Tag: Burger King

Ashish Kacholia picks 17.2% stake in Jumboking, India’s largest homegrown burger chain

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ace investor Ashish Kacholia has acquired a 17.2% stake in the popular Indian burger chain Jumboking. Kacholia’s share now makes him the second-largest shareholder in the company. The exact amount of the investment has not been disclosed, but it was made through a secondary market transaction following the exit of Triton Fund, an earlier investor in Jumboking, in 2018.

According to market experts, the transaction is estimated to be valued between ₹70 crore and ₹80 crore, placing the valuation of Jumboking at around ₹400-500 crore. Jumboking, operating in 170 stores across Mumbai, Delhi, Hyderabad and Pune, recorded sales of ₹110 crore in the last fiscal year. With these figures, it became the third-largest burger chain in India, after McDonald’s and Burger King.

Founded by Dheeraj Gupta and Reeta Gupta on August 23, 2001, Jumboking drew inspiration from the successful fast-food business models of international giants like McDonald’s and Burger King. The company has established delivery partnerships with popular platforms like Swiggy and Zomato to cater to out-of-store orders.

Jumboking offers a vegetarian menu featuring a variety of burgers, thick shakes, softies and fries, catering to the preferences of college students and young professionals. In 2023, the company introduced a program called JK Burger Rewards to enhance customer loyalty. Jumboking is focused on delivering top-notch execution and exceptional customer service.

Expressing his enthusiasm about the investment, Ashish Kacholia stated, “Jumboking represents a promising opportunity in the QSR (Quick Service Restaurant) segment with its commitment to excellence and customer satisfaction.” Dheeraj Gupta, the Founder of Jumboking, expressed his delight in having Kacholia on board, highlighting the company’s ambitious goal of expanding to 1000 stores while maintaining profitable growth.

Pradyumna Dalmia of Triton Fund also expressed satisfaction with their association with Jumboking, anticipating promising returns for incoming investors. With Kacholia’s strategic investment and the company’s strong growth trajectory, Jumboking is poised to further solidify its position in India’s competitive fast-food market.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hershey is sued over lack of artistic detail on Reese’s candies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hershey has been sued by a Florida woman who said its holiday-themed Reese’s peanut butter candies lack the artistic details shown on the packaging that make them worth buying.

In a proposed federal class action filed on Thursday and seeking at least $5 million, Cynthia Kelly accused Hershey of deceiving reasonable consumers by falsely promising that its candies would contain “explicit carved out artistic designs.”

She said she would not have paid $4.49 in October at an Aldi for a bag of Reese’s Peanut Butter Pumpkins, had she known that the candies not only lacked the “cute looking” carved eyes and mouth shown on the packaging, but any carvings at all.

The complaint said Hershey’s labels “are materially misleading and numerous consumers have been tricked and misled by the pictures on the products’ packaging.”

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It cited several videos on Google’s YouTube and included illustrations such as a Reese’s Peanut Butter footBall shaped like a football, but missing the laces shown on the packaging.

Hershey did not immediately respond on Friday to requests for comment. Kelly’s lawyer did not immediately respond to a similar request. The plaintiff filed her lawsuit in the federal court in Tampa, Florida.

She is seeking damages for Florida purchasers of Reese’s Peanut Butter Pumpkins, White Pumpkins, Pieces Pumpkins, Peanut Butter Ghost, White Ghost, Peanut Butter Bats, Peanut Butter footBalls and Peanut Butter Shapes Assortment Snowmen Stockings Bells for violations of that state’s consumer protection laws.

Kelly’s lawyer has also filed lawsuits accusing Burger King and Taco Bell of selling food that when served looks like enticing than advertised. The case is Kelly v Hershey Co, US District Court, Middle District of Florida, No. 23-02977.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Restaurant Brands Asia Block Deal: Promoter entity Everstone the likely seller – Exclusive

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Restaurant Brands Asia are trading 11 percent higher on Friday, September 15, after 25 percent of the company’s equity exchanged hands in a large deal.

Sources tell CNBC-TV18 that Everstone, the company’s promoter entity is likely to be the seller in this transaction that has sold the entire 25 percent stake.

As of the June quarter, Everstone held 25 percent stake in the company.

Sources further say that the deal has seen strong demand as 90 percent of the buyers have been long-only funds, while the other 10 percent have been bought by hedge funds.

Restaurant Brands Asia was also part of CNBC-TV18’s dealing room chatter on Thursday.

