It said channel checks point to higher same store sales growth (SSSG) in the second quarter compared to the first one.
Demand has recovered over the last two quarters, which drives earnings per share (EPS) and target upgrades across the board, Macquarie said.
It said the India like-for-like (LFL) recovery and constructive outlook for the Popeye’s brand drives upgrade for Jubilant Food.
It sees over a 20% FY26-20 earnings before interest tax depreciation and amortization (EBITDA) compound annual growth rate (CAGR) across the space, the brokerage said.
Jubilant FoodWorks reported its first quarter earnings last month.
Its consolidated revenue increased 14.1% to ₹,2,569.3 crore, while its standalone revenue was up 9.2% at ₹1,848.5 crore.
Domino’s India, a Jubilant FoodWorks-operated fast food chain, recorded LFL sales growth of 2.5% in the first quarter.The company added a net 76 stores across the group in the June quarter, taking the total store network to 3,712.
Of the 29 analysts who have coverage on the Jubilant FoodWorks stock, 20 have a “buy” rating, six have a “hold” rating and three have a “sell” rating.
Shares of Jubilant FoodWorks were trading 1.3% up at ₹521.75 apiece. The stock has gained 22% in the past month but is down 5.7% this year, so far.
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