Shares of Jubilant FoodWorks, the operator of Domino’s Pizza in India, surged for the fourth consecutive session on January 6, 2025, climbing by 5% to touch a fresh 52-week high of Rs 796 per share. This rally comes on the back of a strong December quarter update, driving the stock up by 11% in four days and 15.6% over the past month.
Robust Financial Performance in Q3FY25
Jubilant FoodWorks reported impressive financial results for the December quarter:
| Metric | Q3FY25 | YoY Growth |
|---|---|---|
| Consolidated Revenue | Rs 2,156 crore | 56% |
| Standalone Revenue | Rs 1,611 crore | 19% |
Key growth drivers include the acquisition of DP Eurasia and steady demand across its product range. Domino’s India contributed significantly, achieving a like-for-like growth of 12.5% during the quarter.
Expansion Strategy
Jubilant FoodWorks continued its aggressive expansion, reaching a network of 3,260 outlets by December 2024, with a net addition of 130 stores in the quarter. Domino’s India alone added 60 new outlets, bringing its global store count to 2,139 locations.
Market Performance
The company’s shares have consistently outperformed the benchmark:
| Performance Metric | Jubilant FoodWorks | Sensex |
|---|---|---|
| Past Month | +15.6% | -2% |
| Last 4 Days | +11% | – |
Brokerage Insights
The company’s strong Q3 performance has prompted several brokerages to adjust their outlook:
- Jefferies:
- New Target Price: Rs 1,000 (up from Rs 800)
- Key Insight: Expecting mid-to-high single-digit same-store sales growth (SSSG) and margin recovery.
- Kotak Institutional Equities:
- Target Price: Rs 675
- Rating: Reduce, citing expensive valuations.
- HDFC Securities:
- Target Price: Rs 690
- Rating: Add, supported by expected operational improvements and cost optimization.
Long-Term Perspective
Jubilant FoodWorks reached an all-time high of Rs 915.49 per share on October 13, 2021, with a historic low of Rs 16.16 on February 8, 2010. The company’s commitment to growth through store expansion, brand consolidation, and leveraging the QSR sector’s recovery positions it well for future success.
Conclusion
With strong quarterly results, an expanding footprint, and positive brokerage outlooks, Jubilant FoodWorks is poised for continued growth. While valuations remain a concern for some, the company’s operational improvements and strategic initiatives make it a key player in the QSR market.
Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Consult your financial advisor before making investment decisions.
Click here to know more.