Jubilant FoodWorks shares fell nearly 3 per cent on Wednesday following a crash in the shares of its global competitor Yum Brands. Jubilant Food runs the Domino's chain of restaurants in India, while Yum Brands operates the Pizza Hut and KFC restaurants worldwide.
Yum Brands shares crashed 18 per cent in overnight trading in the US after the company missed Wall Street's earnings and revenue estimates. Sluggish growth in same store sales (SSS) in China, which contributes more than half of Yum Brands' operating profit, hit Yum Brands shares, analysts said.
But domestic analysts are more worried about Yum Brands' weak performance in India. Yum Brands' sales declined 9 per cent in the domestic market, led by a sharp 18 per cent decline in SSS growth in the July to September quarter. SSS growth in India was the lowest in the last 19 quarters, analysts said.
Yum Brands' weak performance weighed on Jubilant Food shares, traders said. According to Street estimates, Jubilant Food is expected to report SSS growth of 6 per cent in the September quarter.
As of 10.20 a.m., Jubilant Food traded 2.7 per cent lower at Rs 1,621.80 on the BSE, underperforming the Sensex, which was up 0.35 per cent.
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