Burger King India IPO: Here’s All You Need To Know

Burger King India Ltd. will launch its three-day initial public offering on Wednesday, eight months after the domestic unit of the U.S.-based quick service restaurant chain put the plan on hold as the Covid-19 outbreak roiled markets.

Watch BloombergQuint’s conversation with Burger King India management’s before the IPO launch:

Business

Burger King India is the national master franchisee of the Burger King brand in the country. It has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India. Its master franchisee arrangement provides the company with the ability to use Burger King’s globally recognised name to grow its business in India, while leveraging the technical, marketing and operational expertise associated with the global brand.

Burger King is the second-largest fast food burger brand globally as measured by the total number of restaurants. It has a global network of 18,675 restaurants in more than 100 countries and the U.S. territories as on Sept. 30.

Financials

Peer Comparison

In the Indian QSR segment, Burger King competes with McDonalds, operated by listed Westlife Development Ltd. in the western and southern regions, and Domino’s Pizza, operated by listed Jubilant Foodworks Ltd. Among non-listed peers are KFC, Subway and Pizza Hut, besides local restaurants in the segment.

Key Risks

• The outbreak of the Covid-19 pandemic
• Real and perceived health concerns arising from food-borne illnesses, health epidemics, food quality, allergic reactions or other negative food-related incidents
• The termination of master franchise and development agreement
• Demand for products may decrease due to changes in consumer preferences and food habits
• Business depends in part on the continued international success and reputation of the Burger King brand globally, and any negative impact on the brand may have an adverse impact
• Deterioration in the performance of, or its relationships with, third-party delivery aggregators
• Inability to identify suitable locations and successfully develop and roll out new restaurants, and expand into new regions and markets