Everstone Capital renews stake sale plans in Restaurant Brands Asia amid rising investor interest

INDIA – Everstone Capital has advanced efforts to sell its remaining 11.27% stake in Restaurant Brands Asia (RBA), the prominent operator of Burger King and Popeyes in India, with multiple parties expressing strong interest.

The discussions reportedly involve a private equity group and a family office aligned with an existing quick-service restaurant player, with offers exceeding RBA’s current market valuation.

Among prospective investors are a family office linked to an established quick-service restaurant operator and various private equity firms. Offers received reportedly surpass RBA’s current market valuation.

Despite recent challenges, RBA’s revenue rose 15.6% year-on-year to Rs 5.68 billion (approx. US$63 million) in Q3 2025, alongside a widening net loss of Rs 202 million (US$2.26 million).

The company raised Rs 5 billion through a qualified institutional placement in April 2025, drawing investment from the Massachusetts Institute of Technology among others.

Despite sustained revenue growth, RBA’s Q2 FY2026 revenue rose 15.6% year-on-year to Rs 5.68 billion (approximately US$63 million), losses widened to Rs 202 million (US$2.26 million) in Q3 2025, reflecting ongoing market pressures.

Everstone’s strategy includes capital recycling in sectors showing robust growth potential while managing portfolio risks through divestment.

The company has previously reduced its holdings, selling portions of the stake since 2023.

The potential change in control due to Everstone’s divestment could prompt a mandatory open offer under Indian regulations, signaling a critical phase for RBA amid evolving market dynamics.

Despite urban consumption headwinds, RBA plans to grow its footprint aggressively, aiming to enhance profitability and market share.

Everstone previously reduced its stake from over 40% in 2021 through substantial sales, including a Rs 1,494 crore (US$173 million) block in 2023 and a smaller Rs 113 crore (US$13 million) sale in 2024.

These moves align with Everstone’s strategy to recycle capital while supporting RBA’s growth with institutional backing.

A change in controlling shareholder triggered by Everstone’s exit would initiate a mandatory open offer under Indian regulations.

Despite subdued discretionary spending in urban markets, RBA plans an aggressive expansion aimed at improving profitability and capturing market share. Everstone’s divestment reflects shifting priorities, balancing risk management with tapping opportunities in India’s evolving fast-food sector.

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