Jubilant Foodworks gains on acquiring 10.76% stake in Barbeque Nation

Jubilant FoodWorks rose 3.35% to Rs 2771.65 after the fast-food chain operator announced an investment of Rs 92 crore into Barbeque-Nation Hospitality for an equity stake of 10.76%.

Barbeque-Nation Hospitality operates Barbeque Nation (BBQ) an Indian cuisine, casual dining brand which introduced the concept of live grilling of Kebabs to the Indian market. It owns and operates 138 Barbeque Nation Restaurants in 73 cities in India and 7 International Barbeque Nation Restaurants (as of 30 November 2019). It also has a presence in the Italian cuisine segment under the brand, Toscano.

Barbeque-Nation Hospitality had a consolidated turnover of Rs 742.5 crore in FY 2018-19.

Commenting on the development, Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman, of Jubilant Foodworks said, "We are happy to announce our investment in Barbeque Nation - a differentiated, casual dining restaurant brand of scale with strong unit economics. We are confident that the proposed investment will create value for our shareholders."

Jubilant FoodWorks is India's largest food service company, with a network of 1,264 Domino's Pizza restaurants across 281 cities (as of 30 September 2020). The company has the exclusive rights to develop and operate Domino's Pizza brand in India, Sri Lanka, Bangladesh and Nepal.

The company's consolidated net profit rose 3.82% to Rs 75.77 crore on 18.20% decrease in revenue from operations to Rs 816.32 crore in Q2 September 2020 over Q2 September 2019.

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