Quick service restaurant cos to be valued based on their market strategy- Centrum

Restaurant Brands Asia

20/03/2023 08:22

** Analysts at Centrum Institutional Research initiate
coverage with "buy" rating on Jubilant Foodworks  JUBI.NS ,
Sapphire Foods  SAPI.NS , "add" on Westlife Foodworld  WEST.NS 
    ** Keeps "reduce" on Devyani International  DEVY.NS , and
"sell" on Restaurant Brands Asia  RESR.NS 
    ** Indian operator of Domino's Pizza Inc  DPZ.N , JUBI will
continue to build on delivery expertise, add more restaurants
and garner 20% market share in the organized industry- Centrum
    ** Adds faster penetration of KFC, Pizza Hut, Yum! to aid
growth of Indian operator DEVY  
    ** McDonald's restaurant operator in West and South India,
WEST's growth will be guided by building a comprehensive chicken
portfolio in its growing multiple channels franchise - Centrum
    ** SAPI growth to be led by improving operating parameters,
its plan of doubling stores count by 550 over next 3-4 years,
and rationalizing underperforming stores -Centrum 
    ** Burger King operator, RESR's margin could remain lower
than optimum level as compared to existing competition, but
store expansion can drive growth - Centrum
    ** Healthy growth for quick service restaurant operators is
likely due to surge in India's organised food services market,
rise in informal eating-out (IEO) market, according to Centrum
    

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com;))