Chinese cuisine brand Hong's Kitchen foray adds spice to Jubilant's menu

Dunkin' Donuts and Domino's Pizza to mitigate near-term impact of the new segment

After a good set of numbers for the December 2018 quarter, the stock of Jubilant FoodWorks (JFL) felt some pressure due to the promoter’s proposal for royalty payments. The stock recovered after the proposal was withdrawn. The other trigger for the stock was the breakeven for its Dunkin’ Donuts business ahead of its internal target. What should help add to incremental revenues is the decision of the company to foray into Chinese cuisine brand Hong’s Kitchen.  

Analysts at HDFC Securities believe that the new venture gives the company entry to a large category and enables it to benefit from the