Jubilant FoodWorks: Analysts cut earnings forecasts by up to 14% post Q3

Jubilant's decision to stop disclosing SSSG is a negative development, and any further deterioration in disclosures by the company could impact its multiples in the future, analysts said

Analysts have turned cautious on Jubilant FoodWorks’ near-term trajectory after its weaker-than-expected December quarter (Q3FY22) results.

The operator of quick service restaurant (QSR) chains like Domino's Pizza and Dunkin' Donuts reported a 7.48 per cent year-on-year (YoY) increase in its consolidated net profit to Rs 133.19 crore for the third quarter ended December 2021. Its revenue from operations at Rs 1,210.77 crore, a jump of 13.23 per cent YoY.

Gross margin decreased by 70 bps YoY to 77.6 per cent, affected by higher input prices. However, operating efficiencies and variabilisation of fixed cost aided the company to post 24 bps