Jubilant still upper crust even as near-term margins slice up stock

Aggressive store expansion, new menu choices ought to boost growth for QSR

Since its July-September quarter (second quarter, or Q2) results last month, the stock of the country’s largest listed quick-service restaurant (QSR) player Jubilant FoodWorks has underperformed its peers and the benchmarks. Domino’s India franchise was down over 16 per cent in this period, compared to peers that shed about 8 per cent on average. The benchmark BSE Sensex was down 2 per cent.

A sharp cut in earnings estimates, on the back of rising inflationary pressures, management’s decision to restrict price hikes, and limited scope for margin improvement in the near term, weighed on the stock.

The company also underperformed