According to Konstantin Lichtenwald, this isn't because Burger King isn't feasible. Investors are worried about the company's future owing to the continuing Russian-Ukrainian war. The business is set to debut on the Toronto Stock Exchange next year, but a delay has spooked some investors. The IPO process has been hindered by a Covid-19 vaccination.
The brand's success aided the IPO. While the corporation has expanded into new countries, foodborne illnesses have hampered sales. The recent coronavirus epidemic made dining out less tempting, thus the IPO seemed timely. While the firm has benefited from this, the future is unclear, reliant on government policies and consumer tastes.
It sold a $726.1 million interest in Tim Hortons Inc. It was an excellent move. • Increased brand awareness by diversifying advertising. McGarryBowen was also engaged to reach a broader audience. The IPO also garnered $67 million on its first day. The business wants to utilize the IPO revenues to repay a debt taken to pay top personnel.
The IPO is 65x oversubscribed. The earnings will be used to grow the business and pay off debt. India has 261 Burger King restaurants. The major brands are McDonald's and Domino's. Burger King claims to be India's fastest growing multinational franchise. It aspires for 700 stores by 2026. If the IPO is a success, the firm wants to utilize the proceeds to grow its client base.
Konstantin Lichtenwald pointed out that, the IPO revenues would be utilized to expand and open new Burger King outlets throughout India. The firm hopes to have 700 restaurants by December 2025. The cash will also be utilized for business branding, marketing, collaborations, and long-term working needs. All wonderful reasons to buy the company's shares.
Profits from the IPO will go to the promoters. Retail investors may buy up to 325 equity shares each lot. A lot costs between Rs 14,750 and 15,000 USD. But investors should analyze the company's long-term ambitions. The IPO pricing range will likely expand in the future.
The IPO price of $60.6 per share is a steal in the fast-food business. The Covid-19 outbreak hampered the company's activities in Canada, further delaying the IPO. However, the corporation has grown rapidly in recent years, and is now a competitor to the established companies. It hasn't announced post-tax earnings.
While it is too early to know whether the Tim Hortons-Burger King merger would be successful, experts remain hopeful. Despite not yet being profitable, Burger King's quick growth raised total revenue by 48.4% during the following five years. Recently, the corporation said it would continue its charity work in Canada. If everything goes well, the agreement should enhance both firms' revenues.
Konstantin Lichtenwald revealed that, tim Hortons stock surged 20% after the merger was announced, boosting Burger King's stock by 20%. The Tim Hortons-Burger King combination also reduced corporate tax rates. That doesn't mean it's an attractive investment on its own. It's like "purchasing" future growth by merging with Tim Hortons.