Then why purchase it in the first place? And what stops a Malaysia etc. next…
No one knew about Indonesia until it happened
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Hi Sir , what are your views on promoter selling situation now ?
( As selling was not strategic )
and
when do you think situation will normalise in Indonesia ( due to Israel - Palestine war )
& breakeven of indonesia business ??
Its was pushed i to their throat by parent RBI, my way to look at it is, since RBI thinks management is good and has potential to turn india, give them indonesia too to make it turn around.
In fact they r doing pretty good job at that.
In terms of capital allocators, i think they r pretty much in good shape and Parent RBI is also known for good capital allocation
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Just wondering why Parent RBI did not give Popeyes to this entity RBA (where it hold some stake, if I am right - 15%*0.4)and gone had with Jubilant Foodworks though RBA have franchise for Popeyes in Indonesia. In past, if I remember correctly RBI had 40% of promoter company not sure what it is now after Everstone sell. Thanks!
avoid these meat franchises which have high cost structure. Rather look at Specialty Rest. Thye have a Indian brand management , lots of hit restaurants bars, cloud kitchen and amazing variety and quality and most importantly making profits despite heavy renovations in India and around the world. this one is a good one . they make profits and thats important. we have been sold the middle class scaling story because of Jubilant Domino success. cant be repeated for RBA … Go with quality and where the well to do dine and order in
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Looks like an interesting business.
India at 450 stores, going to 700 by FY27.
Assuming it’s done evenly= 18.8% growth coming from store addition.
Moreover, majority of the stores are laid out and hence they should start maturing which will lead to good SSSG growth. Taking 6-8% of SSSG, the India business will grow at 25-26% with interest costs and description increasing around 20%( SSSG allowing operating leverage) and SG&A expenses increasing moderately.
India business looks very promising, could surely achieve profitability in near time.
Indonesia business a bit worry, BK Indonesia won’t add any cafes and will consolidate the business, which is really good in the long term and is an example of strong capital allocation, however the headwinds are a worry. Don’t know how long will they stay
Popeyes too a bit disappointed. from ADS to 50 million to 40 to 23. Expected it to be a big growth drive with 2x ADS of BK but doesn’t seem like it.
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