year-on-year to Rs 611 crore, compared to Rs 489.2 crore in the same quarter of the previous fiscal. Management also maintains same store sales growth expectations (SSSG) of 10 percent for FY24 and 8 percent for FY25.
Restaurant Brands Asia is one of the fastest growing international Quick Service Restaurant (QSR) chains in India during the first five years of its operations, based on the number of restaurants.
As the national master franchisee of the BURGER KING brand in India, it has the exclusive rights to develop, establish, operate and franchise BURGER KING branded restaurants in India.
Brokerage ShareKhan sees favorable risk-reward for the stock, largely supported by expectations of breakeven for its Indonesian operations in fiscal 2024.
“Popeyes will lead growth in the medium term, along with consistent improvement in civilian activities in the Indonesian market,” said the brokerage firm, which has issued a ‘buy’ call on the shares.
Prabhudas Lilladher believes that Restaurant Brands Asia continues to move towards profitability in India, with domestic business parameters improving in terms of average dollar sales (ADS), gross margins and profitability. The brokerage also believes that corporate restructuring in Indonesia is showing initial gains, with cash breakeven expected by FY24.
Prabhudas Lilladher has made a ‘cumulative’ offer for the shares, with a target price of Rs 142.
Disclaimer:Disclaimer: The views and investment tips expressed by experts in this News18.com report are their own and not of the website or its management. Users are advised to contact certified experts before making any investment decisions.