12.54 crore shares or 25.4 percent of Restaurant Brand Asia’s total equity had changed hands in the block deal. The transaction is said to be worth Rs 1,494 crore.

Abneesh Roy, Executive Director at Nuvama Institutional Equities told CNBC-TV18, “Overall for Restaurant Brands we have a ‘buy’, we have Rs 146 target price.”

Restaurant Brands Asia owns and operates a chain of restaurants with the Burger King brand.

Shares of Restaurant Brands Asia are trading at a 52-week high in today’s session. The stock is currently trading 10.2 percent higher at Rs 132.60. The stock has gained 16 percent so far in 2023.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Burger King faces lawsuit claiming Whopper size is too small

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A U.S. judge has rejected Burger King’s bid to dismiss a lawsuit claiming that it cheated hungry customers by making its Whopper sandwich appear larger than it actually is.

U.S. District Judge Roy Altman in Miami said Burger King must defend against a claim that its depiction of Whoppers on in-store menu boards mislead reasonable customers, amounting to a breach of contract.

Customers in the proposed class action accused Burger King of portraying burgers with ingredients that “overflow over the bun,” making it appear the burgers are 35 percent larger and contain more than double the meat than the chain serves.

Burger King, a unit of Restaurant Brands International, countered that it wasn’t required to deliver burgers that look “exactly like the picture,” but the judge said it was up to jurors to “tell us what reasonable people think.”

In his decision made public on Friday, Altman also let the customers pursue negligence-based and unjust enrichment claims.

He dismissed claims based on TV and online ads, finding none in which Burger King promised a burger “size,” or patty weight, and failed to deliver it.

“The plaintiffs’ claims are false,” Burger King said in a statement on Tuesday. “The flame-grilled beef patties portrayed in our advertising are the same patties used in the millions of Whopper sandwiches we serve to guests nationwide.”

A lawyer for the plaintiffs was not immediately available for comment. Earlier efforts to mediate a settlement proved unsuccessful.

McDonald’s and Wendy’s are defending against a similar lawsuit in the Brooklyn, New York federal court. The plaintiffs’ lawyer there on Monday cited Altman’s opinion to justify letting that case continue.

Taco Bell, a unit of Yum Brands was sued last month in the Brooklyn court for selling Crunchwraps and Mexican pizzas that allegedly contain only half as much filling as advertised.

Each lawsuit seeks at least $5 million in damages.

The case is Coleman et al v Burger King Corp, U.S. District Court, Southern District of Florida, No. 22-20925.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

McDonald’s drops tomatoes from menu items, calls it ‘temporary’ issue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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McDonald’s India – North and East on Friday announced that it was dropping tomatoes from its menu items due to a “temporary” seasonal issue in procurement. In a statement issued on July 7, the spokesperson of McDonald’s India – North and East said that the fast food chain is “constrained to serve tomatoes” in its menu items due to “seasonal issues.”

The West and South franchise of McDonald’s India said that while 10-15 percent of its stores have stopped serving tomatoes, the company is not facing any “serious tomato-related issues” currently. It pointed out that fruit flies are a “common annoyance” during the monsoon and that if found, flawed batches of tomatoes are discarded.

“This is a seasonal problem that the restaurant and food industry has to face every monsoon,” McDonald’s India – West and South said.

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Burger King, on the other hand, has announced that it has tomatoes in its restaurants, currently. While the American burger chain is facing issues with procurement, tomatoes will be made available to guests “as long as quality is good.”

The statement by Burger King read, “We do have challenges on availability but will continue to make available to guest as long as quality is good. Currently we have tomatoes in our restaurants.”

While McDonald’s India – North and East has not attributed the lack of tomatoes in its menu to rising prices, the cost of the fruit-cum-vegetable in India has skyrocketed due to heavy rainfall. Seasonal issues have affected supply chains, transportation and crop quality. Tomato prices in places like Delhi, Kolkata and Uttar Pradesh have reached Rs 130-155 per kg.

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McDonald’s India – North and East in its statement said that due to seasonal issues, they were unable to procure tomatoes that pass their “world-class, stringent quality check.”

The entire statement by McDonald’s India – North and East read, “As a brand committed to the highest standards of food quality and safety, we use ingredients only after rigorous food quality and safety checks. However, due to seasonal issues and despite our best efforts, we are not able to procure tomatoes that pass our world-class, stringent quality checks.”

