Burger King, a well-known US fast-food chain, entered the Indian market in November 2014, catering to the diverse Indian palate. Burger King India offers localised menus and affordable indulgence, gaining popularity in the competitive Indian fast-food landscape.
It was one of the last big burger chains to enter the country when the US brand opened its first outlet at Select Citywalk Mall in South Delhi. Burger King India is known for its flame-grilled burgers, extensive menu options, and iconic Whopper sandwich.
In this article, we will look at Burger King India’s ownership, business model, market share and how to invest in Burger King India shares.
Burger King India Company History
Burger King made its foray into the Indian market in 2014, marking the beginning of its fascinating journey in the country. Since then, it has rapidly expanded its presence, capturing the taste buds of Indian consumers with its diverse menu offerings and signature flame-grilled burgers. With a focus on customisation and localised flavours, Burger King India has carved a niche for itself in the competitive fast-food industry.
The company has focused on establishing a robust supply chain, forging partnerships with local suppliers, and maintaining stringent quality control measures to ensure consistency across its outlets.
Ownership of Burger King in India
Burger King India is owned by Restaurant Brands Asia (RBA), a leading quick-service restaurant company. RBA holds the master franchise rights for Burger King in the Asia Pacific region, including India. This ownership structure enables Burger King India to leverage RBA’s global brand recognition and industry expertise.
Everstone Capital owns a 40.9% stake in RBA and is reportedly in final talks to offload it, and its bankers have shortlisted candidates for the same. A private equity consortium of Advent International and General Atlantic is reportedly the fruntrunner to buy the stake after Jubilant FoodWorks, the operator of Domino's Pizza in India, categorically refuted media reports that the company was looking to acquire a stake in the Burger King India franchisee.
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Is Burger King Listed on the NSE?
Since Burger King India is a brand, it is listed on the National Stock Exchange (NSE) through its parent Restaurant Brands Asia, which trades under the stock symbol RBA on the NSE.
When Was Burger King’s IPO?
Burger King India’s initial public offering (IPO) took place in December 2020. This IPO attracted significant investor interest, reflecting strong confidence in the company’s growth potential. Following the IPO, Burger King’s shares were listed on both the NSE and the Bombay Stock Exchange (BSE), providing investors with ample opportunities to participate in the company’s journey.
Burger King India’s share price zoomed on listing day, earning investors a premium of upto 92% on their listing price. The stock opened at ₹115.35, against issue price of ₹60 on the BSE, while on the National Stock Exchange, shares made a debut at ₹112.50, an 87.50% premium. In total, Burger King India raised ₹810 crore via its IPO.
Can You Buy Stock in Burger King India?
Since they are listed under RBA in on the NSE and BSE, you can buy Burger King shares in India the same way as any other stock. You can check Burger King share price in India using the websites of the stock exchange or any platform that provides financial data.
Here are the steps to buy Burger King India shares.
- Open a Demat Account: The first thing you need to do to buy Burger King shares in India is to open a Demat account. This is an account that holds all the shares that you buy from the stock market. You can open a Demat account with any depository participants (DPs) like banks, brokers, or online trading platforms.
- Open a Trading Account: This is an account that is used to place orders on the stock exchange. It’s usually opened with the same organization where you have your Demat account.
- Deposit Funds: Deposit funds into your trading account through internet banking, UPI or by depositing a cheque.
- Place an Order: You can place an order for Burger King India shares using your trading account. You will need to search for Burger King India’s stock symbol, which is RBA, on the trading platform.
- Settlement: Once your order is executed, the shares will be transferred to your Demat account. The process is usually automatic and happens two days after the trade (T+2).
Continue to monitor the Burger King share price on the stock exchange and you can then sell your Burger King India shares when you see fit.
Burger King India Share Price Analysis and Forecast
Analyzing Burger King’s share price is essential for understanding its market performance. You can make an informed decision by monitoring historical trends, considering financial reports, and staying abreast of industry developments regarding the stock.
Here is a breakdown of Burger King India’s most recent performance:
|Mar quarter 2023
|Dec quarter 2022
|Sept quarter 2022
|Jun quarter 2022
|March quarter 2022
|Operating Profit Margin %
Will Burger King’s Share Price Increase?
Burger King India’s share price was trading at around ₹118.25 apiece on the stock exchange, as of August 4. Burger King India’s price-to-earnings ratio stands at is -26.09, which lower than its sector PE ratio of 61.99. However, a negative ratio indicates that the firm is loss-making and may not deliver returns unless it turns a profit.
Burger King India has a price-to-book ratio of 6.82, which means that its market value is about five times the value of Restaurant Brands Asia’s net assets.
Analysts hold a steady view of Burger King’s share price in India. While Burger King shares have already crossed the price target set by one of the analysts covering the stock, there is still some upside according to another broekrage. Here are the latest analyst calls on the stock:
What Is Burger King’s Market Share in India?
Burger King has experienced substantial growth in the Indian fast-food industry since its entry. However, the Indian fast-food space is extremely competitive with established brands Domino’s, McDonald’s, KFC, Subway and Pizza Hut all vying for a slice of the pie.
The Indian Quick Service Restaurants Market has been estimated to be valued at $16.72 Billion (₹1.38 lakh crore) in 2023 and is expected to grow to $32.22 billion (₹2.63 lakh crore) by 2028, according to Researchandmarkets.com.
Most estimates peg Burger King India’s market share at around 5% of the overall Indian market, while Domino’s, McDonald’s and Subway cumulatively make up 34% of the market. A recent report from Kennis Ventures said Burger King India was the second-largest burger chain in India with 391 stores after McDonald’s, which has 501 stores.
What Is Burger King’s Franchise Model in India?
Burger King operates in India through a franchise model. The company partners with franchisees that operate individual Burger King outlets under specific agreements and guidelines set by the company.
The franchise model allows local entrepreneurs to invest in and operate Burger King outlets, leveraging their knowledge of the local market while adhering to the brand’s standardised processes and quality standards.
Monitoring share price analysis, IPO details, market share, ownership, and franchise models can provide valuable insights for investors considering Burger King stock. Remember to conduct thorough research, consult with financial experts, and assess market conditions before making any investment decisions.
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