Burger King India Q1 Review - On The Right Track; Good Recovery Play: ICICI Securities

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ICICI Securities Report

Burger King India Ltd. reported a decent quarter in terms of revenue (down 24% QoQ) and gross margin print (up 65%).

Burger King's focus continues on strengthening-

1. delivery platform (including own app),

2. value offering (Stunner menu) and

3. store expansion.

Consumer response (to innovation in Whopper range) appears good with one in every three orders having a Whopper.

We see multiple short-to-medium-term tailwinds:

1. likely sharper revenue recovery (once consumption normalise) given the over indexation of mall stores,

2. young store maturity provides operating leverage and

3. addition of BK Cafe as incremental growth.

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