Jubilant Foodworks: Today the shares of Jubilant FoodWorks have seen a good boom. The stock rose more than 4 percent to reach the price of Rs 2985. The stock closed at Rs 2868 on Wednesday. However, later the profit in the stock came down. In fact, the company had a master franchisee and development agreement with PLK APAC Pte after which its shares have gained momentum. Since the agreement, the sentiment on the stock has improved. Brokerage houses have also suggested investing in stocks. Brokerage house Edelweiss has suggested Rs 3575 for the stock and brokerage house MK Global has also suggested investing in the stock. In terms of the current price of Rs 2868, it can get 25 percent return.
Jubilant food will increase operations
A statement issued by Jubilant Foodworks stated that the company has entered into a franchise deal with Restaurant Brands International Inc. subsidiary PLK APAC Pte. The Popeyes brand has been purchased by Restaurant Brands International Inc. After this, the brand has grown rapidly in the last few years in Spain, Switzerland, China, Brazil, Sri Lanka and the Philippines. The deal will allow the company to develop and operate the Popeyes brand in India, Bangladeshi, Nepal and Bhutan.
The market size of jubilant food will increase
According to brokerage house MK Global, Popeyes can significantly increase the market size of jubilant food. The deal will provide a new growth driver for Jubilant Food. It is estimated that the chain size of chain QSR chicken is more than 3000 crores, with KFC being a major player with revenue of 2000 crores. Recently Westlife Development has also entered this area in South India.
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Market strong in America
Popeyes was founded in 1972 and is popular for its iconic chicken sandwich and other such products. Its market in America is strong and 25000 stores are running there. But currently, its network is small globally. According to CY18 data, the company operates in the US at a 16–17 per cent store level margin and there is a payback period of 4–5 years. The Popeyes brand will also enter the United Kingdom market and is starting in Mexico in 2021 as well. The company plans to open hundreds of shops in both countries.
