Pizza vs Burger: What should investors go with? Here's what Prabhudas Lilladher expects for QSRs like Domino's and McD

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Jubilant FoodWorks with a target price of ₹490 (13 percent downside) and Accumulate on Westlife Foodworld with a target price of ₹817 (3 percent downside).The Quick Service Restaurant sector in India has traditionally been dominated by multinational giants like McDonald’s, Domino’s, Burger King, and Pizza Hut, which have established strong brand loyalty over the years. Despite their success, these brands only penetrate around 425 cities in India, leaving ample room for growth in a country with a large and aspirational youth population, noted PL.It further highlighted that local competition is intensifying within the QSR space, as many homegrown brands ambitiously expand nationally, offering burgers and pizzas with unique flavors at competitive prices.

These brands benefit from lower costs associated with localised product development, establishing regional supply chains, and managing overhead expenses effectively.Over the past few years, the number of pizza outlets among the top three players has surged from 1,437 to 2,932 stores between FY17 and FY23 (excluding other players like Oven Story, Sbarro, Pizzeria, MojoPizza, Smokin’ Joe’s, etc.). Despite this growth, major pizza chains have faced challenges such as declining same-store sales growth and profitability.

These setbacks are attributed not just to a slowdown in consumer demand but also to rapid store expansions and heightened competition within the sector, it stated.In contrast, burgers have been part of India's culinary landscape for over two decades, available even in smaller towns. Recently, however, the market has witnessed the rise of both regional and national burger chains like Burger Singh, Burgrill, Hello Burger’s, alongside many cafes incorporating