Company Analysis

Recent Highlights

Jubilant FoodWorks has entered into a landmark multi-

country agreement with a US fried chicken fast-food
chain, Popeyes- to establish Popeyes® restaurants in
India, Nepal, Bangladesh and Bhutan.

Jubilant FoodWorks, with its existing strong portfolio, has

ventured into the biryani restaurant business under the
brand name – “Ekdum”. Further, it has also invested in a
kebab chain, Barbeque Nation and expanded its Chinese
food chain – Hong’s Kitchen.
 Recent Highlights

Domino’s Pizza also launched India’s first plant-based

pizza, “The Unthinkable Pizza”, and has exclusive rights
to operate Dunkin’ Donuts restaurants in India.

As of Dec 2020, the company had a network of 1314

restaurants across 285 cities. In response to COVID-19
and expansion strategies, it raised capital from Sands
Capital Management. In the third quarter, the company
reported a 22% increase in PAT from the previous
quarter. Compared to last year’s third quarter, the
company recorded a 0.2% fall in sales but a 21.7% jump
in net profit.
 Stock Snapshot

Despite a weak start to the first quarter of FY21 due to the

COVID-19 pandemic, the company has performed well. The
company has exceeded the expectations, as it kicked off its third-
quarter with impressive numbers. According to analysts, the
company beat both the earnings and revenue forecasts when it
showed a 28% jump in revenues from the second quarter.
 Rules & Regulations
FDI
Allowance of 51% FDI in multi-brand retail and 100%
FDI in single-brand retail

In E-Commerce Sector, the government allows 100%

FDI in the marketplace model, but FDI is not permitted,
in the inventory-based model

Payments and Settlements Systems Act, 2007

According to the law, a ‘payment system’ indicates a
system that enables payment to effect between a
payer and a beneficiary.

A retail entity has to qualify as a payment system by

complying with the relevant rules provided by the RBI
relating to payments.
 Rules & Regulations
Any retail entity must comply with and meet the standards
relating to labelling and packaging set by the Legal
Metrology Act, 2009

All the QSR must comply with FSSAI rules and regulations
which range from, food safety in the kitchen, staff attire
and hygiene, food safety at the inventory, transportation
vehicles guidelines, customer service and general food
safety measures.
 SWOT Listing
Strengths Weakness
Strong brand name, presence in the The company has limited
country and across neighboring countries options to cater to health-
Differentiated new and innovative product conscious people
offerings like “The Unthinkable Pizza”
Robust supply chain management ;
negative cash conversion cycle ; strong
net cash flow from operations
Debt-free company with ROE of 23.51%

Opportunities Threats
Huge demand from online platforms in Intense and rising
Consumer food sector. Especially during competition from small or
pandemic, majority of the consumer food unorganized retailers
orders were made through Changing consumer habits
apps/websites. towards healthier food
Home-delivery-only kitchens (Cloud choices
kitchens) offering increased operational
efficiency
Growing working population and hence,
increasing income are two key growth
drivers for the company
 Prospects
Jubilant FoodWorks expects to increase the number of
locations of Hong’s Kitchens to 15 restaurants by the end of
FY21. This is based on the feedback received on the quality of
service and encouraging recovery post the first wave of
COVID-19.

The company is looking to convert Dunkin Donuts to a smaller

kiosk-like store from the current dine-in format. The company
has seen a hearty response to new locations in such a format.

The company has started offering Hindi as a language option

in the Domino's app, and another regional language support is
in the pipeline. This will make the ordering experience more
personalized and drive sales growth as new consumers, and
high-frequency customers are coming, primarily through the
app rather than dine-in or aggregator platforms.
Financial Summary
 Thank you

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