Tuesday, January 31, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Stocks

Burger King’s appetizing guidance may support stock valuations

MtR by MtR
June 7, 2021
in Stocks
0
Burger King’s appetizing guidance may support stock valuations


Shares of Burger King India Ltd have increased by around 160% so far compared to its issue price of ₹60 apiece. Of course, most of this appreciation is owing to the gains seen on 14 December 2020, the day the shares were listed on the stock exchanges. As such, the increase in the share price vis-à-vis the closing price on listing day is relatively modest at around 15%.

Now, while the company’s March quarter results are not particularly inspiring, analysts are upbeat on growth prospects.

“We are increasing our DCF (discounted cash flow)-based target price to ₹250 ( ₹221 earlier) as we factor in 1) BK Café launch by January ’22 (75 cafés by FY23), 2) superior margin delivery and upgraded guidance, 3) success of BK app (200% growth) and 4) sustained innovations with the launch of the Stunner menu at price points of ₹50 and ₹70,” wrote analysts from Prabhudas Lilladher Pvt. Ltd in their March quarter results update.

Slow recovery

View Full Image

Slow recovery

The company is now looking at clocking a gross margin of 66% in FY22 and 68% in FY24.

For perspective: gross margin in FY21 stood at 64.5%. Burger King plans to increase its store count to 470 in FY24 from 320 in FY22. As on 31 March, the company had 265 stores.

Furthermore, from a same store sales growth (SSSG) point of view, Burger King is looking at a flat performance in FY22 vis-à-vis FY20. This is encouraging considering that the current June quarter is set to be a washout owing to the pandemic-led lockdowns.

“This implies that delivery sales are ramping up fast even when dine-in is struggling and enhances confidence on Burger King achieving average revenue per store higher than pre-pandemic levels in a more normalized environment,” said analysts from JM Financial Institutional Securities Ltd in a report on 27 May.

Coming to the March quarter, Burger King’s revenues have increased by 2.6% year-on-year to ₹196 crore. Sequentially, revenues have grown by 20%.

Even so, Burger King has underperformed Westlife Development Ltd (which runs McDonald’s in west and south India) on the SSSG front during the March quarter. The measure declined by 4.9% for Burger King, whereas Westlife saw 10.5% growth. This can be attributed to Burger King’s higher salience in shopping malls and a larger presence in the north, which was impacted owing to farmer protests.

What augurs well is that Burger King has managed to improve its gross margin by 170 basis points sequentially to 65.6% in Q4.

Going ahead, investors would track progress on the guidance. Although, the meaningful appreciation in the stock suggests that a good portion of the optimism is baked into the price. “(We) find current valuations expensive. Would await a better entry point,” said JM Financial’s analysts. On Friday, Burger King’s stock closed at ₹156.65 per share on the NSE.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!



Source link

Related articles

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings – The Wall Street Journal

August 9, 2022

S&P 500, Nasdaq futures fall on Tuesday as chip stocks decline

August 9, 2022

Related Posts

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings – The Wall Street Journal

by MtR
August 9, 2022
0

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings  The Wall Street Journal Source link

S&P 500, Nasdaq futures fall on Tuesday as chip stocks decline

by MtR
August 9, 2022
0

Traders on the floor of the NYSE, August 1, 2022.Source: NYSES&P 500 futures fell on Tuesday after another chipmaker warned...

Alibaba gets Hong Kong’s approval for a primary stock listing

by MtR
August 9, 2022
0

A filing Monday showed Chinese internet tech giant Alibaba is another step closer to letting mainland Chinese investors trade its...

Jim Cramer says these 7 Covid-era winning stocks have staying power

by MtR
August 9, 2022
0

CNBC's Jim Cramer on Monday offered investors a list of stocks that saw huge gains during the height of the...

US stocks tick lower as traders assess outlook for rate rises

by MtR
August 8, 2022
0

Wall Street stocks ticked lower on Monday, adding to losses in the previous session when a hot US jobs report...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Industrial Lubricants Market to Reach $71 Billion by 2027.

August 10, 2022

Recent News

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter