Burger King (India) Limited

IPO Size

`400 Cr

Price Band

NA

Minimum Lot Size

NA

Face Value

`10 Per Share

Employee Discount

NA

Retail Allocation

10%

Issue Open Date

NA

Issue Close Date

NA

Listing Date

NA

About the Company:

Burger King is one of the fastest growing international QSR chains in India during the first five years of their operations based on number of restaurants. As the national master franchisee of the BURGER KING brand in India have exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India.

The globally recognized Burger King brand, also known as the “HOME OF THE WHOPPER”, was founded in 1954 in the United States and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc., which holds a portfolio of fast food brands that are recognized around the world that include the BURGER KING, POPEYES and TIM HORTONS brands. The Burger King brand is the second largest fast food burger brand globally as measured by the total number of restaurants, with a global network of over 18,000 restaurants in more than 100 countries and U.S. territories as at June 30, 2019.

Since opening their first restaurant in November 2014, they have used their well-defined restaurant roll out and development process with the aim of growing quickly, consistently and efficiently into a pan-India QSR chain and capitalizing on the growing market opportunity in India for QSR restaurants.

As at June 30, 2019, they had 202 restaurants, including seven Sub-Franchised Burger King Restaurants, across 16 states and union territories and 47 cities across India.


Business Strength:

  • Exclusive national master franchise rights in India,
  • Strong customer proposition,
  • Brand positioned for millennials 109,
  • Vertically managed and scalable supply chain,
  • Operational quality, a people-centric operating culture and effective technology systems,
  • Well defined restaurant roll out and development process, and
  • Experienced, passionate and professional management team

Business Strategy:

  • Continued expansion of network,
  • Enhance brand value, productivity and operational efficiencies,
  • Enhancing the value of company’s asset portfolio through an efficient capital structure.

Financial Statement:
KEY FINANCIALS in cr

 

FY2017

FY2018

FY2019

H1FY20

Total Revenue

234.10

388.70

644.10

214.30

Total Expenses

306.00

471.00

682.40

216.00

Income

-71.8

-81.4

-38.6

-2.1

Net Margin (%)

-30.7

-20.9

-6.0

-1.0

Company had total cash outflows for leases of INR 187.23 million, INR 639.30 million, INR 484.30 million, INR 352.04 million in three months period ended June 30, 2019 and for the years ended March 31, 2019, March 31, 2018 and March 31, 2017 respectively.

The Company also had non-cash additions to Rights-of-use assets of INR 412.63 million, INR 1,286.12 million, INR 952.39 million and INR 1,151.25 million in three months period ended June 30, 2019 and for the years ended March 31, 2019, March 31, 2018 and March 31, 2017 respectively.

Company also had non-cash additions to lease liabilities of INR 376.52 million, INR 1,217.25 million, INR 908.16 million and INR 1,107.09 million in three months period ended June 30, 2019 and for the years ended March 31, 2019, March 31, 2018 and March 31, 2017 respectively.

Peer Comparison:

Name of the Company

Face Value (Rs.)

Total Income (Rs.in Mn.)

NAV (per share)

P/E

RoNW (%)

Burger King

10.00

6441.30

9.42

NA

-15.33

Jubilant Foodworks

10.00

36,105.08

95.45

65.02

25.39

Westlife Development

2.00

14,176.74

37.47

134.67

6.91

Promoter of the Company

The Promoters of the company is QSR Asia Pte. Ltd. collectively holds 264,999,999 Equity Shares respectively which constitute 99.39% of Company’s paid-up Equity Share capital.

Objectives of the Issue

Offer for Sale

Up to 60,000,000 Equity Shares

Fresh Issue

Rs. 4,000 million