Motilal Oswal's research report onJubilant Foodworks
We have recently upgraded JUBI to BUY in our QSR thematic in Aug’26, as we believe the company is best positioned among listed QSR players to benefit from a recovery in discretionary consumption. Domino’s Pizza has demonstrated relatively resilient growth, delivering like-for-like (LFL) growth of 6.5% in FY26. LFL has improved significantly in recent quarters, from 0.2% in 4QFY26 to 2.5% in 1QFY27 and 4.1% in 2QFY27. Moreover, Popeyes is emerging as an incremental growth engine, with 97% revenue growth in 1Q and average daily sales (ADS) close to KFC. Besides, its reinvestment in supply chain in the last two-three years is sufficient for ~5000 store network in India; hence, the company would focus on productivity. It will lead to better capital efficiency and operating leverage, which should support margin in an inflationary scenario.
Following the recent stock correction, we believe risk-reward is attractive (at 15x FY28E EV/EBITDA) and maintain our BUY rating with a TP of INR625.
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