Jubilant Foodworks: Check out the latest target prices

Jubilant Foodworks: Check out the latest target prices


The Street appears aligned on one point: Popeyes, which crossed an average daily sales run rate of ₹95,000, emerging as the brightest spot in Jubilant FoodWorks‘ portfolio. The debate now centres on whether improving demand trends at Domino’s and continued margin discipline will be enough to drive a broader earnings recovery over the next few quarters.

The Noida-headquartered quick-service restaurant operator, which has a market capitalisation of about ₹32,434 crore, reported a quarter that broadly met expectations but left investors looking for stronger demand acceleration in the coming quarters.

Analyst Ratings and Target Prices

Brokerage Rating Target Price
HSBC Hold ₹500
Jefferies Buy ₹650
CLSA Outperform ₹554
Macquarie Underperform ₹360

HSBC expects the recovery in the core Domino’s business to remain gradual and is building in around 5% same-store sales growth in the September quarter currently underway. It also flagged commodity inflation as a key factor to monitor going forward. Domino’s India delivered 2.5% year-on-year growth in same-store sales in the first quarter.

Jefferies believes momentum could improve in the coming quarters, thanks to the low base, better demand, and management initiatives to accelerate growth.

CLSA raised its FY27-FY29 earnings estimates by 12%-14%, citing the fact that gross margin exceeded both its own estimates and consensus expectations by 46 basis points and 40 basis points, respectively. Jubilant’s EBITDA margin expanded 18 basis points year-on-year, largely in line with Street expectations.

EBITDA stands for earnings before interest, tax, depreciation, and amortisation. It’s a measure of the profitability of the core business of any company.

While the management of Jubilant Foodworks maintained its medium-term goal of a 200-basis-point margin expansion, Macquarie remains sceptical. It cautioned that inflation across key raw materials, including milk, fuel gas and edible oils, remains a significant risk.

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