World's second-largest hamburger restaurant chain
Burger King Worldwide, Inc.
) is ready to step into the lucrative Indian market with the
signing of a joint venture agreement with the private equity and
real estate firm - Everstone Group. The financial terms of the
deal were, however, not disclosed.
Per the alliance, Everstone will act as Burger King's
long-term master franchisee and developer of new restaurants
across India. The joint venture will also allow Everstone to have
Burger King's sub-franchise rights throughout the country.
Prior to developing Burger King Restaurants, Everstone will
establish the supply chain network and also implement a roll-out
initiative in association with BK AsiaPac Pte. Ltd. across the
Everstone is one of the key investors in the private equity
and real estate business in India and South East Asia.
Established in 2006, the firm boasts superior local market
knowledge and has a proven track record of venturing into the
consumer products and services, food & beverage, education,
healthcare, financial services and logistics industry. With its
sound knowledge of Indian food habits, the franchisee expects to
benefit from the collaboration with Burger King.
This joint venture affirms Burger King's intent to make India
one of the prime markets for expansion. According to a report by
the U.S. Commercial Service, the middle-income population in
India will grow tenfold by 2025. The income growth of the larger
populace also makes India a lucrative investment proposition. The
company's strategy is also likely to be successful because of the
under-penetration of quick-service restaurants in India compared
with the saturated North American countries. The opening will
also strengthen the company's global footprint.
Another famous U.S.-based burger chain
) has successfully established its presence in the Indian
Burger King has a Zacks Rank #2 (Buy). Investors interested in
the restaurant industry may consider stocks like
Cracker Barrel Old Country Store, Inc.
Bob Evans Farms, Inc.
). Both these companies hold a Zacks Rank #2.
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