Aggressive expansion, raw material inflation, and competitive pressures to hit Quick Service Restaurant (QSR) player Jubilant FoodWorks stocks and profitability, say analysts
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Jubilant FoodWorks
After a sharp 22 per cent rally in the last week of May, the stock of India’s largest quick service restaurant player, Jubilant FoodWorks, has shed a third of those gains since. While an aggressive store expansion plan and appointment of a new chief executive officer (CEO) are positives from a growth perspective and clear the leadership overhang, margin worries could sustain the downside pressures on the stock in the near term. These concerns have led to a revision of profit estimates by brokerages.
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First Published: Sun, June 12 2022. 17:56 IST
