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HDFC Securities Report
Jubilant FoodWorks Ltd. clocked weak show amidst Covid-19 led lockdown.
Revenue declined by 60% YoY with negative same store growth of 61% YoY (our estimate down 54%).
Recovery in July/August at 70/85% is encouraging as dine-in pressure remained high.
Jubilant FoodWorks is capitalising the situation (weaker competition, delivery friendly demand, and increase in delivery fee by aggregator) by charging delivery fee (Rs 30/order).
It will support operational performance in FY21. Cost control initiatives have resulted into positive Ebitda of Rs 241 million versus loss of Rs 423 million by Westlife.
We believe benign raw material prices, soft rental cost and sustained delivery fee will drive the Ebitda margin in ensuing quarters.
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