BOVESPA:BKBR3

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BK Brasil Operação e Assessoria a Restaurantes

Executive Summary

BK Brasil Operação e Assessoria a Restaurantes S.A. More Details


Snowflake Analysis

Reasonable growth potential with worrying balance sheet.

Share Price & News

How has BK Brasil Operação e Assessoria a Restaurantes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BKBR3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BKBR3's weekly volatility has decreased from 11% to 6% over the past year.


Market Performance


7 Day Return

-1.2%

BKBR3

-2.6%

BR Hospitality

-1.8%

BR Market


1 Year Return

-41.5%

BKBR3

-41.8%

BR Hospitality

1.8%

BR Market

Return vs Industry: BKBR3 matched the BR Hospitality industry which returned -41.8% over the past year.

Return vs Market: BKBR3 underperformed the BR Market which returned 1.8% over the past year.


Shareholder returns

BKBR3IndustryMarket
7 Day-1.2%-2.6%-1.8%
30 Day-2.6%-5.3%3.3%
90 Day-6.8%6.8%18.4%
1 Year-41.3%-41.5%-40.5%-41.8%4.6%1.8%
3 Year-38.8%-39.4%-45.3%-47.4%60.2%42.9%
5 Yearn/a-44.3%-48.0%227.3%170.9%

Long-Term Price Volatility Vs. Market

How volatile is BK Brasil Operação e Assessoria a Restaurantes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BK Brasil Operação e Assessoria a Restaurantes undervalued compared to its fair value and its price relative to the market?

1.68x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BKBR3 (R$10.7) is trading above our estimate of fair value (R$0.06)

Significantly Below Fair Value: BKBR3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BKBR3 is unprofitable, so we can't compare its PE Ratio to the XX Hospitality industry average.

PE vs Market: BKBR3 is unprofitable, so we can't compare its PE Ratio to the BR market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BKBR3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BKBR3 is overvalued based on its PB Ratio (1.7x) compared to the XS Hospitality industry average (1.5x).


Next Steps

Future Growth

How is BK Brasil Operação e Assessoria a Restaurantes forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

77.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKBR3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.9%).

Earnings vs Market: BKBR3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BKBR3's is expected to become profitable in the next 3 years.

Revenue vs Market: BKBR3's revenue (19.6% per year) is forecast to grow faster than the BR market (10.3% per year).

High Growth Revenue: BKBR3's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKBR3's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has BK Brasil Operação e Assessoria a Restaurantes performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKBR3 is currently unprofitable.

Growing Profit Margin: BKBR3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BKBR3 is unprofitable, and losses have increased over the past 5 years at a rate of 5.8% per year.

Accelerating Growth: Unable to compare BKBR3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BKBR3 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-24.8%).


Return on Equity

High ROE: BKBR3 has a negative Return on Equity (-21.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is BK Brasil Operação e Assessoria a Restaurantes's financial position?


Financial Position Analysis

Short Term Liabilities: BKBR3's short term assets (R$753.2M) do not cover its short term liabilities (R$775.9M).

Long Term Liabilities: BKBR3's short term assets (R$753.2M) do not cover its long term liabilities (R$1.3B).


Debt to Equity History and Analysis

Debt Level: BKBR3's debt to equity ratio (64.8%) is considered high.

Reducing Debt: BKBR3's debt to equity ratio has reduced from 103.9% to 64.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if BKBR3 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BKBR3 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is BK Brasil Operação e Assessoria a Restaurantes's current dividend yield, its reliability and sustainability?

0.13%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BKBR3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BKBR3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BKBR3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BKBR3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BKBR3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

Iuri de Miranda

9.5yrs

Tenure

Mr. Iuri de Araujo Miranda is Chief Executive Officer of BK Brasil Operação e Assessoria a Restaurantes S.A. since July 2011. From May 2010 to July 2011, Mr. Miranda served as Managing Director for Brazil ...


Leadership Team

NamePositionTenureCompensationOwnership
Iuri de Miranda
Chief Executive Officer9.5yrsno datano data
Clayton de Malheiros
Chief Investor Relations Officer & CFO9.5yrsno datano data
Danillo Gomes
Vice President of Operations0.33yrno datano data
Fabio Chaves de Alves
Legal Vice President9.42yrsno datano data
Ariel Grunkraut
Vice President of Marketing & Sales1yrno datano data
Marcia Cristine Baena
Vice President of People & Management5yrsno datano data
Gustavo do Fehlberg
Chief Development Officer9.42yrsno datano data

9.4yrs

Average Tenure

Experienced Management: BKBR3's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marcos Grodetzky
Chairman of the Board1.17yrsno datano data
Anna Andrea Votta Chaia
Independent Director1yrno datano data
Rodrigo Galindo
Independent Director3.25yrsno datano data
Ricardo Wajnberg
Independent Director0.92yrno datano data
Paula de Oliveira Goncalves Bellizia
Independent Director1.75yrsno datano data
Joshua Kobza
Director7.75yrsno datano data
Felipe Seroa da Motta Austregesilo Athayde
Deputy Board Member3.42yrsno datano data
Henrique José Luz
Independent Board Member1.17yrsno datano data
Thiago Santelmo
Deputy Board Memberno datano datano data

1.5yrs

Average Tenure

Experienced Board: BKBR3's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.8%.


Top Shareholders

Company Information

BK Brasil Operação e Assessoria a Restaurantes S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BK Brasil Operação e Assessoria a Restaurantes S.A.
  • Ticker: BKBR3
  • Exchange: BOVESPA
  • Founded: 2011
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: R$2.983b
  • Shares outstanding: 274.13m
  • Website: https://www.burgerking.com.br

Location

  • BK Brasil Operação e Assessoria a Restaurantes S.A.
  • Alameda Tocantins, n°350
  • 11th floor
  • Barueri
  • São Paulo
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKBR3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLDec 2017

Biography

BK Brasil Operação e Assessoria a Restaurantes S.A. develops, operates, and franchisees restaurants under the Burger King and POPEYES names in Brazil. It also provides advisory and support services to Burg...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 21:59
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.