No near term respite for Jubilant FoodWorks, stock down 11% over 2 sessions

Weak consumer sentiment, higher inflation is hurting sales

The stock of the country’s largest listed quick service restaurant (QSR) company, Jubilant FoodWorks is down 11 per cent over the last two trading sessions. Double digit cuts in operating profit and earnings per share estimates for FY24/25 on disappointing December quarter results and muted near term outlook led to the correction in the stock price.

The near term overhang on the stock was on account of lower than expected operating metrics in Q3FY23. The like-for-like (LFL) or same store sales growth was marginally higher at 0.3 per cent and was way lower than Street expectations of a 6 per