Jefferies raises Jubilant FoodWorks target to ₹650 as Popeyes revenue doubles
Jefferies retained its Buy rating on Jubilant FoodWorks, citing a Domino’s India recovery, 58 net store additions and strong Popeyes momentum. Popeyes revenue doubled year-on-year, while the chain added 10 outlets to reach 88 stores.
What happened
Jefferies retained Buy on Jubilant FoodWorks and lifted its target to Rs 650, citing improving Domino's India demand, store additions and upgrades, and Popeyes'
Key facts
- Jefferies target price: Rs 650, raised from Rs 600
- Target implies nearly 34% upside
- Domino's India LFL growth: 2.5% YoY in Q1
- Domino's India revenue growth: about 7% YoY
- Domino's India added 58 net new stores; total network: 2,513 outlets
- Sub-Rs 250 menu launched
- Around 400 Domino's stores identified for upgrades
- Adjusted standalone EBITDA: Rs 220 crore, up 7% YoY
- Pre-Ind AS EBITDA margin: 12.1%
- Medium-term adjusted EBITDA-margin expansion target: about 200 bps
- Popeyes LFL growth: 45%
- Popeyes revenue doubled YoY
- Popeyes ADS exceeded Rs 95,000; several markets exceeded Rs 1 lakh
- Popeyes added 10 stores; total network: 88
- Popeyes target: Rs 1,000-crore profitable business
- Popeyes planned additions: 35-40 stores
- DP Eurasia revenue: about Rs 660 crore, up about 28% YoY
- International portfolio medium-term LFL guidance: 5-7%
Why this matters
Popeyes’ rapid revenue growth and 10-store expansion reinforce the strategic value of scaling complementary QSR brands alongside the mature Domino’s network.
What to watch
- Domino's India same-store-sales growth and delivery-order trends.
- Popeyes revenue growth after the base effect fades, plus sales per store and new-store maturation.
- Net store additions versus guidance, especially the mix between Domino's and Popeyes.
- Restaurant-level margin, input-cost inflation, discounting intensity and delivery-platform commissions.
- Consumer discretionary demand in urban India and competitive activity from QSR peers.
- Management commentary on Popeyes break-even timing and expansion runway.
- Accelerate Popeyes openings in high-density metros and tier-1 catchments, while testing smaller-footprint formats.
- Use Domino's recovery to fund targeted delivery, loyalty and value-bundle promotions rather than broad discounting.
- Increase supply-chain localization and shared back-end infrastructure to improve Popeyes restaurant-level margins.
- Highlight quarterly same-store sales, new-store payback and Popeyes unit economics to sustain investor confidence.