Devyani International (DIL) is among the earliest and largest operators of quick service restaurants (QSRs) in India. the corporate is that the largest franchisee of Yum brands in India and operates brands KFC & Pizza Hut under its banner. additionally , DIL is additionally a franchisee of Costa Coffee in India. Core brands (KFC, Pizza Hut and Costa Coffee) contribute ~94% to its topline while the remainder comes from international operations and other business (own brand like Vaango & Food Street). The core brands store counts grew at a CAGR of ~14% within the last two years to 605 stores by March 2021. the shop count reached 645 by June 2021 as DIL continued its specialise in adding core brand stores amid pandemic. the corporate is looking to expand its core brands in existing and new cities because the QSR industry is probably going to grow at ~12% CAGR over subsequent five years (higher than historical CAGR of 5.5%), supported by rising urbanisation and per capita income.
Valuation and Outlook
We believe DIL would be ready to capture the expansion due to metro lifestyle and out of doors food habits. This, including the company’s cost rationalisation initiatives will help drive profitability in future. We recommend subscribe the difficulty .
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