In past three weeks, Jubilant FoodWorks has outperformed the market by surging 17% after the company formed a joint venture with Golden Harvest QSR Ltd to launch Domino's Pizza in Bangladesh.
The strong performance in Q3 and cost efficiencies have led to revision of operating profit estimates and target prices
Jubilant also added two Domino's outlets during the period, taking the total count to 1,127
The stock was trading 5.06 per cent up at Rs 2,039.75 on BSE
The stock surged 6% to Rs 2,053 after the company reported a strong Same Store Growth of 17.8% for Domino's in December quarter.
Company more selective in opening outlets and sweating existing ones to boost same-store sales growth
Shares of JFL were trading at Rs 1,640 per scrip, up 2.28 per cent on BSE
The stock hit its highest level since December 2015 at Rs 1,552, up 5% in intra-day trade, extending its Thursday's 5% gain on the BSE
In Q&A, Pratik Pota says firm has shifted from deep discounts to offering assured value, low prices
The company launched 3 new products at Domino's to build excitement among consumers
Same-store sales at 6.5% in Q1 is the best in the past 9 quarters
he company beat street expectations to report a 25% rise in net profit for the June quarter
During the quarter, it also reported exceptional cost of Rs 12.17 cr related to one time separation
Though Jubilant Foodworks (Jubilant)'s net profit was pulled down by one-offs in the March 2017 quarter (Q4), investors have quite a few reasons to worry. Fall in its same store sales growth (SSSG), for instance. SSSG denotes the sales growth from the stores that were operational in the comparable period. Continued impact of demonetisation as well as accelerated pace of store closures (those making losses) impacted this metric in Q4. Withdrawal of the buy one, get one or BOGO offer in the quarter further impacted the SSSG. As the company focuses on improving SSSG as well as driving operational efficiencies, not only has it added lesser number of stores in FY17, but is also guiding for much lower store adds than it has historically. On one hand, the management is focusing on improving SSSG and the value proposition offered to the consumers, while on the other, it is also driving cost and operational efficiencies to improve store-level profitability. Given the slowing consumption ...
Jubilant FoodWorks had posted net profit of Rs 27.83 cr in corresponding period of previous fiscal
The firm had posted Rs 29.3-crore profit during the same quarter last year
Even as company is taking measures to drive cost efficiencies, rich valuations remain a concern
Despite recent correction, continued demand pressures in the business will weigh on the stock
Its same store growth stood at 4.2% compared to 3.2% during the year-ago period
Improvement in same-store sales growth, clarity on appointment of new CEO are key catalysts