Domino’s operator Jubilant Foodworks falls 6% on reports of bugs in seasoning sachets
Deutsche Bank, in its report, stated that the issue could be very dangerous for the franchise in India.
Shares of Jubilant Foodworks’ lost over 6 percent intraday on Wednesday after Deutsche Bank raised concerns on bugs being found in Domino’s Pizza’s seasoning sachets.
The global financial research firm said that live bugs were found in the seasoning sachet and such an incident could potentially be serious for Domino’s franchise in India, CNBC-TV18 reported.
Furthermore, the reports of worms found in pizza reminded it of incidents such as worms in chocolate in case of Cadbury and lead in noodles faced by Maggi. It also highlighted a similar incident of pesticides in cola.
Deutsche Bank said that such issues can snowball quickly unless it is managed effectively.
The company was in the news recently when it introduced changes to its menu and brokerages were positive on the stock a well.
At 14:36 hrs, Jubilant Foodworks was quoting at Rs 1,362.45, down Rs 62.75, or 4.40 percent, on the BSE. It touched an intraday high of Rs 1,422.70 and an intraday low of Rs 1,337.35."This is with respect to a Consumer Complaint received on September 11, 2017 regarding oregano sachets, supplied by one of our vendors, in an outlet in Gurugram. The company has since carried out a comprehensive inspection across vendors and stores and would like to reassure that all our food ingredients are safe for consumption and we have not received any other complaint of this nature," Jubilant FoodWorks said in a statement.