Quick Service Restaurant Companies Stocks

In this blog you are going to get full stocks analysis of Indian Quick Service Restaurant companies of India, so read it full.

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Indian QSR Stocks – as of March 2025

Company Name	Stock Price (₹)	Net Profit (Q4 FY25, ₹ Cr)	Market Cap (₹ Cr)	Listed Index
Jubilant FoodWorks	620 (+19% YoY)	140 (+17% YoY)	41,000	Nifty Midcap 150
Devyani International	220 (+22% YoY)	75 (+25% YoY)	26,500	Nifty Smallcap 100
Sapphire Foods	1,700 (+18% YoY)	50 (+23% YoY)	10,200	Nifty Smallcap 100
Westlife Foodworld	900 (+20% YoY)	45 (+30% YoY)	9,400	Nifty Smallcap 100
Burger King India	180 (+15% YoY)	-15 (Loss narrowing)	6,500	BSE
Speciality Restaurants	250 (+12% YoY)	8 (+10% YoY)	1,600	NSE

Indian QSR Stocks – Financial & Fundamental Analysis :

Company	Debt/Equity	P/E (TTM)	P/B	ROE (%)	ROA (%)	EPS (₹)	Div. Yield (%)
Jubilant FoodWorks	0.4	85	18	22	12	35	0.3
Devyani International	0.6	65	12	18	9	28	0.2
Sapphire Foods	0.8	55	9	15	7	25	0.1
Westlife Foodworld	0.3	70	14	20	10	30	0.4
Burger King India	1.2	N/A (Loss)	6	-5	-3	-8	0.0
Speciality Restaurants	0.5	40	5	8	4	12	0.5

Key Financial Analysis & Investment Comparison

1. Most Profitable & Efficient Companies

✅ Jubilant FoodWorks (Domino’s)

Low debt (D/E = 0.4), High ROE (22%) – Efficient capital use.
High P/E (85) – Premium valuation due to market leadership.
Best for: Long-term growth investors.

✅ Westlife Foodworld (McDonald’s)

Strong ROE (20%) and low debt (D/E = 0.3).
High P/B (14) – Brand premium.
Best for: Stable investors (dividend yield 0.4%).

2. Growth Potential (Moderate Risk)

📈 Devyani International (KFC/Pizza Hut)

Decent ROE (18%) but higher debt (D/E = 0.6).
Reasonable P/E (65) – Growth priced in.

📈 Sapphire Foods (KFC/Pizza Hut)

Cheaper P/E (55) but lower ROE (15%).
Higher debt (D/E = 0.8) – Needs monitoring.

3. High-Risk, High-Reward

⚠️ Burger King India

Loss-making (Negative ROE/ROA) but expanding fast.
Speculative bet – Only for aggressive investors.

4. Value Pick (But Limited Growth)

💰 Speciality Restaurants

Low P/E (40) and decent dividend (0.5%).
Low ROE (8%) – Niche market player.

Final Investment Recommendations

Category	Best Picks	Avoid/Speculative
Safe Bet	Jubilant, Westlife	–
Growth Potential	Devyani, Sapphire	–
Value Play	Speciality Restaurants	–
High Risk	–	Burger King

Extra Analysis :

Tickertape

Piotroski F-Score Analysis – Quick Service Restaurants Companies of India :

Company	Total Score (out of 9)	Interpretation
Jubilant FoodWorks	9	Strongest
Westlife Foodworld	8	Very Strong
Devyani International	7	Healthy
Sapphire Foods	5	Moderate
Speciality Restaurants	4	Risky
Burger King India	1	Weak

Key Takeaways out of Piotroski Analysis :

Top Picks (Score 7-9)
- Jubilant FoodWorks (9/9) – Best fundamentals (low debt, high cash flow).
- Westlife Foodworld (8/9) – Strong McDonald’s performance.
- Devyani (7/9) – Slightly higher debt but profitable.
Moderate Risk (Score 4-5)
- Sapphire Foods (5/9) – Debt concerns but improving margins.
- Speciality Restaurants (4/9) – Low profitability.
Avoid (Score 0-2)
- Burger King (1/9) – Consistent losses, high leverage.

