COMPANY ANALYSIS

Jubilant FoodWorks
 Jubilant FoodWorks
Jubilant FoodWorks Limited is India's largest food service company and a member of Jubilant Bhartia Group.
It holds the master franchise rights for three multinational brands: Domino's Pizza, Dunkin' Donuts, and
Current Market
Popeyes®. The company recently launched Hong's Kitchen, its first in-house brand in the Chinese culinary
Capitalization
market. It also introduced "Ekdum!" to venture into the world of Biryanis, offering a wide selection of
handpicked Biryanis, Kebabs, Curries, Breads, Desserts, and Drinks with real ingredients. INR 22,066 Crores

Industry: -Fast Moving Consumer Goods (FMCG Price Earning

Multiple
Area of Expertise: Production and Service of Food
66.56

Current Market
Price

INR 425.35
Business Model
JFL is the market leader in the pizza industry and presently runs more than 1,701 outlets for Domino's Pizza, Dunkin' Donuts, and Hong's Kitchen. More than JFL
is the market leader in the pizza industry and presently runs more than 1,701 outlets for Domino's Pizza, Dunkin' Donuts, and Hong's Kitchen. More than 30,000
brand ambassadors for the company are dedicated to providing its customers with value.
JFL is the sole developer and operator of Domino's Pizza Restaurants in India, Sri Lanka, Bangladesh, and Nepal. The Company is Domino's largest franchisee
outside of the United States. It currently conducts business in Bangladesh and Sri Lanka through subsidiary firms.
In India, JFL has the sole authority to plan and run Dunkin' Donuts restaurants. Donuts, coffee, drinks, sandwiches, and other products are available from Dunkin.
JFL launched its first in-house brand, Hong's Kitchen, to signal its entry into the Chinese culinary market. In March 2019, the business opened its first restaurant
in Gurugram. The restaurant has a modern, stylish, young aesthetic that is influenced by the vibrant colors and energy of Asian street markets.
It offers the widest selection of Biryanis, which are handpicked from different regions of India utilizing real ingredients. In an open kitchen with a focus on
cleanliness, the biryanis are made right in front of your eyes.
JFL holds the exclusive right to build and operate Popeyes® restaurants in India, Bangladesh, Nepal, and Bhutan. Popeyes® style menu includes the classic
chicken sandwich, spicy chicken, chicken tenders, and other regional dishes.
JFL has a presence all over India, with locations in 371 cities and a committed team led by more than 30,000 employees.
JFL has a network of 135+ HACCP-certified business partners in the food industry.
In FY22, JFL opened a record-breaking 230 new stores and expanded into 48 new cities. The length of the usual delivery is being shortened as they expand their
reach. Currently, less than 20 minutes are needed to complete more than 70% of delivery orders. It's hardly surprising that as a result, customer satisfaction
ratings increased to their highest-ever levels and are currently the best in the industry.
 SWOT
W Weakness
Internet and AI decreasing significance
of the dealer network, JFL must create
S Strengths a costly and vast supply chain network.
The corporation may charge more
Local monopolies and niche markets
than its rivals because of its
that businesses like Jubilant
excellent brand recognition in the
Foodworks might take advantage of are
restaurant sector.
quickly disappearing.
By branching out into different
industries outside the services
sector, JFL was able to command
higher prices than its rivals.

O Opportunities
Due to the rapid technology

T Threats advancements are increasing

industry productivity and enabling
The commoditization of services
suppliers to produce a wide range of
industry products is JFL' and other
goods and services
industry participants' main problem.
JFL will see short-term change in
demographics, but long-term margins
will be reduced since people are less
brand loyal and experimental.
Recent Highlights

•In the medium term, Jubilant FoodWorks Limited plans to open around 250 locations in India to expand the popularity of the American
fried chicken chain Popeyes. The global owner of the brand, Restaurant Brands International, anticipates that India's young population
would fuel demand for a number of fast-food brands there.

•Bengaluru saw the introduction of a 20-minute delivery service by Jubilant Foodworks, the company that runs Domino's Pizza in India.
By promising delivery within 20 minutes of the client placing the order, the pizza giant is poised to change the game for quick-service
restaurants (QSR) in Bengaluru and become the first QSR brand to accomplish this feat.

