Jubilant Food, which operates Domino's Pizza as well as Dunkin Donuts chains in the domestic market, is expected to report positive same-store-sales-growth (SSSG) in the second quarter against the de-growth of 3.2 per cent in previous quarter and growth of 3.2 per cent for the quarter ended 30th September 2016. The management had expected to improve company's SSSG in July to September quarter.
Profit is seen rising 16 per cent year-on-year to Rs 28 crores and revenue may grow 13 per cent to Rs 663 crores in the quarter ended September 2016, according to analysts polled by the market analysts.
Operating profit during the quarter is likely to jump 14 per cent to Rs 72.5 crores and margin may expand by 10 basis points to 10.9 per cent on yearly basis.
Factors to watch out for would be:
- Softer food inflation may aid gross margins.
- Gross margin expansion may also be limited due to increased promotional spends & lower price offerings.
- Management of the firm had said in Q1FY17 con-call that the company would not increase prices any further in FY17.
- Higher employee & rent expenses may limit EBITDA margin expansion.
- The company undertaking cost control that may aid EBITDA.
- Analysts expect 30 to 35 new store openings in second quarter against addition of 23 (5 year low) in the first quarter.
- Management in Q1 maintained guidance of 1,30,140 dominos stores in the financial year 2017.
Jubilant Food share price is currently trading at Rs 1,105.80, 3.60 per cent or 41.25 points. A total of 21,39,181 shares of the Company have been traded on the counter of NSE aggregating to a total Rs 24,156.92 lacs.
Jubilant Food is one of the top 500 shares recommended by the research and analysis team of Dynamic Levels.
No comments:
Post a Comment