QSR Stocks India – QSR Stocks

Quick Service Restaurant (QSR) stocks in India are gaining popularity due to increasing urbanisation and changing consumer preferences. Brands like Jubilant FoodWorks and Westlife Development offer growth potential, driven by expanding middle-class demand, rising online food delivery and franchise-based business models, making them attractive for long-term investments.

The table below shows the QSR stocks India stocks based on the highest market capitalisation and 1-year return.

Introduction To QSR Stocks In India

Jubilant Foodworks Ltd

The Market Cap of Jubilant Foodworks Ltd is Rs. 42,583.03 crores. The stock’s monthly return is 9.15%. Its one-year return is 19.78%. The stock is 3.09% away from its 52-week high.

Jubilant FoodWorks Limited, a food service company based in India, is involved in the retail sales of food from a variety of international and homegrown brands catering to different segments of the food market. 

Its international brands such as Domino Pizza, Dunkin Donuts, and Popeyes, are recognized globally. The company holds the rights to establish and manage Domino Pizza restaurants in India, Sri Lanka, Bangladesh and Nepal. In India, it boasts a network of about 1,838 Domino restaurants spread across 394 cities.  

Devyani International Ltd

The Market Cap of Devyani International Ltd is Rs. 22,132.16 crores. The stock’s monthly return is -0.05%. Its one-year return is -13.51%. The stock is 23.99% away from its 52-week high.

Devyani International Limited, an India-based company, is primarily involved in the development, management and operation of quick-service restaurants and food courts for well-known brands like Pizza Hut, KFC, Costa Coffee and Vaango. 

The company’s operations fall under the Food and Beverages segment, with geographical segments categorized as Within India and Outside India. Outside India, operations mainly consist of KFC and Pizza Hut stores in Nepal and Nigeria. Devyani International Limited manages over 490 KFC stores and around 506 Pizza Hut stores in India.  

Westlife Foodworld Ltd

The Market Cap of Westlife Foodworld Ltd is Rs. 12,806.40 crores. The stock’s monthly return is 4.02%. Its one-year return is -14.23%. The stock is 24.39% away from its 52-week high.

Westlife Foodworld Limited, operating through its subsidiary Hardcastle Restaurants Private Limited, specializes in establishing and managing quick service restaurants (QSRs) in India. As a franchisee of McDonald’s, the company holds the license to run McDonald’s restaurants in the west and south regions of India. 

Their offerings encompass a variety of food items such as burgers, chicken smoothies, coolers, coffee and breakfast options. Additionally, they have diversified their business with brand extensions including McCafe, McDelivery, McBreakfast and Dessert Kiosks. McCafe, McDonald’s in-house coffee chain, offers a wide selection of more than 45 hot and cold beverages. 

Sapphire Foods India Ltd

The Market Cap of Sapphire Foods India Ltd is Rs. 10,728.25 crores. The stock’s monthly return is -79.85%. Its one-year return is 16.44%. The stock is 8.34% away from its 52-week high.

Sapphire Foods India Limited is an Indian company specializing in quick service restaurants (QSR) and casual dining. It operates as a franchisee for Yum Brands in India, Sri Lanka and the Maldives. 

The company’s brands include Kentucky Fried Chicken (KFC), Pizza Hut and Taco Bell. KFC features a wide-ranging menu that includes chicken on the bone, boneless chicken, burgers, rice bowls, wraps, drinks and desserts. Pizza Hut provides a comprehensive menu suitable for all dayparts, offering various pizzas, pasta, appetizers, beverages and desserts.  

Restaurant Brands Asia Ltd

The Market Cap of Restaurant Brands Asia Ltd is Rs. 5,387.04 crores. The stock’s monthly return is 1.72%. Its one-year return is -12.80%. The stock is 27.35% away from its 52-week high.

Restaurant Brands Asia Limited, an India-based company, operates quick-service restaurants under the Burger King brand. The company has business operations across India and Indonesia through its subsidiaries, offering a variety of food products tailored to local preferences. 

Their menu includes items such as Veg Whopper, Crispy Veg Burger, Crispy Chicken Burger, and various side options like fries and desserts. In India, the company runs approximately 315 restaurants, including sub-franchised outlets and BK Cafes, while in Indonesia, it owns and operates around 177 restaurants.

