CLSA gives 'outperform' rating for Jubilant Food

Updated : March 25, 2021 02:13:03 IST

The brokerage firm states that it expects the company to continue to expand its landscape.

The company has entered into a master franchise and development agreement for Popeyes Restaurants in India, Bangladesh, Nepal, and Bhutan.

Brokerage firm CLSA has an 'outperform' rating on Jubilant Food, stating that it expects the company to continue to expand its landscape, as it has entered into a master franchise and development agreement with Restaurant Brands International Inc for Popeyes Restaurants in India, Bangladesh, Nepal, and Bhutan. CLSA has set a price target of Rs 3,000 for the stock.

The brokerage firm added that with this initiative, the company is looking to address evolved consumer demand for seasoned chicken offerings. While it is difficult to capture initiatives in the model, the firm continues to see support to already elevated valuation multiples.

Popeyes, the American multinational chain of fried chicken fast food restaurants, was founded in 1972 in New Orleans, Louisiana. It has over 3,400 restaurants in across the world.

Jubilant FoodWorks already owns the franchises of two other international fast food chains in India — Domino's Pizza and Dunkin' Donuts.

A Jubilant FoodWorks press release quoted the company’s chairman and co-Chairman, Shyam S. Bhartia and Hari S Bhartia, respectively, as saying “We are happy to announce the signing of a multi-country agreement to acquire the exclusive rights to operate and sub-license the iconic Popeyes brand in India and neighbouring countries. Popeyes will be an exciting addition to the JFL portfolio and is expected to become one of the key drivers of growth for us in the coming years.”

The release also quoted David Shear, the president, international, at Restaurant Brands International as saying: “We’re excited to introduce our iconic Louisiana-style chicken to a new population in the world that already celebrates and loves bold and delicious flavours. At Popeyes, we believe that the best food takes time, we marinate our chicken for 12 hours in bold Louisiana seasonings, then hand batter and slowly cook it to make it the juiciest and crispiest chicken that I think our guests will ever have.”

https://www.jubilantfoodworks.com/Uploads/Files/721jf-PressRelease.pdf

Published : March 25, 2021 02:13 PM IST

CLSA gives 'outperform' rating for Jubilant Food

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