Sharekhan's research report on Jubilant Foodworks
Like-for-like (LFL) growth turned positive in Q4FY24 and rose to 3% in Q1FY25 driven by double-digit growth in delivery LFL; Management expects LFL growth to further improve in the quarters ahead. Acquisition of DP Eurasia (DPEU) has put JFL on track to become a leading emerging markets’ foodservice company with 3,000 stores across six markets and a portfolio of five brands. We expect JFL to deliver a revenue/PAT CAGR of 21%/48%, respectively over FY2024-FY2027E driven by recovery in Domino’s India, sustained growth of Domino’s in other geographies, scaling-up of other brands (Popeyes, Dunkin’, Hong’s Kitchen and Coffy) and better operating efficiencies.
Outlook
We maintain Buy on Jubilant Foodworks Ltd (JFL) with a revised PT of Rs. 800. Stock is valued at 29x/24x/21x its FY25E/FY26E/FY27E consolidated EV/EBIDTA, respectively. Strong growth strategies and recovery in same-store-sales-growth (SSSG) make it one of the best plays in the QSR space.
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