Jubilant Foodworks

Stock Opportunities
307

The new sourdough pizzas(?) launched by dominos India are quite good. Really puts into perspective how bad their regular pizzas are. The taco is fine not that good tbh, grilled chicken and popcorn are quite good. Now, I have not yet been to their other brand stors so wanted to ask some questions-

  1. How have they positioned Dunki cos it generally comepetes with Strabuck for the morning coffee?
  2. Don’t some of their products compete agaisnt one other? Like dominos has drumsticks, burger pizza(technically something unique), chicken popcorn and these products should be popeye’s stars. Same with dunkin having burger(just saw this on their website). If they want they can give dunkin taco. How will/do they deal with haveing this stores in close promixity to each other?
  3. Their chinese and biryani brands, what have they optimised them for? a dine in experience, takeway or delivery(the latter two seem to be the norm for chinese food)

Interested in the stock and valuation seems pretty high.

Thank you

Edit- I write this post and they mess up my order.:downcast_face_with_sweat:

Also, does cheesy point increase own app delivery?

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308

Jubilant foodworks once market favourite at 800 rupees and now at 421 nobody wants to take it. Intersting how price change perspective and narratives.

As far as business is concerned, problems seems to have lower like for like growth, however gross margins have improved due to better product mix, reduced wastage.

Management is saying do not look for quarter on quater nuasance. LPG prices and it’s unavailability is also affecting profitability.

In my opinion, Swiggy and zomato attack the business moat of Jubilant of free home delivery in 30 mins.

Disclaimer: started buying at 423. Technical setup also seems interesting at multiyear base low. Valuation wise , I think it corrected a lot. Would love to know your take…

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