Jubilant Foodworks shares rally 6% after Q1 results; Bernstein sees Popeyes as strong growth driver. Should you buy?
Jubilant FoodWorks shares rose to Rs 521 after Q1 FY27 revenue increased 14% year-on-year to Rs 2,570 crore, while EBITDA grew 10% to Rs 360 crore. Domino’s India posted 2.5% LFL growth, while Popeyes delivered 97% revenue growth. Bernstein and Motilal Oswal retained positive ratings, citing Popeyes momentum and prospects for improved margins and growth.
Jubilant Foodworks shares surged by 6% after the company announced a 6% increase in net profit year-on-year for Q1 FY27, reaching Rs 97 crore. This growth was driven by a 14% rise in revenue from operations to Rs 2,570 crore, from Rs 2,252 crore in the same period last year.
The company, which operates Domino's India and Popeyes outlets, reported a 10% YoY increase in EBITDA to Rs 360 crore. Domino's India showed strong performance with 6.5% order growth and 2.5% logistics fill rate (LFL) growth, even though it exceeded its order growth target of 11.6% last year. Popeyes continued to impress with 97% revenue growth and over 40% LFL growth for the third consecutive quarter.
Analysts are optimistic about the company's future. Bernstein has maintained its 'Outperform' rating on Jubilant Foodworks shares with a target price of Rs 680, implying an upside potential of around 38%. The brokerage sees Popeyes as a significant growth engine, with its Average Daily Sales reaching levels comparable to established players in the category. Motilal Oswal also holds a 'Buy' rating on the shares, with a target price of Rs 625, indicating a 27% upside potential.
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