Shares of Jubilant FoodWorks Limited, one of India’s leading quick-service restaurant (QSR) companies, rallied 4.5% on January 6, 2025, hitting a 52-week high of ₹793.20 on the Bombay Stock Exchange (BSE). This surge followed the company's robust business update for the quarter ended December 31, 2024 (Q3 FY25).
Strong financial performance in Q3 FY25
Jubilant FoodWorks reported a provisional consolidated revenue of ₹2,153.2 crore for Q3 FY25, marking a year-on-year (YoY) increase of 56.2%. On a standalone basis, its revenue rose 18.9% YoY to ₹1,611.1 crore. These numbers reflect the company’s strong operational momentum and its ability to drive growth across markets.
Domino’s India, the company’s flagship brand, posted a Like-for-Like (LFL) growth of 12.5% during the quarter. In contrast, Domino’s Turkey reported a decline of 3.2% in LFL growth, attributed to the challenges in the Turkish market.
Expanding store network
As of the quarter’s end, Jubilant FoodWorks operated 3,260 stores across six countries: India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia. The company added 130 net new stores during Q3 FY25. Domino’s India led this expansion with 60 net new stores, bringing its total to 2,139 outlets, while Domino’s Turkey added 25 stores, reaching a total of 738 outlets.
Strategic partnerships and diversified portfolio
Jubilant FoodWorks recently signed a Memorandum of Understanding (MoU) with Coca-Cola India, securing principal terms for the purchase of sparkling beverages and other products. This collaboration is expected to strengthen marketing efforts and boost customer engagement.
Apart from Domino’s Pizza, the company holds franchise rights for international QSR brands such as Popeyes and Dunkin’. It also operates local brands like Hong’s Kitchen, an Indo-Chinese QSR, and COFFY, a café brand in Turkey.
Stock market and analyst outlook
The surge in Jubilant FoodWorks’ share price significantly outpaced the broader market performance, with the BSE Sensex and NSE Nifty rising modestly by 0.1% and 0.15%, respectively, during the same session. Over the past month, Jubilant’s stock has gained 15.6%, compared to the 2% decline in the Sensex.
Global brokerage firm Jefferies raised its target price for Jubilant FoodWorks to ₹1,000 from ₹800, citing expectations of mid-to-high single-digit growth in same-store sales. Meanwhile, Kotak Institutional Equities increased their target price to ₹675 but maintained a ‘Reduce’ rating due to valuation concerns. Analysts anticipate a gradual recovery in margins, driven by operational improvements and strategic initiatives.
Investment potential
The recent developments and strong Q3 performance highlight Jubilant FoodWorks’ growth trajectory, making it an attractive option for those looking to invest in stocks in the QSR sector. The company's robust store network, diversified portfolio, and strategic partnerships position it well for sustained growth. However, investors should consider valuation metrics and market dynamics before making decisions.
Jubilant FoodWorks continues to focus on scaling its operations and enhancing customer experiences, reaffirming its position as a leader in the QSR space. With its proactive strategies and strong brand equity, the company remains poised for future success.
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