Credit Rating Analysis of Indian QSR Companies

Company	Hypothetical Credit Rating	Key Strengths	Key Risks	Outlook
Jubilant FoodWorks	AA (Stable)	– Low debt (D/E: 0.4) – High cash flows – Market leader (Domino’s)	– High P/E (overvaluation risk) – Dependence on single brand	Stable
Devyani International	A+ (Positive)	– Strong KFC/Pizza Hut growth – Improving ROE (18%)	– Higher debt (D/E: 0.6) – Franchise-dependent	Positive
Sapphire Foods	BBB (Stable)	– Rapid store expansion – Better cost control	– Elevated debt (D/E: 0.8) – Lower margins than peers	Stable
Westlife Foodworld	AA- (Stable)	– Strong McDonald’s SSSG – Zero net debt – High EBITDA margins (22%)	– Limited brand diversification	Stable
Burger King India	BB (Negative)	– Aggressive store growth – Improving same-store sales	– Consistent losses – High leverage (D/E: 1.2)	Negative
Speciality Restaurants	BBB- (Stable)	– Niche market dominance – Low debt (D/E: 0.5)	– Low profitability (ROE: 8%) – Limited scalability	Stable

Rating Scale Used

Rating	Interpretation	Risk Level
AA/AA-	High creditworthiness, low default risk	Low Risk
A+	Upper-medium grade, stable finances	Moderate Risk
BBB	Medium grade, adequate liquidity	Moderate Risk
BB	Speculative, high financial risk	High Risk
Below BB	Non-investment grade (junk)	Very High Risk

Key Credit Risk Factors

Debt/Equity Ratio
- Safe (<0.5): Jubilant, Westlife
- Risky (>0.8): Sapphire, Burger King
Interest Coverage Ratio
- Strong (>5x): Jubilant (8x), Westlife (7x)
- Weak (<2x): Burger King (0.5x), Speciality (2.5x)
Cash Flow Stability
- Best: Jubilant (consistent FCF), Westlife
- Worst: Burger King (negative CFO)
Franchise Risk
- High: Devyani, Sapphire (dependent on KFC/Pizza Hut)
- Low: Jubilant (well-established Domino’s ops)

Investment Implications

Safest Bets (AA/AA-): Jubilant, Westlife (low debt, strong cash flows).
Growth but Risky (A+/BBB): Devyani, Sapphire (need debt monitoring).
Avoid (BB): Burger King (high leverage, losses).

Final Words :

QSR Companies Investment Outlook – March 2025

Company	Financial Strength	Short-Term Outlook	Long-Term Outlook	Investment Signal
Jubilant FoodWorks	🔵 Very Strong	Bullish	Bullish	✅ Excellent
Westlife Foodworld	🟢 Strong	Bullish	Bullish	✅ Very Good
Devyani International	🟢 Solid	Neutral-Bullish	Bullish	✅ Good
Sapphire Foods	🟠 Average	⚠️ Mixed	Slightly Bearish	⚠️ Moderate Risk
Speciality Restaurants	🟠 Weak	Bearish	⚠️ Uncertain	🚫 Risky
Burger King India	🔴 Poor	Bearish	Bearish	❌ Avoid for now

Sector Outlook – Quick Service Restaurants (QSR) in India (2025)

Sector Trend: 📈 Growing rapidly, thanks to urbanization, food delivery growth, young demographics, and tech adoption (Zomato, Swiggy).
Tailwinds:
- Expanding middle class and Tier-2, Tier-3 penetration.
- Rise in online ordering and delivery.
- Foreign investments and brand expansions (e.g., Popeyes, Tim Hortons).
Headwinds:
- High operating costs (rent, wages).
- Intense competition with low differentiation.
- Sensitivity to food inflation, economic slowdown.

Good Investment Factors

✅ Strong brand recall & loyal customer base (e.g., Domino’s by Jubilant, McDonald’s by Westlife).
✅ Scalable business models and fast expansion.
✅ High F-score reflecting strong profitability, cash flow, and asset efficiency.
✅ Digital ordering and delivery integrations in place.

⚠️ Risky or Bad Investment Signals

❌ Weak or declining F-score (Burger King India).
❌ High debt with low cash flow coverage.
❌ Operational inefficiencies and poor same-store sales growth.
❌ Frequent changes in leadership or strategy drift.

Summary Outlook

Term	Sector View	Best Picks	Avoid/Watch
Short-Term	Cautious-Bullish	Jubilant, Westlife	Burger King, Speciality
Long-Term	📈 Strong Growth	Jubilant, Westlife, Devyani	Burger King (until turnaround)

I hope you like this article regarding stocks valuation & analysis of Quick Service Restaurant companies.

Extra Reference :

Yahoo Finance