Jubilant FoodWorks (JUBI) is our top pick in the quick service restaurant (QSR) space, given its efficient business model, with emphasis on success in delivery (70% of sales prior to the COVID-19 outbreak). This gives it a huge advantage over peers, where lease rental and overhead costs are high, stated Motilal Oswal Financial Services.
Motilal Oswal has maintained 'Buy' rating on Jubilant FoodWorks with a target price of Rs 4,850 per share.
"SSSG (Same store sales growth) is likely to remain robust, driven by tailwinds towards delivery-based and organized players once the pandemic ends. With the addition of technology and ‘value’ moats in recent years, JUBI’s business has strengthened further. It has the best Balance Sheet and a consistently high RoCE of over 20%," the broking firm added.
"With an accelerating shift from unorganized and small peers, the chain restaurants market is expected to grow by more than 19% CAGR over the next few years. JUBI is expected to outperform the market," it said.
Disclaimer: IRIS has taken due care and caution in compilation of data for its website. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
| 
