Cost inflation overhang set to hit Jubilant FoodWorks in near term

The country’s largest listed quick-service restaurant operator, Jubilant FoodWorks, saw its share price end sharply lower as the Street is worried that high inflation will eat into its margins.
 

The stock was down 7.55 per cent in trade on Wednesday and ended at Rs 566.45 per share.
 

The management also called out the high inflation impact on its gross margins at a conference call with analysts, post results.
 

“We've continued to face high inflation. This has significantly impacted our gross margin, which came in at 76.2 per cent. It was lower by 200 basis points year-on-year (YoY) and 50 basis