Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

<ul><li>McDonald's' has continued with its bull run after another positive set of quarterly results.</li><li>The global fast-food giant witnessed a wide-ranging business momentum worldwide with global comp sales, up nearly 13% and around 10% on a two-year basis.</li><li>Overall, we are optimistic about McDonald's and give the company a 'Hold' rating with a revised target price.</li></ul>

McDonald's' has continued with its bull run after another positive set of quarterly results.The global fast-food giant witnessed a wide-ranging business momentum worldwide with global comp sales, up nearly 13% and around 10% on a two-year basis.Overall, we are optimistic about McDonald's and give the company a 'Hold' rating with a revised target price.

McDonald's: Always A Delicious Investment (12/2021)

<ul><li>Fast food titan, McDonald's delivered a solid set of results for the second quarter surpassing Wall Street expectations and is poised for a strong year ahead.</li><li>The company saw its global comparable sales grow by a staggering 40% and around 7% on a two-year basis which is truly exceptional.</li><li>It has had a particularly remarkable performance in its international operated market segment where its comparable sales were up 75%, or nearly 3% on a two-year basis.</li></ul>

Fast food titan, McDonald's delivered a solid set of results for the second quarter surpassing Wall Street expectations and is poised for a strong year ahead.The company saw its global comparable sales grow by a staggering 40% and around 7% on a two-year basis which is truly exceptional.It has had a particularly remarkable performance in its international operated market segment where its comparable sales were up 75%, or nearly 3% on a two-year basis.

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p><a href="https://www.smartkarma.com/entities/mcdonald-s-holdings-co-japan" target="_blank" data-smartkarma-citation="entities:985:1" rel="noopener">Mcdonald's Holdings Co Japan (2702 JP)</a> today <a href="https://ircms.irstreet.com/contents/data_file.php?template=1585&amp;brand=74&amp;folder_contents=36934&amp;src_data=312469&amp;filename=pdf_file.pdf" target="_blank" rel="noopener">reported</a> Q2 revenues which were +12.5% year on year, OP which was up 13.1%yoy, and Net Profit which was up 13.9%yoy. For H1 as a whole, revenues were up 8.6% (+10.2% including franchised stores) and OP and NP were up 16.9% and 18.7%, respectively, vs the year prior period. </p><p>The company also raised its <a href="https://ircms.irstreet.com/contents/data_file.php?template=1585&amp;brand=74&amp;folder_contents=36934&amp;src_data=312462&amp;filename=pdf_file.pdf" target="_blank" rel="noopener">forecasts</a> for the full year from the forecast at the end of Q1 which was ¥299.5bn in revenue to ¥312bn; the OP forecast was lifted from ¥32bn to ¥34bn. The NP forecast was lifted from ¥20.4bn to ¥21bn.</p><p>We basically knew this was going to be the case a couple of weeks ago because of the comments made in the analyst call on 28 July after parent <a href="https://www.smartkarma.com/entities/mcdonald-s-corp" target="_blank" data-smartkarma-citation="entities:1425:1" rel="noopener">Mcdonald's Corp (MCD US)</a> earnings were released.</p><p>What we do not have yet is any indication of the company's intent with regard to the TSE's market structure changes come April 2022. </p><p>But we should have another block to be sold by MCDs. I would expect 3.8mm shares to close out the sale of shares. I would expect it imminently. </p><p>That will be the end of MCD's selldown of MCDs Japan shares... but not quite. </p><p>More below.</p>

Mcdonald's Holdings Co Japan (2702 JP) today reported Q2 revenues which were +12.5% year on year, OP which was up 13.1%yoy, and Net Profit which was up 13.9%yoy. For H1 as a whole, revenues were up 8.6% (+10.2% including franchised stores) and OP and NP were up 16.9% and 18.7%, respectively, vs the year prior period. The company also raised its forecasts for the full year from the forecast at the end of Q1 which was ¥299.5bn in revenue to ¥312bn; the OP forecast was lifted from ¥32bn to ¥34bn. The NP forecast was lifted from ¥20.4bn to ¥21bn.We basically knew this was going to be the case a couple of weeks ago because of the comments made in the analyst call on 28 July after parent Mcdonald's Corp (MCD US) earnings were released.What we do not have yet is any indication of the company's intent with regard to the TSE's market structure changes come April 2022. But we should have another block to be sold by MCDs. I would expect 3.8mm shares to close out the sale of shares. I would expect it imminently. That will be the end of MCD's selldown of MCDs Japan shares... but not quite. More below.

