QSR stocks in demand; Westlife, Jubilant, Devyani, Sapphire rally up to 13%

With expectation of urban demand recovery, analysts at Motilal Oswal Financial Services said they need to see if January trends for QSR companies are sustaining.

QSR share prices today

 

Share prices of quick service restaurants (QSR) companies were in focus and rallied up to 13 per cent on the BSE in Thursday’s intra-day amid heavy volumes in an otherwise weak market on earnings boost. QSR companies, which so far announced December 2025 quarter (Q3FY26) results, posted a slightly higher growth, with margin ahead of estimates, led by pricing action. 

The stock price of Devyani International surged 10 per cent to ₹135.40, extending its Wednesday’s rally. In the past two trading days, the market price of one of India's largest QSR operators has rallied 16 per cent. 

 

At 12:59 PM; Devyani International share price was quoting 7 per cent higher at ₹131.80, as compared to 0.5 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped over 10-fold, with a combined 62.26 million shares changing hands on the NSE and BSE. 

Devyani International holds the distinction of being the largest franchisee of Yum! Brands in India and Nepal. In addition, Devyani International is the sole franchisee in India for several international brands, including Costa Coffee, Tea Live, New York Fries, and Sanook Kitchen. 

Share price of Westlife Foodworld soared 13 per cent to ₹537.50 in intra-day trade. Westlife Foodworld owns and operates McDonald’s restaurants in West and South India through its subsidiary Hardcastle Restaurants Pvt. Ltd. 

The market price of Sapphire Foods India (SFIL) rallied 8 per cent to ₹218 in intra-day deal. SFIL operates restaurants across multiple formats, including dine-in, takeaway, and online delivery, catering to a wide and diverse consumer base. In India, the company holds franchise rights to operate KFC outlets in 10 states and Pizza Hut outlets in 11 states. 

Share price of Jubilant FoodWorks surged 6 per cent to ₹545.45 on the back of a near two-fold jump in the average trading volumes. The Jubilant group has a strong portfolio of brands in emerging markets with franchise rights for three global brands - Domino’s, Popeyes and Dunkin’ – and two of its own brands, Hong’s Kitchen, an Indo-Chinese QSR brand in India, and a café brand - COFFY in Turkey.

Brokerages view on Devyani International, Westlife Foodworld

In Q3, Devyani posted slightly higher growth, with margins ahead of estimate, led by pricing action. January witnessed same-store sales growth (SSSG), though monitor consistency till March, implying that the worst for QSR has likely peaked. Post margin correction in H1, gross margin gains were strong. PH necessitates multi-level interventions for operational turnaround, which may require some time (depending on discussion with Yum Brands and Sapphire), according to analysts at Elara Securities. 

The weak unit economics is a big concern for QSR players, given fast store expansion. With expectation of urban demand recovery, analysts at Motilal Oswal Financial Services (MOFSL) said they need to see if January trends are sustaining. Devyani–Sapphire merger is expected to unlock scale benefits and strengthen execution across brands and geographies. The merger is expected to deliver recurring annual synergies of ₹220 crore (mostly from FY29 onward), driven by lower Pizza Hut operating costs, reduction in overall corporate overheads, and other operational efficiencies, the brokerage firm said in the Q3 result update. 

As regards to Westlife, MOFSL said the demand continued to remain impacted in Q3, with SSSG declining YoY. However, the positive momentum of December has carried over into January, with positive SSSG driven by a mid-single-digit rise in footfalls. Westlife has been aggressive in store additions, which was not the case historically. However, the performance in South India remains a challenge. Therefore, the benefits of its various initiatives may be gradual, the brokerage firm said.  ==============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.