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 efficiencies, not only has it