•In the upcoming 12 to 18 months, Jubilant Foodworks would invest Rs 900 crore in India. For Domino's, the corporation intends to open
250 locations nationwide. Out of the overall CAPEX, between Rs 500 and Rs 600 crore will be allocated for digital and shops (including
CAPEX re-imaging and maintenance), and an exchange filing that Rs 300 crore will be put up for commissaries.
Sector-wise Trend

01 ATTRACTI ON TO THE
D2C CHANNELS 02 CONSCI OUS
I NDULGENCES 03 OPERATI ONAL RESI LI ENCY
I N THE SUPPLY CHAI N 04 ARTIFICIAL
INTELLIGENCE

With the increasing switch towards
technology, society is gradually
favoring convenience over
traditional shopping methods, by
choosing the option of direct-to-
consumer sales. The increase in
online ordering has been
exacerbated by the COVID-19
pandemic, as many people feel
safer ordering products online.
Today's customers want
experiences that don't conflict
with their health and financial
goals. People are still primarily
drawn to FMCG products for their
taste and enjoyment, but there is
a growing demand for more
conscious and affordable
products that offer a truly guilt-
free and enjoyable experience.
Companies across industries have
used cost-cutting strategies such
as shipping overseas, typically in
concentrated areas, to reduce
labor and warehousing costs as
the world has become more
global. Furthermore, cost-cutting
strategies have created avoidable
risks for supply chains and their
overall operations as a result of
volatile input costs.
Machine learning and natural
language processing are
increasingly being used in food and
beverage industry, providing
opportunities for companies to
improve their products and services.
Voice-based systems are designed
to be used by consumers around
the clock and recommendation
engines can provide personalized
product suggestions.
Financial Highlights

PARTICULARS FY 19-20 FY 20-21 FY 21-22 COMMENTS

Increase in the revenue mainly due to

Revenues (INR in crores) 3,927 3,312 4,396
growth in the F&B Segment.

Broadly stable across last three years,

EBITDA Margin 24.06% 25.49% 26.16% affirming stringent inventory policies.

Stable across the three years, showing

NET Margin 7.09% 6.96% 9.74% the stock strength relative to market
volatility pre/post COVID-19.

Decreasing due to the increase in the

ROCE 22.30% 16.13% 19.60% capital employed outrunning the increase
in the Profits.

Decreased in overall sense due to

ROE 24.95% 16.23% 21.61% induction of further share capital, thereby
diluting the distribution of returns.
 Ratio Analysis
OPERATING CASH FLOW
•The company’s Operating cash
flows are increasing over the
years, indicating a strong cash
income generation from the core
business activities to maintain and
grow it’s operations.
GROSS MARGIN
The company’s Gross Margins
have been consistently increasing
indicating that the cost of
production is being optimized, and
benefit being taken from increase
in the top line.
DAYS S A LES OUTST ANDING
•The company’s Days Sales
Outstanding has been on the lower
side in initial period, however, has
increased in the last 2 years
indicating a later receipt of the
payments from the accounts
receivables.
QUIC K R A T IO
The company’s liquidity position
has strong in the last 5 years.
Although there was situation of
over liquidity in the FY 2019 & FY
2020, it has now come down to the
appropriate levels.
Future Outlook
1 FOR THE INDUSTRY
From US$ 110 billion in 2020, the FMCG market in India is expected to grow at a CAGR of 14.9% to reach US$ 220 billion by
2025. By 2025, the Indian packaged food market is expected to double to US$ 70 billion. Increased disposable income in rural
India, combined with low rural market penetration, provides room for growth.
Rising digital connectivity in cities and rural areas is driving FMCG demand (via e-commerce portals). By 2030, the e-
commerce segment is expected to account for 11% of total FMCG sales.

2
FOR THE COMPANY
JFL plans to work quickly to reach its goal of 3,000 stores nationwide by the middle of the decade. This will be accomplished by
successfully implementing the fortressing plan and entering new towns and delving deeper into current cities.
JFL consistently works to raise the value for money quotient. They can provide high-quality meals at a reasonable cost by increasing
process efficiencies and taking other cost-cutting steps.
There are trends in favour of the organised sector and towards digitalization, and JFL is well positioned to take advantage of the
opportunity and grow sustainably thanks to its portfolio of brands and stronger enablers.