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Jubilant Foodworks continues to disappoint

Rich valuations fail to factor in the slow and painful process of recovery ahead

Sheetal Agarwal  |  Mumbai 

Though Jubilant Foodworks’ net profit was pulled down by one-offs in the March 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 offer in the quarter further impacted SSSG. As the company focuses on improving the SSSG as well as driving operational ...

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Jubilant Foodworks continues to disappoint

Rich valuations fail to factor in the slow and painful process of recovery ahead

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 ... Though Jubilant Foodworks’ net profit was pulled down by one-offs in the March 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 offer in the quarter further impacted SSSG. As the company focuses on improving the SSSG as well as driving operational ... image
Business Standard
177 22

Jubilant Foodworks continues to disappoint

Rich valuations fail to factor in the slow and painful process of recovery ahead

Though Jubilant Foodworks’ net profit was pulled down by one-offs in the March 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 offer in the quarter further impacted SSSG. As the company focuses on improving the SSSG as well as driving operational ...

image
Business Standard
177 22