Jubilant FoodWorks is seeing signs of a recovery in its India business, with stronger like-for-like growth at Domino's and rapid expansion at Popeyes. Calibrated price increases, a better product mix and improved gross margins also supported profitability during the quarter. Popeyes is emerging as a second growth engine, with the company targeting revenue of more than Rs 1,000 crore over the next three to four years.
Brokerages largely expect the growth momentum to continue. Jefferies retained Buy and a target price of Rs 650, while CLSA maintained Outperform but trimmed its target to Rs 550. HSBC raised its target price to Rs 510 but retained Hold, citing the need for greater visibility on sustainable margin improvement. JPMorgan maintained Neutral at Rs 520.
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Jubilant FoodWorks Q2 highlights (Consolidated, YoY)
- Net profit up 9.7% to Rs 70.2 crore from Rs 64 crore.
- Revenue up 11.5% to Rs 1,885 crore from Rs 1,690 crore.
- Ebitda up 12% to Rs 372 crore from Rs 332 crore.
- Ebitda margin at 19.7% versus 19.6%.
Here's what brokerages are saying after Jubilant FoodWorks announced Q2 results:
CLSA
- Maintained 'Outperform'; target price cut to Rs 550 from Rs 554.
- Retained FY27 Domino's like-for-like growth guidance of 5–7%, implying an acceleration in the second half.
- Targets Popeyes revenue of Rs 10 billion over three to four years, supported by expansion.
- Pricing, product innovation and sourcing efficiencies are expected to offset inflationary pressures.
HSBC
- Maintained 'Hold'; target price raised to Rs 510 from Rs 500.
- Domino's India like-for-like growth improved to 4.1% in Q2 from 2.5% in Q1.
- Domino's delivery business grew 11.3% year on year.
- Management said Q3 was tracking broadly in line with FY27 expectations.
- Sees growth improving but awaits visibility on sustainable margin improvement.
Jefferies
- Maintained 'Buy'; target price at Rs 650.
- Retained FY27 Domino's like-for-like growth guidance of 5–7% and medium-term margin expansion target of 200 basis points.
- Popeyes targets revenue of more than Rs 10 billion in three to four years, supported by 40–45 annual store additions.
- Raised FY27–FY28 EPS estimates by 6–7%; dine-in recovery and pricing support growth.
JPMorgan
- Maintained 'Neutral'; target price at Rs 520.
- Management targets 5–7% Domino's like-for-like growth in FY27, supported by delivery and dine-in recovery.
- Store upgrades, product innovation and pricing are expected to contribute incremental growth.
- Popeyes remains a medium-term growth driver, although inflation limits margin expansion.
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