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Burger King shares jump 265% in 4 days; now valued more than McDonald's franchise Westlife

Burger King really turned out to be a multibagger in a short period of time.

December 17, 2020 / 15:51 IST
     
     
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    Since its listing, stock of quick services restaurant chain Burger King India has been on buyers' radar hitting the upper circuit for the fourth straight day on December 17. The company has now surpassed the market capitalisation of its peer Westlife Development.

    It surged 20 percent from its pre-opening price on Monday, though gained 131 percent over its issue price of Rs 60 per share. In the following days, it gained 20 percent each on Tuesday and Wednesday, and 10 percent on Thursday.

    In case, the stock consistently hits upper or lower circuit, the exchanges generally revise circuit limits for stocks.

    In total, the stock rallied 265.3 percent in four sessions to trade at Rs 219.15 compared to its issue price of Rs 60 per share, thus making it a multi-bagger in a short period of time.

    It has hit a market capitalisation of Rs 8,363.96 crore, which is higher than its closest peer Westlife Development's Rs 7,229.96 crore.

    Westlife traded at Rs 464.25 on the BSE, down 1.12 percent at 12:48 hours ISt.

    Burger King India has national master franchisee of the BURGER KING brand which founded in 1995 in the United States and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc. Company has opened 268 restaurants in last five years of journey, of which 259 are owned Burger King Restaurants and nine sub-franchised Burger King restaurants.

    The company has a target to increase its restaurants count to 700 by the end of 2026.

    Westlife Development focuses on establishing and operating McDonald's restaurants across West and South India, through its wholly-owned subsidiary Hardcastle Restaurants which operates 319 McDonald's restaurants in India.

    As per the financial year ended March 2020, Burger King reported a loss of Rs 76.6 crore on revenue of Rs 841.2 crore, but Westlife Development had a profit at Rs 36.6 crore on revenue of Rs 1,547.8 crore.

    At operating level, Burger King's earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 103.9 crore with margin at 12.4 percent, while Westlife had an EBITDA at Rs 144 crore with margin at 9.7 percent for FY20.

    Westlife's same-store revenue growth strengthened 4.0 percent during the year FY20, whereas Burger King's same-store sales growth declined by 0.30 percent in same year.

    Moneycontrol News
    first published: Dec 17, 2020 02:47 pm

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