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.