Jubilant FoodWorks Share Price Drops After Domino's Turkey Disappoints In Q1 Update

Jubilant FoodWorks Ltd.'s share price fell by 3.05% on Monday despite the release of a robust first quarter business update.

The operator of Domino's Pizza reported a consolidated revenue from operations of Rs 2,261 crore for the first quarter, marking a 17% year-on-year increase. Standalone revenue saw a rise of 18.2%, reaching Rs 1,702 crore. The company also expanded its footprint by adding 73 new stores, bringing the total store count to 3,389.

Domino's India, a key segment for Jubilant FoodWorks, showed a 11.6% like-for-like growth. However, the performance of Domino's Turkey was less encouraging, with a 2.2% decline in LFL growth.

Morgan Stanley maintained an 'overweight' rating on Jubilant FoodWorks with a target price of Rs 781, noting that Q1 results were in line with expectations. The company achieved double-digit like-for-like growth for the third consecutive quarter, with a top-line increase driven by 11.6% LFL growth, surpassing the estimated 10% same-store sales growth, and a 10% year-on-year increase in store count.

The scrip fell as much as 3.03% to Rs 688.50 apiece. It pared losses to trade 1.70% lower at Rs 698 apiece, as of 09:32 a.m. This compares to a flat NSE Nifty 50 Index.

It has risen 21.57% in the last 12 months. Total traded volume so far in the day stood at 6.1 times its 30-day average. The relative strength index was at 51.

Out of 23 analysts tracking the company, 17 maintain a 'buy' rating, eight recommend a 'hold', and eight suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 22.1%.