The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Burger King IPO– Company is 2nd largest burger chain in India, started operation in 2014 and fastest international brand to have 200 QSR outlets in Inda
Plan is to target 700 outlets in next 5-6 years.
Offer purpose — Offer for sale (360cr) plus fresh issue of 450 cr. To open new stores and pay some part of loan
Key Service domains – 2nd largest burger chain after McDonald
Loss making company as of now. Loss of 119+ cr in six months of current FY21, loss of 76 cr in last year FY20
Offer on food tech apps may harm the business wrt competitors plus McDonald, Jubilant food will definitely try to defend the market share
Fast expansion may lead to more losses in coming years but its a double edged sword and can lead to gains as well
Post COVID –company will have lean structure and business should have good unit economics
Also because of urban developments and more money in hands to spend, culture of eating in QSR will support the company
Fast expansion can help the company in increasing mkt share
QSR is thriving industry and consumption food business will gain. QSR CAGR expected to grow >20% for next 4-5 yrs
Sustainability looks good, McDonald, Dominos, Subway, KFC have already survived and adapted
Loss making company and PE is negative
Last 3 Yr Revenue CAGR at 53.4%; Total Debt as of Sep 2020 at 195 Cr
As compared to peers , valuations are reasonable in terms of mcap/sales or mcap/ebitda
Should we apply?
People can subscribe looking at growth prospects
Listing day may see good gains. Recommended to hold long
If available on listing day around 50-70 Rs, one should add more from 3-5 yrs perspective for possibly good gains
UTI AMC IPO crisp Summary — Listing with loss as shared
CAMS IPO crisp summary — Listing with 20% gains as shared
Angel Broking IPO crisp summary –Listing with loss as shared
Happiest Minds IPO crisp summary –Listing with substantial gains as shared
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