The March-quarter results of Jubilant FoodWorks missed the Street estimates both on top line growth as well as profitability. The stock, however, gained about 2 per cent in a weak market as management commentary on expansion highlighted the scope for growth. Further, the company’s portfolio expansion into new categories would help diversify its presence in key categories and aid in incremental growth.
Though its sales growth of over 14 per cent on the back of 11.8 per cent same-store sales growth and the addition of new stores missed estimates, it was better than its peers Westlife Development (McDonald’s franchise for west and south India) and Burger King India (see table).
As in previous quarters, growth was led by convenience formats of delivery