Ravi Gupta, CFO of Jubilant Foodworks says the general consumer sentiment has been negative for the quarter and the expected recovery still remains protracted.
India-based food and beverages company plans to rollout 150 Domino's Pizza stores this fiscal. Store rollout guidance for Dunkin‘ Donuts has also been revised from 25 to 30, says Ravi Gupta, CFO of Jubilant Foodworks.
"We see potential for Jubilant Foodworks to rise to a USD 7.4 billion valuation in 10 years. We expect the company to add over 1,800 outlets while growing same-store-sales by 12 percent in 10 years as against 5.4 percent currently priced in," Goldman Sachs report said.
The Domino's Pizza and Dunkin' Donuts restaurant chain operator's same-store sales grew just over 6 percent in April-June, sharply lower than the 22.3 percent growth in the year ago quarter and Ravi Gupta, CFO, says the company is taking taking steps to encourage consumption.
Jubilant Foodworks that runs Domino's Pizza chain in India crashed as much as 8 percent intraday on Tuesday as the brokerage firm Religare maintained a sell rating on the stock with a target price of Rs 1,080 after lower than expected third quarter numbers yesterday.
Noida-based Jubilant Foodworks announced a third-quarter profit Rs 37.7 crore (y-o-y) as compared to a net of Rs 29 crore in the same quarter last fiscal. Explaining to CNBC-TV18, after the announcement of the results, Ravi Gupta, CFO, Jubilant Foodworks says that consumer sentiment in economy has started to weaken and would continue to worsen.
Jubilant Foodworks that operates Domino‘s Pizza and Dunkin' Donuts chain in India reported a 36.63 percent rise in its net profit to Rs 32.34 crore for the quarter ended September 30, 2012 on the back of robust sales.
Jubilant Foodworks reported its first quarter results on Wednesday. Ravi Gupta, CFO, Jubilant Foodworks tells CNBC-TV18 that weak consumer sentiment is being witnessed across the country.