Everstone Capital has put on hold plans to sell its 13.17% holding in Restaurant Brands Asia (previously Burger King India) after deal talks with Advent International and General Atlantic did not go through and no new suitors came forward for the stake amid continued stress in the quick-service restaurant (QSR) sector.
“We do not have any intent to sell any further stake in the near future in RBA (Restaurant Brands Asia),” a spokesperson for the private equity firm said in response to ET’s query, adding: “We look forward to building RBA into India’s largest and most profitable listed QSR in India.”
“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entire stake in Burger King for well over two years, found no takers at the valuation it was asking; hence they have withdrawn a stake sale for the near immediate term at least,” an executive aware of the plans said.
RBA, which operates the Burger King QSRs in India, reported 9% year-on-year revenue growth in the July-September quarter. But its same-store sales, a key indicator of customer retention, declined 3% due to subdued demand, the chain said in an investor presentation. “The QSR industry is seeing demand challenges; hence, near-term growth metrics for India business will see a slow recovery,” Motilal Oswal wrote in a report.
Speaking to analysts after the company declared its quarter results, RBA 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.” RBA operated 464 stores in India as of September.