McDs Japan (2702) Update: Q1 Strong As Expected, No TSE1 News

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Devyani International  / Equity Capital Markets

<div><p>Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$250m via its Indian IPO. The IPO will be a mix of primary and secondary shares. </p></div><div><p>DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.</p></div><div><p>We covered various aspects of the deal in our previous notes, <a href="https://www.smartkarma.com/insights/devyani-pre-ipo-might-not-do-another-burger-king-india-but-should-be-good" target="_blank" rel="noopener">Devyani Pre-IPO - Might not do another Burger King India but should be good</a>,  <a href="https://www.smartkarma.com/insights/devyani-pre-ipo-peer-comparison-slots-in-neatly" target="_blank" rel="noopener">Devyani Pre-IPO - Peer Comparison - Slots in Neatly</a> and <a href="https://www.smartkarma.com/insights/devyani-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Devyani Pre-IPO - Thoughts on Valuation.</a></p></div><div><p>In this note, we will talk about the IPO pricing.</p></div>

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$250m via its Indian IPO. The IPO will be a mix of primary and secondary shares. DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.We covered various aspects of the deal in our previous notes, Devyani Pre-IPO - Might not do another Burger King India but should be good,  Devyani Pre-IPO - Peer Comparison - Slots in Neatly and Devyani Pre-IPO - Thoughts on Valuation.In this note, we will talk about the IPO pricing.

Devyani IPO - Still Some Upside on Un-Adjusted EBITDA Basis

<div><p>Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$200m via its Indian IPO. The IPO will be a mix of primary and secondary shares. </p></div><div><p>DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.</p></div><div><p>We covered various aspects of the deal in our previous notes, <a href="https://www.smartkarma.com/insights/devyani-pre-ipo-might-not-do-another-burger-king-india-but-should-be-good" target="_blank" rel="noopener">Devyani Pre-IPO - Might not do another Burger King India but should be good</a> and <a href="https://www.smartkarma.com/insights/devyani-pre-ipo-peer-comparison-slots-in-neatly" target="_blank" rel="noopener">Devyani Pre-IPO - Peer Comparison - Slots in Neatly.</a></p></div><div><p>In this note we will talk about valuations.</p></div>

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$200m via its Indian IPO. The IPO will be a mix of primary and secondary shares. DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.We covered various aspects of the deal in our previous notes, Devyani Pre-IPO - Might not do another Burger King India but should be good and Devyani Pre-IPO - Peer Comparison - Slots in Neatly.In this note we will talk about valuations.

United States

McDonald's Corporation franchises and operates fast-food restaurants in the global restaurant industry. The Company's restaurants serve a variety of value-priced menu products in countries around the world.

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Mcdonald's Corp (MCD US)

McDonald's: Always A Delicious Investment (12/2021)

McDonald's' has continued with its bull run after another positive set of quarterly results. The global fast-food giant witnessed a wide-ranging...

Baptista Research

McDonald's Corp - Investment Thesis

Fast food titan, McDonald's delivered a solid set of results for the second quarter surpassing Wall Street expectations and is poised for a strong...

Baptista Research

McDs Japan (2702) Update: Q1 Strong As Expected, No TSE1 News

McDs shares are up this AM. The earnings surprise was not a surprise so the forecast upgrade shouldn't be, but we are likely just a day or three...

Travis Lundy

Devyani IPO - Still Some Upside on Un-Adjusted EBITDA Basis

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$250m via its Indian IPO. The IPO will be a...

Sumeet Singh

Devyani Pre-IPO - Thoughts on Valuation

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$200m via its Indian IPO. The IPO will be a...

Sumeet Singh

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