Jubilant FoodWorks Q1 Review - New Format, Accelerated Store Openings Positive: Prabhudas Lilladher
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Prabhudas Lilladher Report
We are cutting FY22/23 earnings per share of Jubilant FoodWorks Ltd. by 6.1/3.7% on account of impact of second wave of Covid-19 and lower Ebitda margin estimates on account of cost inflation, higher number of store openings and increased ad spends to promote Popeyes.
We remain constructive on the company given-
increased store opening guidance of 150-170 dominos stores with medium term potenial of 3000 stores,
lower competition given Covid-19 led shakeout,
Increased investment in digital infrastructure to emerge as a food tech company and
ability to capitalise on increasing convenience sales given strong digital/delivery network.
Jubilant FoodWorks has devised a new store format with Dunkin donuts, Hongs Kitchen and Ekdum! under one roof which can significantly increase the scalability.
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