The company went on to add, “Hence, we are constrained to serve tomatoes in our menu items at some of our restaurants. This is a temporary issue and we would like to reassure our customers that we are looking at all possible ways to bring back tomato in our menu very soon.”

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Several state governments have jumped into action to bring down the rising cost of tomatoes. In West Bengal, the Mamata Banerjee-led government has taken cognisance of the issue and directed its own retailing network, Sufal Bangala, to deliver fair prices at Rs 115 per kg.

In Tamil Nadu, the government is working to sell tomatoes at a subsidised rate of Rs 60 per kg through fairprice shops.

MMG Group is McDonald’s partner for North and East India, while Westlife Foodworld is the partner for South and West India.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tim Hortons, Burger King boost Restaurant Brands earnings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Restaurant Brands International Inc beat Wall Street estimates for first-quarter revenue and profit on Tuesday, boosted by higher traffic and prices at Tim Hortons restaurants in Canada despite closures of some US Burger King locations.

The company’s global comparable sales rose nearly 10 percent in the March quarter, versus analysts’ estimates of 6.5 percent according to Refinitiv IBES data. Tim Hortons Canada sales grew 16 percent and Burger King International’s were 12 percent higher. Shares were up 1.5 percent.

Big restaurant chains have posted strong sales in the first quarter despite rising concerns about consumer spending power this year amid stubbornly high inflation.

McDonald’s Corp and Chipotle Mexican Grill Inc also topped quarterly sales and profit expectations as they pushed new menu items and raised prices over the past year to protect margins from a jump in raw materials and labor costs.

While Burger King has been adding restaurants and growing comparable sales internationally, in the United States it has struggled with bankruptcies by two big franchisees.

In the first quarter, Burger King closed a net 124 US locations or 1.7 percent, to end the quarter with just under 7,000 US restaurants, according to its earnings release.

This year, the brand is seeking additional franchisees with stronger finances but still expects to close between 300 and 400 more restaurants, Chief Executive Joshua Kobza said during a call with investors. Usually, it closes a couple hundred annually, he said.

“There will always be a minority (of franchisees) who aren’t dedicated, enthusiastic operators,” Chairman Patrick Doyle said on the call. “We’ll work with them to leave the system.”

The brand’s $400 million “Reclaim the Flame” turnaround plan-to reverse its loss of market share, revive run-down restaurants, streamline overly complicated menus and operations, and draw more young customers — may be starting to work as Burger King’s US comparable sales rose 8.7 percent.

Tim Hortons drove visits higher – including during afternoon hours — with new items like chipotle steak for its loaded bowls and wraps.

Higher menu prices and other offerings like cold brew also drove sales.

Excluding items, Restaurant Brands, which also owns Popeyes and Firehouse Subs, earned 75 cents per share, compared with estimates of 64 cents, according to Refinitiv IBES data.

Total revenue rose to $1.59 billion from $1.45 billion a year earlier. Analysts on average had expected $1.56 billion.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Restaurant Brands Asia loss widens in Q3 on poor show in Indonesia, shares slide 6%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Restaurant Brands Asia, the master franchisee of Burger King in India and Indonesia, plunged by more than six percent on Thursday after the company reported weak financial results for the December quarter dragged by poor show by the Indonesian market.

The company reported its consolidated net loss widening to Rs 50.4 crore in the December quarter of FY23 as against Rs 22.6 crore in the year-ago period.

Revenue rose by 20.9 percent to Rs 526.3 crore in the quarter
from Rs 435.3 crore in the year-ago period, according to an exchange filing. Same store sales growth (SSSG) was 8.6 percent YoY in the
quarter.

The company’s EBITDA dropped by 42.4 percent to Rs 29.7 crore
in Q3FY23 compared to Rs 51.6 crore a year ago. Its margins declined to 5.6
percent in Q3 of FY23 from 11.9 percent a year ago.

The company in an investor presentation stated that its Indonesia market is a concern as revenue remained largely flat. Indonesia reported EBITDA loss of Rs 18.1 crore in the third quarter against a gain of Rs 18.9 crore a year ago.

The company operates 182 stores (179 Burger King and 3 Popeyes) in Indonesia as of December 31, 2022.

The company said it performed well in the India market. Restaurant Brands Asia opened a total of 45 new restaurants in the third quarter, taking the count to 379. The company opened 72 Burger King Café in Q3FY23 to take the total number of cafes to 252 as of December 31, 2022.

