Devyani International - On A Strong Footing: HDFC Securities Initiates Coverage

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Retail Research.Devyani International Ltd. is the largest franchisee of Yum Brands in India. The company has been riding on the strong business momentum in core brand business. KFC is on strong footing in terms of operating metrics and store economics, whereas Pizza Hut performance is seeing some green shoots from various turnaround measures. Leveraging on their core brands, increasing brand recognition of other business, innovative product offerings, improving digital and delivery capabilities and robust supply chain management system; Devyani International is poised to improve its positioning. Yum Brand franchisees have reduced the store size of all new stores for both KFC and Pizza by 30-40% thereby reducing capex and related operational cost. The shift to smaller stores has not hurt average daily sales per store for either brands. Lower capex with improving store-level economics aided in quicker payback for new stores. Continuous food innovation and value proposition (Pizza Hut) would enhance its unit-level performance by driving order frequency and order ticket size, thereby improving same-store sales growth and profitability of existing stores. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Devyani International - On A Strong Footing: HDFC Securities Initiates Coverage

The company has been riding on the strong business momentum in core brand business.

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