Everstone Capital has paused its plans to sell its 13.17% stake in Restaurant Brands Asia (formerly Burger King India). This decision came after talks with Advent International and General Atlantic fell through, and no new buyers showed interest amid ongoing challenges in the quick-service restaurant (QSR) sector.
We look to building RBA into India’s largest QSR – Everstone
According to ET, a private equity firm spokesperson clarified its stance on Restaurant Brands Asia (RBA), saying, “We do not have any intent to sell any further stake in the near future in RBA.” Additionally, the spokesperson expressed optimism about RBA’s potential, “We look forward to building RBA into India’s largest and most profitable listed QSR [Quick Service Restaurant] in India.”
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“Everstone Capital, which has been in the market to sell its entire stake in Burger King for well over two years, found no takers at the valuation it was asking; hence they have withdrawn a stake sale for the near immediate term at least,” a source close to the matter said.
Burger King India sees 9% YoY revenue growth
Restaurant Brands Asia (RBA), which runs Burger King outlets in India, saw a 9% year-on-year revenue increase in the July-September quarter. However, same-store sales, an important measure of customer retention, dropped by 3% due to low demand, according to the chain’s investor presentation. In addition, Motilal Oswal commented in a report, “The QSR industry is seeing demand challenges; hence, near-term growth metrics for India business will see a slow recovery.”
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After announcing the company’s quarterly results, RBA’s chief executive, Rajeev Varman, said, “We know the environment has been tough in India, and the traffic numbers have been kind of subdued and so forth. We have seen SSSG (same store sales growth) coming in negative in the industry… but we are steadfast on our progress.”
As of September, RBA operated 464 stores in India.
