Burger King India (BURGERKING) reported a narrower loss for the quarter through September on Friday, following significantly higher sales during the period.
The operator of quick service restaurants (QSR) posted a loss of INR202.31m ($2.72m) for the three months to 30 September, against a loss of INR385.04m a year ago.
Revenues for the September quarter soared 153.7% year-on-year at INR2.45bn, per a 12 November statement and presentation to shareholders. The pandemic had a “significant impact on the business operations and (on) the financial results”, it noted.
Earlier today, stock in Burger King India finished 1.34% higher at INR162.8 on the National Stock Exchange (NSE), valuing the firm at around INR62.4bn. The company’s shares have dropped some 6% so far this year.
Analyst opinion
In a 3 November note to clients, analysts at Indian brokerage firm Ventura Securities said they were initiating coverage on Burger King India with a Buy recommendation for its stock. They also set an 18-24 month target price of INR252 per share.
Burger King India is “winning consumers by tailoring [its] offerings, pricings and promotions according to Indian tastes and preferences,” Ventura analysts wrote in the note.
Stores and cafes
“There is strong growth visibility on the cards as the company plans to roll out 700 stores by FY26 from its current count of 270 stores… The company is also in the process of acquiring an 85% stake in Burger King Indonesia which is valued at 12 times FY23 EV/EBITDA. 85% of [that] business is valued at $131.8m,” Ventura added.
Operations in western, southern and eastern India drove the sales recovery for the September quarter.
The quarter also saw the company open its first ‘BK Café’ in the country, in Mumbai. The BK Café format serves hot and cold coffee-based beverages and non-coffee shakes, in addition to savoury and sweet food.
The founders trimmed their stakes in the QSR player from 52.62% to 52.56% during the period under review, the second quarter of the ongoing Indian financial year that ends in March.
