Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>The Wendy's Company reported a mixed second quarter earnings highlighted by continued global system-wide and same-restaurant sales growth, but faced challenges related to rising labor costs and operational increases which pressured margins and resulted in a downward adjustment of full-year sales growth expectations.</li><li>In the second quarter, The Wendy's Company showcased a 2.6% increase in global system-wide sales and a 0.8% rise in same-restaurant sales.</li><li>The U.S. segment maintained its competitive position within the quick service restaurant (QSR) burger category, with a particularly strong performance in the breakfast and late-night dayparts which are pivotal growth avenues for the company.</li></ul>

The Wendy's Company reported a mixed second quarter earnings highlighted by continued global system-wide and same-restaurant sales growth, but faced challenges related to rising labor costs and operational increases which pressured margins and resulted in a downward adjustment of full-year sales growth expectations.In the second quarter, The Wendy's Company showcased a 2.6% increase in global system-wide sales and a 0.8% rise in same-restaurant sales.The U.S. segment maintained its competitive position within the quick service restaurant (QSR) burger category, with a particularly strong performance in the breakfast and late-night dayparts which are pivotal growth avenues for the company.

The Wendy's Company: The Story Of International Expansion & Digital & Innovation Focus! - Major Drivers

<ul><li>Wendy's Company has demonstrated a strong start to 2024, maintaining an optimistic trajectory towards meeting its prior financial commitments and sustaining growth across various business dimensions.</li><li>The firm’s focus on enhancing same-restaurant sales, accelerating global unit growth, and improving restaurant-level profitability indicates a strategic approach to creating sustainable economic value.</li><li>During the first quarter, Wendy's reported global same-restaurant sales growth of 0.9%, translating into an 8.9% growth on a two-year basis, which signifies an uplift from the previous quarter.</li></ul>

Wendy's Company has demonstrated a strong start to 2024, maintaining an optimistic trajectory towards meeting its prior financial commitments and sustaining growth across various business dimensions.The firm’s focus on enhancing same-restaurant sales, accelerating global unit growth, and improving restaurant-level profitability indicates a strategic approach to creating sustainable economic value.During the first quarter, Wendy's reported global same-restaurant sales growth of 0.9%, translating into an 8.9% growth on a two-year basis, which signifies an uplift from the previous quarter.

The Wendy's Company: A Story Of Strengthening Core Product Offerings and Innovations! - Major Drivers

<ul><li>This is our first report on Wendy's Company.</li><li>In Q4, Wendy's global systemwide sales grew over 3%, supported by global same-restaurant sales growth and the benefit of global net unit growth.</li><li>U.S. company-operated restaurant sales grew due to higher average check figures driven by cumulative pricing of around 4.5%.</li></ul>

This is our first report on Wendy's Company.In Q4, Wendy's global systemwide sales grew over 3%, supported by global same-restaurant sales growth and the benefit of global net unit growth.U.S. company-operated restaurant sales grew due to higher average check figures driven by cumulative pricing of around 4.5%.

