Motilal Oswal's research report on Jubilant FoodWorks
Jubilant FoodWorks (JUBI) held its maiden analyst meet in 2025 to discuss its strategic growth initiatives, store expansion opportunities, core capability development, and the way forward. The CEO emphasized the company’s three priorities: 1) Domino’s, 2) Popeyes, and 3) People, as these will continue to provide long-term value for JUBI. Store expansion remains strong in India, with plans to scale up by opening 1,000 more Domino’s stores by FY28. The company aims to reach 3,000 Domino’s stores across 700 cities by FY28 vs the current count of 2,139 stores across 466 cities. In addition, it will set up four more commissaries by FY28. Its goal is to be regional while maintaining an integrated supply chain, with in-house sourcing of key ingredients. The company is adopting a more aggressive approach to product launches across platforms, aiming to expand its consumer base and increase order frequency. New launches like Big Big Pizza and Cheesy Rice are expected in the coming months (attractive price points), alongside their value offerings. For Popeyes, the primary focus is on improving unit economics through higher ADS.
Outlook
The company guided double-digit revenue growth and consolidated PAT margin expansion of c200bp by FY28. Our FY26 and FY27 estimates are below consensus, but largely in-line with management’s guidance. We model our standalone EBITDA margin (pre IND AS) at 12.3% and 12.9% for FY26 and FY27. We model consolidated revenue/EBITDA/Adj. PAT CAGR of 14%/17%/40% over FY25-FY27E. We reiterate our Neutral rating on the stock with a TP of INR715.
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