Domino's Franchisee Player Ends Down By Upto 38.33% From 52-Week High:
Should You Buy?
Jubilant Foodworks' stock price ended at a market price of Rs 435.85 on BSE today, it was down by 38.33% from its 52-week high.
This large cap food franchisee giant earnings call meeting was held on February 1, 2023, it shared some insights on the company's performance.
Based on earnings call Prabhudas Liladhar, leading brokerage has recommended investors to buy stock of Jubilant Foodwoorks.
Jubilant Foodworks has grown year on year with the growth in Like for like (LFL), gross margins contracted.
"Revenues grew by 10.3% YoY to Rs13.2bn (PLe: 75.5%).
Store count is steady and delivery sales ratio is good
Domino's store count at 1,760 in 3Q23.Added 59 new stores & entered into 16 new cities during the quarter.
Dunking Donuts store count stands at 24 in 3Q23.New businesses - Hong's Kitchen / Ekdum!
/ Popeye's store count stands at 12/6/12 (-2/0/+4).OLO to Delivery sales ratio stands at 97.7% in 3Q23 vs 97.6% in 3Q22.
Buy stock of Jubilant Foodworks with a price target of Rs 567
JUBI remains on course to open 250 Dominos stores in FY23 (193 in 9M23).
Popeyes appears to be the next focus brand for Jubilant Foodworks with unit economics appearing in place with 40 - 50 stores planned by FY24.
Loyalty programme - Cheesy Rewards continues to see strong enrollment of 10.6mn users since launch in May'22.
The stock has been picked from the brokerage report of Prabhudas Liladhar, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article.
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By Aditi Murkute Goodreturns