Jubilant Foodworks Ltd. share price target

JUBI reported a decent quarter, just about ticking most boxes. LFL growth of 5.8% looks unexciting in the context of price hike benefit. What we like – (1) store expansion thrust – added 207 Domino’s outlets on net basis in FY22 (72 in 4Q). (2) Confidence on Popeye’s expansion was very pleasing – we continue to believe this (success in Popeye’s) is the next potential positive upside trigger.

Though company's prospects remain bright, the sudden exit of Mr. Pota has brought upon an uncertainty over the near-term direction of the firm. Awaiting further guidance from management, we downgrade our rating on the stock in the interim to HOLD with a revised target price of...

System sales recovered from 111.6% to 112.9% QoQ, delivery declined 880bps QoQ while Takeaway+ Dine-in increased 1270bps We are cutting FY22/23/24 EPS by 5.5/12/12.7% following disappointing results in 3Q22. Eventhough JUBI accelerated store openings by adding 75 Dominos in current quarter, LFL sales disappointed as were System average sales per store despite IPL/T20 world cup. We believe that 3rd wave impact in last 15 days could not be the only reason as Delivery Apps like Zomato and...

Jubilant FoodWorks (JUBI) reported largely in-line sales and margins, even as like-for-like (LFL) was lower than expected. The management has shared both LFL and same-store sales growth (SSSG) numbers for many quarters thus far. The decision to stop the SSSG disclosure is puzzling, especially as the management has commented that a) there is no large difference...

We expect earnings to grow by 54.2% in FY23E & grow by 22.2% in FY24E.

Q3FY22 is expected to fare much better for the company on the back of continued growth in revenue and opening of new stores and brands. Hence, we upgrade our rating on the stock to BUY with a revised target price of Rs. 4,220 based on 84x FY23E adj. EPS. Quarterly revenue hits all-time high Standalone revenue grew 36.6% YoY to Rs. 1,101cr in Q2FY22 (+11.6% vs. the prepandemic level of Q2FY20), supported by highest ever stores expansion. The revenue growth was driven by recovery in the Dine-in channels and continued momentum in the Delivery and Takeaway channels. Resultantly, EBITDA also rose 33.2% YoY to Rs....