Burger King plans to double store count with fund from IPO

The India arm of Burger King has filed for an IPO to raise at least `400 crore ($56.6 million).

Published: 09th November 2019 11:17 PM  |   Last Updated: 10th November 2019 11:28 AM   |  A+A-

By Express News Service

The US-based Burger King, which has recently filed for an Initial Public Offering (IPO) in the Indian market, will use the money raised to double the number of stores in the country by the end of next year, in a bid to take on rival McDonald’s India. “We are looking for aggressive expansion. The brand has received good response, and with the IPO, we are looking to double our stores by the end of next year,” said a marketing executive of the company.

The India arm of Burger King has filed for an IPO to raise at least `400 crore ($56.6 million). According to the company’s IPO papers, it plans to use `290 crore to open new restaurants. B u r g e r K i n g launched its first restaurant in India in 2014 and competes with market leaders such as McDonald’s and KFC. The latest count shows that it currently has 216 companyowned and eight sub-franchised restaurants across 47 cities including Delhi-NCR, Mumbai, Pune, Chennai, Hyderabad, Bengaluru, Chandigarh, Ludhiana, Amritsar and Kochi.

It has already outpaced rival Starbucks and is fast competing with McDonald’s, which has 472 outlets. The company is planning to open restaurants in new areas, but has ruled out the regional franchise model. “We also intend to open restaurants in new areas and markets where we believe there is a strong potential for growth, in addition to taking advantage of the growing online delivery marke t , i n c l u d i n g through engagement with delivery aggregators,” the company said in its draft prospectus. In financial year 2018-19, Burger King India’s revenue from operations had risen 67 per cent to `6.33 billion ($89.4 million).

Its loss narrowed to `382.8 million in the same period from `822.3 million a year ago. “Burger King is going with a national franchise instead of regional ones. That gives them more control and potentially better growth,” said Technopak chairman Arvind Singhal. Private equity firm Everstone Capital, which operates Burger King India, is considering a private placement of shares worth `150 crore ahead of the IPO, according to the draft red herring prospectus.

To outpace rivals
Burger King India has filed for an IPO to raise at least I400 crore, out of which I290 crore will
be used by the  firm to open new restaurants

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp