Stocks Valuation & Analysis of Indian Quick Service Restaurant Companies of India

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

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