HDFC Mutual Fund Acquires Stake in Burger King India’s Operator for Rs 50.25 Crore

Restaurant Brands Asia Ltd. stands as a dominant force in the quick service restaurant sector, operating an extensive network of over 30,000 restaurants spread across more than 100 countries globally. The company is renowned for its iconic brands such as Tim Hortons, Burger King, Popeyes, and Firehouse Subs, each catering to diverse consumer preferences with a wide array of menu offerings and dining experiences.

HDFC Mutual Fund acquires stake in Restaurant Brands Asia Ltd.

HDFC Mutual Fund recently made a strategic investment by acquiring a 0.91% stake in Restaurant Brands Asia Ltd. This move amounted to Rs 50.25 crore, involving the purchase of 45.5 lakh shares at an average price of Rs 110.46 per share through an open market transaction on Thursday. The investment reflects HDFC Mutual Fund’s confidence in Restaurant Brands Asia’s robust business model and growth prospects in the competitive quick-service restaurant industry.

Stock reaction

Today, Restaurant Brands Asia’s stock surged over 4% to trade at Rs 113, Over the past month, the stock has risen by more than 15%, and in the past week alone, it has recorded a gain of over 10%. This indicates strong investor confidence and positive market sentiment towards the company’s strategic direction and growth trajectory.

Restaurant Brands Asia Q4 FY 23-24 Results

The company’s total income for the fourth quarter of FY24 rose by 16% year-on-year to Rs. 601 crore from Rs.518 crore in the corresponding quarter of the previous fiscal year. However, quarter-on-quarter, the company’s total income experienced a slight decline of nearly 1% from Rs.607 crore in the December 2023 quarter.

In the March quarter, the company widened its loss to Rs. 99 crore compared to Rs. 79 crore in the March quarter of FY23. Previously, the company had reported a loss of Rs. 39 crore in the December quarter.

Conclusion: HDFC Mutual Fund has invested Rs. 50.25 crore to acquire a 0.91% stake in Restaurant Brands Asia Ltd. This strategic move highlights their active participation in the company’s growth, coinciding with a notable increase in Restaurant Brands Asia’s stock price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.