Barbeque-Nation Hospitality Ltd

The Market Cap of Barbeque-Nation Hospitality Ltd is Rs. 2,537.01 crores. The stock’s monthly return is 18.75%. Its one-year return is -7.51%. The stock is 21.93% away from its 52-week high.

Barbeque-Nation Hospitality Ltd is an Indian company that primarily focuses on running a chain of casual dining restaurants in India. The company’s main business segment involves establishing and managing these restaurants. 

They offer a wide range of meats, vegetables, sauces, and condiments on their menu, catering to both vegetarian and non-vegetarian preferences. Additionally, the company operates an Italian restaurant chain named Toscano. With approximately 200 outlets in India, as well as four outlets in the UAE, one outlet in Malaysia and one outlet in Oman, they have a significant presence in the market.  

Speciality Restaurants Ltd

The Market Cap of Speciality Restaurants Ltd is Rs. 811.32 crores. The stock’s monthly return is 2.72%. Its one-year return stands at -22.40%. The stock is currently 70.69% away from its 52-week high.

Speciality Restaurants Limited, an India-based company, is primarily involved in operating various types of restaurant outlets and sweet shops. The company has a diverse portfolio of fine dining, casual dining, bar and lounge, bakery, and confectionery establishments located throughout the country. 

With around 129 restaurants and confectioneries in 25 cities across India, as well as in Dhaka, Dar-es-Salaam, Colombo, and Dubai, Speciality Restaurants Limited offers a range of well-known brands including Mainland China, Oh! Calcutta, Asia Kitchen By Mainland China, Sigree, Sigree Global Grill, Spicery by Sigree,  Sweet Bengal, Cafe Mezzuna, Flame & Grill, Haka, Machaan, Dariole, Zoodles and Speciality Catering Services.  

Coffee Day Enterprises Ltd

The Market Cap of Coffee Day Enterprises Ltd is Rs. 761.14 crores. The stock’s monthly return is -26.51%. Its one-year return is -31.70%. The stock is 107.19% away from its 52-week high.

Coffee Day Enterprises Limited, an Indian company, is involved in the trading of coffee beans. The company operates in various sectors including coffee retail and exports, commercial office leasing, financial services, integrated multimodal logistics, hospitality and information technology (IT) services. 

Its business segments consist of Coffee and related activities, Integrated multimodal logistics, Hospitality services, and Investment and other corporate functions. Coffee Day Enterprises retails coffee and other products through its Cafe and Xpress kiosks outlets under the Coffee Day brand.  

Apollo Sindoori Hotels Ltd

The Market Cap of Apollo Sindoori Hotels Ltd is Rs. 467.17 crores. The stock’s monthly return is 17.30%. Its one-year return is 8.10%. The stock is 47.62% away from its 52-week high.

Apollo Sindoori Hotels Limited, an India-based company, specializes in hospitality service management and support services. The company offers a variety of services including healthcare catering, industrial catering, corporate catering, institution catering, outdoor catering, restaurant management and more. 

In healthcare catering, the company provides nutritious food options tailored to patients’ needs, working closely with hospital nutritionists to develop customized menus. Their outdoor catering services provide food and beverages suitable for various events such as parties and small gatherings.  

Anjani Foods Ltd

The Market Cap of Anjani Foods Ltd is Rs. 108.53 crores. The stock’s monthly return is 3.83%. Its one-year return is 38.73%. The stock is 34.97% away from its 52-week high.

Anjani Foods Ltd. is an Indian company operating in the food and beverage industry, with a primary focus on producing and selling bakery products. The company owns retail stores that offer various product categories such as baked goods, desserts, cakes and beverages. 

Anjani Foods Ltd. operates through two distribution channels: Retail and Distribution & Modern Trade. In the Retail segment, the company has bakery outlets in different parts of Visakhapatnam city, as well as student cafe outlets in Bhimavaram and Hyderabad. The Distribution & Modern Trade segment supplies products to five rural districts in Andhra Pradesh: Visakhapatnam, Kakinada, Bhimavaram, East Godavari and West Godavari. 

What Are QSR Stocks?

QSR stocks refer to shares of companies that operate quick-service restaurants, commonly known as fast-food chains. These businesses provide customers with quick meal options at affordable prices, focusing on high volume and efficient service to maximize profitability.  

Investing in QSR stocks can be appealing due to the consistent demand for convenient dining options. As consumer lifestyles become increasingly busy, quick-service restaurants are likely to thrive, making these stocks an attractive choice for investors seeking growth in the food sector.

