Burger King IPO a top buy on attractive valuations, say analysts

MUMBAI: The initial public offering of Burger King India Ltd is set to open for subscription on Wednesday and analysts find the issue attractive. Despite the strict lockdown hitting restaurant sectors across the world, analysts feel that the growth prospect of Burger King India Ltd is strong. Besides, Burger King India’s flexibility in tailoring menu to Indian tastes, promotions and pricing offers, fixed royalty at 5%, cluster-based approach with faster scalability and operating leverage, high sales per square feet at ₹31,093 and higher average sales/capex at 1.87 times, strong consumer proposition as a value brand with premium imagery globally and targeting growing section of millennials are other positive factors for the company. As on 30 September, Burger King India had 261 restaurants, including eight sub-franchised Burger King Restaurants, across 17 states and union territories and 57 cities across India. It added that strong franchisee model, negative working capital, market share gains from standalone players, and strong store expansion plans will help Burger King India improve its growth prospects.