New offers to shore up Jubilant Foodwork's volumes, drive same-store growth

Lower prices, expanding market to drive same-store growth, margins

The Jubilant FoodWorks stock has gained 19 per cent over the last month on expectations of improving growth outlook and expanding margins. The company, which had launched its Everyday Value offer last year for medium-sized pizzas, has extended it for regular ones. The new offer, targeting smaller groups, enables consumers to buy two regular pizzas at Rs 99 each.

The new offer, a 24-40 per cent discount to menu prices, is expected to have a similar effect as the previous one. The earlier offer, launched in April 2017, was mainly responsible for Jubilant’s same-store sales (SSS) growth. Same-store sales were 7.5