Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Florida-based Fiesta Restaurant Group, Inc.’s (FRGI - Snapshot Report) subsidiary Pollo Tropical, which mainly serves Caribbean foods, has finally unveiled its first franchised outlet in Delhi, the capital of India. The latest opening came in the wake of the signing of a development agreement with franchisee, Paramount Cuisines Pvt. Ltd, a subsidiary of the Paramount Group in Aug 2012.

The restaurant is strategically positioned in the popular shopping mall, DLF Place, Saket. We believe that Delhi is a strategic fit for entering the country as it is home to the country’s many government organizations, IT firms, well-known universities and research institutes. With more than 50 shopping malls already in action and dozens under construction, Delhi remains one of the vital locations in India.

Delhi-based Paramount Cuisines will unveil nine more Pollo Tropical outlets in India by 2016. The restaurants will be located in Northern India, comprising several important locations like National Capital Region, Chandigarh, Punjab and Haryana.

Both Pollo Tropical and Paramount believe that its chicken options will appeal to Indian taste buds. Additionally, the restaurateur’s already-strong vegetarian offerings can successfully cater to the huge vegetarian population of India.

According to a report by the U.S. Commercial Service, the middle-income population in India is burgeoning and will grow tenfold by 2025. The growth in the income of the larger populace also makes India a lucrative investment proposition. Furthermore, the report reveals that Delhi is expected to be one of the world’s largest metropolises by 2025 following the rapid urbanization.

Hence, these openings reflect the Zacks Rank #2 (Buy) company’s intent to make India one of the prime markets for international expansion. The strategy is likely to be successful because of the growing economy and under-penetration of quick-service restaurants as compared with saturated North American countries.

However, following the growing demand for American dining brands in India, other restaurateurs like Yum! Brands Inc. (YUM - Analyst Report), Domino's Pizza, Inc. (DPZ - Analyst Report) and McDonald’s Inc. (MCD - Analyst Report) are also making their presence felt in the country.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%