cc: @Vineet_Bhatia , @Sridharj
Good to see RBA delivering +3% SSSG
- Inspite of industry reporting a negative 6% SSSG
- Opening 60 stores in corresponding quarter last year
Transcript:
Is SSSG up due to the BK Cafe’s being added to existing stores?
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Right now the number of BK cafes are around 351 and are doing ADS of 14K-15K which is 12 - 12.5% of BK store and most of them have been opened in the last 2 years. I feel the overall contribution from BK cafe is still less. Bulk of this SSG has come from BK store only.
Also gross margins in cafe is in north of +70-75% and management claims to double the ADS from the current 14-15K to 30K. Till now the execution of the management is good.
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Burger King Trademark .pdf (236.8 KB)
A very famous Burger Joint in Pune had named themselves Burger King operating since 1994.
In the year 2011, Burger King in the US filed a Suit against them for Trademark Infringement.
Yesterday, the Pune Court ruled in favour of Burger King Pune.
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only concirn is cash breakeven in indonesia - they have piled up debt due top indonesia now
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What are the triggers that will help in Debt Reduction? And do you think they are working towards those?
| Same Store Sales Growth YoY% | |
|---|---|
| SAPPHIRE | -6% |
| RBA | 3% |
| DEVYANI | -7.8% |
| WESTLIFE | -6.7% |
| JUBILANT | -2% |
RBA is showing strength when comes to SSSG in the whole QSR space in India
The only concern that stands out as of today is the traction of business in Indoneasia and there plans to breakeven on cash level,EBITDA levels of indian entity seems like to be on a sustainable yet growing level managed by higher ADS due to value combos and intitaves like BK cafe.
Its imp to keep an eye on the Indoeasian business for next couple of quarters once the geopol issues gets subdued and the new menu and marketing+tech intiatives plays out well for the company.
On the technical side as well the peers or the QSR space have started to show some sort of strength that might coincide with the decent Quarterly results in the upcoming quarters and might lead to price xpansion
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Is this SSSG is for full FY24 or Q1FY25 alone?
This is for the Latest Quarter Fillings
Although the figures mimic the same story for last 1-2 quarters
Hey
Can anyone please help me understand why does burger king has so much of depreciation expense.
I observed they are generating positive operating cash flows but due to depreciation cost they are showing are loss ar bottom line.
They have 2300cr fixed assets and depreciation is around 350cr
Where as jubilant has around 6,000cr fixed assets and their depreciation is almost half than burger king
Can anyone please explain this ?
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Newer assets and contionous new stores opening up is the reason for higher depriciation.
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Yeah I get that but
Considering the amount written off in P&l is way too high.
They have assets of 2300cr only and dep is 350 cr.
Where as jubilant has 6000cr of assets and dep exp is only around 170-200cr.
Compare it with other QSRs also its way too high!!
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Jubiliant depreciation was 180-odd Crores for the last quarter, not for the entire year…
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Since last posting key things have happened in this counter
One fund keeps buying shares from market - my market chatter group says - its being fronted for some one.
And further loans have been extended towards indonesia.
They continue to keep feeding the monkey on their shoulders.
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what does this mean, can you pls elaborate?
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Any news, other than results, which is causing this free fall in the stock price?
I mean based on the results season, management commentaries and growth outlooks of the Companies, all of us were expecting a subdued performance from RBA, in fact there were a couple of positives in increased GM% (India), better ADS (Indonesia), which were positive surprises for me.
It is becoming a long wait now for the expectation of revival in consumer sentiment and turnaround in the Indonesian business. I am feeling the pinch of opportunity cost now after holding this for more than 18 months.
Any thoughts and thesis/ anti-thesis are more than welcomed!
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Me too, prima-face this stock gives u indications, that it may blast at anytime, given the giant in qsr business is quoting at less than 5k cr market cap.
But that never happens.
Wait has been truly long.
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Entire sector going through headwinds… relatively BK results are much better compared to Sapphire and Westlife.