Focus on expanding store network

Company
13 Mar 2024
5 Min read 
  • Jubilant FoodWorks has increased its stake in its Turkey and Bangladesh businesses to close to 100%.
  •  The company acquired a 33% stake in DP Eurasia in 2021, which has now increased to 94.3%.
  •  The total acquisition cost for both businesses is INR12bn, funded with debt and equity.
  •  The standalone PAT for Jubilant FoodWorks was INR2.6b in CY23, while the international business contributed INR1.4b to PAT.
  •  Turkey's foodservice market is growing at a 10% CAGR, with Dominos being the second largest player in the QSR market.
  •  DP Eurasia registered revenue of INR17.5b in CY23 with a PAT margin of 9.5%.
  •  COFFY, a coffee chain in Turkey, has become the 10th largest café brand in the country.
  •  Jubilant FoodWorks plans to expand its store network in both Turkey and Bangladesh.
  •  The company is valued at 55x P/E for its India business and 35x P/E for its international business.
  •  The stock is rated as Neutral, with the focus on the recovery of the India business.
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