Jubilant Foodworks Hits Record High After Q2 Results

On Friday, shares of Jubilant FoodWorks Ltd rose as much as 5.8 percent to a new record high of Rs 2,476 apiece on NSE.

On Thursday, Jubilant FoodWorks Ltd, which operates the Domino's Pizza chain and Dunkin' Donuts outlets in India, reported a 3.85 percent jump in consolidated net profit for the September-ended quarter at Rs 75.7 crore.

The company's consolidated revenue from operations was down 18.2 percent to Rs 816.32 crore when compared to Rs 998.05 crore reported in the same period a year ago.

Sales of Jubilant FoodWorks at the fast-food chain was led by strong growth in takeaway and delivery channels as consumers continued to avoid dine-in services.

"The sales momentum continued in October with revenues recovering to 96.2% of last year, driven by delivery growing by 16.3% and takeaway by 64.3%," the company said in its statement.

System sales for Domino's recovered to 82.3 percent of last year's level during the September-ended quarter, the company said as COVID-related lockdown impacted operations at its outlets in the June quarter.

Overall, Jubilant FoodWorks saw a 5.8 percent year-on-year growth in the delivery channel in July-September, while takeaway channel registered a growth of 49.8 percent year-on-year.

CLSA upgraded its rating on Jubilant Food to 'outperform' from 'underperform' and expects the company to benefit from consolidation. It has also raised the target price to Rs 2,250 per share from Rs 2,245 earlier.