The Wendy's Company: Initiation Of Coverage - Expansion Of Footprint In UK & US

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<div>
<p><a href="https://www.smartkarma.com/entities/nayuki-holdings" target="_blank" data-smartkarma-citation="entities:32149:1" rel="noopener">Nayuki Holdings (2150 HK)</a> is the second-largest premium teahouse chain in China accounting for 18.9% of China’s premium modern teahouse market as measured by total retail consumption value in 2020, according to CIC.</p>
<p>Nayuki will commence trading on Wednesday, 30 June. Nayuki priced its IPO at HK$19.80 and the shares <a href="https://inews.hket.com/article/2993858/%E3%80%90%E5%A5%88%E9%9B%AA%E7%9A%84%E8%8C%B6%E6%9A%97%E7%9B%A4%E3%80%91%E5%A5%88%E9%9B%AA%E7%9A%84%E8%8C%B62150%E5%A0%B4%E5%A4%96%E6%9A%97%E7%9B%A4%E5%8D%8711-%E3%80%80%E4%B8%80%E6%89%8B%E5%B8%B3%E9%9D%A2%E8%B3%BA1100%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">stood 11% higher</a> at HK$22.00 in the grey market.</p>
</div><div>
<p>In <a href="https://www.smartkarma.com/insights/nayuki-holdings-ipo-initiation-a-new-leaf" target="_blank" data-smartkarma-citation="insights:48532" rel="noopener">Nayuki Holdings IPO Initiation: A New Leaf</a>, we noted that premium teahouses have rapidly gained popularity in China as they bring new tea-drinking experiences and benefit from the structural trend of consumer’s consumption upgrades driven by higher disposable income. We opined that Nayuki has the right ingredients to offer investors an attractive play on this market. In <a href="https://www.smartkarma.com/insights/nayuki-holdings-ipo-drinking-habits" target="_blank" data-smartkarma-citation="insights:52873" rel="noopener">Nayuki Holdings IPO: Drinking Habits</a>, we noted that recent results (disclosed in the PHIP) show that Nayuki is well-positioned as a post-COVID-19 recovery play.</p>
<p>In <a href="https://www.smartkarma.com/insights/nayuki-holdings-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:53291" rel="noopener">Nayuki Holdings IPO: Valuation Insights</a>, we noted that Nayuki is attractively valued to its peer group for its forecasted earnings growth i.e. on a PEG basis. We recommended participating at the low end of the IPO price range due to the decent upside compared to our base-case DCF valuation.</p>
</div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise and FX, our base-case DCF derived price target is HK$19.45 per share. Nevertheless, our DCF sensitivity and relative valuation analysis show that the grey market price is justifiable.  </p></div></div></div>


Nayuki Holdings (2150 HK) is the second-largest premium teahouse chain in China accounting for 18.9% of China’s premium modern teahouse market as measured by total retail consumption value in 2020, according to CIC.
Nayuki will commence trading on Wednesday, 30 June. Nayuki priced its IPO at HK$19.80 and the shares stood 11% higher at HK$22.00 in the grey market.

In Nayuki Holdings IPO Initiation: A New Leaf, we noted that premium teahouses have rapidly gained popularity in China as they bring new tea-drinking experiences and benefit from the structural trend of consumer’s consumption upgrades driven by higher disposable income. We opined that Nayuki has the right ingredients to offer investors an attractive play on this market. In Nayuki Holdings IPO: Drinking Habits, we noted that recent results (disclosed in the PHIP) show that Nayuki is well-positioned as a post-COVID-19 recovery play.
In Nayuki Holdings IPO: Valuation Insights, we noted that Nayuki is attractively valued to its peer group for its forecasted earnings growth i.e. on a PEG basis. We recommended participating at the low end of the IPO price range due to the decent upside compared to our base-case DCF valuation.
Updating for the final IPO net raise and FX, our base-case DCF derived price target is HK$19.45 per share. Nevertheless, our DCF sensitivity and relative valuation analysis show that the grey market price is justifiable.  

United States

The Wendy's Company operates fast-food restaurants. The Company owns, operates, and franchises fast-food restaurants located throughout countries that include the United States, Singapore, the Middle East and North Africa, the Russian Federation, the Eastern Caribbean, Argentina, the Philippines and Japan.

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Wendy's Co/The (WEN US)

The Wendy's Company: The Story Of International Expansion & Digital & Innovation Focus! - Major Drivers

The Wendy's Company reported a mixed second quarter earnings highlighted by continued global system-wide and same-restaurant sales growth, but...

Baptista Research

The Wendy's Company: A Story Of Strengthening Core Product Offerings and Innovations! - Major Drivers

Wendy's Company has demonstrated a strong start to 2024, maintaining an optimistic trajectory towards meeting its prior financial commitments and...

Baptista Research

The Wendy's Company: Initiation Of Coverage - Expansion Of Footprint In UK & US

This is our first report on Wendy's Company. In Q4, Wendy's global systemwide sales grew over 3%, supported by global same-restaurant sales growth...

Baptista Research

The Wendy's Company: Initiation Of Coverage - Expansion Of Footprint In UK & US

This is our first report on Wendy's Company. In Q4, Wendy's global systemwide sales grew over 3%, supported by global same-restaurant sales growth...

Baptista Research

Nayuki Holdings IPO: Trading Debut

Nayuki priced its IPO at HK$19.80 and the shares stood 11% higher at HK$22.00 in the grey market. Our DCF sensitivity and relative valuation...

Arun George

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