Features Of Quick Service Restaurant Stocks In India

The key features of Quick Service Restaurant (QSR) stocks in India include strong growth potential driven by rising consumer demand, rapid urbanization and a shift towards convenience-based eating habits, making these stocks attractive for long-term investors.

1. Franchise-Based Model: QSR brands typically operate on a franchise model, reducing operational risk while enabling rapid expansion. This model allows for scalability and low capital investment, increasing profitability and shareholder value over time.
2. Consumer-Centric Innovations: QSR companies in India focus on innovative menus and digital strategies to cater to diverse consumer preferences. Offering unique, localized food options helps in attracting more customers and gaining a competitive edge in the growing market.
3. Rising Online Delivery Trends: With the rapid adoption of online food delivery platforms, QSR brands have seen increased sales through digital channels. This trend ensures broader market reach, higher convenience for customers and better revenue generation for companies.
4. Cost Efficiency and High Margins: QSR operations typically involve low-cost raw materials, centralized supply chains and streamlined processes, resulting in lower operating expenses. This cost efficiency allows companies to maintain high-profit margins and deliver consistent earnings growth.
5. Brand Loyalty and Repeat Business: Strong brand recognition and loyalty programs help QSR companies build a loyal customer base. Repeat business is a crucial factor in sustaining long-term profitability, ensuring steady revenue growth and a stable financial outlook for investors.

List Of Best QSR Stocks Based on 6-Month Return

The table below shows the list of best QSR stocks based on a 6-month return.

QSR Stocks Based on 5-Year Net Profit Margin

The table below shows the QSR stocks based on 5-year net profit margin.

Quick Service Restaurant Stocks Based on 1M Return

The table below shows the quick service restaurant stocks based on a 1m return.

High Dividend Yield QSR Stocks India

The table below shows the high dividend yield qsr stocks in India.

Historical Performance of QSR Stocks

The table below shows the historical performance of QSR stocks.

Factors to consider when investing in QSR Stocks

The factor to consider when investing in QSR stocks is the brand’s market presence, which determines its ability to attract and retain customers, drive sales and sustain profitability in a competitive and rapidly growing industry.

1. Expansion Potential: Evaluate the QSR company’s ability to scale its operations through new outlets and franchises. A strong expansion plan signifies growth opportunities, increasing market share and revenue, which can positively impact long-term shareholder returns.
2. Digital and Delivery Strategies: With the rise in online ordering and food delivery, assess the company’s investment in digital platforms. Successful integration of these strategies can boost customer engagement, increase sales and contribute to sustainable business growth.
3. Operational Efficiency: Look for companies with streamlined operations, cost management practices and efficient supply chains. High operational efficiency leads to better profit margins, competitive pricing and the ability to withstand fluctuating market conditions, benefiting investors.
4. Consumer Preferences and Trends: Understanding consumer preferences, such as demand for healthier food options or local flavours, is essential. A QSR that adapts to these trends is more likely to maintain customer loyalty and sustain long-term growth.
5. Competitive Landscape: Examine the level of competition in the QSR industry and the company’s market positioning. Strong competitors can erode market share, while a company with a clear competitive advantage is better positioned for steady revenue growth.

How To Invest In QSR Stocks In India?

Investing in Quick Service Restaurant (QSR) stocks in India can be an excellent opportunity for growth. Begin by researching popular QSR companies and evaluating their financial health and market presence. Open a trading account with a reliable brokerage like Alice Blue, which offers a user-friendly platform for stock trading. After opening your account, conduct a thorough analysis and consider diversification to mitigate risks.  

Impact of Government Policies on QSR Stocks in India

Government policies significantly impact QSR stocks in India, especially through taxation, labour laws and regulations on food safety. The introduction of Goods and Services Tax (GST) has streamlined the tax structure, improving ease of doing business for QSR chains.

Additionally, changes in labour laws, such as minimum wage hikes and regulations on working hours, can affect operational costs for QSR companies. Compliance with these policies is essential for sustainable growth.

Food safety regulations, such as FSSAI standards, ensure quality and customer trust but may increase costs for adhering to stringent norms.

How QSR Stocks in India Perform in Economic Downturns?

Generally, these stocks tend to show resilience, as consumers often seek affordable dining options when faced with financial constraints. The shift towards value-oriented meals can sustain demand for QSR brands, helping them maintain steady revenue during tough times.  

