09-Nov-2026 08:26:37
JPM on Jubilant FoodWorks ; Neutral, TP Rs 520
Q2 standalone EBITDA (+12.4% y/y) offered a marginal beat vs expectations. Management is cautiously optimistic on the outlook (relying more on own initiatives vs broader industry momentum), targeting 5-7% LFL growth for FY27, with Q3 tracking to plan and delivery momentum remaining healthy Dine-in/takeaway (growth turned positive but still soft), innovation (to support ticket size) and calibrated pricing should provide incremental growth levers. On margins, despite commodity and operating-cost inflation, JUBI intends to deliver improvement through pricing, lower discounting, mix and cost efficiencies – reduction in losses on new formats is tracking ahead of expectations but stiff COGS/fuel and wage inflation have stalled margin progression for Domino's. Popeyes posted 8% q/q revenue growth (11 new stores added) and remains a key medium-term growth engine, although expansion will stay disciplined until restaurant-level economics strengthen
JUBILANT FOODWORKS LTD