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Summary
- June 4 happens to be National Donut Day.
- Fast food establishments Burger King, Tim Hortons and Popeyes Louisiana Kitchen band together to form Restaurant Brands International.
- Donut maker Krispy Kreme is set to go public – for a second time – in 2021.
June 4 happens to be National Donut Day, and brands like Krispy Kreme are giving away free donuts to celebrate this occasion. But free treats might not be the only thing they have to offer.
So, with our hearts set on sweet treats, let’s analyze the performances of eatery chain Restaurant Brands International and donut company Krispy Kreme.
Source: Pixabay
Restaurant Brands International Inc (TSX: QSR)
Fast food establishments Burger King, Tim Hortons and Popeyes Louisiana Kitchen band together to form Restaurant Brands International. The company is presently the world’s third largest quick-service chain, with tens of thousands of outlets in over 100 countries around the globe.
Restaurant Brands, holding a market cap of over C$ 25 billion, has a price-to-equity ratio is 31.8, as per TMX. Its return on equity and return on assets stand at 21.6 per cent and 2.1 per cent, respectively.
In March 2021, Popeyes announced its plans to foray into India, Nepal, Bhutan and Bangladesh over the next few years. It has signed an agreement with Jubilant Foodworks Limited for this multi-country rollout. The restaurant chain, in collaboration with JK Capital, also plans to expand in Mexico in coming years.
On the financial front, Restaurant Brands saw its sales growth fall by 8.6 per cent year-over-year (YoY) in fiscal 2020, which can be attributed to shutdowns due to the pandemic. During the year, the company’s adjusted net income was US$ 948 million, as compared to that of US$ 1,274 million in 2019.
In Q1 2021, the company added 148 new restaurants and posted an adjusted net income of US$ 257 million.
Restaurant Brands stock jumped nearly five per cent over last three months and returned about seven per cent over the past year.
Krispy Kreme
Donut maker Krispy Kreme is set to go public – for a second time – in 2021. It is expected to get listed in the US on Nasdaq with the symbol. ‘DNUT’.
Krispy Kreme first launched an initial public offering (IPO) in 2000. The company went private after it was acquired by JAB Holding in 2016 for nearly US$ 1.4 billion.
Krispy Kreme is over 80 years old, with firm footing and demand amid customers with a sweet tooth. Hence, its return to the public markets could draw investor attention this year.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