Additionally, QSR companies often implement strategic measures to adapt to changing consumer behaviour. Innovations such as menu diversification, promotions and increased delivery options can further bolster their performance. Overall, QSR stocks may navigate downturns better than many other sectors.

Advantages of Investing in QSR Stocks

The primary advantage of investing in QSR stocks is the sector’s resilience, driven by consistent demand for affordable, quick dining options. This ensures steady revenue generation, even during economic downturns, offering long-term stability for investors.

1. High Growth Potential: The QSR industry in India is expanding rapidly due to urbanization and changing consumer lifestyles. Companies continuously open new outlets, leading to increased market share and revenue, which positively impacts long-term shareholder returns.
2. Franchise Business Model: Many QSR brands operate through franchises, reducing the financial risk for the company. This model allows for quick scalability and higher profitability with lower capital investment, benefiting both the franchisees and investors.
3. Digital and Delivery Integration: The growing trend of online food delivery platforms has increased revenue streams for QSR companies. By tapping into digital channels, these brands expand their customer base and enhance profitability, boosting investor confidence.
4. Brand Loyalty: QSR companies often benefit from strong brand recognition and customer loyalty. Frequent repeat purchases from a loyal customer base ensure consistent sales, making these stocks less volatile and more reliable for long-term investments.
5. High Margins: With efficient operations, low raw material costs, and standardized processes, QSR companies often enjoy high-profit margins. These favourable economics translate into stronger financial performance, making them attractive for investors seeking steady returns.

Risks of Investing in Best QSR Stocks

The main risk of investing in the best QSR stocks is their vulnerability to changing consumer preferences. A shift in taste trends or dietary habits can directly impact sales, leading to a decline in revenue and stock performance.

1. High Competition: The QSR sector is highly competitive, with numerous local and international brands vying for market share. Increased competition can result in price wars, reduced profitability and market saturation, making it harder for companies to sustain growth.
2. Rising Operational Costs: Inflation and rising raw material costs can squeeze profit margins. Additionally, increasing labour costs due to changes in minimum wage laws can negatively impact a QSR company’s financial health, leading to lower returns for investors.
3. Regulatory Changes: Government policies related to taxation, food safety, and labour regulations can affect QSR operations. Compliance with stricter regulations may increase costs, affecting profitability and putting downward pressure on stock performance in the long run.
4. Economic Downturns: QSR businesses are not entirely immune to economic downturns. During recessions, consumers may reduce discretionary spending, affecting sales. This can create volatility in QSR stock prices, leading to potential losses for investors during tough economic times.
5. Brand Perception Issues: Negative publicity related to food quality, safety, or labour practices can significantly harm a QSR company’s brand image. Damage to a brand’s reputation can lead to declining customer trust, reduced sales and long-term financial impact on stock performance.

QSR Stocks In India’s GDP Contribution

QSR stocks in India contribute significantly to the country’s GDP through employment generation, supply chain development, and tax revenues. The expanding QSR sector stimulates economic activity by creating jobs in food production, delivery, and retail, supporting the broader economy.

Additionally, the rise of franchising models and investment in infrastructure enhances local businesses and stimulates consumer spending. As urbanization grows and consumer preferences shift toward convenience dining, the QSR industry’s contribution to GDP is expected to increase, positioning it as a key driver of economic growth in India.

Who should invest in Best QSR Stocks?

Investing in the best QSR stocks is ideal for those seeking long-term growth in a resilient and fast-growing industry. These stocks offer attractive opportunities for various types of investors who prioritize consistent returns and market expansion in consumer-driven sectors.

1. Long-Term Investors: Those looking for steady, long-term growth should invest in QSR stocks. The sector’s expansion, driven by rising urbanization and changing consumer habits, provides long-term value through consistent earnings and potential capital appreciation.
2. Dividend Seekers: QSR companies often offer stable dividend payouts due to their consistent cash flow. Investors seeking regular income from dividends will find these stocks attractive, as they balance growth prospects with the ability to generate passive income.
3. Growth-Oriented Investors: Investors focused on companies with significant growth potential should consider QSR stocks. These brands are continuously expanding through new outlets and delivery channels, positioning them for rapid market share gains and revenue growth.
4. Risk-Averse Investors: QSR stocks can appeal to risk-averse investors, as the industry tends to remain resilient during economic downturns. With their focus on affordable dining options, QSR businesses are less vulnerable to dramatic revenue declines during recessions.

Top QSR Stocks in India – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory