yes correct loss making companies , have difficulty to get intrinsic value , I’ll wait and watch let’s see ,
RBA is struggling with its Popeyes business which is causing a drag on the whole company ofcourse along with all other challenges they are facing. However, unless it is able to turnaround Popeyes business which I do not see happening in the next 5 years atleast, I do not see much change in the bottomline. The only solutions is to sell off.
Sales has increased around 4-5% YOY in last 3 years, however its interest cost is rising by 10% YOY. Reserves worth 326 crs and annual loss around 225 crs…That itself sums up the future of Burger King.
Have 0.33% exposure in the company, have no intentions to increase it further until they reduce the loss by 50% which I am sure will take another 3-4 years atleast.
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Market very unlikely to rerate till they exit Indonesia business even though they are reporting relatively good numbers in India compared to peers. Also, as they will keep opening new stores (70/80 per year) till FY29, expenses will also keep raising and don’t see any significant improvement in the bottom line.
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Here are some anecdotal and personal observations on why I am bearish on burger as a full meal options (breakfast/lunch/dinner) in India -
- Low shareability factor
Indian eating culture often favors dishes (outside of snacks) that can be shared within groups, partly maybe it feels more economical. Larger Western QSR formats that perform well in India - like pizza chains or KFC buckets - serves food that is sharable making it more appealing to group consumers. Burgers, being single-unit items, must be purchased individually for each person, which may reduce their appeal in family or friend dining settings. - Low perceived value-for-money
I think Indians subconsciously associate quantity or “how much plate is covered” with how “filling” a meal (not including snacks here) feels. Burgers visually appear small compared to its mainstream meal substitutes. This may reduce the perceived value of burgers in value conscious buyers. - Awkward eating experience for some consumers
Burgers require holding a stacked, often messy item with both hands - an eating style unfamiliar to a large segment of Indians who didn’t grow up with it. Sandwiches are the closest analogue, but they’re typically thinner, neater, and often cut into halves, making them feel less intimidating.
Of course the rising younger urban demographic can counter all these observations.
Again, these points are purely anecdotal and oversimplified/over generalized observations, not data-backed conclusions. Please treat them accordingly.
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More Equity dilution is on the way. Don’t know, why market is reacting postive to it!!
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Why would they need more money is the question. They are not aggressively opening new stores. They just raised 500cr last March.
As I understand, fund raising and ‘promoter exit’ are two different things. The official release itself is very vague but does state that its a fund raise. The “If” a new promoter comes and “if” RBA exits Indonesia is really a Big If.
Disc.: Invested (as of writing this). Not a recommendation. DYOR.
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Invested recently and biased. watching closely.
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Finally, the exit we’ve been waiting for is here. Everstone are completely exiting the business. The new control passes to the Agrawal Family (Promoters of Ajanta Pharma & founders of Chinese Wok).
The Deal :
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Entry Price: ₹70/share - at a premium to current price.
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The Check: ~₹1,500 Cr fresh capital injection (Shares + Warrants).
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The Structure: Significant primary infusion. Yes, there is dilution (~36%), but the balance sheet is now strengthened a lot!
My Take: The biggest overhang on the stock - the constant supply from the PE exit is finally gone. We are swapping a PE “Seller” for a promoter with a proven track record in QSR (scaling Chinese Wok to 200+ stores). The warrant structure (25% upfront) aligns their interests perfectly with minority shareholders to drive the price well above ₹70
Disc: Invested and biased
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Hi All,
Guys any idea for applying for the open offer as a shareholder, how to apply any idea through the brokers?
you have to apply through brokers , notification will come to you after regulatory approvals it takes some time.
Good write up on RBA & Devyani - The Great QSR Consolidation: Arbitrage Opportunity.
Holding and biased. This deal give me some sort of confidence to remain invested in burger king.
Announcement under Regulation 30 (LODR)-Press Release / Media Release
4h - Q3 FY26 revenue Rs5,773mn (+16.5%), EBITDA Rs953mn (+20.9%), 44 restaurants added, SSS +4.5%.
Holding and biased. This deal give me some sort of confidence to remain invested in burger king.
burger king.pdf (4.9 MB) latest results.
India’s strength is now strong enough to:
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Absorb Indonesia losses
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Drive consolidated profitability higher
That’s a big structural positive.
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Do people see any arbitrage opportunity here considering cmp is still ay 63.3 vs open offer price of 70rs?
Risk is proportional acceptance but in any case I dont see any further downside considering current valuations.
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