Financial Insights

Burger King India: Strong recovery quarter; multiple growth levers

With sales crossing pre-COVID levels in October 2021, and malls and colleges reopening, BKIL’s performance is likely to improve.

A strong pick-up in the top line helped BKIL post double-digit EBITDA margin. With sales crossing pre-COVID levels in October 2021, and malls and colleges being opened up, BKIL’s performance is expected to improve. BKIL has the pan-India master franchisee rights till 2039 and plans to open 700 stores by December 2026, indicating about 20 percent CAGR in store expansion for the medium term.

BKIL is strengthening its digital capabilities (BK App has seen more than 1.5 million installations, contributing to an increase in revenue) and building own delivery capabilities (company has started buying scooters for delivery purposes). The company plans to venture into the café business, which will be an incremental growth opportunity, and it is margin-accretive as well.

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