Jubilant Foodworks extends rally to 4th day, hits fresh 52-week high on positive Q3 update

Over the past month, Jubilant FoodWorks’ share price has surged 15.6 percent

Shares of Jubilant Foodworks surged for the fourth consecutive day on January 6, climbing up to 5 percent to hit a fresh 52-week high of Rs 796 per share, following positive December quarterly business update. This rally has driven the stock of the Domino's Pizza franchise to 11 percent gain over the past four days.

The company reported 56 percent year-on-year (YoY) growth in consolidated revenue for the December quarter to Rs 2,156 crore, driven in part by the acquisition of DP Eurasia. On a standalone basis, revenue rose 19 percent YoY from last year's Rs 1,611 crore.

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The strong performance was driven by steady demand across its product range, particularly for Domino's India, which posted a like-for-like growth of 12.5 percent in Q3FY25.

The company also continued to execute its expansion strategy, with its store network reaching 3,260 outlets by the end of December 2024, marking a net addition of 130 new stores. Domino's India contributed to this growth by opening approximately 60 new stores, bringing the total number of outlets worldwide to 2,139.

Global brokerage Jefferies recently raised its target price for Jubilant FoodWorks shares to Rs 1,000 from Rs 800, expecting same-store sales to grow in the mid to high single-digit range. The firm believes the company’s margins, which hit their lowest point in early 2024, are now positioned for further improvement.

Kotak Institutional Equities also increased its target price to Rs 675 but maintained a ‘Reduce’ rating on the stock, citing expensive valuations.

Meanwhile, HDFC Securities assigned an "Add" rating with a target price of Rs 690, anticipating strong operational performance in FY25 for the QSR space. The brokerage expects same-store sales growth (SSSG) recovery and cost optimization efforts to support margin improvement.

Over the past month, Jubilant FoodWorks’ share price has surged 15.6 percent, outperforming the benchmark Sensex, which declined by 2 percent.

Jubilant FoodWorks reached an all-time high of Rs 915.49 per share on October 13, 2021, and its lowest price of Rs 16.16 on February 8, 2010.

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