Shares of the company were trading down by 6.56 percent at Rs
99.65 on BSE at 11.19 AM.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Everstone Capital considering selling stake in India’s Restaurant Brands Asia

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private equity firm Everstone Capital is considering selling its stake worth $314 million in Restaurant Brands Asia Ltd, the master franchisee of Burger King in India and Indonesia, according to two sources cited by news agency Reuters on Friday.

The Singapore-based company is negotiating with an advisor to explore the transaction, as per the Reuters sources privy to the matter.

According to Refinitiv data, Everstone Capital owns a 40.9 percent stake in Restaurant Brands through its investment vehicle QSR Asia Pte Ltd. Based on Friday’s pricing of Rs 129, Restaurant Brands Asia had a market cap of $768 million.

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Its stock has risen by 49 percent since a record low in mid-May.

The prospective sale coincides with a period when consumer spending is reviving following the relaxation of coronavirus restrictions in India and Indonesia, which has helped lift their second-quarter economic growth to the strongest pace in a year.

In April-June, India’s GDP expanded 13.5 percent year on year, while Indonesia’s grew 5.44 percent.

Restaurant Brands Asia, originally Burger King India Ltd, was incorporated in 2013 as a result of a collaboration between Everstone and Burger King Worldwide Inc to expand the fast-food chain’s footprint in India.

Everstone Capital is the private equity arm of Everstone Group, which manages assets worth over $7 billion.  The private equity firm focuses on the mid-market and invests in Indian and Southeast Asian firms.

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According to its most recent annual report, Mumbai-based Restaurant Brands Asia now operates 315 outlets in the nation as of the end of March this year.

Based on the annual report, Restaurant Brands Asia is Burger King’s exclusive national master franchisee in India and Indonesia, where it also owns and runs 177 units as of end-March.

Restaurant Brands Asia has committed to develop and launch at least 700 restaurants in India by the end of 2026 under the master franchisee agreement, the report stated.

(With inputs from Reuters)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hotel, restaurant stocks under selling pressure amid fresh COVID-19 restrictions over Omicron

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hotel and restaurant stocks fell on Monday as fresh restrictions were imposed in many parts of the country to curb the spread of COVID-19 amid rising concerns over the Omicron variant. Stocks like Chalet Hotels, Lemon Tree, EIH, Barbeque Nation, Burger King and Cafe Coffee Day (CCD) were among the top losers.

Restrictions have been imposed in a number of regions in the country including Delhi, Uttar Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu, West Bengal and Gujarat.

Among hotel stocks, Chalet Hotels, EIH, Hotel Rugby, Asian Hotels, Country Club, Lemon Tree, Byke Hospitality and Mahindra Holiday — closing between 0.5 percent and 2.4 percent lower — were the top losers. However, Indian Hotels and Oriental Hotels were among the few stocks in the basket that bucked the trend, rising up to one percent.

Lemon Tree Hotels Deputy Managing Director Rattan Keswani said in an interaction with CNBC-TV18 that the company is hoping for a strong Q4, but is in a ‘wait and watch’ mode over the COVID situation.

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“The hotel industry is trying to recover from the challenges it has faced on account of the first and second waves of the pandemic… In the last six months, we have seen some revenge traveling. The hotel industry is trying to get back to normal but again this third wave may impact it… Night curfew restrictions will not majorly impact the hotel industry but a major lockdown will,” Yash Gupta, Equity Research Analyst at Angel One, told CNBCTV18.com.

Night curfews in some states will slightly impact restaurants’ dine-in business, he said.

Among restaurant stocks, Coffee Day, Devyani International, Barbeque Nation, Speciality Restaurants, Burger King and Vidli Restaurants fell between 0.5 percent and 4.3 percent. On the other hand, Jubilant FoodWorks, Westlife and Sapphire Foods rose between 0.5 percent and 2.5 percent.

Gupta of Angel One believes a third wave of the pandemic in India may cause a slight impact on the the hotel and restaurant industry due to the night curfews or weekend lockdowns.

Here’s how some of the hotel and restaurant stocks have performed in the last one year:

“We have a neutral view on the hotel industry and are not recommending any fresh buy positions in hotel stocks,” said Angel One’s Gupta.

Anjan Chatterjee, Chairman and Managing Director of Speciality Restaurants, told CNBC-TV18 the current COVID-19 restrictions have been a dampener. The company has been impacted this month, he said.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow