Mumbai, Dec 16 (IANS): Shares of quick restaurant service provider Burger King India Ltd. continued to surge on Wednesday as it hit the upper circuit for the third straight day.

On Wednesday, its shares on the BSE reached Rs 199.25, rising Rs 33.20 or 19.99 per cent from its previous close.

The company's stock got listed on Indian bourses on Monday and on the debut day itself it opened at a premium of over 87 per cent over the IPO price at Rs 112.50.

The performance of the stock had even defied projections made by several analysts who had expected Burger King to list at around 70-75 per cent premium over issue price.

"Such listing was in line with our expectation as the company issue was priced at a significant discount compared to listed peers such as Jubilant FoodWorks (Domino's Pizza) and Westlife Development (McDonald). Short term investors can book profit. We advise long term investors to stay invested in the company as there is ample scope available for the company to increase its business in India," Keshav Lahoti Associate Equity Analyst, Angel Broking Ltd. said.

BKIL enjoys exclusive National Master Franchisee Rights in India till December 31, 2039, with an obligation to develop and open at least 700 restaurants by December 2026. It is one of the fastest growing QSR chain India with 268 restaurants spread across 17 states/UTs and 57 cities. It has already garnered five per cent market share in India's Rs 34,800 crore QSR market.

According to Motilal Oswal Financial Services, over FY18-20, BKIL's Revenue/EBITDA grew at a CAGR of 49 per cent/258 per cent led by 2x the store strength. However, it continues to make losses at PAT level.

The same store sales growth stood at 12.2 per cent/29.2 per cent in FY18/FY19 while it surprisingly became flat in FY20. In 1HFY21, revenue declined 68 per cent YoY, while it made losses at EBITDA and PAT levels due to the Covid-19 impact.