INDIA – Burger King India Ltd has announced plans to open around 700 restaurants, including company outlets and sub franchise entities, by 31 December, 2026.
If successful, the expansion will be a great leap for a company which currently operates 268 stores in the country.
A huge chunk of the funds needed to support the fast-food restaurant chain’s ambitious expansion plans will be sourced from Burger King’s recently concluded IPO.
The IPO which concluded in early December this year saw the Burger Kind India raise over US$110 million.
According to Mint, the IPO was oversubscribed by more than 157 times with the portion reserved for retail investors being subscribed 68.79 times.
Mint further noted that the portion set aside for qualified institutional investors was subscribed 86.48 times and that of high net worth investors 357.45 times.
Being a highly sought-after stock, Burger King’s shares which were sold at a fixed price band of ₹59-60 a share have have since sky rocketed to the delight of shareholders.
Commenting on the company’s exemplary performance at India’s BSE (formerly Bombay Stock Exchange) Anand Rathi Research said that the, “valuation seems reasonable when compared to peers.”
Anand Rathi Research further notes that while the COVID-19 crisis has impacted short term growth, they were confident the Burger King remains well placed for long term growth given its strong brand position, diverse food offerings, and well-established supply chain.
The company is yet to report a net profit. However, it has been able to record decent gross margin, earnings before interest, taxes, depreciation and amortization and a positive operating cash flow prior to covid.
Burger King great IPO performance mirrors that of DoorDash, an American food delivery service launched in Palo Alto, California in 2012.
The company which is the largest food delivery business in the United States raised $3.4 billion, making it the one of the largest I.P.O.s of the year.
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