KFC, Pizza Hut operator Devyani International zooms on store expansion, bullish brokerage views

Devyani International Share Price: Stocks of Devyani International Limited (DIL), the largest operators of chain quick service restaurants (QSR) in the country, are in focus today post handsome second quarter earnings. A strong buying was seen in the stock after it opened in green at 9:15. At 10:55 AM, the counter quoted Rs 186 apiece on NSE, up by 1.40 per cent. On the BSE as well, the stock traded positive with 1.40 per cent gains at Rs 185.85.

Earlier on Thursday, the quick service restaurant operator informed exchanges that it reported a 22 per cent rise in consolidated net profit in Q2FY23. The company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 165.5 crore, translating to an EBITDA margin of 22 per cent. Profit After Tax stood at Rs. 56.8 crore. It had reported a net profit of Rs 46.59 crore in the year-ago period. 

Its revenue from operations increased 44.82 per cent to Rs 747.42 crore as against Rs 516.08 crore in the year-ago period.

Devyani International, which is the largest franchisee of Yum Brands in India that includes Pizza Hut and KFC. It is also the franchisee of Costa Coffee.

The company said that it opened a record 88 net new stores in a single quarter, taking the total operational stores to 1,096 as of September 30, 2022. It opened 32 new restaurants for KFC taking the total count to 423. While for Pizza Hut, it added 53 stores in India, taking the total count to 466 stores. It was operating 88 stores of Costa Coffee as on September 30.

DIL also operates 29 stores of KFC in Nigeria and 20 stores of KFC and Pizza Hut in Nepal.

Brokerages have reacted positively post announcement of the Q2 results and have revised the targets.

Devyani International made its Dalal Street debut on August 16 last year. The hares of KFC, Pizza Hut and Costa Coffee operator made a bumper listing with a 56 per cent premium on the bourses. In 2022 so far, the counter has yielded a positive return of 10 per cent to its investors. The stock's 52-week range is Rs 215 - Rs 134.70. 

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