Kamath: Public Markets Overvalue QSR Chains and Undervalue Dine-In Restaurants
Nikhil Kamath · Ep# 12 | WTF is The Restaurant Game? Nikhil w/ Pooja Dhingra, Zorawar Kalra & Riyaaz Amlani · Nikhil Kamath · Oct 28, 2023 · at 1:40:35
Zerodha co-founder Nikhil Kamath discusses why he believes public equity markets misprice Indian food service businesses by giving excessive multiples to foreign QSR franchises over nuanced dine-in formats.
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“So when I saw QSR chains getting the multiple that they are, while they are just franchisee models, replicating a foreign product in necessarily not an innovative way, I don't think they deserve that valuation. I don't think Dine in restaurants deserve the low valuation they are getting as well, because to be fair to them, they're creating a more nuanced product than a QSR chain.”
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