Jubilant Foodworks Ltd. share price target

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...

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....

Key Jubi narratives now are - store expansion, industry-leading revenue growth, resilient margins, unlock-led recovery, digital capabilities, high quality management, platform potential, market opportunity. What’s not ticking (for consensus) is the international expansion which JUBI has aspirations for.

stores. 2) lower competition given covid led shakeout 3) strong ecosystem opportunity in India and emerge as a global QSR player. We believe success key to furtther re-rating. We maintain Accumulte with a DCF based target...

Boosting its technological capabilities: In addition to its delivery and value moat, JUBI is boosting its technological moat to enhance its lead over its QSR peers and aggregators. Improving its pre-order experience, usage of Hindi and...

across the country, mobility restrictions affecting takeaway channel severely and state-specific delivery restrictions. However, despite the challenges, the delivery channel continued to drive the sales recovery for Domino's. Revenue growth was driven by Domino's LFL Sales growth of 120.4% and SSG of 114.2%. The...

Opening of new stores, persisting digital investments and strong brand value help drive JFL's revenue. Meanwhile, app downloads continue to be on the rise, contributing to over half of total sales. However, post the recent stock price rally, valuation looks expensive. We therefore...

Jubilant Foodworks (JUBI) has reported above expected result for 1QFY22. Best in class execution and Zero-Contact branding has helped JUBI to report outperformance in delivery channel. Business recovery in takeaway channel was impacted during May'21 but Apr'21 and Jun'21 reported strong recovery. Positively, business recovery in Hong's Kitchen and EkDum reached at pre-covid levels. JUBI has taken marginal price hike to offset inflationary pressure. Also, there has been increase in promotional activities due competition from food-tech apps. However, gross margin remains intact at 77-78%. Also, JUBI has taken c. 9% hike in delivery charges to address inflation; benefit is likely...

While Jubilant FoodWorks (JUBI)'s sales were broadly in line with our expectations, margins surprised positively. The management believes the QSR business in India is at a significant inflection point. In line with this, the company has not only increased its store expansion guidance (150175 stores from 135 earlier) but also announced investments to boost the supply chain. Moreover, in an interesting new thrust, it has shown intent to gradually become a food tech company. On the technology front, JUBI is significantly expanding its...