Jubilant Foodworks shares rally 6% after Q1 results; Bernstein sees Popeyes as strong growth driver. Should you buy?
Jubilant Foodworks shares jumped to Rs 521 apiece on the NSE. The company that operates Domino’s India and Popeyes outlets, saw its revenue from operations increase over 14% YoY to Rs 2,570 crore during the April-June quarter of FY27, from Rs 2,252 crore reported in the year-ago period.
EBITDA grew over 10% YoY to Rs 360 crore, while Domino’s India delivered 6.5% order growth and 2.5% LFL growth despite cycling a strong 11.6% LFL growth in the same quarter last year, the company said. It added that Popeyes continued its exceptional momentum, with revenue growth of 97% and LFL growth of over 40% for the third consecutive quarter. Across the group, the company added net 76 new stores during the quarter.
“Popeyes is emerging as our second significant growth engine. The brand delivered 40%+ LFL growth for the third consecutive quarter, and its Average Daily Sales have reached levels comparable with established players in the category. We are increasingly confident that Popeyes can become a scaled national brand, and we continue to see a long runway for growth in India. Our ambition is to build Popeyes into a Rs 1,000 crore brand over the next three to four years, while remaining disciplined about store expansion and returns,” Jubilant Foodworks said.
Bernstein on Jubilant Foodworks share price
Bernstein has maintained its ‘Outperform’ rating on Jubilant Foodworks shares with a target price of Rs 680, implying a upside potential of around 38%. The international brokerage noted that Domino’s India delivered like-for-like (LFL) growth of 2.5% in Q1 FY27, which was below expectations.
Bernstein sees Popeyes as a strong growth driver, with average daily sales (ADS) currently at around Rs 96,000. Several Popeyes outlets have already achieved ADS of more than Rs 1 lakh, indicating strong traction for the brand.
Despite the softer-than-expected Domino’s performance, management remains confident of delivering a better overall performance in FY27.Also Read | Maharashtra FDA suspends licenses of four Domino’s Pizza outlets over hygiene norms’ violation
Motilal Oswal on Jubilant Foodworks share price
Motilal Oswal has a ‘Buy’ rating on the shares of Jubilant Foodworks, with a target price of Rs 625 apiece, implying 27% upside potential. It remains positive on the company’s medium-term outlook, supported by 5-7% LFL growth potential, strong Popeyes momentum and healthy international performance.
The company is also progressing on margin recovery, with productivity gains, supply-chain efficiencies and calibrated pricing helping offset commodity inflation, it added.
Jubilant Foodworks share price
Jubilant Foodworks shares have gained around 7% in a week and 23% in a month, although they are overall down more than 6% in 2026 so far.
In the longer term, the shares of the company have dropped 18% in one year, but gained 6% in three years and fallen 31% in five years.
Also Read | Jubilant FoodWorks profit rises as Domino’s sales growth picks up
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
