Jubilant FoodWorks experienced a 2.9% decline in like-for-like growth in the
December quarter due to pressure on dine-in sales and lack of positive impact from the festival season and Cricket World Cup. The company's stock is trading at 60 times its FY26 price to earnings ratio, which is considered high even after assuming a sharp recovery in sales growth and margins over FY24-26. Analysts have downgraded the stock rating to neutral post the December quarter earnings, citing challenges in demand and profitability. Increased competition in the QSR sector, particularly in the pizza category, has led to a decline in Jubilant's stock performance. Delivery business accounts for about 65% of Jubilant's revenues, with growth driven by volume and higher order value. Brokerages highlight competitive challenges within the category and from aggregators, impacting Jubilant's market position. Overall, the road to recovery for Jubilant FoodWorks may be longer than anticipated due to competitive pressures and muted demand in the near term.