Jubilant FoodWorks' Sept quarter fails to satisfy high investor appetite

After rallying ahead of results, stock sees a steep 8.7% fall on Wednesday

Jubilant FoodWorks delivered good results in the second quarter of financial year 2021-22 (Q2FY22) but failed to meet high investor expectations. As a result, the extremely highly-valued stock saw sustained selling and fell a steep 8.7 per cent on Wednesday.

The disappointment was mostly on same-store sales growth (SSSG) in Domino’s, which was much lower than consensus estimates. Investors were expecting 30-35 per cent SSSG year-on-year (YoY), whereas it was 26.3 per cent. Another letdown was lower like-for-like growth for stores opened before the previous fiscal, which was 29 per cent. The third area of disappointment was a small dip in